Chapter 278: Peaches Picked
The total trading volume of the three major indexes exceeded 1 trillion yuan, and the Shanghai Composite Index quickly broke through 3,000 points with a single-day trading volume of nearly 600 billion yuan. Although small and medium-sized growth stocks generally fell sharply, it seemed invisible to the media and experts.
Since the sentiment cooled down due to the huge shock in the Shanghai and Shenzhen stock markets last Friday, the stock index has been hyped up again by the media and experts. In their eyes, it seems that the stock index will continue to surge upward; but this was not what they said last weekend.
Admittedly, the argument that the bull market is on the rise is correct, but in Gu Junhao's view, a bull market does not mean there are no adjustments and setbacks; the market trend of continuous short squeeze-style surges for many days has been interpreted to the extreme with the birth of today's trillion-dollar trading volume.
Judging from the K-line, the Shanghai Composite Index has been fluctuating extremely violently since December, and every time after a large positive line trend, the fluctuations in the subsequent trading days are even more violent. After today's large positive line, tomorrow is destined to be another volatile day.
Tuesday, December 9, in a trading room in the Shanghai Stock Exchange.
"What should we do today?"
"Let's open low first and then act according to the situation. The main board is too hot and can't attract much capital to take over. It may end up being a big crash." Lao Fu sighed.
Without the variable of Gu Junhao, I would have been able to sell most of my stocks last Friday and yesterday. However, I did not sell much yesterday morning as most of the orders were from Gu Junhao. I was even forced to take over some of his chips.
By the afternoon, due to the money-absorbing effect of the weight, Tonghuashun's volume shrank seriously again. Judging from the irrational rise of the market yesterday, a major adjustment will come sooner or later. I just hope it can be later.
Hot money has a keen sense of smell. Tong Huashun has entered the stagflation mode since the 2nd of this month, which fully demonstrates their foresight. The adjustment of the growth rate in the following two trading days was also intentional.
However, trading is constantly changing. Specific changes in individual stocks can be controlled, but for the trend of the main board, hot money is obviously not enough to control it. The irrational rise of the main board has also seriously affected their delivery speed.
At 9:25, the call auction ended; Tonghuashun opened at 57.10 yuan with a gap down, and the share price fell by 5%. 1,463 lots were traded in the call auction, and everything was going as planned.
Dongfang Fortune in the same sector also opened lower at 28.88 yuan. The ChiNext Index also opened lower at 1557.02 points during the same period. The Shanghai Composite Index opened sharply lower and broke through 3000 points to 2992.49 points.
The large funds in the market made the same choice at this moment. The influx of profit-taking orders tested the ability of off-market funds to take over. However, relatively speaking, although the two markets opened significantly lower, the sentiment was still good.
The low opening did not cause the sentiment of the two sides to collapse. Yesterday, the Shanghai Composite Index also opened sharply lower, but in the end it still relied on the weighty sectors led by big finance to finally achieve a big rise. Investors are still very optimistic about the market above 3,000 points.
"Don't panic, this is a reverse pickup. Every big drop in the bull market is a buying opportunity."
"Today is an opportunity for us. The brokerage firm has opened at a big discount again. Can we still catch up?"
"In a bull market, brokerages take the lead, and a low opening means you can buy. Besides, strong market makers will not go below the five-day line. Brokerages and the Shanghai Composite Index are both above the five-day line, so a low opening is more favorable."
Gu Junhao was also watching the trends of the Shanghai and Shenzhen stock markets in the office. The gap-down opening of most stocks on the ChiNext attracted his attention. For the gap-down opening of high-priced stocks, this was a very bad signal.
It would be good if the main board could rebound after opening low like yesterday. This would to some extent boost the sentiment of small and medium-sized enterprises and attract some funds that missed out on the opportunity to flow back to them. However, if the main board sentiment and trading volume fail to continue today, it would be a disaster for small and medium-sized enterprises.
The performance of stocks with Chinese characters in their names today was also very unusual. The stocks with Chinese characters in their names, which surged yesterday, did not open low today like the index and the large financial sector. Among them, Zhongguo First Heavy Industries opened slightly higher, while Zhongguo Communications Construction opened sharply higher at 8.15 yuan, with its share price rising by 4.35%.
"Is the direction changing? Should we change to another sector?" Gu Junhao thought as he stared at the market. It made sense. The continuous surge in the securities sector not only consumed most of the off-market funds, but also accumulated a lot of profit-taking.
As for the stocks with Chinese characters in their names, their performance was very average last week and even in the last week of November. It is the best choice for large funds to switch to the heavyweight stocks with Chinese characters in their names at this time.
