Stock Market Rise
04/25/2022
If you're not planning to leave the stock market within the next three years and are determined to make stock trading a second career, then you must read these 10 iron laws. They're all bread and butter.
One: This is a common problem for retail investors all over the world. If you lose money, you sell it immediately. You don't look at trend or volume.
The result is unlimited losses and limited profits. It needs to be reversed. Take it if you make a profit, and cut it if you lose a little. My take profit and stop loss rule is 15% profit and profit.
Take profit if profit falls by 10%. If it keeps going up, keep holding it and let the profits run. Stop loss if the buy falls and the loss exceeds 5% of the principal. If you can guarantee profit every time
10%, stop loss 5%, and then operate 100 times, so even if your winning rate is only 50%, your profit can reach 800%, is it difficult? The difficulty lies in human greed and fear
Fear, the unity of knowledge and action.
Two: I have always felt that the indicator of volume is very important. If you learn this, you will crush 80% of trading players. The volume ratio is less than 0.5, and the shrinkage is obvious. The shrinking volume can reach a new high, indicating that the main force is controlled at a high level, which can rule out the possibility of the main force shipping. If it happens to be in the ascending channel, the probability of eating meat is extremely high.
If the daily limit and volume ratio of the stock is less than 1, it means that there is still a lot of room for growth, and the probability of another daily limit is extremely high. Individual stocks are rarely bought.
Three: It is best to hold 2 to 3 stocks. Pain point of retail investors: You will not be short, and the weak are eager to cover their positions. Less principal, more inventory. Most of them are losses. At this time, the most important thing is to reduce holdings. If the trend breaks (eg below the 20-day moving average), sell first. Even in a bull market, my holdings have never exceeded 4.
Four: Don't be in a hurry when you get up in the morning. In the afternoon, there is usually a connecting flight. If there is a sharp rise late in the session, you need to lighten your positions. The probability of a callback the next day is high. The shrinkage will rise and rise again, the shrinkage will fall, and it will continue to fall.
Falling, the high volume has stagnated, the head has been found, the shrinking volume has stopped falling, the bottom has been found, the huge volume has risen sharply, and it will inevitably pull back. The success rate is as high as 85%.
Five: Trend is king, follow the trend. Once the trend is formed, no analysis is required, you must follow it, follow the capital, don't guess, don't predict, don't make assumptions, if you can't judge the trend, you only look at the moving average. The so-called moving average is to divide the quotation into long and short positions. Up, bears are state. Looking at the 5-day moving average in the short term. If the volume breaks, you follow. If the medium to long term trend is trending, you should look at the 20-day moving average.
6: Divergent buying, unanimous selling, divergences produce a premium. This sentence is very classic. My experience is that when a strong stock diverges, it's a buy point. The performance of divergence is the characteristics of continuous speculation and heavy volume of the stock, indicating that the gap between the long and short sides of the stock is relatively large. After the divergence, the follow-up continued to rise. That's a selling point when all investors feel like they can keep going up. Here I summarize a few key points for making handprint inverse treasures:
1. Connect the board, the popularity is high enough, and the market attention is high
2. The hand bank must be killed fiercely, the market price difference should be large enough, and the market's expectation of its reversal should not be too high
3. Two conditions must be met in the process of polysilver selling: changing hands and feet. B. The change in chips should be concentrated at a relatively low level on the day of selling, otherwise it will lead to continuous selling pressure and reverse the market the next day when it reaches a high level.
4. The next day saw a huge sell-off, which means the expected reversal will be flat or higher than expected.
5. From the first cloudy day, the adjustment cannot exceed 3 trading days, otherwise the popularity will gradually dissipate
If the above five conditions are met, the winning rate of the stock will be much higher.
Seven: After making a lot of money, you must learn to short. Retail investors tend to be proud
04/24/2022
Apple Stock Offers a Good Hiding Place in a Rocky Stock Market, Says Deutsche Bank
In less than a week — Thursday, April 28, after close of trading — tech leader Apple (AAPL) is due to report its fiscal Q2 2022 financial results. Yes, it’s Q1 earnings season right now. But as in so many other things, Apple is a bit ahead of the times. For Apple, the calendar has already flipped to fiscal Q2.
As earnings day gets closer, investors are having some early jitters. Since the start of the month, Apple stock is down 5% — but not to worry, says Deutsche Bank analyst Sidney Ho. “While concerns about the China smartphone market and manufacturing shutdowns in China have increased recently,” Apple stocks remains “a good hiding place in this volatile market.” And next week’s earnings are probably going to turn out just fine.
Sure, on the one hand, the rapid spread of Omicron coronavirus in China has caused city-wide shutdowns and shuttered key factories, which could snarl supply chains and delay delivery of certain Apple products to market. iPhone supply chains in particular, however, which account for the majority of Apple’s profits, should be in pretty good shape. And to the extent that demand for iPhones still outstrips supply, that will be good news for both sales and pricing power.
Demand, after all, still looks good for Apple products. In a typical year, Ho notes that Apple’s sales fall as much as 30% sequentially between fiscal Q1 and fiscal Q2, but he believes results will be at least a little “better” than that this year — about a 28% sequential decline for iPhone revenues, and only a 24% decline for revenues overall. As the analyst explains, demand for high end smartphones in particular (and iPhones are considered very high end) “will hold up better than lower-priced options,” leading to the better-than-historical result in fiscal Q2.
Where Ho sees more reasons to worry is in fiscal Q3 (i.e. everyone else’s calendar Q2). Covid-related shutdowns in China will affect supply chains more and more the longer shutdowns drag on. While again, Ho sees Apple working effectively to insulate its marquee franchise from supply shocks, he worries that “outside iPhone, supply chain will likely remain a problem,” perhaps resulting in certain MacBook model deliveries being held up for as long as six to eight weeks.
That being said, the more immediate Q2 numbers should look pretty good next week. Ho forecasts sales of about 60 million iPhones in fiscal Q2, leading to $51 billion in iPhone revenue — up 7% year over year. Overall revenues should be $96 billion — also up 7% — with earnings per share ahead of Street estimates at $1.46.
What’s more, fiscal Q3 should be even stronger for Apple. Looking out an additional three months, Ho forecasts that Apple will sell 53 million iPhones next quarter, leading to iPhone revenue growth of 11% year over year. Overall sales growth should be 12% year over year — $91 billion — with earnings of $1.37 per share — both of which numbers are ahead of Wall Street consensus.
With growth trends intact, Ho wraps up with a reiteration of his “buy” call on Apple, and a $210 price target for Apple stock. This figure implies ~29% upside from current levels.
Unsurprisingly, Apple stock tends to attract a lot of attention — the stock has 29 recent analyst reviews on record, and they include 23 Buys against 6 Holds to give the company its Strong Buy consensus rating. The shares have an average price target of $193.11, indicating room for ~19% growth from the current price of $163.21.
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