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Futures Market Summary | Monday, February 9th, CCTV News Highlights: 1. Creating and sharing a better life paints a picture of happiness and peoples livelihood. 2. Li Qiang signed a State Council decree promulgating the revised "Regulations of the Peoples Republic of China on Nature Reserves". 3. With the Spring Festival approaching, the festive atmosphere is strong across the country. 4. Spring Festival travel rush continues to grow, with key areas increasing nighttime transportation capacity. 5. Liu Yanying: Taking a steady path to rural revitalization and increasing income. 6. Sales of old cars traded in for new ones will exceed 50 billion yuan by 2026. 7. Soaring in the blue sky of the motherland, protecting the lights of thousands of homes. 8. The goal of "achieving results in five years" for the revitalization of the seed industry has been successfully completed. 9. Foreign-invested enterprises increase investment in China at the beginning of the year. 10. Several young Chinese athletes make their Winter Olympics debut. 11. The turnover of the national futures trading market in January increased by 105.14% year-on-year. 12. The Office of the National Disaster Prevention, Reduction and Relief Commission deployed natural disaster risk prevention and control work in February. 13. Central state-owned enterprises Spring Festival consumption assistance campaign has exceeded 800 million yuan in procurement. 14. The number of first-instance criminal cases related to environmental resources continues to decline. 15. Several new regulations have been introduced to strengthen the safety supervision of road transportation of liquid food. 16. The 2026 Spring Festival film lineup was released in Beijing. 17. More than 1,500 suspects involved in telecom fraud in Myawaddy, Myanmar, have been extradited back to China. 18. The Iranian president stated that Iran will not tolerate threats of force; the Iranian military stated that it is fully prepared to retaliate against any act of aggression. 19. Russia claims to have controlled more settlements in Koh Samui and other areas; Ukraine claims to have attacked a Russian drone control center; Russia claims the suspect in the attack on a Russian general admitted to being directed by Ukraine; Ukraine denies involvement in the attack. 20. Palestine condemns Israels escalation of its annexation of the West Bank. 21. Protests continue in many parts of the US against federal immigration enforcement actions. 22. Severe weather continues, with floods spreading in Spain and Portugal. 23. Shootings have occurred in multiple locations in the US, resulting in casualties.The U.S. Department of Defense stated that the vessel violated quarantine regulations in the Caribbean Sea.February 9th - Capital Economics analysts Ruth Gregory and Paul Dales noted in a report that if Starmer or Reeves were to replace the UK Prime Minister and Chancellor of the Exchequer respectively, UK government bond yields could rise and the pound could weaken. They stated that subsequent market movements would depend on the policy direction of the new leadership. Starmer continues to face pressure due to his handling of the former US Ambassador Peter Mandelson affair. The report added that if the successor team weakens fiscal constraints and promises significant increases in public spending and borrowing, it could trigger a sharp surge (or even above 5%) in 10-year government bond yields and a decline in the pound. However, if the government is forced to abandon these plans—repeating the scenario of former Prime Minister Trusss "mini-budget"—such market volatility is likely to be short-lived.February 9th - Since the beginning of the year, the National Integrated Circuit Industry Investment Funds (Big Fund) share reduction activities in the semiconductor sector have continued to attract market attention. On the evening of February 8th, Anlu Technology announced that its shareholder, the first phase of the Big Fund, plans to reduce its holdings by no more than 2% of the companys total share capital within the next three months. This marks the third time Anlu Technology has faced a share reduction plan from the Big Fund since 2025. Meanwhile, several other semiconductor companies, including Shanghai Silicon Industry, Telink Microelectronics, and Huizhi Microelectronics, have also recently disclosed the latest progress or plans for share reduction by the Big Fund. Based on the information released, both the first and second phases of the Big Fund have conducted share reduction operations, involving mostly listed semiconductor industry chain companies. Despite the frequent share reductions in the short term, industry insiders generally believe that this is a normal investment exit behavior for the Big Fund as an industry investment fund, and its long-term strategic direction of accompanying industry growth and supporting domestic substitution remains unchanged.The euro rose more than 0.50% against the US dollar on the day, currently trading at 1.1872.

The Head and Shoulder Bottom Pattern

Jason Douglas

Oct 25, 2021 13:27

  

      The Head and Shoulder Bottom Pattern occurs during a downtrend and marks its end. This chart pattern shows three lows, with two retracements in between.

       头肩底1.jpg

 

How to Trade This Pattern?

  1. On the pictured chart, the pattern completes when the price breakout the neckline. It shows the transition from a downward trend to an upward trend. Short positions would better close out.

    头肩底2.jpg

     

  2. You would trade by entering long positions when the price moves above the neckline. Also place a stop-loss order just below the low point of the right shoulder.

    头肩底3.jpg

     

  3. The pattern also provides price targets. You can subtract the low price of the head from the high price of the retracements. This gives you the height of the pattern.

    Then establish the profit target based on the height of the pattern added to the breakout price. 

    头肩底4.jpg

     

    When price is in a downward trend for a period of time, we must observe carefully whether there is a head and shoulder bottom pattern. Once seize the opportunity, there will be a big successful transaction.