How to determine bull and bear markets and stock buying points

Buy and sell actual operation criteria and methods

Because the operation steps of bull market cbbc, shock market and bear market are different, thus the actual operation of buying and selling at the very beginning must distinguish the bear and bull link that the sales market is in, and also choose different countermeasures and methods in conjunction with the stock market's general stock P/E ratio condition (with Shanghai as the reference indicator value).

(a) How to determine the bull and bear market?

The simple way to identify the bull and bear market is what stock price is not operating on the semi-annual line (250-day line), the annual network for the bull market, the annual line under the promotion of the bear market. Own also fused 30-week line to distinguish, 30-week line significantly up and the stock price on the 30-week line, is a bull market, 30-week line significantly down and the stock price under the 30-week line, is a bear market, 30-week line sideways finishing, there is generally a period of oscillation city (with variability).

(B) bull market operation steps

1、How to determine the buy point?

A better choice of buying point in the bull market is the stock price on the 30-week line and 30-week line upwards (second stage) ssd vps, choose three different areas of blue-chip stocks stocks, when the stock price fell to the 30-day line (visible buy point), 60-day line (the best buy point, but it is difficult to see) as long as the full position to buy, after all the way to the center line to hold positions. Stock market or stock breakthrough of the previous key pressure level or a new high, are the best bull buy!

2, how to choose stocks?

The selection of stocks in a bull market is dominated by blue-chip stocks strong stocks, usually using the following O'Neill-type stock selection techniques.

Process 1, find the recovery in a minimum of one year cycle or good prospects, and the industry sector first step into the second phase of the business (2-3).

Process 2, stock fundamentals selection: 1) each share of the annual rate of return of less than $ 0.35 2) each quarter of the net assets per share in a growing trend (25% above, non-operating suddenly earnings do not count) 3) the outstanding share capital between 200 certain - 500 million 4) the date of listing in 1 year and above 5) many years return on net assets in 10% above, and financial leverage ratio is not easy too large 6) over the years equity cost of capital is not negative, preferably showing a growing trend, preferably cost of equity capital / sales ≥ 5% 7) to determine the reason for a stock company's profit growth is because of the growth in sales or price increases in the main business, or reduce costs, or one-time earnings, remove the main business lower but due to one-time earnings caused by the growth in earnings of the stock, the reduction in costs but not growth in main revenue are sure to (8) If there is an annual report prep or high delivery or the possibility of fixed increase is stronger.

Process 3, technical selection: from the stock fundamentals selected stocks within the following technical selection, 1) find the first big rise in the industry and the annual RPS and quarterly RPS in front, the annual RPS put in front of more than 80% 2) select just break through the frictional resistance area or about to break through the frictional resistance area and the upper side and no cycle time within a year or six months spacing farther resistance area, the higher the RS, resistance The farther the area is from the breakthrough area, breakthrough trading volume is a little larger (this article is optional criteria for the best of the best) 3) the chip concentration is elevated, there is an organization recently intervened in the stocks, select the main body for the last 1-2 years to speculate in the stock more powerful organization new or increased positions in the stocks generally require the stock price of 15 yuan or less.