The main force often carries out shipment operations in the early stages or even the first time when the company's fundamentals are deteriorating. In 2005, Shandong Gold (600547) experienced a sustained upward trend influenced by the continuous rise in domestic and international gold prices. The stock price rose from 8-9 yuan in the second half of 2005 to 47.97 yuan in May 2006. After the stock price reached a high level, international and domestic gold prices experienced a continuous sharp decline during this period. The sharp decline in gold prices will have an impact on the company's performance and will inevitably drag down the stock price. In this situation, the best way to avoid it is to liquidate the stock as soon as possible, so the main force often chooses to sell at a high price, as shown in Figure 3.
Similarly, in 2007, the gold price experienced another upward trend, and Shandong Gold (600547) once again took advantage of the situation to rise. The stock price rose from around 30 yuan in early 2007 to around 200 yuan in September 2007. Later, due to the decline in gold prices and insufficient buying in the secondary market, the stock price fell. Due to the large number of chips held by the main force, it was difficult to sell them when they fell. Therefore, the main force once again pulled up the stock price to attract followers to achieve their selling goals. A double headed high point appeared in the figure, and the selling action was obvious, as shown in Figure 4.
The overall market cannot do without the environment, and the same goes for individual stocks. Therefore, as long as the fundamentals of listed companies change, investors should also be highly vigilant. Even if the stock price is at a low level but not at a high level, as long as there is negative news, even if the main players do not sell, they should wash away the market severely.
In addition, several signs of the market when the index is at the top should also be highly vigilant by investors. When the public opinion media becomes bullish, the sectors and individual stocks have made huge profits and there is no room for growth. Moreover, individual stocks have a continuous large increase in volume and extremely high turnover rate. If these phenomena occur almost at the same time, investors should be highly vigilant, which undoubtedly indicates that the top has arrived.