Xu Xiaoming: Monday action strategy

In the last two days of last week, the decline rate began to accelerate, which is not willing to see, because once the market decline accelerates, the wave type exceeds the C wave range of ABC, more like the 3 waves of 123, and the probability of having 4 waves and 5 waves behind it is greater.

And we have no way to determine the low of the 3 waves, because the accelerated decline, each minute cycle has not been passivated or passivated to disappear, passivation disappears is equivalent to no passivation. The absence of passivation means that there is no structure in the short term. Last Wednesday's rise also caused a sequence rearrangement of the main cycle, such as the daily line, if there is no rise on Wednesday, last Friday should be the sequence low 8, the deep index daily series low 9. Considering the daily level, we can also determine the lows, although there is no structure.

But last Wednesday's rise, the daily sequence directly rearranged, the shenzhen index daily series low 9 although still there, but the sequence of the Shanghai Index disappeared, the coordination between the indexes is not good enough, plus the Shanghai Index is the main underlying index, so the structure and sequence can not judge the low, and before this Wednesday, there is no probability of a low.

This requires us to be more patient and have a normal heart to reduce near-term market expectations. There are still two weeks to go until the Spring Festival, and the current decline is not faster than the decline in September, so don't be too pessimistic. Volatility since last year's low in July is 33 days and 23 days, volatility around September 14 is 33 days, volatility around December 13 is 23 points, last Friday just the 23rd day, even if the volatility is in the middle and late stages of the shock decline band at 33 days.

【WeChat public number: sinaxxm, investment Mingdao】