Chapter 358: The Difference Between Strong and Weak
The extreme market trend at the end of January was also reflected in the US stock market and Nvidia's trend in the evening. After hitting the bottom at a temporary low of US$26.45 in the previous trading days, Nvidia's stock price began a rebound trend that lasted for several trading days.
After several consecutive trading days, NVIDIA finally rebounded to the closing price of 28.70 last night. However, as soon as the market opened this evening, its stock price once again followed the external trend and began to show a fluctuating downward trend.
"This trend is somewhat similar to the rebound trend of the Shanghai Composite Index after it hit the bottom of 2850. It looks like there is still room for decline, but it should not be a problem to open a position below US$27."
In the evening, Gu Junhao said during his communication with Xu Jianqing and others that, at present, Nvidia should have a trend of gradually stabilizing, but considering that it would take more than 160 million US dollars to build a position, it is also possible to start building a position slowly and tentatively now.
This extreme market situation in the US stock market in January is destined not to last long. For the bulls, January suffered heavy losses, but for off-market funds, it is also a good opportunity.
Even the A-shares, which are not doing well, will have a good rebound after an extreme decline, not to mention the US stocks, which have always been known for their slow bull market. This slow bull market can last for several years, and the same is true for Nvidia.
"Then shall we start building positions tonight?" Xu Jianqing asked Gu Junhao. Daily trading has been relatively easy recently, and Xu Jianqing has gradually adapted to the rhythm of US stocks and Nvidia.
As for night life, it is nothing for young people like Xu Jianqing. Before, Xu Jianqing would trade A-shares during the day and go to bed very late.
"Well, it's time to get started. Close the short position and start building a position today."
Foreigners do not celebrate the Spring Festival, so the US stock market does not need to be closed, but we Chinese still have to celebrate it. This year's Spring Festival holiday will start after February 5th, and A-shares will officially be closed after the end of trading on February 5th, and will not reopen for trading until February 15th.
Junshi Capital's holiday arrangements are all based on the opening trading days of A-shares, and there will not be much change except in special circumstances, and this is especially true for the fund business department that is directly involved in the transaction.
Compared to other departments that may have some adjusted holidays, the Fund Business Department's holidays are the most enviable in the entire company. However, they are also the most mechanical. As long as it is a trading day, you must be on the job.
Of course, if the trend is relatively flat, or a trader needs to take a leave, Gu Junhao will readily agree to his vacation. As a department directly under the company boss, they are so willful.
Many employees within Junshi Capital want to transfer to the fund business department, which not only offers generous remuneration but also allows them to have close contact with their boss, and their prospects in the company will also be better.
Although Xu Jianqing's work content has been changed many times , even from working during the day to working at night, he doesn't know how many people envy him behind his back. Mr. Gu will think of him when he needs something, which is a treatment that others cannot enjoy.
In the evening, Gu Junhao looked at the night trading of the US stock market for a while and then stopped watching it. Watching the market so late at night is simply torture, especially now that it is winter and the night time is shorter than in summer.
"Let Xiao Xu handle this kind of thing in the future. It's too tiring." After going to bed, Gu Junhao complained to Zhang Yiru beside him.
"I see that you are enjoying it. Your eyes are shining when you are looking at the market. Besides, are you confident in leaving it to Xiao Xu?" Zhang Yiru said with a smile.
It was almost twelve o'clock. Although Gu Junhao did not pay attention to the Mi stock market every night, whenever he did, Zhang Yiru would wait for him to fall asleep together.
"There's nothing to worry about. Xiao Xu has made a lot of progress. Besides, whether it's foreign or domestic stocks, whether the stock will ultimately be profitable still depends on the trend."
"Well, that's true. Xiao Xu and the others have grown up, and you can relax a little more."
"Right, stop talking about this and go to sleep."
…
On Monday, January 28, the last two trading days of the month, after dealing with company affairs, Gu Junhao came to the trading room leisurely. There were only two trading days in January, and Gu Junhao had to understand the progress of building a position.
"Why are you here, boss? Is there any change?" Wang Ruoyu asked hurriedly when she saw Gu Junhao coming in.
"Nothing has changed. I just want to know the progress of the position building. You guys continue with your work and don't worry about me. After work, report to me after you have summarized it."
"Oh, okay, nothing else, let's get on with our work."
When Gu Junhao came in, the Shanghai and Shenzhen stock markets were already in the opening stage, which was why Wang Ruoyu asked Gu Junhao about his coming in; generally speaking, there was no change in the operating strategy, and the boss seldom entered the trading room during the trading session, at most he would just make a phone call.
Actually, Gu Junhao wanted to come in and take a look because he was bored. Although it was approaching the New Year, the company's specific affairs were busier than usual, but the specific affairs did not require Gu Junhao himself to handle.
In addition, Gu Junhao appears at the company on time almost every working day, and seems to be quite adept at handling company affairs.
