Jan 29 2011
Heavyweight up hard, tape worrying!
Tape Xianyihouyang today, to close out the small Yinxian, long lower shadow shows that the market has some support near 2100. From short-term indexes, tape is still below the 10 average, hourly chart shows broader market decline is still in Zhu Bo channel, have not changed this afternoon recovery trend in the broader market fell.
U.S. stocks soared yesterday, but instead of A shares fell, suggesting today’s A shares will have no small decline. Unilateral broader market this morning is almost down, then rebound in the accident, and the second and third line stocks, especially shares of Fujian plate and futures rose a greater relationship themes. Regional economic revitalization is the recent hot market, a big hype, the existing Chongqing, Tianjin, after today, is in Fujian, it seems the market is still hot money this way, from the trend may spread to other regions, so that short-term market is still on active possible.
However, with banks and petrochemical heavyweight is still very weak, broader market appeared to be actively involved in big money take some time before the big market. The heavyweight of the trend, some like the bottom of the down relay order some as a platform to market’s future trend may become more complex. Oil and Industrial and Commercial Bank of China from two heavyweights this chart shows, in recent months seem to have triple bottom shape, but in fact more inclined to a descending triangle, this trend and the trend of Hong Kong stocks in the Hang Seng Bank is very similar, while the Hang Seng Bank has been break down, confirmed that the early form is down triangle, so we are very worried about this trend in the heavyweight oil and Industrial and Commercial Bank of China will eventually break down. Big H shares now cheaper than A shares, PetroChina and Sinopec’s H shares only half of A shares, from stock price run along the Rule of least resistance, A shares the general trend should be closer to the H shares. In addition, the heavyweight of the A shares in the tradable share capital will be far greater than the H shares, supply and demand changes in its A shares rise increased resistance. China Merchants Bank, the trend has been poor after full circulation, although the majority shareholder claims to be overweight, but price is not obvious response is too big or plate change, the need for more capital to push stock prices higher.
So, while second and third line stocks also continued to be active short-term potential, but the trend is the decision of the mainstream sector medium-term trend of the key broader market, while bank shares such as the current mainstream shares inaction, increased market concerns about the market outlook on the broader market.