Wind Tiger, Cloud Dragon — Interviews with Stock Market Masters

Author: Hu Hongxia (Compiler)
Publisher:
Publishing Time: Not available
Features:
Host: Sometimes we find that individual stocks open at a limit-up or reach a limit-up within minutes of opening, and are firmly locked in that position by strong buy orders until the close. Is this type of limit-up suitable for investment?
Hou Xiaoxuan: I believe this is a genuine limit-up, indicating that the main force capital is extremely determined, ready to buy no matter the price. This approach prevents others from jumping in and sends a strong signal to the market.
Li Zhichao: If this occurs when the stock price has just risen from a low level or at a turning point in a slow bull market, it often signifies the start of a rapid rally. The stock may still limit-up the next day, with a substantial overall gain. In such cases, we can decisively follow up for short-term trading. If we already hold such stocks, we should continue holding them until the stock shows a high-volume long green candle, at which point we should sell.
Meng Mingqiang: This type of limit-up can also occur on a high-level plateau where the stock price has already been heavily traded. If the price slowly declines and reaches a key moving average, such as the 60-day line, the main force capital may suddenly push it up, creating the illusion of a new rally. In such cases, we must be cautious. If the plateau lacks volume, and the main force has not sold heavily, we can consider small purchases. However, if the plateau shows clear distribution, it’s best to avoid chasing. Better to let an opportunity slip than to take a risk.
Cao Wei: The key to investing in limit-up stocks lies in chasing the rise, but timing is crucial. First, observe the trend—only chase limit-ups when the trend is upward; avoid chasing limit-ups when the overall market trend is downward. Second, consider the position—do not chase stocks that have already risen significantly to high levels; instead, focus on limit-ups that have just started to move upward. Third, look at the time of the limit-up—stocks that limit-up within the first 40 minutes of the trading day generally have the necessary value for chasing investments. Avoid chasing stocks that rise to a limit-up position in the closing hours.
Sun Xinyi: I believe observing whether a stock’s limit-up is recent is important. Generally, the first recent limit-up is more suitable for investment. If a stock has multiple limit-ups in the recent period, even if they are not consecutive, investors should avoid chasing them lightly.