Chapter 357: "Full Position Locked"
January 25th, Monday, today is the sixteenth day of the twelfth lunar month. In ten days, Gu Junhao will be celebrating his twenty-fourth birthday.
He was born in an orphanage and had no social background. He entered the market with the tens of thousands of yuan he saved from working in a factory. In less than three years, he had built a net worth of tens of billions.
Whether it is the capital entering the market, or the source and operation of funds as a retail investor and a private equity fund manager , all of Gu Junhao's funds can be traced without any violation of regulations.
This level of cleanliness, which is almost transparent, really amazed the local regulators. Junshi Capital had previously had two regulatory cases, one of which was an on-site inspection after being reported.
In addition to the incident with Boss Xu, Gu Junhao, who successfully escaped the stock market crash, was also investigated for the source of his funds and whether his operations were in violation of regulations.
But all the results showed that there was nothing wrong with this young man. In addition, Gu Junhao later took the initiative to rescue the market not only by using his companies but also his own funds.
He also actively exerted his appeal on his personal social media, which made local people have a better impression of Gu Junhao.
Everything is done in the open and with a positive spirit, regulators will naturally welcome this talented trader.
For retail investors and private equity, regulators are not afraid of some people making excess wealth as long as it does not affect specific interests.
On the contrary, this kind of star-like figure is actually a benefit to the market.
The A-share market is a trading market dominated by retail investors. Having such a star-like figure can attract a certain amount of popularity and funds, which is beneficial to the liquidity of A-shares.
For example, in the previous life, when Kun Kun and Lan Lan were at their most popular, they attracted many ordinary investors to enter the market and participate in A-share market transactions by subscribing to funds.
If fund managers can maintain stable returns, it will definitely be a blessing for the A-share market, but more often than not, things go against one's wishes.
Today, A-share funds showed a net outflow throughout the day, with the outflow amount reaching 16.3 billion yuan. The trading market was still dominated by individual stock sectors such as steel and coal under the supply-side concept to maintain the index.
The outflow of funds mainly went to securities companies, banks and other financial sectors. The bear market has already formed. For some large funds, holding large positions in securities companies and other sectors has already seemed a bit irrational.
It is possible that the national team may have also reduced its holdings, while the theme of short-term speculation is mainly concentrated in the field of virtual reality. Affected by the successful second round of financing of Baofeng Magic Mirror, the overall speculation sentiment in the sector is high today.
For nine consecutive trading days, the Shanghai Composite Index has failed to hold steady at 3,000 points. Its weakness is beyond everyone's imagination. The trading volume on January 25 once again hit a new low, with only 164 billion yuan traded throughout the day.
The Shanghai Composite Index, which had been rising without volume and unable to rebound, finally suffered the most fatal blow. Affected by the continued weakness of overseas markets overnight and the continued plunge in crude oil prices, the Shanghai Composite Index gaped down at 2907.72 points in early trading, a drop of more than 1%.
Generally speaking, the true bottom of a stock or a market index does not occur at a certain price or on a certain day. This is biased. The true bottom needs to be repeatedly consolidated over time.
For example, if a certain price of a stock is considered by the market to be the bottom, and it does rebound at this price for a few days, but then it continues to pull back to create a new low price, this cannot be considered a bottom rebound.
A true bottom rebound should be that even if it is the second bottom, it will not break the previous low, and there will be a long period of growth. As far as individual stocks are concerned, the increase should be at least 30%, and some strong stocks can even double the returns. This is called a bottom rebound.
Correspondingly, the same is true for the top position. In order to fully escape, the large funds in the market will generally have a secondary topping-building process. Even for the bad situation like the Wencheng Gang, which has continuously smashed the limit down, there will be a symbolic rebound and shipment stage.
If today's downward gap cannot be recovered quickly, it is obvious that the index's 2844 points last Monday is not the real bottom today, and the Shanghai Composite Index will definitely find a new bottom.
After trading started at 9:30, the Shanghai Composite Index quickly fell below 2,900 points. After struggling at a low level for an hour and a half, the Shanghai Composite Index, which had been unable to close in the green, began to show signs of accelerating its dive in the last few minutes before the midday closing.
