What is the right filling market of stocks?

What is the stock right filling market has always been a hot topic for investors, but many of them lack relevant experience and skills. Today, I'd like to introduce it to you.

Filling in the right to increase interest is very common in A-shares, which can be said to be a special investment operation method. Some people specially look for this kind of stock for band operation.
The following focuses on the "fill in the market" operation method.
First of all, this paper introduces the right to exercise and fill in the right, as well as the so-called filling right market. When a listed company allots shares to the old shareholders at a price lower than the market price, or the warrants issued by the enterprise are exchanged for the common shares at a prescribed proportion, which is called exercise. After the exercise of the stock in the ex right price of a wave of rise, to fill in the process of ex right before and after the process of filling in the right, this market is commonly known as fill in market or ex right market. If the stock price falls after the ex right, it is called "stick right" and the market is called "stick right market".
In the market trading, investors can grasp the exercise date (dividend day), filling in the right market or discount market of the rights bearing shares to carry out investment operations.
The following points can be considered to determine whether there is a right filling market after ex right.
① Listed companies have a good record of capital to profit ratio. This is reflected in the company's continued and stable dividend distribution to shareholders. If there is such a point, it means that the risk of speculation in the right filling market is small.
② The performance of enterprises still keeps a good and rapid growth, so the speed of filling in the right of stock price may be faster.
③ There is no bad attempt to pay dividends. This can be judged by whether the company is offering shares free of charge or requiring investors to invest in the purchase. Companies with bad intentions have lower market recognition and lower capital participation, which may have limited space or take longer to fill.
④ In terms of technology, we should pay attention to three points,
One is that the underlying stock has not been greatly hyped before ex right. If the market hype in the early stage, there will be no good performance after ex right.
The second is the size of stock price gap before and after ex right. It is generally believed that the larger the gap, the greater the space for filling right (it is not necessarily necessary to fill 100%).
Third, look for the best trading point. Many fill in the stock market, the stock price will have a small downward pressure process, once the stock price stabilizes, forms the bottom reversal pattern, you can buy. If the stock price does not form a bottom reversal, but weakens, the expected "fill in market" does not exist.
⑤ Fill in the right market often occurs in the bull market, or in a benign market atmosphere.
⑥ Filling in the stock market does not mean that the stock price will definitely fill the gap before and after the ex right. Some distribution stocks have a high ratio, such as 10 to 10, so the stock price needs to rise 100% to fill in the gap. This is very difficult, especially when the market is not supported.
The above figure is the daily K line trend chart of Gaoyuan software (002063) from May 16, 2011 to November 11, 2011. The huge gap in the picture is caused by the company's share transfers and dividend payments. The stock price "fell" to 18.42 yuan from 23.95 yuan on May 18, 2011, leaving a huge short jump gap.
After ex right and ex dividend (point B), the stock price continued to be suppressed, forming a horizontal trend of gradually rising at the bottom, with low volume during the period.
When the stock price breaks through the short jump gap again in the two trading days before point C, the trading volume is significantly enlarged, and then the three medium and short-term moving average lines of C point form a golden cross, which has explained the beginning of filling in the right market from the technical aspect.
After that, the stock price went up, but it was under pressure after encountering the resistance line formed by the low point a before ex right and ex dividend. The stock price adjusted downward and returned to the lower track of the gap again. After e line was supported by the lower track, it rebounded again and continued to fill the gap. In the end, the stock price closed the gap caused by the dividend allotment by the way of limit and jump the next day, and completed the "filling in the right and interest" market.
F point is the best selling point. From the perspective of filling right market, f point is to draw a full stop for the market and announce the end of the market. From the perspective of K-line technology analysis, point F is subject to double pressure, one is the suppression of the track line on the gap; the other is that the K line of F point is an inverted hammer line with a long upper shadow line, which is a typical bearish signal.
        

Was this article helpful?

0 out of 0 found this helpful