Zhan Hao's review: Two key points of the current market

Today, the market opened significantly higher in the early session, and after opening higher, it quickly closed the gap. For the whole day, the market basically fluctuated narrowly around the 20-day moving average line. The trading volume was slightly larger than on Friday last week, but due to the weak trading volume in the afternoon, the market's upward attack failed. Today's weakness is mainly due to the weakness of blue-chip stocks, including real estate, steel, energy, and non-ferrous metals among other blue-chip sectors which all weakened. Even relatively stronger financial stocks also saw a retreat after rising. In contrast to blue-chip stocks, individual stocks performed more actively, with agricultural stocks and consumer-related stocks performing well, but this was not enough to allow the market to break through. In the short term, whether the market can technically strengthen depends on whether it can break through and stabilize above the 20-day moving average line with increased volume. As long as there is a breakout and stabilization above the 20-day line with increased volume, it will inevitably move closer to the 60-day line above. Below, the key lies in the support of the half-year line. If the half-year line cannot provide support, then in the short term, the market will test the support strength of last Friday's gap. Therefore, the short-term battle between bulls and bears hinges on these two critical points. In the medium to long term, various factors including fundamentals, capital flow, and policy are all leaning towards the bullish side. What is currently lacking is technical confirmation. Technically speaking, as long as the 5-day and 10-day lines of the market cross over and break through the 20-day line and form a bull alignment with the 30-day line, it can be basically confirmed that the mid-term adjustment is about to end. Once these four lines break through the 60-day line, it can be confirmed that the mid-term adjustment has thoroughly ended and entered the main uptrend. Therefore, investors need to pay attention to the trend of medium to long-term technical indicators recently, and should notice low absorption when the fall does not go down further, especially for those stocks with huge medium to long-term potential. In terms of operation, for stocks with large short-term rebounds, attention should be paid to selling high, and after the rebound, attention should be paid to buying low. Medium to long-term layout is the main work in October, and positions should be gradually increased in batches during high sales and low purchases. After the technical trend is confirmed, heavy or full positions should be basically completed. At the same time, the method for investors to avoid risks is to absorb low positions. The opportunity to absorb low positions is when the market falls but does not go down further, i.e., when the retreat quickly shrinks in volume or increases in volume but does not fall further and instead rises.

(Note: The latter part of the text seems unrelated to stock market analysis and discusses a book titled "The Gold Game III" by the author, which is mentioned briefly here for context.)