Remember my previous posted - don't have to worry about the so called "meh", and do not listen to those so called analyst experts said.........
Shanghai market has gone up 10% over the last seven trading days. If we base on the psychology level 2000 point, SSE in fact has gone up 34%. How much more can she goes? Some people asked me can I enter now? To answer this questions, let's look at another index - Nikkei.
20,833 points, the highest peak in history for Nikkei which recorded in May'00.
After then, it crashed all the way to 7600 in Apr'03.
Then the bull came and brought Nikkei to 18,300 in Feb'07
Global financial crisis, Nikkei dropped all the way to 7000 in Oct'08
After that, we saw Nikkei moved between certain ranges during certain periods. After all, it has a strong support/psychology level between 8200 to 8300.
Then something implemented by the Japanese government which was similar to US QE stimulus. By then Nikkei started to move upward in Nov'12. With much hardship, Nikkei finally reached 17,520 points in mid Nov'14.
Nevertheless, since Y2000, Nikkei never has a chance yet to go above 20,000 point.
Now let us look at Shanghai index.
6124 points, highest peak in history in Oct'07.
After that, it crashed all the way to 1664 in Oct'08
Then the bull came, trying to bring the index back up. Nevertheless the bull was not strong enough. Apr'09 at the level of 3478 , the mama bear came and pounded the index southern.
After that, what we saw SSE moved between certain ranges during certain periods. We saw another similar case as compare with the Nikkei, by then SSE has a strong support/psychology level between 1950 to 2000.
Then something came out which was the 沪港通. With this it brought SSE till date to 2683. An upward of 34% from 2000.
Nevertheless since Y2007, SSE never has chance yet to go above 6000 points. Another similar situation.
Let's look at the zoom in charts. The arrows that I drew. Same pattern, isn't it? So, will you buy now?
We need to understand how big boys move the market. The big boys understand how retail traders/investors trade/invest. Do retail traders/investors know how the big boys move in and out from the exchange market? The answer is "no". By looking at the SSE chart, I see two things. One the recent so called "meh", is only a retracement. Those big boys are still holding on with their tickets/contracts. Two, the retail investors are still standing at the sideline, watching. Here is the problem with the retail traders/investors. By the time they start to go in, the big boys start selling.
Whether is indices and counters, it shouldn't keep going up without any retracement or pull back. Lets look at Nikkei. End May'13, when it came closed to 16,100 resistant level, at 16,000 Nikkei has a major correction of 22%. Observe, which time when it come to close to it resistant level, look for signal, enter on retracement/pull back if you are confident and positive on SSE. But I am confident that SSE can go up to 4000 point, now is only at 2683. Ok, I enter now. But make sure that I observe which time when it come close to its resistant level. If there is signal telling me is time to let go, without hesitation I sell. Remember this, trade what you see and not what you think. Lastly, if you happen to see an index or stock which keep going up without a rest, worst with a very steep uptrend, the advise is stand by, put on your parachute.
Shanghai market has gone up 10% over the last seven trading days. If we base on the psychology level 2000 point, SSE in fact has gone up 34%. How much more can she goes? Some people asked me can I enter now? To answer this questions, let's look at another index - Nikkei.
20,833 points, the highest peak in history for Nikkei which recorded in May'00.
After then, it crashed all the way to 7600 in Apr'03.
Then the bull came and brought Nikkei to 18,300 in Feb'07
Global financial crisis, Nikkei dropped all the way to 7000 in Oct'08
After that, we saw Nikkei moved between certain ranges during certain periods. After all, it has a strong support/psychology level between 8200 to 8300.
Then something implemented by the Japanese government which was similar to US QE stimulus. By then Nikkei started to move upward in Nov'12. With much hardship, Nikkei finally reached 17,520 points in mid Nov'14.
Nevertheless, since Y2000, Nikkei never has a chance yet to go above 20,000 point.
6124 points, highest peak in history in Oct'07.
After that, it crashed all the way to 1664 in Oct'08
Then the bull came, trying to bring the index back up. Nevertheless the bull was not strong enough. Apr'09 at the level of 3478 , the mama bear came and pounded the index southern.
After that, what we saw SSE moved between certain ranges during certain periods. We saw another similar case as compare with the Nikkei, by then SSE has a strong support/psychology level between 1950 to 2000.
Then something came out which was the 沪港通. With this it brought SSE till date to 2683. An upward of 34% from 2000.
Nevertheless since Y2007, SSE never has chance yet to go above 6000 points. Another similar situation.
Let's look at the zoom in charts. The arrows that I drew. Same pattern, isn't it? So, will you buy now?
We need to understand how big boys move the market. The big boys understand how retail traders/investors trade/invest. Do retail traders/investors know how the big boys move in and out from the exchange market? The answer is "no". By looking at the SSE chart, I see two things. One the recent so called "meh", is only a retracement. Those big boys are still holding on with their tickets/contracts. Two, the retail investors are still standing at the sideline, watching. Here is the problem with the retail traders/investors. By the time they start to go in, the big boys start selling.
Whether is indices and counters, it shouldn't keep going up without any retracement or pull back. Lets look at Nikkei. End May'13, when it came closed to 16,100 resistant level, at 16,000 Nikkei has a major correction of 22%. Observe, which time when it come to close to it resistant level, look for signal, enter on retracement/pull back if you are confident and positive on SSE. But I am confident that SSE can go up to 4000 point, now is only at 2683. Ok, I enter now. But make sure that I observe which time when it come close to its resistant level. If there is signal telling me is time to let go, without hesitation I sell. Remember this, trade what you see and not what you think. Lastly, if you happen to see an index or stock which keep going up without a rest, worst with a very steep uptrend, the advise is stand by, put on your parachute.
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