Chapter 28: Big Reversal During the Day
After returning home, the morning market had already closed. I turned on the computer and called up the stock trading interface to check the trend this morning after the negative news over the weekend.
"Oh my god, this is too tragic. These investors are really too ruthless." Gu Junhao was a little shocked after taking a quick look at the intraday chart.
Today's two markets were tragic. By midday close, the Shanghai Composite Index fell by more than 1%. The decline of the Shanghai Composite Index was not large, which was mainly due to the sharp rise in brokerage stocks. The restart of IPO is a good thing for brokerages.
Brokerage firms maintain most of the index weight. The sharp rise in brokerage firms is also the reason why the Shanghai Composite Index did not fall much. However, apart from brokerage firms, most of the Shanghai stock market closed in the red, and some small-cap stocks fell sharply.
Switch the interface to the ChiNext Index. From the intraday chart, we can see that the ChiNext Index fell rapidly from the beginning of the opening, and by the close of the morning, the decline had expanded to more than 7%.
"It's a bit exaggerated. The index has fallen by 7%. It seems that it can't be stopped. It's really cruel." On the market, the GEM's popular stocks in the early stage, including Wangsu Technology, are now pressed at the limit down price.
"It will take several trading days to recover such a drop, so we should wait and see."
After looking at the market, Gu Junhao decided not to open any positions in the next few trading days. Even if the financing funds arrive tomorrow, it depends on the specific situation. If the market can fall to around 1,200 points tomorrow, he can give it a try. Otherwise, he will have to wait until this Friday or even longer to see.
The specific situation needs to be analyzed specifically. The limit down of Wangsu Technology is a good thing for Gu Junhao. If it doesn't fall, it will be difficult to buy it back. However, his volume today is a bit large, so he should have funds to take profits and exit.
I looked through the posts in the stock trading area and Taoguba, and all of them were retail investors cursing and crying. There were also people who envied me for getting away under my posts, and retail investors in the stock group were also cursing.
"It looks like the market hasn't fallen through yet, and you still have the energy to curse. Wait until the market falls to the point where there's no sound, and then you can buy the dip."
Tuesday, December 2, 2013. Gu Junhao's financing funds also arrived today. With 800,000 yuan of own funds plus a one-to-one leverage ratio, the available funds reached 1.6 million yuan.
In the call auction, the ChiNext Index continued its downward trend and opened at 1223.38 points.
"It opened lower with a gap, and it should scare off a bunch of people again today. But if it can reach around 1,200 points today, we can grab some money."
Switch the interface to Wangsu Technology. Wangsu Technology opened at 72.90 yuan, which was exactly yesterday's limit price. All profits of the bottom-fishing funds that intervened at yesterday's limit price were reduced to zero.
At 9:30, trading began and the ChiNext Index plummeted as expected. Wangsu Technology also fell accordingly. At 9:45, it hit the lowest price of 72 yuan, only one step away from the 20-day line.
At this time, the index was still in the process of falling, closing at around 1206 points, with a drop of more than 3%. The index fell by more than 10% in two trading days, completely engulfing the previous rebound trend.
Faced with such an opening result, Gu Junhao could remain calm, because he did not hold any positions now and was in an empty position. However, some of the groups he joined, as well as some stock communities, such as Taoguba, were already in a state of emotional breakdown at the moment, and the emotions of retail investors were suppressed to the extreme.
"Oh my god, it's falling so much again? It seems that 1200 points can't be maintained. Should I sell at a loss?"
"It's hard to say. In fact, the ChiNext is currently at a high level, having risen from 585 points. Even if it is now at 1,200 points, the index has more than doubled. I really don't dare to buy at this level."
"It looks like 1,400 points is the highest point of the year. If the second wave of rebound cannot reach the previous high, it is basically impossible. It is time to sell at a loss."
"Oh, every time I enter the market, the market crashes. It's really weird."
After seeing these comments in the group, Gu Junhao felt that the mood had reached a short-term freezing point. If the index could break 1,200 points again, he should be able to buy at the bottom.
However, it is not easy to reverse quickly. At least we have to build another bottom at 1200 points to form a real bottom.
At 9:50, the ChiNext Index closed at 1198.06 points, falling below 1200 points again, but did not reach the previous low of 1191.18.
The panic at this time had reached its peak. Some retail investors couldn't bear it and sold their positions directly, while others gave up resistance and went straight into a state of playing dead.
However, at this time, a huge amount of funds suddenly began to pour into the ChiNext, which had fallen below 1,200 points. Countless core stocks on the ChiNext quickly rebounded and the index also rose like lightning.
