This week will be a key part of the week from a number of perspectives. Fundamentally, policy factors continue to send a strong positive signal, last Friday's meeting still gave the logic of promoting stability and economic development, but the CPI and PPI continued to fall over the weekend, constantly bringing pressure and contradictions at the top end.
These are indeed relatively distorted situations, although the policy has repeatedly stimulated and given substantive measures, but the economic side has not been good, which will undoubtedly continue to suppress investor confidence and investment willingness, thus casting many shadows on the future economic development. This is also the key to the continued downturn.
This makes the market downturn, but also weak and difficult to return, the more you can't get up, the more low the sentiment is, this vicious circle, showing a trend of development relationship. Logically speaking, it is indeed difficult to boost investor confidence before forming an excellent reversal and establishing a right-hand advantage, so the nature of the cycle is still difficult to change.
Indeed, the impact at the fundamental level will still have a disturbance to the subsequent trend. However, as far as the current technical level is concerned, we give a positive prediction, and it is imminent. The logical basis is that the continuous depression has caused multiple cycles to form a continuous extreme value development relationship, which must be revised.
According to the daily structure, any form of re-depression will promote the continued expansion of the technical extremum, and will bring about the change characteristics of the bipolar value, which is not common in the scale index, and it will usually be repaired soon. In general, the single extreme value is corrected within 3-5 trading days.
Therefore, as far as this week is concerned, there will inevitably be an upward ** action, in order to correct the development relationship of the continuous extremum. And if it falls again, it will make the weekly ** also enter the extreme state, which is not common in the weekly **, and the double extreme value is even rarer. Therefore, after the extreme value of the weekly line appears, it will also be corrected at any time.
From this, we make a bold judgment that this week will be big**. Whether it's **later** or directly**, the expectations are very strong. In fact, the real contradiction is not that it is falling, but that it is difficult to continue to expand upwards after the first time, and it will continue to face upward pressure constraints and obstacles, and continue the trend after the extreme correction.
However, as we have previously explained, this week is conditional for an upward trend reversal of the 40-day cycle, which looked significant before last week. However, it is also a good change to be able to quickly** and facilitate the deduction of the 40-day cycle, but continuous efforts are needed to achieve a synchronized reversal of the daily cycle.
This will be the key point in the second half of this week, and it will be meaningful to the evolution and development of the first to really promote the establishment of short-term advantages. However, we explained this week that the downward pressure on the 60-day cycle is significant, and it still takes more than a month to reconcile the contradictions, which means that there will still be significant resistance.
* A see-saw is inevitable, but the ability to reverse the upward and expand horizontally and continue to consolidate the short-term multi-technical relationship will lay the foundation for the reversal of the medium-term structure. This is the trend of the key points of this week and beyond, which can be expected optimistically and positively, but it still needs to be mentally coped and pay close attention to the changes in its possibilities.
In addition, the Federal Reserve's interest rate meeting on Wednesday will still affect investor behavior, which also needs to be closely watched. Overall, this week is more critical, and we are not afraid of falling at present, but we are afraid of pulling up and then pushing down the backhand. In terms of this closing operation strategy, it is still necessary to take the initiative to deal with it. We advocate that before the right-hand advantage is formed, we should not be too aggressive, and we should still control the total risk to cope with fluctuations and grasp the operational initiative.
Specific to the selection and operation of the first class, we must always understand that we should not be in the company of falling stocks, do not take junk stocks, do not play with themes, do not play with concepts, do not listen to news, do not fantasize, and follow the principle of "weekly line-based, only quantity is asking, four conditions, trend is king, eliminating the weak and keeping the strong, and returning to zero every day" to examine and actively respond to the changes and development of the market.
*There are risks and caution should be exercised.
Disclaimer: The content of the article is purely personal views and theoretical arguments, and is only for your reference and should not constitute investment advice**The analysis and description are not recommendations, comments, or recommended operations, and investors should make their own judgments and bear their own risks. ）