Weekend Effect Continues

2007/11/30 15:20:29

Back to normal starting today.

Today's market was equally normal — continuing the weekend effect. On the larger trend, the oscillation continues around 5000. Next week, as repeatedly emphasized, the 10-week moving average is moving up while the 5-week moving average is moving down, forming the two clamps of the market's oscillation range. The so-called clamps mean that breaking above is a bull trap and breaking below is a bear trap — in short, traps everywhere, and neither bulls nor bears have an easy time.

Yesterday, the greatness, correctness, and glory of the little stool was once again emphasized — it is the talisman for all those with technical deficiencies. This talisman has been emphasized since 6100 points all the way to today. However, even if the little stool is the Little Red Book, you can't just hold it and dance the loyalty dance all day. If you want to improve, you ultimately need to learn to abandon the little stool and learn to make money during oscillations.

Of course, if you really can't learn, then don't bother. Not everyone needs to become brilliantly wise and mighty. If everyone were so brilliantly wise and mighty, wouldn't little stools become a hard sell?

As for oscillation trading techniques, they must be honed through practice. So if you don't have the determination for such training, just buy yourself a little stool — that's more meaningful.

When do you stop using the little stool? When the overall market wind has completely turned around and the bottom has been confirmed — only then is the little stool unnecessary. Right now, we're still in the process of the first bottom probe — meaning the market's first foot hasn't even touched the ground yet. And constructing a major bottom often requires two or even more than two feet to touch ground for confirmation. From this perspective, little stools will remain hot-selling and in tight supply for a while longer.

However, since this month produced a large bearish candlestick, next month there will certainly be a significant pullback rally to attack the body of this month's bearish candle. So for steel warriors, and those preparing to become steel warriors, you can closely watch for the preparation and entry timing of a major pullback rally.

On individual stocks, many thematic stocks can no longer be suppressed. The index actually can't reflect the movements of many stocks anymore. So if you're a steel warrior or preparing to become one, you should focus more on individual stock movements — the index movement can only serve as a reference.

Technically, stocks that have already completed bottom fractal construction on the weekly and monthly charts are obviously the most worthy of attention. Of course, if your hands and feet are particularly nimble, you can also watch for stocks with completed daily bottom fractal construction. For further examination of individual stocks, look at what type of hub position they're in at the larger level — this can further confirm the possibility of a larger-magnitude breakout.

I'm exhausted this week and need to rest properly.

Heading off now, see you.