Seeing this, Gu Junhao quickly switched to the Wangsu Technology interface. At this time, Wangsu Technology had risen from the low of 72 yuan to 72.82 yuan, and successfully stood on the intraday yellow moving average.
"It looks like it won't go below the 20-day line. This rebound is obviously stronger than the ChiNext. I won't wait any longer. I'll buy it directly at 73 yuan. It can be considered a small boost."
The order of 22,000 shares to Su Technology was considered a large order on the current transaction interface.
Because the price was placed several levels higher, Gu Junhao's buy order was quickly executed. Twenty-two thousand shares were traded at an average price of 72.93 yuan.
At this time, Gu Junhao's new account is already fully invested, and the next step will depend on the performance of the market and Wangsu Technology.
"Oh my god, he stopped falling just after I cut my losses?"
"No way, it's stuck at this point? Can I take it back?"
"Well, luckily I held back for a while. Let's wait and see. It's a bit of a loss to sell at 1200 points. Brother T also said that 1200 points is the recent low point."
"I can only endure it."
"Wangsu Technology has stopped falling, and I am a little tempted to buy it back. I don't know how Brother T is doing it."
At ten o'clock, when Wangsu Technology once again fell near the yellow moving average of the day, a buy order of 2,000 lots appeared, which quickly pushed up the stock price to 73.44 yuan. At this time, the ChiNext Index also started its rebound.
Countless bargain-hunting funds poured in frantically, and the ChiNext Index rebounded rapidly, rising from the lowest point of 1198 to 1218, with a strong rebound.
"Good, there is volume, and it looks like there will be a rebound today." The index has a stable trend. Wangsu Technology, as a blue chip stock on the GEM and a hot stock recently, also performed well.
When the first 5,000-lot buy order appeared during the day, Wangsu Technology also rose rapidly, with the stock price closing at 75 yuan, turning positive for the first time during the day.
The Shanghai Composite Index also helped at this moment, quickly pulling from underwater to a flat position. Both markets rebounded and the rebound is still continuing.
Funds continued to flow into the ChiNext, absorbing today's loss-making chips. At 10:30, half an hour after Gu Junhao fully invested again, the ChiNext Index had risen above 1230 points, realizing a false bullish cross star during the day.
At eleven o'clock, the ChiNext Index climbed above 1,240 points again, and the decline narrowed to less than 1%. Wangsu Technology rose to 76.35 yuan, up 2.48%.
At 11:30, the morning trading ended, and the ChiNext finally closed at 1237.76 points, down 1.01% on the day, while Wangsu Technology closed at 78.08 yuan, up 4.8% on the day.
At this point, no one thinks that today's rebound is a false one. All short-term funds in the two markets and the vast majority of retail investors have reacted.
Countless pairs of eyes were fixed on the ChiNext, and Dongfang Wealth, Tonghuashun, Wangsu Technology, and some popular stocks related to the index all achieved a Jedi counterattack.
Dongfang Wealth, Tonghuashun and others all pulled up from the limit down, with the decline closing within 5%, leaving a long lower shadow, while Wangsu Technology was even more powerful, with a rise of nearly 5%.
"Too powerful! Dongfang Wealth and Tonghuashun are so big, but they dare to pull up the limit down. How much capital does it take?"
"If we talk about the strongest, it has to be Wangsu Technology. The ChiNext Index has fallen below the limit, but it has not even fallen below the 20-day line. It finally pulled up from the limit down yesterday, and today is even more outrageous."
"This doesn't give people a chance. It's already been pulled to 70 or 80 yuan. At what point do you plan to stop?"
"So what if we knew? We didn't dare to buy this kind of stock. Oh, I really regret it. I was only in my early 30s when I first saw it."
"Who says it's not true? At the beginning, a buddy in the group invested all his money in Su Technology. He dared to buy it at more than 50 yuan. It would have been great if I had followed him at that time."
The ChiNext achieved an intraday reversal. At noon, some institutions and big Vs who were bearish in the early trading session changed their tune and analyzed the current market situation in various ways on social media, indicating that this is the bottom.
In short, they all have their reasons, and such behavior has also caused retail investors to curse.
This is how the financial market works. Except for a very few investors who can remain calm and make correct judgments, most people are just followers.
In such a market, in addition to operations, vision and technology, human nature is more tested. The greed and fear of human nature itself are infinitely magnified in this market and reflected in the K-line pattern.
Before we knew it, it was one o'clock in the afternoon. After bottoming out and rebounding violently in the morning, the ChiNext index performed much better in the afternoon.
