Chapter 158: How Big Funds Build Positions
"Boss, your response is amazing." There are probably few people who deal in stocks who don't understand the meaning of "cutting leeks". The boss' response is really silent but speaks louder than words.
"Haha, these people all gave similar replies in similar time periods. They are obviously trolls. It's normal for the main force to use some tricks to sell their stocks, but I've already sold my stocks for several months. Even if I made a profit in the middle, they shouldn't have found me."
"It may be because our fund's ranking has risen too fast recently. There are a lot more news about me online recently than before. Maybe people are thinking about this reason as well."
"Well, that makes sense. It's probably like raking grass to catch rabbits. Is this what they call "the more famous you are, the more trouble you will have"? I'm not famous yet, but you discovered it in time this time and did a good job. I'll give you credit."
"Haha, this is my job, but thank you anyway, boss." Li Xinyu said happily. Gu Junhao rarely praised her.
"Okay, let's get off work. I'm going back too." These were all small matters, and even if he didn't respond, it wouldn't cause any substantial harm to him, so Gu Junhao didn't take it to heart.
Gu Junhao doesn't care about these things, but it doesn't mean that others don't care, such as Li Ze. Li Ze is extremely excited today. Tong Huashun opened sharply higher today due to the positive stimulus and oscillated throughout the day until 1:50 p.m., when large orders poured in. The stock price quickly rose to 15.47 yuan and closed up 10.03% on the day.
Gu Junhao also saw this good news in the morning, but he didn't take it too seriously. It was nothing more than signing a strategic cooperation agreement with Dongwu Securities, which was the common access to brokerage trading system in his previous life.
This kind of thing, which was very common in his previous life, was still quite new at this moment in the early stage of Tong Huashun's development. However, Gu Junhao did not take it too seriously due to inertia. He did not expect that it would stimulate Tong Huashun's stock price so much.
The stock price jumped up and tested the five-day line, leaving an upward gap. The stock price hit a new high since the ex-rights date and the trading volume increased, which is a trend of rising both volume and price, and the short-term outlook is strongly bullish.
"Haha, Brother T posted a dynamic about cutting leeks. It was so funny. I think he stole this picture from our group." Although Li Ze did not download the trading software, his good brothers had been discussing Tong Huashun with him in the past few days, especially yesterday when it fell below the five-day line.
Yesterday, Tong Huashun fell below the five-day line. Everyone joked that Li Ze’s 300,000 yuan bet was going to be empty. Dong Fang Wealth has been falling for several days in a row, and now it is Tong Huashun’s turn.
Unexpectedly, Tong Huashun was stimulated by the good news and hit the daily limit today. Li Ze's holding profit also reached 20%. With 24,000 shares of Tong Huashun, the market value of his holdings exceeded 370,000 yuan. This was the peak period of Li Ze's holdings.
"Brother T posted this picture of cutting leeks. Is he going to clear out his Tong Hua Shun stock?"
"It shouldn't be. I just saw that Brother T's previous post about Dafu Technology was suddenly pushed to the top of the hot list. Dafu Technology also hit the daily limit today. The post said that Dafu Technology would reach 70 yuan. Brother T had to sell it because of starting a business."
Two institutions appeared on the buying seats of Tonghuashun today. The trading volume of the Dragon and Tiger List accounted for 20% of the total trading volume during the day, the net buying amount exceeded 10% of the trading volume, and the turnover throughout the day was also very healthy. There was no seat for Brother T on the Dragon and Tiger List. It is impossible to sell with this trend.
Li Ze doesn't need to trade and he's single, so he naturally doesn't have much to do in his daily life. With his unlimited energy, he has become a frequent visitor to major social media platforms, and Taoguba will naturally not miss it.
"70? You're so bold. Brother T posted this picture to mean that it's impossible to reach that level, right?"
"I guess so. In this way, Brother T is quite honest. He is afraid that his fans will be misled."
"Yeah, it's the same as cutting leeks, but Brother T is really not a rip-off. I recovered more than 60,000 yuan from Tong Huashun, and basically my losses are almost recovered. I finally understand that short-term trading has no future, and this kind of software-deleting operation is the most useful."
"Your luck has really changed, kid. Yesterday it fell below the five-day line, but today it has reached the daily limit, and this is when everyone is losing money. It's really infuriating to talk about it. It's another day when Li Kuang makes money and we lose money."
"Not really. Didn't Brother Cao make money? Brother Cao was even more outrageous today. Two stocks rose by the daily limit. Dafu Technology and Tonghuashun were fully invested."
The Brother Cao that Li Ze mentioned is the one who had previously all-in-one bet on Tong Huashun. He later bought 300 shares of Dafu Technology. Since his position was too small and he had been making small profits, he never sold them.
"Well, I'm lucky today. This is the first time I've been fully invested in stocks and my stock price has reached the daily limit. However, I plan to sell Dafu Technology tomorrow. Brother T has given me a signal. Besides, I only have 300 shares. There's no point in keeping them."
"That's enough. I made about 2,000 yuan from 300 shares. I can have a good meal now."
"Well, more than 1,800. If we make a push tomorrow, it should be about the same."
"I envy Brother Cao and Li Kuang. It's another day when others make money while I lose money."