As a person with a Chinese character in his name who was a main plotter in the bull market in 2015, it is impossible that there was no money paying attention to him.
Although the brokerage sector opened lower as a whole, the decline was not large. Some of the brokerage stocks that hit the daily limit yesterday even opened slightly higher, such as Xibu Securities. Xibu Securities opened at 33 yuan, which was also too far away from the five-day line.
"The mood is still so good. Let's wait and see." Gu Junhao muttered. This irrational rising pattern can only be judged from the trading volume and sentiment. To be honest, Gu Junhao didn't know to what extent this round of surge would rise.
This morning, Manager Liu Jun from the bank's credit department called me and told me that the bridge funds would arrive today. Liu Jun was very concerned about this matter and really made special arrangements for it.
In fact, it would have been delayed for two days, but Liu Jun had heard about Tong Huashun's performance yesterday. Market analysis showed that Gu Junhao's Tong Huashun shares were close to being sold out, and Liu Jun could not determine where Gu Junhao got the money to release the pledge.
But at this moment, Gu Junhao has nearly 100 million in cash flow. If he continues to delay, this bridge loan business may really fall through. That’s why the phone call this morning happened.
At nine o'clock, Gu Junhao received a transfer reminder, and then he immediately notified the finance department to transfer the principal and interest to Xu Dong, and notified Xu Dong by phone. Xu Dong admired Gu Junhao's trustworthy behavior of transferring the money as soon as it arrived.
In fact, just as Liu Jun thought, if the bank loan arrived a few days later, Gu Junhao really didn't plan to continue to ask for it. If it weren't for that phone call in the morning, Gu Junhao would have directly transferred the money from his own account.
By leveraging the bridge financing to leverage Tong Huashun's position reduction, Gu Junhao has also made a good plan for his own debts. Currently, apart from the total debt of 33 million yuan owed to banks and securities firms, he has no other foreign debts.
As for the mortgage loan for buying a house last year, it can no longer be considered as foreign debt for Gu Junhao. Junshi Capital can basically be said to be operating with zero debt and its financial situation is very healthy.
These two debts will not mature until June , so Gu Junhao has no plans to pay them back for the time being. It would be a waste if he doesn't use them, so he can wait until June next year. Excluding these debts, Gu Junhao now has a cash flow of more than 60 million yuan, which makes him a high-net-worth individual.
The bank is very clear about Gu Junxi's cash flow and is very covetous of it, but it is not easy to get it from him.
At 9:30, official trading began. The brokerage sector, which opened low, quickly pulled up. Xibu Securities rose by 5% in seconds. Huanghe Securities also quickly rose with the sector after a slight decline.
At 9:35, Xibu Securities soared more than 8%, Huanghe Securities soared more than 6%, and the overall securities sector rose by more than 5% at one point. After a slight pullback in the morning, the Shanghai Composite Index also rebounded above 3,000 points at this moment, with an increase of more than 1%.
At 9:40, stocks with Chinese characters in their names in the construction sector performed well, with Zhongguo First Heavy Industries and Zhongguo Communications Construction both hitting their daily limit again. The Shanghai Composite Index turned positive at 3023.69 points. The ChiNext Index, which opened lower, continued to fall, down more than 2%.
Tonghuashun plummeted by more than 6%, Yinzhijie plummeted by more than 7%, and Dongfang Wealth plummeted by more than 4%; the weighty sectors headed by Chinese-character stocks and large financial institutions, as well as the small and medium-sized growth sectors headed by GEM constituent stocks, all showed extreme market conditions vividly and exquisitely at this moment.
On one side, the market soared to the point of losing one's mind, and on the other side, the market fell to the point of doubting life; the feelings of the two waves of investors in this winter are like the weather in Ningbo: the room is warm with the air conditioner on, but it is rainy and cold outside.
"Haha, the stock price plummeted so badly. Fortunately, I cleared out my inventory." Li Ze said with glee as he looked at Tong Huashun's stock price plummeted.
Most people in the group are in a short position today, so the sharp drop at this time will not have much impact. However, looking at the sharp rise in the heavyweight sectors and the sharp drop in the small and medium-sized start-up sectors, those who are short are much more uncomfortable than those who are trapped.
For retail investors, being short on money is more painful than death, but Li Ze has become accustomed to this state. He has not traded for more than half a year, and the feeling is almost the same as being short on money. This morning, he transferred out 1.6 million yuan in cash early in the morning.
