Chapter 290: The trend is irreversible
Gu Junhao suffered a lot from the collective plunge of the Shanghai and Shenzhen stock markets. Fortunately, he only had half of his position left. Gu Junhao smiled bitterly and said to everyone, "Today is a complete loss, but Dongfang Wealth still needs to pay attention. It opened higher today in this situation. The intention of the Shanghai gang to do something is obvious."
With today's opening, even stocks in which Youzi has a deep stake, such as Tong Huashun and Yin Zhijie, opened with a sharp drop, but Dong Fang Wealth opened unexpectedly high. It is impossible for the public funds holding shares to act in this way.
Obviously, this is intended for shipment.
Judging from the recent Dragon and Tiger List of Dongfang Wealth, today's strange high opening must be the work of the Shanghai Gang who are deeply involved in it. There is no one else but them. You should know that there are not a few financing plates in Dongfang Wealth. If the Shanghai Gang is well managed, there will be a large amount of financing in it.
A gap-up opening on the day of a big drop is undoubtedly the best way to attract some fearless investors to take over. Nothing is more attractive than a reversal of gains on the day of a big drop across the board.
Thinking of this, Gu Junhao smiled, and then said to Xu Jianqing and Wang Ruoyu: "The two of you place sell orders for 10,000 lots at 45 yuan and 46 yuan respectively. There is no need to split the orders."
You want to sell the goods, so you can just open high and close low. If you want to pull up the price, I will take advantage of you. With the trend today, it is almost impossible for Dongfang Wealth to close the board.
If the Shanghai Gang dares to close the board, the financing in Dongfang Wealth will dare to come out in full force. It depends on how much money they have to maintain the situation. No one with a sound mind would do this. Dongfang Wealth is not a small or medium-sized stock.
"Who's bidding 45 yuan and who's bidding 46 yuan?" Xu Jianqing asked Gu Junhao.
"It doesn't matter. If you ask, just ask for 45 yuan. If you can pay it out, pay it out. If you can't pay it out, forget it." Gu Junhao said indifferently. In fact, if Dongfang Wealth opened sharply lower like Tong Huashun, Yin Zhijie and the index, Gu Junhao didn't intend to touch him.
In today's strange situation, if he cannot cut a profit from the hot money, it would be a shame for the chips in his hands. Gu Junhao is not worried about selling them at a loss. As long as you keep an eye on a stock for a long time, there is no possibility of selling them at a loss.
You are making money at every stage. Even if the stock price goes higher and higher, as long as you can make money, it is not a big deal to sell at a loss. The cost is not that important for the chips you buy.
Gu Junhao's guess was correct. The high opening of Dongfang Wealth today was indeed caused by the Shanghai Gang. They had heard about the regulatory authorities' crackdown on extraordinary financing practices, but they did not take it seriously. This matter cannot be eliminated by just cracking down on it. There is always a way.
However, today's opening reaction of the three major financial stocks, which almost collectively fell to the limit, was far beyond everyone's expectations. At the same time, they also realized that this was a good opportunity to sell. If they did not sell today, it would be too late to sell after the financing was cleared.
"There are more and more pending orders above, what should I do?"
"Don't worry about it. Just follow the plan. Today is a rare opportunity. If the market opens high, someone will definitely want to get ahead of us. This is inevitable. We will make money if we can sell the goods."
"Don't worry. Recently, the popularity is in small and medium-sized enterprises. If the main board falls so much today, the popularity of the ChiNext will be higher. There will be no problem with shipments today."
"The general trend is irreversible. As long as we guide the selling orders a little, the pressure will pass. There are plenty of leeks to take over."
"That being said, I feel like this method is somewhat familiar, as if I've seen it somewhere before." At this time, Ah Fu also spoke up. He always felt that this method of placing large orders was somewhat familiar, as if he had seen it somewhere before.
This round of Dongfang Wealth's rise was not dominated by him; the less than 70 million chips purchased on the previous trading day were mainly used as a relay cooperation method. The profit in this regard is guaranteed to a certain extent. During today's call auction, nearly two-thirds of the 70 million chips have been traded.
"Familiar? Have you seen this technique before?"
"Oh, yes, I remember now. It's very familiar. I encountered it once last month. Gu Junhao placed an order of 15,000 lots directly in Tonghuashun. Could it be that guy again?"
