Intercontinental Oil & Gas Opens Doors to Welcome Guests, Shandong Molong Extends a Warm Welcome

Yesterday, I discussed the opportunities and risks in oil, mainly focusing on the leading stocks that are extremely strong, while the weaker ones are falling behind. This situation is not uncommon, as there is a saying called “collective climax.” The recent strength in oil stocks was itself a rush, and without external changes, it wouldn’t be so lively. But the influx of funds inevitably triggers a collective climax. When the main players are unprepared, issues like daily limit-ups today and limit-downs tomorrow are bound to happen.

If we review $Shandong Molong (sz002490)$ and $Intercontinental Oil & Gas (sh600759)$, we’ll find that these two stocks had a very long buildup period, with the main players continuously operating in the background. So if there’s an opportunity, these stocks might run quickly at the start and remain strong during divergences. This is the power of the leaders. [Taogu Ba]

Observing the leaders isn’t about who rises the highest, but about who has the strongest driving force. Looking at these two, you’ll notice that Intercontinental Oil & Gas is clearly stronger than Shandong Molong. In fact, by examining their past reactions, you can see this more clearly—just open their weekly charts.

If someone recognizes this chart, they’ll see that these two have completely different attack postures. One is a classic W-shaped rally, while the other features a renowned secretive “returning horse” pattern. My mentor told me that once this pattern appears, it indicates a super-strong trend. If we go back to last winter, you’ll be surprised to find that the pattern of Intercontinental Oil & Gas is quite mysterious.

Who recognizes this chart? This is a classic “returning horse” pattern. The key technical point is that when the first large bullish candle starts with volume, followed by three consecutive bearish pullback candles that nearly swallow the body of the large bullish candle at the bottom, and the volume gradually decreases from high to low, then the next day, a volume surge leads to a limit-up. This further confirms the upward trend.

At this point, the mid-term position is basically established. Because there are several support levels ahead, your cost can be below 3 yuan, and the future direction is clear. Don’t even glance at it; just wait for someone to mention a short-term opportunity. Otherwise, in many cases, you’ll doubt your judgment. So, for mid-term stocks, it’s best to have a logical basis, chart patterns, technical support, main force operation trajectories, and a strong main force behind them. It’s also best if the main force here consists of professional stock traders. If they are industry capital or international investment banks, their annual returns might be higher than bank interest, which is profitable. But professional traders have very high expectations.

Let’s look at the top ten shareholders. Except for the first one, which is industry capital—the largest shareholder, i.e., the boss—the rest are all stock traders, including investment firms and ETFs. If these people earn less, they won’t play. The special account for asset disposal must be profitable to keep playing. So, these are all professional trading companies, with the remaining two being prominent individual investors.

Looking at this, all members are involved in trading stocks. Nine of the top ten shareholders of this company plan to drive the stock price up. Doubling the stock price is just the beginning; how many times it can go up is only known by heaven.

Compare this with Shandong Molong, where the difference is huge. Last year’s Q2, Shandong Molong even created a myth.

This clearly shows a concentration of foreign capital, but by Q3, the situation was much different.

Such a lineup can’t be relied upon, so by the end of December, it will be obvious who to choose. Of course, the top ten shareholders for Q1 should have been announced by now, and most of them have changed, which explains the current performance.

The basic necessity and logic of mid-term stock selection are becoming more likely to strengthen. However, the logical line still needs to be predicted. Last year, the US bombed Iran, Israel continued to attack Hamas, and regional armed conflicts in Yemen, Houthi forces, and martyr brigades kept being eliminated. The dollar kept depreciating, the Fed cut interest rates, but oil didn’t react immediately. At this point, only gold, silver, and oil are relevant. Silver responded early, oil responded later. No matter what, there will be a reaction because the most direct feedback of Fed rate cuts is in dollar-denominated commodities, including metals, oil, natural gas, precious metals, and chemicals.

Additionally, the strong feedback from dollar rate cuts makes futures trading more cost-effective. Since November last year, I gradually cleared my mid-term accounts and started investing in futures. How should the reaction be in stocks’ futures products?

Starting from the unrefined doubling journey of White Silver in Hunan, once everything doubled, everyone finally asked, “Can I get in now?”

So, believe early, or forget it. Once the cycle is confirmed mid-term, the trend is set, and the short-term strength is identified, the trading becomes quite perfect. But for beginners who haven’t studied this, my words might be hard to understand.

So, how should you allocate such stocks? That’s a difficult question. I hope everyone actively promotes this; I might do a live session to explain it when I have time.

That’s all for today. Please like, comment, and tip Cui Bo. Thanks to @Oliviajing, @He Xingyang, @Sky Flying, @Kong Shan Bu Jian Xue, @Jing CC, @Kkkkkkkk8, @YaOYaO, @Xinxing Publishing House, @Miguo Duoduo, @Shuo Hao De Xing Fu 6, @Pan Zhong Xing Yue, @Ting Mao for their support. The top tip is @Jing CC. Thank you.

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