Stock Of The Day: Is It Time To Sell CVS?
Stock Of The Day: Is It Time To Sell CVS?
"Sell at former peaks" is an old Wall Street expression. People say this because stocks tend to run into resistance when they rally to a price level that has been a peak. This is due to investor and trader psychology.
“在前高位卖出”是一个古老的华尔街说法。人们之所以这样说是因为股票在上涨到曾经是高点的价格水平时往往会遇到阻力。这是由于投资者和交易者的心理因素。
After a large and rapid move higher, shares of CVS Health Corp (NYSE:CVS) have stalled around the $63.30 level.
在股价大幅快速上涨后,CVS Health Corp的股价(纽交所:CVS)在63.30美元左右踱步。
As you can see on the chart, this was where the stock peaked in July. This is despite the fact that many analysts commented on the benefits of insurers evolving into integrated healthcare companies. This is why it is our Stock of the Day.
正如您在图表上所看到的,这就是该股票在7月触及高点的地方。尽管许多分析师评论了保险公司转型为综合医疗公司的好处,但股价仍未有所突破。这就是为什么它成为我们的股票之选。
Rallies can stall at former peaks because there are people who regret buying at the peak when the price dropped afterward. Many of them experience buyer remorse and decide to sell their positions. But they don't want to lose money.
上涨在前高位可能停滞,是因为一些人后悔在价格回落后在高点买入。他们中的许多人经历了买家悔恨,并决定卖出自己的头寸。但他们不想亏钱。
As a result, when the stock eventually reverses and returns to the buy price, they place sell orders. If there are enough of these orders it creates resistance at the level of the former peak, like it has here.
因此,当股票最终转势并回到买入价格时,他们会下卖出订单。如果有足够多的这些订单,就会在前高位形成阻力,就像这里一样。
The chart also illustrates another important principle of trading. Stocks tend to find support when they sell off and drop to price levels that had been bottoms.
图表还说明了交易的另一个重要原则。股票在下跌并跌至原本的底部价格水平时往往会找到支撑。
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This happens due to sellers' remorse. There are traders and investors who sell when a stock is at support. Some of them regret doing so when it rallies soon after.
这是卖家后悔导致的。有些交易员和投资者会在股票到达支撑位时卖出。在股票涨势之后,一些人会后悔这样做。
Some of these remorseful sellers decide to buy their shares back. But they will only do so if they can buy them at the same price they were sold at.
这些后悔的卖家中有些决定回购他们的股票。但只有当他们能以与售出时相同的价格买回时才会这样做。
So, if the shares eventually reverse and get back to the support level they place buy orders. If there are enough of these buy orders it will create support at the price level that had been support before.
所以,如果股票最终反转并回到支撑位,他们会下买单。如果有足够的买单,将会在原支撑位形成支撑价格水平。
Successful traders understand investment psychology. They know that buyers' remorse can cause stocks to stall at price levels that had been resistance. They also know that seller's remorse can cause stocks to find bottoms at price levels that had been support.
成功的交易员了解投资心理学。他们知道买家后悔会导致股票在原支撑位形成阻力。他们也知道卖家后悔会导致股票在原支撑位找到底部。
This knowledge can give traders valuable insights into where to place their sell and buy orders.
这种知识可以为交易员提供宝贵的见解,告诉他们何时应该设定卖出和买入订单。
Photo: Shutterstock
Photo: shutterstock