"I regret not listening to Li Kuang's advice. I just went back to look at Tong Huashun's K-line chart. After Li Kuang bought it, it has been fluctuating above the 20-day line, with little ups and downs, and most of the lines are positive. It's obvious that someone is accumulating funds."
"Well, someone must have known the news in advance. Look at today's Dragon and Tiger List. The fourth one is sold by Dong Wu himself. It's really outrageous."
"Ah, judging from the situation, we can't compare with these organizations in terms of information. It's really ugly to see how greedy they are."
"But Dong Wu's proprietary trading account is really stingy. He sold less than 3 million shares, which is just a daily limit. Look at Ren Guojun's proprietary trading account. Hundreds of millions of funds flow in and out of Dafu Technology."
"Can Dongwu be compared with Guojun? They are just different in scale. But it is indeed a bit stingy. No matter how small the brokerage is, it is no problem to take a few million."
"How do you know if they still have positions? Maybe they are selling 3 million to give the impression that they are clearing their positions, waiting for funds to come in and take over."
"What's the use? We are all carrying Brother T's sedan chair. If Brother T smashes it one day, we will cry to death again." Li Ze said domineeringly. He was very confident in his previous analysis that the 12,000 lots were Brother T's orders. It was a pity that the Dragon and Tiger List did not appear that day.
"That's true. Li Kuang analyzed it before. If those 12,000 shares really belong to Brother T, then Brother T's personal market value should be around 20 million now, right?"
"Almost. Even if it's not quite there, it shouldn't be much different. Wow, my personal account has made daily profit without doing anything, and my fund has risen to second place. Is this something a 23-year-old can do with less than a year of stock trading?"
"Jiangsu and Zhejiang are the source of hot money. Didn't Xu Xiang from Ningbo also graduate from high school? He is now so successful. Brother T also graduated from high school. He may be the next hot money boss."
“So, the reason I lost money in the stock market is because I graduated from college?”
"That makes sense, brother. You've discovered my blind spot, and I've also found the reason why I lost money."
…
Li Ze and others were unable to determine Gu Junhao's specific position, but Zhang Yiru knew it. Gu Junhao had told her about his personal account before, and Gu Junhao had changed the custodian bank of this fund to the bank where Zhang Yiru worked a long time ago.
"You made more than 2.2 million today?" When she returned home in the evening and saw Gu Junhao still analyzing the reasons for Tonghuashun's daily limit, Zhang Yiru sighed and said that one day's income would be enough for her for many years.
"Yes, 2.215 million yuan." Gu Junhao has not touched Tong Huashun's 15,000 lots since June 19. Today's unexpected daily limit made Gu Junhao want to see what the reason was.
"This is caused by information asymmetry. I thought it was a common thing, but I didn't expect it to be so popular now."
Tong Huashun left a five-day line upward gap today, and a daily limit trend with equal volume and price. If nothing unexpected happens, it should be the start of a fund-raising trend before the main upward wave.
The stock price will definitely fluctuate during this period, but it is likely to circle around today's daily limit. I have seen this trend in my previous life. At that time, Yangguang Power Supply also had a similar trend at the beginning.
From July to September 2020, Yangguang Power Supply fluctuated upward above the 20th, and funds built large positions in this area. After that, just like Tong Huashun today, it broke the trend position and then had a strong daily limit. After that, Yangguang Power Supply never fell below that daily limit again.
It is already mid-July and the bull market is about to start. The daily limit price range of Tong Huashun today is most likely its future bottom position.
For large funds, if they want to build a position and obtain more chips, they certainly cannot go all in in one day like retail investors. First, it will cause the stock price to fluctuate too much, affecting their own position building costs. Second, it is also because there are not enough chips.
There are three main ways for large funds to build a position. The first is to build a position with a large negative line. When a stock has been falling for a long time and the selling pressure is getting lighter and lighter, the main funds believe that it is an opportunity to collect chips. At this time, the main funds will cooperate with the market to continuously smash the market in a certain period of time, thereby opening a relatively large negative line on the K-line, giving the market the illusion that this stock has no hope. The intensification of panic will also cause everyone to sell their chips, and the main funds will take the opportunity to receive the sell orders and complete the position building.
The classic example in this regard that Gu Junhao most recently remembered was Zhongtong Bus, which he had worked on before. Zhongtong Bus had been fluctuating sideways at around 5 yuan for nearly 10 months. Later, it took advantage of the panic of the market and smashed several large negative lines in succession, falling below the 4 yuan price. After that, it continued to rise to the daily limit.
The second method is to build positions in batches. This method takes a longer time and is suitable for stocks with a large circulating market value. It is usually operated by super large funds. When the stock price falls to a certain area and the downward trend slows down, the trading volume begins to gradually increase.
The current positions held by Dongfang Wealth are somewhat similar to this method; Dongfang Wealth's plate is large enough, and the daily trading volume is sufficient. Even if it has shrunk to the present, the average daily trading volume is nearly 200 million, which is very suitable for large funds.
The third method is the shock-type position building method, which is the fastest, most powerful and most effective. This method generally builds positions smoothly, and the stock price fluctuates greatly, making the funds at a loss and having no choice but to exit.
