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Brief discussion - Excessive expectations in the opening auction
Last time, we talked about the opening auction falling short of expectations—so today, let’s talk about the opening auction exceeding expectations.
For beginners, the content is pretty straightforward. Seasoned traders can go straight through the process: hit a like, then do whatever you need to do.
Previously, we said:
“Falling short of expectations” means the result is worse than what everyone expected; “exceeding expectations” means the result is better than what everyone expected.
Take Datang Power Generation as an example: last Friday there was a huge amount of bad momentum with a rotten limit-down board. Today, the expectation should have been below the waterline or a nuclear-button reversal—but after the auction ended, there was a surge in volume turning weak into strength, opening high. This is a fairly classic case of exceeding expectations. This is one of the so-called “leading-stock buy points.”
Something similar happened with Baoguang Co. last Wednesday: it was also a classic case of high-volume selling weakening and then turning into strength.
So you’ll realize my method is actually that simple—brutally simple. If I can do it, then so can you.
Then why, over all these years, are there so few people who reach that level? Is it really “the Way”?
Buying-side divergence, selling-side consensus
Brother Zhao’s leading first pullback (first shadow), followed by the second wave with turnover increasing
Old Zhang’s central-figure leading stock—the trend forming a group and sticking together
Foshan guys’ break of the board and then a reversal back (breakdown then repurchase)
The group leader’s weak-to-strong turn in the leading stock
Turns out the strong players who are known in one area look so ordinary—how could it be that we’re not also strong in our own way?
Maybe countless methods are just appearances. Holding on to your true mind—that is the Great Way.
[Taoguba]
I heard that many brothers have gained enlightenment from my articles. So that Ye guy (somewhat arrogantly) dares to ask everyone for a like—nothing too much, right?
Also, brothers over on Taoxian—give the broadcast-push leaderboard guys some strength. If we can’t reach the top two, we won’t be able to broadcast. If the guys next door see it, they’ll think we can’t push for broadcasts. Let’s work together and pool our strength—let’s push hard together.
Finally, brothers who like it will get rich day by day!