Stock Of The Day: Is It Time To Sell CVS?
Stock Of The Day: Is It Time To Sell CVS?
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."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.
「在前高位賣出」是一個古老的華爾街說法。人們之所以這樣說是因爲股票在上漲到曾經是高點的價格水平時往往會遇到阻力。這是由於投資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.
在股價大幅快速上漲後，CVS Health Corp的股價（紐交所：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.
正如您在圖表上所看到的，這就是該股票在7月觸及高點的地方。儘管許多分析師評論了保險公司轉型爲綜合醫療公司的好處，但股價仍未有所突破。這就是爲什麼它成爲我們的股票之選。
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.
上漲在前高位可能停滯，是因爲一些人後悔在價格回落後在高點買入。他們中的許多人經歷了買家悔恨，並決定賣出自己的頭寸。但他們不想虧錢。
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，當股票最終轉勢並回到買入價格時，他們會下賣出訂單。如果有足夠多的這些訂單，就會在前高位形成阻力，就像這裏一樣。
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.
圖表還說明了交易的另一個重要原則。股票在下跌並跌至原本的底部價格水平時往往會找到支撐。
Read Also: Here's Why Surgery Partners Could Be the Next Hot Takeover
閱讀更多：這就是爲什麼surgery partners有可能成爲下一個炙手可熱的收購目標
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.
這是賣家後悔導致的。有些交易員和投資者會在股票到達支撐位時賣出。在股票漲勢之後，一些人會後悔這樣做。
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.
這些後悔的賣家中有些決定回購他們的股票。但只有當他們能以與售出時相同的價格買回時才會這樣做。
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，如果股票最終反轉並回到支撐位，他們會下買單。如果有足夠的買單，將會在原支撐位形成支撐價格水平。
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.
成功的交易員了解投資心理學。他們知道買家後悔會導致股票在原支撐位形成阻力。他們也知道賣家後悔會導致股票在原支撐位找到底部。
This knowledge can give traders valuable insights into where to place their sell and buy orders.
這種知識可以爲交易員提供寶貴的見解，告訴他們何時應該設定賣出和買入訂單。
Photo: Shutterstock
Photo: shutterstock
譯文內容由第三人軟體翻譯。