Yesterday, I mentioned that the short side has started to use the old routine again, smashing the long side for one day and then letting the long side pull up for another day. In this way, the trend looks like it is falling and rising every day. Yesterday, A shares three and the market collectively rose. Today, there was indeed a collective decline, although the overall decline today was not large. But I have been saying recently that the short side has shifted its position and concentrated its main efforts on the GEM to compete with the multi-party. From today's GEM, we can see that although the Shanghai Composite Index and the Shenzhen Composite Component Index have not fallen much, they have relatively Compared with the GEM, the decline is not small.
In the past few days, due to the change of the short side's strategy, the position has been transferred to the GEM. After several days of concentrated firepower, the GEM has completely lost its five-day moving average, and the trend has moved down to the ten-day moving average. If the bulls want to save the five-day moving average, it can be said to be very difficult. At present, they can only take a step back and choose to hold on to the ten-day moving average with all their strength. Otherwise, once the ten-day moving average falls, the five-day moving average will most likely cross the ten-day moving average downwards by then. , that will not just turn from strong to weak, but the entire upward trend will basically reverse and turn into a downward trend.
Since the ten-day moving average is of extraordinary importance at this time, the bulls will definitely go all out, so there is a high probability that the long and short sides will continue to compete with each other on the ten-day moving average for a long time. The short side has basically succeeded in destroying the morale of many parties. At this time, the long side is resigned to death. Therefore, the short side will most likely not confront the long side head-on. Instead, it will choose the old routine and use time to consume the remaining energy of the long side. Once the remaining energy of the bulls is exhausted, the two can defeat the bulls, and the shorts can overthrow the bulls with only a small amount of force. After the overthrow, the real downward channel opens.
Taken together, the old tricks of the short side will continue to play for some time, so it is very likely that the three major markets will rebound again next Monday.
This article is only a personal opinion and does not serve as investment advice.