At 9:50, Tonghuashun closed at 55.90 yuan, down 6.77%. The stock price was close to the gap above the daily limit price on November 28, and was less than 10% away from the cost line of the last Dafu increase in Fushan Road.
Seeing that the ChiNext Index was gradually showing signs of stopping its decline, Lao Fu said to the trader: "It's almost done, let's pull it up and make a rebound trend on the 10-day line."
It is not surprising that large speculators have their own studios and operators. Except for Liyang Road, most of the speculators that cooperated yesterday have already liquidated their positions. Today's operation can only rely on him.
Lao Fu's sense of the market is still very sharp. The small and medium-sized start-up sectors rebounded quickly after gradually stabilizing, and Tonghuashun also quickly rebounded as traders bought in, forming a linkage with the index.
At 9:58, Tonghuashun closed at 58.84 yuan, and the decline narrowed from 6.77% to 1.80%. The trader's sell order was also placed accordingly. The trader is already very familiar with this kind of market trend of pulling up and selling at the same time, and there is no need for Lao Fu to say more.
At 10 o'clock, the securities sector began to pull back from its highs, with Xibu Securities falling from near the upper limit to below 6%, while the Shanghai Composite Index fell from the morning high of 3038.92 points to 2996.55 points, breaking 3000 points again.
The small and medium-sized start-up sector continued to rebound. At 10:09, the decline of the ChiNext Index narrowed to around 0.3%. At 10:15, the ChiNext Index turned positive. Tong Huashun, Dongfang Fortune and other strong ChiNext stocks all turned positive.
This wave of plunges in brokerage firms has resulted in a considerable outflow of funds. Judging from the weights and the performance of small and medium-sized enterprises alone, it seems that funds have completed a partial shift. At 10:21, Tonghuashun closed at 62.32 yuan, up 3.94%.
Within 30 minutes, Tonghuashun's volatility reached 11.48%, and the stock price regained the five-day line position. It was a big rebound on the ten-day line, and the trend of the strong getting stronger was brought to the extreme by Lao Fu.
Funds are flowing back to some stocks of small and medium-sized enterprises. Tonghuashun's extreme trend within half an hour is now back above the trend line. The increase is not very large. Only a small adjustment is needed to attract investors' attention.
From a technical perspective, Lao Fu has done a very good job. Unless there are no accidents, he will be able to sell most of the chips today. As for the more than 30 million yuan of chips that were bought at the previous price increase, it will be no problem to sell them all in one day tomorrow.
However, as expected, an accident still occurred. Tong Huashun, which was trading sideways around 62 yuan, had countless sell orders at this moment, and the voice of the trader also rang out: "Someone jumped the gun! The amount is not small!"
Lao Fu was also shocked and rushed to the computer desk in an instant, staring at the time-sharing chart and the batch selling in the trading market. The transactions were completed quickly one after another, and even the fastest trading software could not react at one point.
You don't need to look to know that this kind of batch shipping method must be done by some organization.
"Fuck, which organization is this? Didn't a lot of them go there this morning? How come there are still some? What are you waiting for, you idiot? Sell it quickly." Lao Fu cursed angrily.
"Oh, okay." The trader was scolded for no reason and complained in his heart, who the hell told you to eat alone? When you buy a stock, you buy a lot. If you don't smash it, are you waiting for others to carry your sedan chair for you?
However, although he was complaining in his heart, he was not panic at all when he took action. It was just that since the other person's channel was higher than mine and the person who placed the order had a time advantage over him, by 10:40, he had not sold much.
During these 20 minutes, Tong Huashun's transaction volume exceeded 120 million yuan, but he only sold more than 10 million yuan. Lao Fu, who had his profits taken away by others, seemed very depressed.
"Keep selling while the market is still in the red. Sell as much as you can. The brokerage firm has pushed up the price again. I guess there won't be any chance in the afternoon." Lao Fu said in a muffled voice.
Gu Junhao did not pay too much attention to Tong Huashun today. He just paid attention to it for a while during the opening stage and the rise during the trading session. He has already reduced his holdings in small and medium-sized enterprises, so there is no need to pay too much attention to it unless it reaches a certain level.
For Junshi No. 2 Fund, which holds a large amount of weight, today's two major holdings have risen again and the securities sector has just plunged nearly 3%, which is worthy of attention. However, the previous wave of pull-ups also brought a certain amount of trading volume, which is a good thing.
This shows that as the broader market has lost its rational momentum, a force of funds in the large financial sector, which is now deeply divided, has refocused its attention on the small and medium-sized start-up sector, which has been experiencing a continuous sharp decline.