"Is it the guy who cut your losses? Is this guy placing orders so directly? Don't other institutions sell stocks in batches? I was wondering why there was an order of 20,000 lots suddenly."
"Can you talk? What do you mean by cutting off my money? I didn't lose any money!" Ah Fu said speechlessly, and then he said, "That's right, it's probably the guy named Gu. He has so many chips in Tonghuashun, so it's not surprising that he has a large amount of chips in Dongfang Fortune. This guy is so direct in placing orders."
"Haha, so this means we helped this kid carry the sedan again? Ah Fu, you are really good. He cut off the last round of the relay again."
"This guy is really haunting us. The net value of his No. 1 fund has skyrocketed in the past half month. It is very likely that he holds most of Dongfang's wealth. We are really helping him this time."
"Alas, there is no other way. We harvest retail investors. As long as we invest in stocks that are crowded with institutions, we will be harvested by them to a greater or lesser extent. This is the ecological chain."
"But this kid is making rapid progress. He has only been trading stocks for less than two years, and he is only in his 20s. Brothers, you have to work harder. Young people nowadays are too aggressive. If we don't work hard, there will be no room for us to survive in the market."
"Will his pending order have any impact? Will some retail investors be afraid to take the order, and will other chips follow suit?"
"Of course there is, but it doesn't matter. The general trend is irreversible. Let him go." Liyang Lu concluded. As the boss of the Shanghai Gang, he can be regarded as the most calm and stable one. Today's plan is also carried out under his command.
As he said, a big reversal is inevitable. The continuous rebound of the ChiNext requires a period of chip exchange. Today's miraculous plunge in the main board is a good opportunity. The funds fleeing from the main board need to find a place to accommodate the cash.
The funds participating in this round of ChiNext rebound also need a profit-taking window period. No one can resist under the general situation, not even Gu Junhao. All he can do is to increase his own profits.
For him, who has held Dongfang Wealth for a long time and exchanged time for space, this is also a part of what he deserves. Unlike Afu's depressed mentality, Liyang Lu admires Gu Junhao's keen grasp of timing.
At 9:30, official trading began. Except for a few brokerage firms that were named, all other stocks opened their markets. The Shanghai Composite Index opened low and then rebounded slightly as some brokerage firms opened their markets.
Small and medium-sized enterprises and theme stocks fell slightly at the opening and then rebounded quickly. Affected by this, the ChiNext Index opened low and fell slightly below 1,600 points before quickly rising like a rocket.
At 9:40, the ChiNext Index turned positive. Within ten minutes, the index rose by nearly 2.5%. The rebound momentum was very strong. Stocks such as Tong Huashun and Yin Zhijie, which opened low in the morning, also rose rapidly. The share price of Dongfang Fortune had exceeded 45 yuan at this time, closing at 45.50 yuan, up 3.13%. All of Xu Jianqing's orders had been executed.
At 9:45, as some of the brokerage stocks that were delisted hit the limit down again, the brokerage sector as a whole hit the limit down. Financial sectors such as insurance and banks, as well as indexes, also turned downward. Within 15 minutes of the morning session, the Shanghai Composite Index rebounded below the five-day line, reaching a high of 3263.21 points.
"The securities sector has hit the daily limit across the board. This kind of spectacle is rare. Now that you have seen it, you have witnessed history again." Gu Junhao said to Xu Jianqing and others with a smile, not at all panicked by the sharp drop in his holdings.
"It's really a spectacle. I just don't know what will happen to banks and insurance companies. It would be terrible if all three major financial sectors hit the limit down." Today's market conditions really shocked Xu Jianqing.
"Then you can take a look at the performance of Bank of China and Zhongguo Ping An. If these two also hit the limit down, then it is almost possible." Wu Peng said with a smile. After Zhongguo First Construction opened more than 8% lower in the morning, it fluctuated for a while and then went straight to the limit down. With no room for operation, he also finished his work like Cao Wenxun.
At present, Zhongguo First Heavy Industries is still struggling, but Gu Junhao has ordered Xu Jianqing not to move rashly. Today is not a good time to sell heavyweight stocks, whether it is to cut losses or to buy at the bottom. For heavyweight stocks, today's limit down is just the beginning.