At noon, the Shanghai Composite Index closed at 2867.20 points, with the decline widening to 2.43%. In the afternoon, the Shanghai Composite Index began to accelerate its dive, and the decline of the index quickly expanded to around 3%, approaching the previous bottom of 2844 points.
At 1:40 p.m., Gu Junhao also received a call from Liu Tingting in the trading room. The share price of Longji Shares had approached 11 yuan!
In fact, Gu Junhao was also watching the market at this moment. After taking a look at the market in the morning session today, when he saw the Shanghai Composite Index jump downward, Gu Junhao had a premonition that a real market drop was about to come.
The performance of all major sectors was very sluggish in the morning, and there were very few stocks in the Shanghai and Shenzhen stock markets that turned positive. Under this sentiment, the performance of Longji Shares was bound to be not very good.
As of 1:50 p.m., the share price of Longji Green Energy Technology Co., Ltd. closed at 11.32 yuan, with the decline widening to 6.52%. At this time, the Shanghai Composite Index had officially fallen below the previous low of 2844 points.
"The opportunity to buy at the bottom is coming soon, haha." Gu Junhao stared at the trend chart and couldn't help but laugh.
Today, for the index and a number of stocks with similar trends to the index, the bottoming out has just begun, and there is no need to rush to buy the dip. Moreover, this time Gu Junhao is only prepared to buy about 30 million yuan in chips.
At two o'clock in the afternoon, as the index broke again, the Shanghai and Shenzhen stock markets began to see a continuous large-scale sell-off, and the trading volume of Longji Shares has also increased significantly since this period.
The decline of Longji Green Energy Technology Co., Ltd. quickly expanded to more than 7%. At 14:20, the Shanghai Composite Index fell below 2800 points to 2799.18 points.
Longji shares fell to 11.04 yuan, with a share price drop of 9.69%, approaching the limit down. The number of stocks that hit the limit down in the two markets has exceeded 1,000.
With thousands of stocks hitting the daily limit down again, the adjustment space for Longji Shares that Gu Junhao expected was initially reached in just one trading day.
The following 40 minutes saw a panic selling trend, with trading volume once again increasing compared to the period of accelerated dive. By the close of trading, the Shanghai Composite Index closed at 2749.49 points, a bald negative line, with a drop of 6.42%.
The ChiNext Index plunged 7.63%, breaking 2,000 points to 1,994.05 points. Although it did not set a new low, it was only one step away. Only less than 10 stocks in the two markets hit the daily limit, and most of them were newly listed stocks.
There were more than 1,000 stocks that hit the daily limit, and many theme sectors were all hit by the daily limit. It was another stock market crash that came without warning.
After experiencing the dismal market conditions in the second half of 2015 and several stock market crashes since the beginning of this year, investors are destined to have a difficult Lunar New Year this year.
The share price of Longji shares closed at 11.16 yuan, down 7.84%. It can be seen that a lot of funds were trying to buy the bottom of Longji shares, which was close to the limit down several times in the late trading. This also led to a certain recovery in the share price of Longji shares.
Longji shares are very close to filling the gap when the market started with a gap up the day after the daily limit on October 12 last year.
The trading volume of the Shanghai Composite Index increased by more than 60 billion yuan compared with yesterday, most of which was released within the last hour of trading.
The panic selling trend was once again brought to an extreme within this hour. After the market closed, market sentiment was extremely pessimistic, and some investors even believed that the Shanghai Composite Index would fall again to around 2,000 points.
If everyone was mentally prepared and trying to buy at the bottom when the Shanghai Composite Index fell below 2,850 points last Monday, then today's new low seemed a bit unexpected.
The market trend remained at 2850 points and fluctuated within 3000 points for a week, and the index finally closed with a positive sign for the whole week.
Investors who wanted to buy at the bottom had basically already gotten the positions they wanted last week or had increased their positions in the stocks they were stuck with.
For investors with smaller amounts of capital, some of them were already fully invested when the market was around 2,900 points last week. With today's sharp drop, they no longer have the principal even if they wanted to buy at the bottom.
Some trapped investors gradually began to expect a rebound and a way out when they saw the index and individual stocks rebound last week.
