In the whole process of bull-bear transformation, we should grasp two key time points, namely:
First, the end of the bear market-before the start of the bull market, the white horse stocks will have a big callback.
It is necessary to appropriately reduce the position of white horse stocks, cash in the previous floating profit, and wait until the callback is over before buying.
So why is it that before the end of the bear market and the beginning of the bull market, the White Horse stocks will definitely have a relatively obvious sharp correction?
One is technical reasons, because a lot of money in the bear market is concentrated in white horse stocks to avoid risks.
As a result, White Horse shares have been in an advantageous position in the stock game of bear market.
The stock price is constantly pushed up by the influx of funds, and the rise of the stock price can only rise but not fall.
After rising to a certain extent, there is less and less room to continue to rise, and even some white horse stocks have risen excessively.
In a bear market, the market mainly relies on equity funds. When most stock funds poured into white horse stocks,
White horse shares will face two problems. There is not enough room to continue to rise, and there is also a lack of funds to promote the stock price to continue to rise.
In this case, there is bound to be a trend of high stagflation or shock callback.
The second is the reason of market style preference. Incremental funds in a bull market prefer stocks with large imagination and strong impact.
For white horse stocks with stable performance and stable prospects, but little room for topic and imagination, they are more exclusive.
Moreover, a large number of institutional and individual investors will choose to sell white horse stocks before the arrival of the bull market and transfer their positions to small and medium-sized enterprises.
In this way, before the bull market begins, White Horse shares will not only be unable to keep the accumulation of capital stock, but also have a net inflow of funds.
Obviously, such a net inflow of funds will be reflected in the stock price, leading to stagflation or correction of the stock price.
The third is the issue of medium-term operating performance. The performance of white horse stocks in the bear market is of course the best.
And stocks that have just experienced rapid expansion and suffered short-term setbacks in the bear market, (pigs on the wind)
Moreover, a large number of bull markets are hyped up by topics and gimmicks, and there are no stocks supported by real performance (pigs on the tuyere)
In the bear market where the wind stopped, the performance shrank sharply, which was not as good as that of white horse stocks.
Therefore, investors and investment institutions in the bear market are extremely fond of white horse stocks.