The limit down is extremely damaging to people's morale, not to mention the rare collective limit down among securities companies. For blue chip stocks, unlike some small and medium-sized short-term stocks, a sharp drop often means a large amount of capital outflow, and it takes time for these funds to come back.
At 10:05, the ChiNext Index, which had risen by more than 3%, started to rise again after fluctuating at a high level. The index went up step by step, but the performance of Dongfang Wealth was far beyond the expectations of investors who bought in the morning.
After Dongfang Fortune created an intraday high of 46.27 yuan at 9:45, the stock price quickly turned downward, and funds poured out to dump the stocks. When a number of theme stocks and indexes finished their adjustments and started to rise again, the diving Dongfang Fortune stock price had turned green to 43.50 yuan, down 1.41%.
"These hot money investors are so evil. They want to cheat so many people just for selling goods." Gu Junhao couldn't help but laugh as he watched the falling Dongfang Wealth. He never thought that his two pending orders worth more than 90 million yuan today would also be among the victims.
To a certain extent, Gu Junhao's pending orders also became one of the boosters for hot money to sell off its stocks. After seeing the large orders of tens of thousands of hands being eaten up, the psychological desire of retail investors in the off-site market to chase high prices became even stronger.
Seeing two large orders of tens of thousands of shares being eaten up continuously, the stock price temporarily approached the 5% level. At this time, the hot-headed investors had no other thoughts in their minds except the daily limit, and chasing high prices followed.
It has to be said that Liyang Road's market control method is much more sophisticated than Afu's. When the situation is unfavorable, he can drive emotions through the index and guide retail investors to take over, which is very successful.
However, due to the large size of Dongfang Fortune, the funds required are incomparable to those of some small and medium-sized stocks. At 10:10, Dongfang Fortune closed at 42.80 yuan, down 2.99%, and fell more than 8% within 25 minutes of trading.
At 10:30, Dongfang Wealth closed at 42 yuan, down 5%. Investors who chased high prices were trapped with nearly 10% of their money. On the market, a number of related concept stocks that opened low, such as Tonghuashun, turned red one after another.
The ChiNext Index has now risen to above 1,669 points, up more than 1.8%, setting a new high since December last year. The surge in theme stocks and indexes has made investors who were chasing Dong Fang Wealth even more desperate.
"MD, I thought the high opening this morning would lead to an independent trend, but I got fooled again; these bastards in Shanghai are too ruthless, and the smashing will never end."
"Don't panic, the above-mentioned person, this is indeed an independent trend, independent of the ChiNext Index, and it is worthy of being a heavyweight stock in the ChiNext."
"No one among the hot money is a good thing, especially the gang in Shanghai, which rushes in and out at the same time."
"Hey, don't touch the stocks bought by the Shanghai Gang in the future, especially this idiot from Fushan Road. Every time he buys, something bad happens. Last time, Tong Huashun was also cut by him."
At 11 o'clock in the morning, the ChiNext Index, which continued to set new highs, was reported at 1691.14 points, with a daily increase of more than 3% and a volatility of 5.58%. The leader of the insurance sector, Zhongguo Ping An, hit the limit down at this time.
Five minutes later, Zhongguo Ping An hit the lower limit, and the insurance sector followed the securities firms and hit the lower limit. The decline of Bank of China also reached around 9%, only 1% away from the lower limit.
"It looks like we're going to see the three major financial stocks all hitting the limit down today. It's so spectacular!" Gu Junhao couldn't help but sigh. The Shanghai Composite Index's decline has now returned to more than 5%, and the index is only 1 point away from falling below 3,200 points again.
At midday close, Bank of China fell more than 9%, and the overall decline of the banking sector also reached more than 9%. The Shanghai Composite Index reported its lowest point of the day at 3163.72 points, down 6.30%. Affected by the broader market, the ChiNext Index also plunged sharply, closing at 1662.25 points, up 1.38%.
At the midday closing stage, there was a cry of grief on social media, and the A-share market plummeted by more than 6%, which also became a real-time hot search. Panic in the Shanghai and Shenzhen stock markets spread from the trading floor to social media, and the panic is further intensifying.
At the beginning of afternoon trading, affected by the spread of panic, ChiNext heavyweight stocks, led by LeTV and Dongfang Wealth, plunged sharply. The ChiNext fell linearly to near the flat point, and theme stocks turned green on a large scale.