However, this expectation was once again transformed into fear of the market amid the panic selling at the end of today's trading and the trend of individual stocks hitting the daily limit again.
Some investors will choose to sell out today, but for those who still hold out a glimmer of hope, it only takes one big drop to break through their psychological defenses again.
On Wednesday, January 27, the Shanghai Composite Index opened slightly higher at 2756.08 points. After trading began, the Shanghai and Shenzhen indices, which opened high, did not rebound at all, and continued to open high and close low.
Just one minute later, the Shanghai Composite Index turned green again and hit a new low. In the office, Gu Junhao was watching the trend of the market while staring at the intraday chart of Longji Shares.
Today, Gu Junhao is ready to start bottom fishing. Judging from the trend that Longji Shares was pulled up several times in the late trading yesterday, there are signs that some funds are trying to bottom fish Longji Shares.
At 9:35, the share price of Longji Green Energy Technology Co., Ltd. was 10.78 yuan, down 3.41% in real time. During these few minutes, Longji Green Energy Technology Co., Ltd. was still dominated by outflows, with sell orders of more than 1,000 lots constantly appearing.
However, in terms of buying volume, Longji's performance is still outstanding. The volume of mid-order orders of more than 100 hands is not necessarily less than that of sell orders of 1,000 hands. Although funds are in a state of outflow, it is better than the performance at the end of yesterday's trading.
Large orders are dumping the market, medium orders are buying, and the trend of funds building positions is very obvious. However, judging from the current trend, the stock price will continue to fall.
It is obvious that the main funds are hoping that the panic of the market opening high and closing low will continue to spread. In terms of the trend of individual stocks, today's strategy is likely to be aimed at scaring off retail investors.
At 9:50, Longji shares briefly rebounded to below 11 yuan and then continued to fall as expected. A sell order of 3,930 lots pushed the share price of Longji shares down to 10.50 yuan, a drop of nearly 6%.
A volume of just over 4 million was enough to trigger panic on the market. At 10 o'clock, Longji shares were priced at 10.30 yuan, and the share price fell by 7.71%.
"Damn, with this crappy market this year, even Brother T's stocks can't hold up." At this time, Li Ze stared at the trend of Longji Shares on the APP and cursed.
According to his original purchase cost, his 500-stock position has been trapped by 16.5%, and the loss has exceeded 85,000 yuan. However, Li Ze dare not add to his position at this time. Looking at the current situation, it seems that the stock is heading for the limit down today.
The Shanghai Composite Index fell below the 2700-point mark at 10:08, closing at 2693.92 points, with a daily decline of 2.03%.
Whenever the Shanghai Composite Index falls by more than 2%, it can be considered a major intraday drop, but since the stock market crash in 2015, a 2% drop can only be considered a daily drop for the Shanghai Composite Index.
The frequent declines of more than 5%, more than 7%, or even the near-limit down of all indices have made investors numb to a decline of around 2%.
In simple terms, the market has fallen to a point of numbness, and people may feel that a 2% drop is not a big deal? It is just one more limit down.
The share price of Longji Green Energy Technology Co., Ltd. has now reached 10.17 yuan, which is less than 1.2% away from the lower limit price. Today, the lower limit price of Longji Green Energy Technology Co., Ltd. is 10.04 yuan, and there is only a difference of 0.13 yuan.
At this moment, Gu Junhao had already started to buy continuously. From time to time, there were buy orders of more than 500 lots and less than 1,000 lots on the market, and most of them were made by Gu Junhao.
In the morning session, the share price of Longji Green Energy Technology Co., Ltd. hit a low of 10.15 yuan and then began to slowly rise. The share price remained at a low level of 10.40 yuan and 10.15 yuan.
The index has been fluctuating around 2,700 points. The overall fluctuation is not large, showing a weak state. The entire market seems to be selling, whether it is institutions, hot money or retail investors.
At the midday closing, Gu Junhao had a rare whim and updated his personal social media account. He only posted a performance package, but it was very meaningful.
This emoticon pack is a cartoon child wearing a cute hat. The top of his head is green, but 70% to 80% of his lower body is red.
