In the market context where the phenomenon of individual stock differentiation is becoming increasingly apparent, capturing stocks controlled by strong banks can often improve the success rate of operations. Stocks controlled by strong banks often experience abnormal movements, which may be opportunities or traps. Below are several common situations for reference only.
Release a huge amount and jump low. Some Zhuang stocks may experience a drop of more than 5 percentage points at the opening, with millions of shares traded through call auction. This generally indicates a signal that the market maker is not out yet and is now preparing to rise. A large gap or low opening at this time is a behavior of shaking the position and washing out the market.
Unexpectedly, it jumped significantly high. Some stocks did not hit the limit up on the first day, but opened significantly short the next day. There are two possibilities, one is the trial trading action of the banker to see how many sell offs there are above; Secondly, in order to attract people's attention, the main purpose of the market makers is to facilitate shipment, and at this time, the stock price is likely to open high and fall low.
At the close of trading, there was a heavy pressure, causing the daily candlestick to be a long bearish line, but it easily rose back the next day. This is a typical behavior of shaking positions and liquidating stocks. If the 30 day moving average shows a clear upward trend and the stock price increase is not significant, it can be concluded that the market makers are suppressing the market with the aim of shaking positions and collecting more cheap chips.
Unjustifiably increasing trading volume, giving people the impression of trading at a discount. The trading volume is characterized by a large number of buying and selling orders of thousands of lots appearing simultaneously, accompanied by large transactions of thousands of lots, with a daily turnover rate of over 20%, but the stock price is clearly stagnant. This is usually a deliberate attempt by market makers to create the illusion of increased trading volume in order to attract retail investors. At this time, it is necessary to observe whether the 30 day moving average is rising and whether the OBV indicator is rising. If neither of the above two conditions are met, they will resolutely not participate.
During the trading session, there was a 45 degree upward trend or a gentle slope, with the daily candlestick being a continuous small bullish line. However, there were occasional sudden drops during the trading session, forming a "fishing rod" trend. It's okay to appreciate these types of stocks, but it's best not to participate.
When there is abnormal movement in the stock market, investors should not only look at the surface phenomenon, but also think from the perspective of the market maker. The military law states that 'if it is virtual, it is real, but in reality it is virtual', and the stock market is no exception. If you can't understand what the banker is doing, don't participate. This can also be considered a kind of 'great wisdom is foolish'.