Tong Huashun and Yin Zhijie, which had turned red in the morning, also turned green again. At 13:15, Zhouzhou Bank reported that it hit the limit down. So far, the three major financial sectors all hit the limit down. The Shanghai Composite Index fell further by more than 7%. In terms of heavyweight stocks, except for the nonferrous metals sector, they all maintained a downward trend, and countless stocks hit the limit down.
The negative impact from the policy side has become the fuse for today's sharp drop. The deeper reason for the sharp drop in the market is the market's temporary overvaluation and overheated investment sentiment, coupled with the huge amount of leveraged funds.
This part of leveraged funds fled in panic when faced with negative policy news. The limit-down order on the leading brokerage stock Zhongxin Securities even exceeded 20 billion yuan.
There is a constant in all causes and effects. The wilder the rise, the harder the fall. The panic outflow of funds led to an overall market collapse. Naturally, there were many stocks and sectors that were mistakenly killed, but for now, it is still impossible to tell which ones were mistakenly killed.
"It is estimated that the equity market will be cold for a while. Tomorrow will definitely not be much better. It will be good to be able to re-enter at the end of the month." Gu Junhao looked at the market helplessly. The two funds suffered heavy losses today.
Although both funds were only half-positioned, the loss of over 100 million yuan in funds was immeasurable. It was originally thought that normal adjustments would be relatively mild, but the market's reaction to the negative news over the weekend was so intense. These were all things that Gu Junhao had not expected.
As for the performance of A-shares in 2015, Gu Junhao only remembered the approximate time of the stock market crash. He knew about the on-site inspection of securities firms by the regulatory authorities some time ago, but like most people, he obviously underestimated the market reaction.
After all, a reborn person is not omnipotent and it is impossible for him to remember all the trends. If Gu Junhao knew that there would be such a drop today, even at the risk of supervision, he would have slowly shipped out the goods in the past period of time and increased the efforts to reduce his holdings.
Unfortunately, Gu Junhao does not remember this drop. The biggest impression left to the world in 2015 is the market trend after May and June. After years of baptism, the same is true for Gu Junhao.
The diving trend led by the Shanghai Composite Index is further accelerating. At two o'clock in the afternoon, the ChiNext Index turned green again. After opening low all day, the two popular stocks that performed well also led the Chinese-character stocks to dive downward.
Looking at the plummeting CNR and CSR, Gu Junhao smiled and said to Xu Jianqing and others, "I don't know whether other stocks were mistakenly killed today, but these two were definitely mistakenly killed. Believe it or not, if they fall a little more, there will definitely be a large amount of bargain hunting orders coming in."
"Mr. Gu is right. With the commotion in financial stocks, CNR and CSR are the only blue chip stocks that can be traded in the short term. After all, his expectations are still there." Cao Wenxun also continued with a smile.
"Indeed, in the short term, funds should still be biased towards small and medium-sized enterprises. Although small and medium-sized enterprises also fell sharply today, overall, the number of stocks that hit the daily limit is much smaller than the overall market. For large funds to do short-term investment, the capacity of small and medium-sized enterprises is limited. CNR and CSR are two very good targets." Wu Peng continued.
With the entire market plummeting, everyone has already laid down. Except for the two transactions of Dongfang Wealth today, there are basically no trading opportunities for other stocks. Now everyone is discussing which stocks were mistakenly killed.
At 14:30, CNR and CSR hit the limit down, and the Shanghai Composite Index also fell below 3100 points at this moment, closing at 3095.07 points, with a drop of nearly 9% at one point. The ChiNext Index quickly fell to 1604.44 points, down 2.14%.
"Here it comes. Look, the bottom-fishing funds are here." Gu Junhao smiled as the Zhongguo CSR and ChiNext indexes on the index screen jumped. After slightly touching the limit price, CSR rebounded quickly.
CNR and CSR rose at rocket-like speed in the same period, bringing the Shanghai Composite Index back above 3,100 points. Zhongguo First Heavy Industries, which had performed quite well today, also unexpectedly opened its limit down at this moment and began to slowly recover.
After trading sideways for five minutes, the ChiNext Index began to rebound after failing to fall below 1,600 points. A series of ChiNext heavyweights and popular stocks such as Dongfang Fortune, Yinzhijie, Tonghuashun and LeTV rebounded rapidly.