Also below the character image, there are two lines of text: "Be careful not to step into the air (man cang tao lao)"
Apart from this, there is no text information. Under the bearish market situation, Gu Junhao, as the actual manager of a well-known private equity fund and an internet celebrity himself, issued such a dynamic, which is really meaningful.
"Brother T, what do you mean? Are you stuck too? I saw that Longji shares have fallen to shit."
"Haha, it's been a while since Brother T updated his status. Does Brother T still believe in value investing?"
"How are Brother T's fund performances recently? Why don't you announce them? Is he always holding short positions because he's afraid people will say anything?"
"Brother T has changed. Is he also bearish on the market now?"
As Gu Junhao's number one fan, Li Ze naturally saw this news first. He set up message reminders on Gu Junhao's personal account.
"What does Brother T mean by this? Be careful about missing out? Be stuck with a full position?" Li Ze sent the screenshot of the post posted by Gu Junhao to the group and asked everyone.
However, there was no enthusiastic response. Since the New Year, everyone has become numb. In addition, the Lunar New Year is approaching, and fewer and fewer people are chatting in the group. Even fewer people talk about stock quotes.
Except for a few people who are deeply trapped and are reluctant to sell, most people have already sold their stocks at a loss. Even on trading days, they spend more time driving than talking about stocks.
"What does that mean? Didn't you see the green hair on your head? It means Brother T is not optimistic about the market either."
Finally someone responded to Li Ze, but this interpretation obviously did not satisfy Li Ze. In Li Ze's analysis, this was clearly a signal to buy at the bottom.
Obviously the top is green, but 70% to 80% of the color is red, and it means that the position is fully invested and locked in, so isn’t this bottom fishing?
Afterwards, Li Ze thought calmly for a while. After rounds of declines since New Year's Day, the enthusiasm of the older brothers in the group for stocks has become lower and lower, and almost all of them are bearish on the overall trend of A-shares this year.
Li Ze thought of a sentence that is often mentioned on the Internet: "When retail investors no longer talk about stocks, or even pay attention to their accounts, it means that the bottom has basically arrived."
Sometimes, the reaction of the leeks is the opposite indicator of the market. When a certain stock or a certain sector is followed by a large number of leeks, its trend is basically close to the top.
When the entire market is talking about the bottomless depths of a certain sector, and basic media and institutions begin to collectively sing bearish tunes, the time to buy may have arrived.
"In that case, let's get a hold of him this afternoon! The words of the leeks are not as accurate as Brother T, so continue to trust Brother T." Li Ze thought secretly.
Originally, Li Ze was not planning to increase his investment to buy at the bottom today. The previous 600,000 yuan was already his last investment capital in the stock market.
Now I regret not selling part of the shares when the share price of Longji shares was above 14 yuan, otherwise I would not need to increase the principal even if the stock price drops now.
At the time of midday closing, Longji Green Energy Technology Co., Ltd.'s share price was at 10.13 yuan, the lowest in the morning, down 0.23%, and less than 0.09 yuan away from the limit.
I don’t know whether there will be a rebound in the afternoon. Anyway, the distance is less than 1 cent, so Li Ze is too lazy to care about it. This time Li Ze plans to buy another 400 lots, calculated based on the closing price at noon.
The total holding is 900 lots, with an investment capital of about 1 million yuan. If it rebounds above 12 yuan in the future, these 400 lots of holdings will be sold to reduce the holding cost.
Therefore, Li Ze transferred 410,000 yuan from his bank card to his securities account, placed a buy order for 400 lots at a price of 10.14 yuan, and waited for the market to open in the afternoon.
In the afternoon, as soon as the Shanghai Composite Index opened, it fell rapidly. The index fell sharply from around 2687 points at the midday closing to around 2638 points, a drop of nearly 2%, causing panic in the market.
As soon as the market opened, Longji Green Energy Technology Co., Ltd. received more than 9,000 sell orders, with a selling amount of more than 10 million yuan.
Within tens of seconds, there were tens of millions of sell orders, but the already weak share price of Longji Shares did not go straight to the limit down. The buy orders worth tens of millions were also firmly caught. The share price of Longji Shares only fell to 10.11 yuan, and then began to stabilize again.
