Hotspots, Spreading as Expected
2007/8/13 15:38:41
As mentioned last weekend, hotspots would gradually spread — from the top 50 to the CSI 300 to second and third-tier stocks. Today, the CSI 300 constituents are already buzzing with activity, and quite a few second and third-tier stocks are also getting restless and itching to move. The only imperfection today is that the third type of buy point still hasn't materialized, so tomorrow's movement still has variables. The simplest approach remains watching the 5-day moving average.
For the movement up from 4200, as you can see from the chart below, one type of trend classification has gradually become clear. Points 1-14 form a 1-minute uptrend. From 14-27, it's a 5-minute hub. From 27-32, it's the departure from that 5-minute hub. This departure and its pullback are still incomplete — it depends on developments over the next day or two. If a third type of buy point can form, then what follows is whether a divergence-type movement appears; otherwise, a 30-minute hub will need to form in the 14-27 range.
On individual stocks, there's nothing much to say — still the China-prefix stocks. N days ago, this ID scolded China Bank and Sinopec for not even making new highs, calling it outrageous. Today, they've basically all made new highs. This shows that the China-prefix stocks truly have strength. Of course, what's meant by "China-prefix stocks" is large state-owned enterprises; it's just that this ID is lazy and only buys those starting with the character "China" — easier to remember. Of course, nobody should think that stocks without the China prefix won't go up. Among the original dozen or so old stocks, the China-prefix 000777 still performs the best. Going forward, once the hotspot spreading is confirmed, the others will gradually move too. This ID never buys stocks randomly. When this ID told you all to buy 000777 at 8 yuan, you naturally couldn't have known how the fundamentals would develop, but this ID knew — that's the ability to grasp fundamentals. Technical analysis alone is just one aspect. For example, 600649 — probably to this day, nobody knows what that stock's real story is. But if you research the brilliant capital operation history of its current management, plus Shanghai's plans for SOE restructuring, then of course you'd understand that when this ID told you all to buy at 6 yuan, it wasn't said carelessly. A good screenplay unfolds slowly. This ID often tells you all during the prologue, so if you lack patience, definitely don't buy stocks this ID recommends. Otherwise, may I ask, who could have held 000777 from 8 yuan to now? Probably, apart from this ID, no one who visits here could have.
(Private materials originally here have been deleted. Those destined to see them will; those not destined will not lose anything. A game within a dream — a glimpse into some operations, not wasting this ID's risk in posting it.)
Below is the segmented chart. Go study it, everyone. I have a negotiation at 4 o'clock, leaving first. See you later.