"It seems that investors are still optimistic about small and medium-sized start-ups. So it looks like the blue chip stocks will have to adjust for at least half a month. It's a good opportunity to make a big adjustment during the meeting to facilitate the subsequent rally."
In less than half an hour of trading, the Shanghai Composite Index failed to turn around, and the three major financial sectors continued to hit the limit down. In the end, the Shanghai Composite Index closed at 3116.35 points, down 7.70% on the day.
The market index fell 260.15 points in one day, breaking all the moving averages including the 5-day line, 10-day line, 20-day line and 30-day line, and the performance was appalling.
As for when the market will stop falling, Gu Junhao expressed his own views based on his operating experience and some remaining memories: "The next 60-day support point is near 2817 points. The probability of falling to 2800 points should not be high, and then the market will really collapse. I estimate that it will stop falling between the 30-day line and the 60-day line, which is about 2974 points on December 9, the historical high volume of transactions, to around 3000 points."
According to this calculation, there is still a gap of about 100 points. It should be adjusted slowly by the end of this month or the beginning of next month. It may be reflected faster in individual stocks, which is also in line with Gu Junhao's plan to buy the bottom at the end of the month.
The ChiNext Index rebounded by more than 1.5% within the last 20 minutes of trading and finally closed at 1630.06 points, down 0.58% on the day. As it was higher than the opening point, the K-line showed a false positive line with a long upper shadow that bottomed out the five-day line.
The performances of Tonghuashun and Yinzhijie were also similar to that of the GEM. Tonghuashun finally closed at 59.59 yuan, with its share price down 5.85%, and Yinzhijie closed at 59.50 yuan, with its share price down slightly by 0.73%.
While Dongfang Fortune fell sharply during the trading session, it also rebounded in the late trading session. The stock price closed at 44.60 yuan, up 1.09%. Dongfang Fortune, which had a high-level cross false negative line, had a trading volume of 3.27 billion yuan today, which looks worse than Tonghuashun's trend.
Although Tonghuashun has fallen sharply, at least there has been no large-scale shipments, and the trading volume and turnover rate have not changed much compared to usual.
Among all the stocks held by Gu Junhao today, Yinzhijie had the smallest drop, followed by CSR which rebounded from the limit down. CSR closed down 2.51% at the end of the day, and its share price rose sharply by more than 7% at the end of the day. In addition, there was Tonghuashun, while Zhongguo First Heavy Industries rarely did not hit the limit down, and closed at 5.15 yuan at the end of the day , down 8.85%.
Among a large number of stocks that hit the daily limit, there suddenly appeared one that did not hit the daily limit, which was somewhat surprising to Gu Junhao.
Such a large amount of funds and the sharp drop in the day also made Gu Junhao curious about how much money he lost today. Tong Huashun in his personal account was able to calculate it very well. The intraday loss reached 5.92 million yuan. He had to ask Wang Ruoyu and Xu Jianqing about the fund holdings.
"Calculate how much money you lost today. I'm quite curious." Gu Junhao said to the two with a smile.
The expression like that of a middle school student reminded Cao Wenxun and Wu Peng that their boss was only a young man in his 20s, and his usual behavior was too confusing.
After the two of them looked through it, Gu Junhao's curiosity was also satisfied. Among them, Junshi No. 1 basically offset the limit down of Xibu Securities due to the operation of Dongfang Wealth, and the losses of the other two were not too large. The total daily loss of Junshi No. 1 was 254,500 yuan, which can be ignored.
The loss of Junshi No. 2 reached a rather exaggerated figure, as high as 35.62 million yuan. Even with half of the position, the intraday retracement reached as much as 3.5%. Within one day, Junshi No. 2 fell below the 1 billion yuan mark again.
"Wow, wow! Together with the money I lost in my personal account, I lost nearly 42 million yuan in one day, which is even larger than the initial size of our first fund. It's amazing."
The Junshi Group, including Gu Junhao's personal account, had a holding value of nearly 800 million yuan on the previous trading day, and more than 40 million yuan evaporated in one day. Looking at the two markets, it is unknown how much market value has been evaporated in today's sharp drop. The high-risk nature of the financial sector is obvious.