"Panic selling, the stock price did not reach the lower limit, but remained near the lower limit. This is an attempt to lure short sellers." Gu Junhao said with a smile as he placed a buy order.
If the stock price really hits the limit down, retail investors will have nothing to worry about. Those who are bold enough may dare to take a chance directly on the limit down. After all, the market has just opened in the afternoon. If the market rebounds a little in the afternoon, if Longji shares open the limit again, they may make money.
If the price really hits the lower limit, retail investors who want to sell will just sit back and do nothing. Not many retail investors will sell at a loss at the lower limit, after all, the price has already hit the lower limit.
On the contrary, it is the fear of approaching the limit down that makes people sell at a loss. The main funds have figured out the psychology of retail investors.
The performance of the broader market was exactly the same. The sudden panic sell-off in the afternoon was also intended to force retail investors to surrender their shares. In just less than five minutes, the Shanghai Composite Index hit a low of 2638.30 points and was quickly pulled up.
The share price of Longji Green Energy Technology Co., Ltd. also began to recover slowly. At 13:15, the share price was 10.32 yuan, and the decline narrowed to 7.53%.
At this time, Li Ze's purchase of 400 lots has also been successfully completed, and the average transaction price is still 10.13 yuan. After two purchases, Li Ze now has a total of 900 lots of Longji shares in his hands, and the holding cost has dropped to 11.16 yuan, which is exactly today's flat price.
Gu Junhao was still buying continuously. Except for a selling order of tens of millions at the opening of the market in the afternoon, the large orders suppressing the market in the rest of the time period remained below 2,000 lots.
However, the buy orders started to get bigger and bigger. At 14:10, there were even more than 3,500 large buy orders on the trading page.
"Maybe the guy who sold at the opening in the afternoon bought it again, haha." Gu Junhao thought with some amusement.
For the main players in the market, it is not necessary to make a profit every time they do T. Sometimes buying high and selling low is also a strategy.
From the opening of the afternoon session to 14:15, the share price of Longji Green Energy Technology Co., Ltd. has been fluctuating between a drop of 7.5% and the limit price, with continuous market fluctuations.
At 14:15, the Shanghai Composite Index rebounded slightly during the day, and Longji Green Energy Technology Co., Ltd. also rebounded. By 14:30, Longji Green Energy Technology Co., Ltd. rebounded to a maximum price of 10.65 yuan.
However, the rebound of the Shanghai Composite Index after 2 p.m. was driven by the oil sector. Although the rise of PetroChina brought a short-term rebound to the index, it also caused panic in the market.
After 14:30, PetroChina could not support itself and the Shanghai Composite Index began to plunge again. The share price of Longji Shares began to fall step by step and finally closed at 10.26 yuan, down 8.06% for the day. The trading volume continued to increase compared with yesterday, with a total trading volume of 430 million yuan for the whole day.
By the close of trading, Li Ze's loss was exactly 8.06%, while the Shanghai Composite Index finally closed at 2655.66 points, down 2.92% for the day.
The Shenzhen Component Index fell 3.61% to close at 9,082.59 points. After falling below 10,000 points, the 9,000 point level seems to be about to be lost. Compared with the high of over 18,000 points in 2015, the Shenzhen Component Index has been halved.
The ChiNext Index closed at 1906.46 points, down 4.56%, which is even more excessive than the Shenzhen Component Index, and even more than halving. The total turnover of the two markets today was 399.369 billion yuan.
Compared with the peak period, the total trading volume of the two markets today is only half a day's trading volume of the Shanghai Composite Index.
Gu Junhao bought 30,000 shares of Longji shares at an average price of around 10.28 yuan today, spending a total of about 30.9 million yuan, increasing his holdings of Longji shares to 330,000 shares.
The holding cost also increased from 9.50 yuan to 9.57 yuan, and there is still some profit space. The shareholding ratio also increased from the previous 1.4% to 1.54%.
Of course, this is Gu Junhao's own calculation, and it is not known whether it is accurate or not. If the national team did not reduce its holdings and if most other factors remained unchanged, Gu Junhao would still be the sixth largest circulating shareholder of Longji Shares.
If the national team has reduced its holdings, it is hard to say. The details will not be known until Longji shares' annual report is released.