After a slight pullback, the index started to rise all the way, and tens of millions and hundreds of millions of funds poured into the ChiNext.
At the same time, active funds that were originally waiting on the sidelines, including some retail investors who sold their shares in the early trading session, could not help but enter the market again.
Under such circumstances, the index climbed upward at a speed visible to the naked eye, and by two o'clock, it had unimpededly recovered the downward gap in the early trading session.
The three major indexes successfully turned positive, selling volume became less and less, funds continued to flow in, and off-market funds rushed into the market.
Wangsu Technology, held by Gu Junhao, took the lead in the rebound of the ChiNext today. After 40 minutes of upward fluctuations after the opening of the afternoon, at 1:40 pm, two large orders of 10,000 shares directly brought Wangsu Technology to the daily limit price.
As shown on the intraday time-sharing chart, it is a straight line with an increase of nearly 5%, rushing straight to the top of the cloud. Wangsu Technology also appeared in the first place in the 5-minute increase ranking of the two markets.
"Awesome! I thought there would be a rebound, but I didn't expect it to hit the daily limit. It seems that the probability of it being capped is very high." Looking at the trend of Wangsu Technology, Gu Junhao said with some surprise.
I just wanted to take advantage of a rebound, but I didn't expect to get a daily limit unexpectedly.
At 2:10, after a few minutes of fluctuations on the board, Wangsu Technology completely hit the daily limit, closing at 81.95 yuan, with the daily limit orders approaching 3 billion yuan.
"Great, a daily profit of 12.37%." Seeing that Wangsu Technology had reached its daily limit, the daily profit on his account was 198,400 yuan, close to 200,000 yuan. Gu Junhao was extremely happy.
The intraday profit is nearly 200,000, which is also the highest since my rebirth. It is true that leverage is more profitable. However, with the current funds of less than 2 million, I can still enter and exit the market with full position. This requires the funds to reach eight figures. Then I can't go all-in like I do now, and I have to operate with split positions.
The daily limit of Wangsu Technology also further catalyzed the market. Related concept stocks rose one after another, the general rise was further intensified, and the market's money-making effect was further enhanced.
Finally, at the closing time of three o'clock, the Shanghai Composite Index closed at 2222.67 points, up 0.69%, with a turnover of 100.7 billion yuan; the ChiNext Index closed at 1255.33, up 0.11%, with a turnover of 33.87 billion yuan.
Although the ChiNext Index barely closed in the green, it achieved a major reversal within the day after falling below 1,200 points, which also injected a shot in the arm for the market amid the negative impact of IPOs. New bargain-hunting investors such as Gu Junhao reaped a considerable profit.
Wangsu Technology closed at 81.95 yuan, up 10%, with a transaction volume of 425 million yuan, a decrease of 100 million yuan compared with yesterday's 546 million yuan.
"Today's trend of Wangsu Technology will be on the Dragon and Tiger List again. Then we will know who is buying and who is selling."
After the market closed, major financial media, financial websites and some experts and big Vs all dubbed today's ChiNext as the "Great Miracle Day", claiming that it was a signal that the ChiNext had bottomed out.
A huge golden needle bottoming positive line is changing people's beliefs. The market has gone from extreme panic in the early trading to full of expectations now, which is vividly demonstrated.
However, Gu Junhao does not think that the ChiNext will continue to rebound here. Today's Jinzhen bottoming out is more like a pullback. Before the negative impact of IPO is fully digested, it is unlikely that the ChiNext will rebound directly upward like this.
Obviously, a drop in just one trading day is not enough to digest the negative impact of the IPO, but the bottom position of 1,200 points should have been confirmed.
The most obvious manifestation is that although a number of heavyweight stocks such as Dongfang Wealth and Tong Huashun have rebounded from their limit down positions today, their performance was mediocre throughout the afternoon.
This is also one of the reasons why the ChiNext Index underperformed the Shanghai Composite Index in the morning environment despite the influx of a large amount of funds, and the index just barely closed in the green.
As for Wangsu Technology, it had a big drop yesterday. Although it rebounded from the limit price in the late trading, it released a huge negative line with a transaction volume of more than 500 million yesterday. Today, it has a trend of shrinking rebound, which also shows that part of the funds have already taken profits and exited.
“Pulling it up from the lower limit is probably just to avoid being on the Dragon and Tiger list, right?” Gu Junhao thought.
The market opened at 5:30 under this sentiment . The new Dragon and Tiger List of the two cities was updated, and the highly anticipated Wangsu Technology was on the list.
