After completing the operations of building, shaking, and raising positions, the main force has made considerable profits with the continuous rise of stock prices. In this situation, shipping has become the main task of the main force. And once the main force starts selling, it is the beginning of losses for ordinary investors, and thereafter investors should gradually be eliminated when they hit the high. When the main force ships, there needs to be relevant conditions for cooperation. Firstly, the policy environment: the main force's shipment indicates that the policy has peaked or is about to peak. Policy is the direction of the stock market, technology is the accelerator of the stock market, and funds are the driving force of the stock market. Policy command techniques determine the trend of individual stocks. When policies require the stock market to rise, it is difficult to fall, and when policies require stock market adjustments, it is difficult to rise. Therefore, when the policy reaches or is about to reach its peak, the main force with a keen sense of smell begins to ship or prepare to ship. On October 16, 2007, the A-share market fell from a historical high of 6124 points to 1664 points on October 28, 2008. Prior to this, the management had repeatedly reminded and warned investors to pay attention to risks through various means. In the absence of effective reminders and warnings, the management introduced the "stamp duty" incident on the night of May 30, 2007, which was jokingly referred to as the "midnight chicken crowing" by the public. The series of negative policies introduced before the previous sharp decline were clear signals of policy peaking. The second is index coordination, because only with clever index coordination can the main force achieve better shipping results. If the entire market knows that stocks are going to fall and the overall index is indeed falling, who dares to buy stocks recklessly? Without investors buying, how can the main force sell? Before May 30, 2007, the main players in the market did not make significant shipments, only some stocks with significant gains and a lot of trend following stocks were gradually reducing their holdings in small quantities. After the "stamp duty" incident occurred, the main players woke up from a dream and realized the seriousness of the situation. But at this moment, people are in a state of panic, and under heavy pressure, who dares to buy stocks. And the sudden big bearish sentiment not only trapped ordinary investors, but even the "national team" was deeply involved. Therefore, the management frequently produced positive news, which is why people later made profits from the index but lost money. Imagine, if the management no longer produces positive news but frequently experiences substantial negative news after the "stamp duty" incident, and the index no longer rises but falls sharply, who would dare to buy stocks, and how would the main players sell? Therefore, when analyzing whether the market has peaked and whether the main force is selling, investors must combine the specific market situation and use their brains from the policy and index aspects. Only in this way can investors greatly improve the accuracy of market analysis, have a clear understanding, and be able to cope with the situation with ease. Figure 1 shows the main shipping regions of the Shanghai Stock Exchange during its peak in 2007.
In addition, investors can also find the answer to whether the market has reached the top based on the trading volume of the market. Before the market reaches the top, the popularity is strong, buying is active, and there is strong momentum to go long, and the volume can continue to increase. After the market entered the top zone, sentiment gradually weakened, buying orders became scarce, and the momentum for long positions declined, with a significant decrease in trading volume. The market generally reflected that the index had risen and lost money. Investors should be highly vigilant and be prepared to take risks at any time. Figure 2.
From the perspective of sectors and individual stocks, their rise and shipment are also inseparable from the coordination of the environment and index, and the environment of sectors and individual stocks refers to the environment and fundamentals of the sectors and listed companies. If the company's fundamentals continue to improve, it provides a good excuse for the main investors to speculate. However, if the company's fundamentals have problems, it will also affect the buying sentiment in the secondary market. Once the company's fundamentals have problems, the first to receive news is of course the main investors who control the stock, followed by ordinary investors.