Chapter 16 Re-buy
Tuesday, October 29, 2013.
After the call auction of the two markets ended, the ChiNext Index opened slightly lower at 1276.27 points, and Wangsu Technology opened slightly higher at 68.02 yuan.
After the opening, the ChiNext opened low and ended high, continuing all the way to 9:45, when the index reached 1292.97 points, and Wangsu Technology also reached 69.28 yuan, up 2%.
"The volume is not enough, there should be another drop. It seems that it still needs to test the 60-day line lifeline before there is a possibility of a rebound. I just don't know if it can break 1200. If it can break 1200 points, today is an opportunity to buy at the bottom."
As time passed, after reaching its high point, the ChiNext Index chose to fluctuate sideways around 1290 points, digesting the trapped shares above, and did not choose to directly break through the 1300-point integer mark.
"The first push is strong, the second is weak. It's time to choose a direction." The tense state of the market makes people drowsy.
After thinking about it, Gu Junhao switched to his stock trading group to see what the retail investors were feeling at the moment.
"Buy at the bottom. The market dropped so much last week. There was a rebound yesterday. Should I buy at the bottom today ?"
"I also feel that it is a good time to buy at the bottom. There should be a surge today, especially the ChiNext, which fell too badly last week."
"You guys copy, I'll lie down."
"Don't be afraid, it's all in."
Seeing everyone's speeches, Gu Junhao smiled. Retail investors are sometimes so cute, as if they are trading every moment. However, it is not the case to say that they are bottom fishing today, the key is to find the right time.
At ten o'clock, the ChiNext finally chose a direction, but it did not counterattack upwards, but chose to turn downward. On the market, countless ChiNext stocks fell, sell orders poured out, and the index fell by as much as 2% in a short period of time.
"Here it comes, the market is going to plummet." Looking at the unstoppable decline in the market, Gu Junhao became excited, just as he expected.
"What the hell? The stock price started to fall right after I made the deal? Damn, they are really targeting me."
"What bad luck! It was still in the red just now, and I didn't have time to sell it. Now it has fallen by 2%. Should I sell it?"
"It seems like there's no way to stop this. I'm going to clear out my inventory to keep myself safe."
"You can still cut, but I can't even walk away."
Panic has already formed. After several consecutive days of sharp declines, as long as there is a little downward volume, the market will follow suit, thus forming a chain reaction.
At 10:30, the ChiNext Index fell to 1210 points, a drop of more than 6%, breaking the 60-day moving average and forming a breakout state during the day. Wangsu Technology also fell from the red market position in the morning to 63.95 yuan, a drop of 6%.
"I don't know if it can break through 1,200 points. The ChiNext should be able to try to buy the bottom here, but Wangsu Technology should not fall any further. It should start to adjust before the ChiNext. Combined with the overall trend, it should be about time to adjust to around the 20-day line."
Thinking of this, Gu Junhao didn't care so much. Wangsu Technology had already fallen by 6%. If it fell further, it would be the limit down today. The profit of bottom fishing at this time would far outweigh the risk.
Therefore, he decisively placed a buy order at the current price and invested all 370,000 yuan. Although panic selling was surging at the moment, he did not worry about not being able to buy stocks with these hundreds of thousands of yuan.
After a while, the buy order was completed, 5,700 shares, the average transaction price was 64.08 yuan, and Gu Junhao's account showed:
Holding positions: Wangsu Technology, 5,700 shares, holding cost: 64.08 yuan, available funds in the account: 4,744 yuan.
After the transaction was completed, Gu Junhao didn’t care about anything else and immediately took a screenshot and uploaded it to the post on Taoguba.
"I took back Wangsu Technology today. The specific transaction price was 64.08 yuan. I already have 5,700 shares, which is not bad. It is a lot more than the 3,400 shares I bought in the beginning."
After refreshing for a while, no one replied. It was probably because it was trading time and the market was falling, so few people would pay attention to his post. After that, Gu Junhao ignored it and continued to watch the market.
By the closing at 11:30 a.m., the Chuangye Index did not choose to fall below the 1,200 integer mark and remained supported at this position. Wangsu Technology also had a slight rebound.
At 11:30, the ChiNext Index closed at 1219.85 points, down 4.8% on the day. Wangsu Technology closed at 64.88 yuan, down 4.4% on the day.
At this time, Gu Junhao's account was already profitable, with a net profit of 0.8 yuan per share, and his market value was approaching 370,000 yuan.
"It is unlikely that the stock will fall below 1,200 points today, but I don't know if it can close above the 60-day moving average. However, Wangsu Technology should have adjusted almost completely, and it is likely to fluctuate at a high level in the future. I don't know if it can break 80 yuan this time."
At the midday close, the number of replies to Gu Junhao's post gradually increased.
"Oh my god, Brother T is going back to Wangsu Technology again? This is a good buying point, it's basically the lowest point in the morning."
"You are so skilled and so bold. You dare to buy at the bottom with the market trend this morning? Aren't you afraid of buying halfway up the mountain?"
"Wangsu Technology dared to buy at this price. The ChiNext Index has fallen below the 60-day trend line. Aren't they afraid of further declines?"
"Awesome, full position again. I found that Brother T really likes full position. When doing T and bottom fishing, he always goes all-in."
"It was a major uptrend before, but this time the correction is so deep, the major uptrend should be over. This stock has risen from more than 10 yuan, and you dare to buy the bottom. This wave is probably going to be paid back."
Seeing these remarks, Gu Junhao ignored them. Time will prove everything and his current explanation is unnecessary. However, Gu Junhao still sent a separate message to Mephilius and mentioned it to him.
At 1 p.m., trading in both markets resumed and the ChiNext Index once again experienced a wave of declines, reaching a low of 1,205 points. Wangsu Technology also fell, but did not reach the low point of the morning.
"The adjustment here should be almost complete. The trading volume has obviously weakened a lot and there are no sell orders." In Gu Junhao's opinion, even if Wangsu Technology needs to adjust in the future, the adjustment price should be above today's lowest price. If it is lower than today's price, then the trend may deteriorate.
However, this wave of adjustment in the ChiNext was too drastic. There should be a secondary bottoming process after the subsequent rebound. Only then may it break through the previous high of 1,400 points, or even touch the 1,500 point mark.
The overall trend of the ChiNext is that the bottom is slowly rising in the process of continuous correction. Last year's bottom was 585 points, and it reached around 800 points at the beginning of the year. This time, a new bottom should be formed around 1200 points.
In short, it is good to have a prophet. The bull market is a bull market for the ChiNext. Remember this, and choose your favorite targets from the ChiNext stocks. You will always be able to reap the dividends of a bull market. This has been verified by Zhongqingbao and Wangsu Technology.
