Chapter 15 One-week adjustment of the GEM
At 9:25, the call auction of the two markets ended. The ChiNext Index opened lower at 1336.23 points, down nearly 1% at the opening. Wangsu Technology opened at 73.35 yuan, down 0.6%.
"It's over. It opened lower than the high level. There will be a major adjustment." Seeing the ChiNext Index open in this way, Gu Junhao couldn't help feeling emotional. He didn't know how many retail investors were about to lose so much money today.
At this moment, all the hot concept sectors and core concept stocks of the GEM in the early stage have turned green, and countless hot stocks in the early stage have opened significantly lower. For example, the adjustment of Zhongqingbao can be described as tragic, falling from the previous high of more than 50 yuan to yesterday's limit of 31.72 yuan, and today it opened significantly lower. The overall adjustment is nearly 37%.
Looking back at the trend of Zhongqingbao, Gu Junhao feels that the stock's market has come to an end. If one buys it at a high price and does not cut losses in time, one will be stuck for a long time and may not even have a chance to make a profit. In his impression, the stock's future trend is still quite miserable. Without the expectation of performance, only the hype of the concept remains.
Dongfang Fortune hit the daily limit yesterday, and Tonghuashun fell by as much as 7% yesterday. After experiencing a sharp drop in the previous trading day, these previously popular core stocks did not choose to recover today, but continued to open lower.
The break-trend decline of these trending stocks also means that the depth of the adjustment will exceed the market's imagination. However, for Gu Junhao, today is mainly to watch the show. The index opened low, so he does not plan to buy today and will continue to wait and see with an empty position.
There are always opportunities in the market, but a risk may reduce your profits to zero or even lose your principal. It is not suitable to buy at the bottom in an obvious downward trend. You can only tentatively build a position when your expectations are met.
At 9:30, the ChiNext Index opened low and continued to fall. After a slight test after the opening, countless ChiNext constituent stocks chose to follow the index down.
The same was true for Wangsu Technology. After a brief resurgence, countless large sell orders of 5,000 and 2,000 lots emerged, instantly driving the stock price to 69.82 yuan, a drop of as much as 5% in a short period of time.
Opening the stock trading group, one can already see the wailing inside the group. Yesterday's sharp drop did not alert the retail investors. Instead, they were thinking about buying at the bottom. As a result, they were hit hard again today.
"It's so tragic. I want his profits and he wants my principal."
"No, the Dongfang Wealth that hit the limit at the beginning of the month, do you want to sell it now?"
"I just keep an eye on my few dollars every day. When I buy, it's the highest point, and when I sell, it's the lowest point."
"It's too difficult. Yesterday I copied some of Wangsu Technology and made a few cents of profit at the close. This morning I didn't pay attention and lost 4 points."
"Haha, I remember someone in the group also went to Su Technology, you can ask him @韭菜炒股."
The person tagged was Gu Junhao, who occasionally participated in the chat. Some time ago, he mentioned that his holding was Wangsu Technology. At that time, Wangsu Technology had been rising for two consecutive days, and it was a time when retail investors were paying attention.
"I cleared my position at around 79 yuan yesterday, and I am short today." Seeing someone tagged him, Gu Junhao also responded.
"This is awesome! I sold at the highest point. I cleared out my inventory. Do you have any new codes? Please help the leeks."
"No, I'm short today and don't plan to buy. I'll just watch the show."
After chatting in the group for a while, time unknowingly came to half past ten. The ChiNext Index had been trading sideways around 1337 for an hour, and finally could not hold on any longer and fell rapidly.
In the following half hour, the ChiNext Index fell all the way and finally fell below the 1300 integer mark. At 11:30, it closed at 1298.67 points, which was a tragic situation.
In the afternoon, the ChiNext Index showed no signs of rebound and remained at a low level. The ChiNext Index closed at 1311.23 points, down 2.91%. Wangsu Technology finally closed at 70.30 yuan, down 4.82%, with a turnover of 304 million yuan.
The ChiNext Index fell below the 5-day line, 10-day line, and 20-day line in succession, and barely closed near the 30-day line, which also means that the adjustment is not over.
In the following two trading days this week, the ChiNext continued its downward trend. At the close of Friday, the ChiNext Index closed at 1269.17 points, testing the 60-day line lifeline.
The ChiNext market this week was extremely exciting, breaking through the two integer point barriers of 1400 and 1300. Calculated from the highest point, the decline this week was more than 10%.
Wangsu Technology also suffered a huge drop, closing at 66.19 yuan on Friday. Calculated from the highest price of 79.60 yuan on Tuesday this week, the drop in four trading days reached 20%, and the adjustment range was far greater than that of the ChiNext.
However, such drastic adjustments are relatively good things. A sharp drop in a few trading days is much better than an endless decline.
After knowing the trend of the ChiNext in the previous life, this sharp drop is actually a good thing for Gu Junhao, as it saves him from having short positions for multiple trading days. If the market continues to fall, he will have to choose another target to trade.
After all, now apart from stock trading, there is no other income, so it is impossible to keep the position empty.
While watching the market these days, Gu Junhao also occasionally checked some posts on Taoguba and social platforms. As long as they talked about the stock market , they were all crying miserably.
Some people also replied to his post crying and asked him when he would continue to update, because Gu Junhao had not updated his post during the past few days when he was short of stocks.
During this period, I occasionally chatted with Su Mingyu and found that this guy's mentality in stock trading was not like that of a young man under 20 years old, but rather like that of an old stock investor.
In his words, once you have made up your mind, don't worry about the ups and downs in the market. As for whether it can reach that level, that is another matter. At most, you will not make any money.
"He's worthy of being someone who has followed his father in trading trend stocks since childhood. He is not afraid of ups and downs." During the conversations these days, Su Mingyu also mentioned some of his father's styles, so Gu Junhao made this comment.
After an idle weekend, a new week of trading began on Monday, October 28, 2013.
There are four trading days left this month, and it is not known whether the ChiNext will be able to complete the adjustment. In today's trading, the ChiNext rebounded slightly, and Wangsu Technology finally closed at 67.79 yuan, up 2.42%. The trading volume also shrank to 229 million yuan, a recent low.
However, the rebound of the ChiNext was too small, less than half of the negative line of the previous trading day. It is still some distance away from the five-day line, and the volume is not enough. The same is true for Wangsu Technology.
Today, Gu Junhao was also short and did not make any moves. After reviewing the market, he judged that this small rebound was not the end. The ChiNext should test the 60-day line again, or even the 1,200-point pressure.
"Let's see tomorrow. I don't know if there will be a chance to buy tomorrow."