Although the market formed a cross-yin line yesterday, the market trend today is not very good either. The market still maintained a sluggish start with a sharp drop of nearly 1% in the call auction.
There were still no hot spots in the two markets during the trading session, with sluggish trading volumes and individual stocks generally in the red. Gu Junhao roughly looked at the situation of each trader building positions in individual stocks, and the overall progress was quite good.
Wang Ruoyu's Wuliangye had already increased his holdings. He used 150 million yuan to buy a total of 62,500 lots of Wuliangye. Together with the original holdings of 150,000 lots, the total holdings were 212,500 lots, and the cost also rose to 23.09 yuan.
The cost of building a position in Wuliangye exceeded 490 million yuan. Today, Wuliangye’s stock price remained fluctuating around 23 yuan, and its position was in a slight loss.
After Wuliangye increased its holdings, its profit turned into a loss, which Gu Junhao thought was normal. In recent trading days, although Wuliangye's stock price continued to decline, its trading volume kept shrinking, and there were not many chips that could be bought at a low price.
In the morning, Wuliangye’s stock price surged by more than 1% at one point, reaching a high of 23.28 yuan. The trading volume in the morning was significantly smaller than yesterday.
As the broader market hit bottom, Wuliangye’s stock price trend has begun to stabilize.
Afterwards, Gu Junhao said to Wang Ruoyu, "I'll give you another 100 million yuan quota, but don't rush to buy. Buy at a price below 23 yuan. If it's below 23 yuan, you can buy it. It doesn't matter if you can't buy up to the 100 million yuan quota."
At present, Wuliangye’s position building funds are less than 500 million yuan. If it can buy more than 100 million yuan of chips below the cost price again, it will definitely be a good thing.
The previous cost of 22.71 yuan for 150,000 lots was still relatively strong. Even when the market fell to 2,638 points, Wuliangye only occasionally fell below the original cost price during yesterday's trading.
On July 8, 2015, the lowest limit price was 21.92 yuan, and on July 9, Wuliangye’s upper limit price was 24.11 yuan. This position has almost become an important support position for Wuliangye in the near future.
On July 8 and July 9, Wuliangye’s total transaction volume was nearly 6.4 billion yuan. A large amount of copycat funds gathered here, providing important support for Wuliangye’s stock price.
"Okay, no problem." Wang Ruoyu nodded.
Afterwards, Gu Junhao roughly understood the specific positions of other stocks. Keheng shares were suspended and the positions had been completed, while the positions of other stocks had basically reached about 90%.
Apart from the higher cost of building a position, there is no other problem. After all, the position was built from around 2,900 points, and there is a gap of almost 300 points from yesterday's lowest point.
Especially for Ganfeng Lithium, the stock price was around 44 yuan when it planned to build a position. Although the stock price fell in the subsequent trading days of building a position, it remained above 40 yuan.
As of today, the share price of Ganfeng Lithium has fallen to around 35 yuan, and there is still no sign of stopping the decline. Ganfeng Lithium, which has almost completed its position building, has been stuck with a nearly 20% loss in share price.
Ganfeng Lithium's bottom-fishing was relatively a failure. After all, it was the performance of Tianqi Lithium that caused some interference to Gu Junhao.
The rest of the stocks, such as those in the liquor and household appliances sectors, were basically copied at relatively good positions, which also shows that the trend of this type of large-cap stocks reaching their peak earlier than the overall market is very obvious.
When the index fell nearly 300 points, its stock price trend did not fall much and remained within 10%. In addition to financial support, it was more due to the strength of individual stock trends.
This is where the difference between a strong stock and a weak one lies. Strong stocks often bottom out early, and even if the index falls sharply, they can maintain a certain decline and ensure their stability.
Afterwards, Gu Junhao came to Liu Tingting again. Liu Tingting was operating Tianqi Liye. The trend of Tianqi Liye was still relatively strong.
Tianqi Liye's stock price hit a bottom of 98 yuan on January 8 and rebounded to a high of 138.38 yuan, a rebound of more than 40%. Its trend has been quite good after the adjustment after the market broke down this week, and it has not yet fallen below the daily limit of the big positive line on January 14.
"Boss, what did the update you posted yesterday mean? Were you hinting at everyone to buy at the bottom?" Liu Tingting asked Gu Junhao behind her.
The boss posted a message during yesterday's trading session for no reason. I think it must be related to the market trend.
"It doesn't mean anything. The emoticon I sent is the current situation of our fund. Isn't it that we are fully invested and stuck with a tight position?" Gu Junhao smiled without admitting it.
The current status of Junshi No. 2 really fits the status quo of emoticons. In addition to Maotai Liquor and Vanke A, the suspended Keheng shares are slightly profitable.
The rest of the stocks that have been established are basically in a state of small profits and small losses, and there are basically some stocks with losses close to 20%. Isn't this a full position being locked in?
