Everyone is discussing that the season of imitation is coming, but I think we still have to wait. The main force has just finished washing the plates, trapping retail investors before starting to pull the plates to release them, isn't this just self-inflicted?
For the season of imitation to truly arrive, two conditions must be met:
The main force must have a large number of chips in hand.
The big cake must restore its upward momentum.
Both of these are not achieved overnight; they need to accumulate slowly.
From the weekly chart, we can see that in the past month or two, the weekly level was almost seven consecutive uptrends,
Now, under the situation where the big cake's weekly chart is showing a solid bearish candle, there have only been two consecutive bearish candles, and today is only Tuesday.
So, the old vine is not very optimistic and feels that there will still be a downward trend ahead.
However, this does not mean that the imitations will not catch up; many imitations are close to historical bottom positions.
Although there is no concept of a bottom for imitations, relatively speaking, there isn't much space below anymore.
The current rebound in imitations is just to reserve space for possible upcoming pullbacks.
Otherwise, if the big cake continues to decline, many imitations will break new lows.
Today, the big cake has dropped below 94,000 again, but most imitations have shown signs of rebound.
Today's greed index is at 55, indicating that the market still has relatively high confidence in the short term.
As for rises and falls, no one can complete it in an instant; the main force's trick can be summarized in two words: panic and time.
But rest assured, I still have a positive outlook for next year's market. Be patient; opportunities are ahead!
