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Whenever there is an uptick, there are always a lot of people shouting about a bull market.

Especially when there is a big positive line in a single day, the discourse about the bull market comes in waves.

This market seems to have been hijacked by the media.

The media here includes both self-media and public media.

Once upon a time, some public media wrote market analysis in a down-to-earth manner, with comprehensive and accurate views, which at least provided us with a lot of effective information.

Nowadays, almost all are headline parties, all are some "sudden", "thunderstorm", "great reform", "earth-shattering good news" and other such terms.

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There were not many self-media before, and the earliest batch of bloggers were on Sina Weibo, mainly sharing technical theories.

Nowadays, basically every day is to analyze all kinds of reasons, guess the rise and fall of tomorrow, not stable, or the script is set.

It's a mess.

This leads to the market constantly shouting about the bull and bear, but there is no actual theoretical analysis basis and system.Because retail investors focus on the bull and bear markets, just by shouting, they can attract traffic, which means they have made a profit.

But in this case, the media has made a fortune, while retail investors have suffered losses.

Because all those who shout about the bull and bear markets are basically following the trend of buying high and selling low.

When the market is rising, they urge you to buy, buy, buy, but when it falls, they suggest you wait and watch, advise you to control your hands, and even ask you to cut your losses.

Bull and bear markets are definitely not just shouted out, but are formed by the market itself.

Without real money, no matter how much you cheer, it is just in vain.

The belief in the capital market is to make money, and other grand principles, no matter how much you talk about them, are of no use at all.

 

Any bull market will definitely have its characteristics.

Of course, the bull market in the future will definitely be different from the bull market in the past.The differentiation of individual stocks is inevitable, hence, the definition of a bull market in the future will definitely be an index bull market.

This is similar to the bull market in the U.S. stock market, where the actual number of stocks that rise is only about 40%.

Because high-quality stocks account for a higher proportion of the weight, the rise in the index leads to a bull market.

Of course, this is only the form and structure of a bull market, not a sign that a bull market is coming.

This only tells us that a bull market where all boats rise with the tide will no longer exist in the future, and it will be more inclined towards a structural bull market.

Whichever direction has a good situation, that direction will have a bull market.

Whichever sector has a promising future, that sector will have a bull market.

Whichever index has more funds, that index will have a bull market.

But these are not signals that a bull market is coming. When a bull market really comes, there will definitely be relevant signals.

I will share some phenomena that will definitely appear.Firstly, in principle, bull markets are formed through actual trading, not through shouting. However, it is possible to predict them through time cycles.

To put it bluntly, if a bear market lasts long enough, a bull market will naturally emerge.

But the specific timing and the exact price levels are actually very difficult to predict accurately.

On the market, one can only confirm the formation once it has actually materialized, not by predicting it beforehand.

So, there are several signals on the market that can confirm the rise from the bottom, indicating the arrival of a bull market, rather than a simple rebound.

Signal 1: The sustainability of trading volume.

The sign of a bull market is an increase in trading volume, but it's not enough to just increase for 1-2 days; it needs to be sustained.

Moreover, this increase in volume should not be just a slight expansion, but a significant one.

The sustainability of trading volume can actually be observed over a period of 3-5 trading days.

Alternatively, one can focus on the changes in volume at the weekly level, to see if there is a noticeable increase in the weekly volume.Reviewing several bull markets, at the very beginning of a bull market, the trading volume is not large, representing a bottom rebound trend.

However, after a period of consolidation, a clear increase in volume will occur, with a significant rise in trading volume, which is very evident.

Moreover, this volume is not released within a few trading days, but continues for several weeks and lasts for months.

Signal 2, rapid breakthrough of long-term resistance levels.

The biggest difference between a bull market and a rebound is not in the short-term trend.

A true bull market is to create a grand and magnificent market trend.

Therefore, one of the confirmation signals of a bull market is the breakthrough of long-term resistance levels.

And here, it is important to emphasize the rapid breakthrough.

Sometimes we will also find some rebounds, with stronger strength, will return to the vicinity of the long-term resistance level, and even break through the resistance level.

However, after hovering for a period of time, it will continue to move down, and the trend has not changed.Only a rapid breakthrough, a breakthrough with significant volume, can effectively reverse the market trend and situation.

Moreover, a rapid breakthrough is also a manifestation of capital's firm entry, and capital happens to be the foundation for the start of a bull market.

Signal 3, the long-term trend has turned around.

The biggest difference between a bull market and a bear market lies in the direction of the long-term trend.

In any bear market, the long-term trend is always heading downwards.

The standard for the long-term trend is the level above the 20-month line.

Some people like to look at the 5-quarter line, which actually conveys a similar meaning.

This is more precise than the annual line.

This trend line is the standard dividing line between bull and bear markets, mainly looking at the direction of the price and the trend line.

Whenever the long-term trend shifts from a decline to an upturn, the cycle of bull and bear can be understood as alternating.Changing a long-term trend is not something that can be accomplished by just a few bullish candlesticks; it requires the cyclical deployment of substantial capital.

The transition from a bear market to a bull market necessitates a large amount of capital and is a long-term strategy.

It is not a mere rebound that can be judged within a few trading days or by a few candlestick patterns.

The so-called long-term strategy is at least on a monthly basis.

It is undeniable that most retail investors have a dream of a bull market in their hearts.

It is precisely this dream of a bull market that supports the battered retail investors to persist in the stock market.

However, the cycle of a bull market is destined to occur only once every 5-7 years, not every day.

To participate in a bull market, one must be patient and pay attention to the signals on the market.

Usually, a bull market cannot be called out.Those who like to call for a bull market are wrong every time they do so.

When these people are wrong to the point of not believing in themselves, are scolded by retail investors every day, and dare not shout anymore, the bull market quietly arrives.

However, when the bull market really comes, retail investors are likely to have very little investment capital left in their hands.

History just cycles like this.

If you review the situation, at the bottom of each bull market, there are piles of bones.

It's not that everyone has cut their losses at the floor, but everyone has long been immobilized and deeply trapped.

The essence of the capital market is a game of capital.

And the market's weather vane always develops in a direction unfavorable to retail investors.

When no one is calling for a bull market, it's difficult, and when everyone is calling for a bull market, the risk is greatly magnified, with crises lurking everywhere.

Rationally view the current market, and take standard signals as the foundation.Pay more attention to the changes in the market, and don't let one or two bullish candles change your judgment on the long-term cycle.

Don't fall before the dawn, and try not to miss the once-in-a-few-years opportunity to get rich.

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