The analysis method of market makers is a comprehensive analysis method that cannot rely solely on graphics, but also needs to refer to techniques and pay attention to the fundamentals and some peripheral situations of the stock.
Before introducing the specific analysis, let's first talk about some peripheral factors.
1. Plate effect. The linkage of sectors has great benefits for market makers' speculation. A sector, as long as there is a leading stock, other stocks only need to be lightly pulled or not pulled higher to rise. At the same time, as this sector has become a clear hot spot in the market, short-term funds will flood in, making it much more convenient to ship. But the linkage between sectors is not permanent. On the one hand, some stocks belong to multiple sectors, and on the other hand, during the foodie stage and after shipment, market makers no longer take care of them, so naturally there is no linkage. So using the analysis method of market makers, it is not advisable to buy stocks that are currently in a linked state, especially when the market recognizes hotspots. Nowadays, when everyone knows that internet stocks in January and February are hot topics in the market, almost all those who chase after them are trapped.
2. Stock price. In the US stock market, stock prices have no meaning for the trend of stocks. In China, there have been no stocks priced at 100 yuan in the past 10 years, and it was not until this year that this limit was broken. There have been almost no stocks priced below 3 yuan in the past two years. This is a strange phenomenon and also a manifestation of speculative markets. In order to lower the stock price, various companies are offering shares one after another. What needs to be discussed here is that when a stock price is low, even if there is no performance or theme, the market maker has sufficient confidence to do so. When a stock price is too high, especially above 20 yuan, the market maker is unlikely to build a position easily, and once it is sideways, the selling potential is very large.
3. Performance. Before 1996, the stock market did not discuss performance, so buying stocks with low P/E ratios was easy to make a profit. In 1997, stocks with a price to earnings ratio of 20 times were once eliminated. Afterwards, everyone paid attention to performance, but they entered a vicious cycle: those with good performance fell all the way, while those with poor performance, especially ST, unexpectedly rose all the way. The main reason is actually the impact of performance on individual investors' holding mentality. For those with low P/E ratios and good performance growth, the stock price is already high, and retail investors are not willing to sell. Naturally, market makers are not willing to do it, which means that the main force will pull in when the market starts. And for those with poor performance, especially those who are losing money, retail investors have a sense of fear that even if they dive, they will cut their meat. Therefore, if market makers can get cheap stocks, they will naturally move up, which is the reason for the rise of ST.
4. News. The current market trend is favorable for shipments and unfavorable for foodies. Of course, this may not be entirely the case in the future, but everyone is still more confident in following this approach.
5. Technology. Mainly indicators. Many market makers like to confront technology, do they have two heads? Rise up! Is it the bottom of the head and shoulders? Fall! The indicator is to make it dull. So although the analysis method of market makers also looks at trends, volume and price, it is completely different from traditional technical analysis. It is best not to look at technical indicators when analyzing market makers, otherwise it is easy to fall for them.
6. Policy. The attitude of policies towards speculation by market makers directly affects their confidence and operational strategies. In 1997, the suspension system for abnormal trading was implemented, and most market makers dared not move around. There are also issues such as suspension, t+1 system, etc. The policies of the Chinese stock market are constantly changing, and we must pay attention to them.
7. Market trend. The above factors have a significant impact on the trend of stocks. Many people can make a profit by only studying one of them and not studying the market makers at all. So when it comes to stocks, you need to be cautious. When you choose a stock, you must be willing to spend time patiently researching it.