December 8 Pre-market Plan: Continuous Good News Over the Weekend, Can the Market Open High and Rise Further?
1. The news over the weekend is quite encouraging, with two major positive developments concerning securities and insurance. On Friday afternoon, there were already movements in these two sectors; whether this performance can be sustained is the biggest focus for the market's ability to open high and continue rising the next day!
Recently, the market has rebounded from an absolute low point, but the market's trading volume continues to shrink. Although Friday showed an overall rebound trend, the volume was still only 1.7 trillion. Therefore, whether the early trading on the next day can continue to increase volume is the basis for judging whether the high open can be sustained. If the overall volume significantly increases after the market opens, then the probability of the market maintaining strength the next day is very high. In this case, at least it can maintain the bullish reversal of the day, making the upcoming market more worthwhile to anticipate!
The performance of large financial sectors is highly watchable. If the positives are indeed extremely strong, then Ruida will undoubtedly see huge single orders. In this case, the entire large financial sector will be fully driven, and under the leadership of the bull market, the probability of a widespread bullish market performance is very high. Conversely, if even Ruida cannot escape a single order, then no matter how much good news there is, capital may vote with their feet at the open, and the probability of the market opening high and then realizing is very high!
2. For short-term trading, the performance of the main index is more of a supporting factor, while market sentiment is the core of short-term trading! The short-term sentiment on Friday was actually quite high. First, the two high-profile stocks, Haiwang and Haixin, showed a reversal phenomenon, and two strong themes, commercial aerospace and Fujian, demonstrated continuity. This performance is clearly a feast for short-term traders, and if they hit the rhythm correctly, it is easy to reap profits. Whether this sentiment can be sustained will be very interesting to observe in the early trading of the next day!
Haiwang triggered severe abnormal movement on Friday, and the upper reaction to this trigger was very mild. Routine announcements were delayed until Sunday, and Haiwang did not enter the key monitoring list, let alone face a suspension threat. If there is capital guidance the next day, it may become the breakthrough dragon of short-term sentiment. After all, the current market's severe abnormal movements are a hurdle. Without breaking out individual stocks, the market is unlikely to open up significantly. Therefore, whether Haiwang can show a strong performance in early trading is very much worth looking forward to. If it shows strong performance in the auction and can see strong capital support after the open, then the entire short-term sentiment will be completely driven, at least the cautious sentiment of capital will fundamentally change. Conversely, if its auction does not meet expectations, there will be a risk of high-position stocks realizing profits!
3. The top stocks, Anji and Taiyang, are both Fujian direction stocks. From Friday's patterns, Anji is likely to accelerate its trend. If its auction is very strong, the probability of it achieving a high open and immediate limit is still quite high. However, once the market opens and there are obvious divergences in the Fujian direction, whether Anji can see strong support on its limit will still be a short-term focus!
Taiyang faced negative feedback in the auction due to a reduction in holdings on Friday, but then returned strongly with a deep V pattern. This performance is very strong. The next day, it will still be in competition with Anji. If the auction strength reverses, it is not ruled out that this stock will again find its position. Therefore, Anji and Taiyang should be viewed together; the strength or weakness of the auction may likely determine the final result. If the overall sentiment in the Fujian direction is good, it is not ruled out that both stocks will advance simultaneously!
Haixin's reversal is very beautiful, and Haiwang has a strong supplementary rise from Ruikang, while Haixin also has Anji. Moreover, from the perspective of sector sentiment, Haixin's sector heat is more apparent. Once Haiwang can continue strongly, Haixin may follow and challenge serious abnormal movements, especially if Anji can show strong performance at the open. Thus, for Haixin, it is worth watching the performances of both Haiwang and Anji together, as it may also attract capital to support the relay!
The stock with the highest recognition in the Fujian direction should be Guomai. It is a new high limit after a period of continuous adjustment at a high position. It would not be surprising to see acceleration the next day. From the weekend's heat, if it can open 6 points higher in the auction, this stock will show a limit trend. If the auction shows an expectation gap, then be cautious about the risk of realizing profits at a high!
Shida, although it advanced with a bad limit, its short-term pattern is indeed very similar to Hangfa. If the auction shows an unexpected performance, there is a probability of a second wave, especially if market repair is significant, the AI direction may show performance. Conversely, the old themes like Pingtan and Hefei may be easily abandoned, so whether Shida can show a clear weak-to-strong transition in the auction is worth paying attention to, especially if Guomai is particularly strong, it will definitely drive Shida!
4. Commercial aerospace also had good news over the weekend. This direction is popular among retail investors, but after a sustained high, it may take advantage of good news to realize profits. After all, relying on retail investors for a long-term strategy is unrealistic. On Friday, Hangfa's small group clearly showed a trend of both buying and withdrawing. Once the entire commercial aerospace sector shows significant negative feedback, Hangfa can easily move to realize profits. After all, this stock has many profit-taking positions, and capital often prefers to sell off during high periods. Therefore, caution is needed for the relay of Hangfa. If it is really strong, it is crucial to see capital guidance in early trading. If it does not break through the intraday average line after the open, then there is a real risk of significant adjustment in the short term!
Longzhou is the strongest stock in the commercial aerospace direction. Whether it will show divergence at the open is a barometer of whether commercial aerospace can continue. If it shows obvious divergence, then the entire commercial aerospace sector should be cautious about the risk of realizing profits. Whether Longzhou can withstand the divergence and continue to strengthen is a major point of interest. After all, although it broke through the previous high, the overall volume release is not good. If there is significant selling pressure, whether it can attract capital support is an unknown. Therefore, whether this stock can relay depends on the strength of capital support!
Hangji is another stock in the sector with three limits. Its feeling on Friday was that there was significant divergence. Under such a strong overall trend in the sector, only in the afternoon did capital start to support the recovery. Therefore, its auction performance the next day will be another major focus for commercial aerospace. If its auction shows significant negative feedback, then today commercial aerospace will have a major divergence expectation. In this case, caution is needed for the relay in this direction. If it does not show repair at the open, it can easily lead to a crash and drag down the entire sector. Therefore, the performance of Hangji at the open is equally important for commercial aerospace!
The content in this article is for sharing and communication only and should not be considered actual trading advice!
