The leading position of ST must be established, well-known, recognized by the market, and supported by certain logic and imagination. Just like now’s Jinglan and previously Chengchang.
Pre-judging the shakeout and A-shock? If the leader cannot hold on and gets shaken out, it’s mainly because it has risen too much and fears a one-word limit-down, making it impossible to rebound. Similar to Zhengping before, first exit to save oneself, then buy back after it rises again. So, what is the most critical issue—what is a shakeout, what is a one-word suppression, and what is the main basis?
How to judge shakeouts and A-shocks? First, look at the ST board index and the environment. The eternal law of the stock market is that when it rises too much, it will fall; when it falls too much, it will rise. If the current leader has risen dozens of boards or even several times, and second, third, and fourth-tier stocks also have eight or nine boards, with miscellaneous stocks having three or four boards, the market is generally thriving, prosperous, and regulation is relatively loose. Everyone is doing well, and the environment is very likely to turn from prosperity to decline. Second, observe whether the next-day stocks at the previous high level have a one-word suppression (excluding delistings), and whether the previous leader experienced a one-word suppression. Third, check if the ST sector index is in panic. If these three points are not met, the leader will not experience a one-word suppression.
When to sell the leader? If the leader does not experience a one-word suppression and hits the limit-down, it must exit the next day; otherwise, do not watch the market, check again after 2:30. Personal summary: the pattern is dead, the prairie is alive. Welcome fellow investors to give more opinions, summarize more, and progress together.
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How to Overcome the Extreme Consolidation of ST Leading Stocks