Chapter 470: Market bottom is formed.
After two consecutive trading days of decline after the New Year, the Shanghai Composite Index is only 0.6% away from its lowest point in 2018, 2449 points.
The ChiNext Index is slightly stronger than the Shanghai Composite Index, but it is only 2.5% away from its previous lowest point.
Although Oriental shares have repeatedly stirred up waves in the market, created climaxes and boosted popularity.
But the market is not just about Oriental Holdings after all. The vast majority of stocks are in a downtrend, so investors' complaints are naturally evident.
This has also led to extremely serious sentiment differentiation in the current market, and investors who bought the "monster stocks" are smiling every day.
However, investors who bought the stocks normally were filled with resentment.
Friday, January 4th.
Two consecutive trading days of decline have led to low sentiment in the Shanghai and Shenzhen stock markets, which both gapped downward today. The Shanghai Composite Index opened at 2446.02 points and the ChiNext Index opened at 1203.67 points.
The Shanghai Composite Index fell below its lowest point in 2018, continuing to set a new low since the stock market crash in 2015.
While the index gapped downward, individual stocks such as Ningwang, China News Service and Maotai Liquor, which are market bellwether stocks, performed very flat.
Maotai Liquor Industry has rebounded above the 60-day line for two consecutive trading days. Although it opened slightly lower today, it still opened above the support level.
"The market gapped down from a low level, creating panic; it seems the market is about to bottom out." Gu Junhao said with a smile.
If there is a downward gap at a high level, the index will run, but if there is a gap at a low level, there is no need to be afraid.
For investors who have positions, the Shanghai Composite Index has already hit a new low since last year, so it is definitely a good time to take a chance.
There is no need to panic when the index hits a new low.
When you are extremely afraid, be patient; when you have an urgent urge to chase high prices, wait a little longer.
At 9:30, trading began, and the Shanghai and Shenzhen indices opened low and maintained an inertial downward trend; at 9:33, the Shanghai Composite Index closed at 2440.91 points, down nearly 1%, and the ChiNext Index closed at 1201.80 points.
Both market indices hit new lows in the past two months, and heavyweight stocks all exploded at this time.
Ningwang, Dongfang Fortune, Maotai Liquor and other stocks that influenced the Shanghai and Shenzhen stock market indices rose rapidly by more than 1%, and their share prices quickly turned positive.
The Shanghai Composite 50 Index, which represents the weight, rose directly to the flat position with a small straight line. Three minutes later, the Shanghai Composite 50 Index was the first to turn red.
The ChiNext Index also rose to a flat line at this time. Compared with the Shanghai Composite Index, the ChiNext Index did not hit a new low in this round of bottoming out.
If the Shanghai and Shenzhen stock markets rebound today and stabilize subsequently, then the previous policy bottom of the ChiNext will be the market bottom of the ChiNext!
The driving force of the overall market index depends on its weighting, but the sentiment still depends on the GEM and theme stocks.
There was another anomaly today. Dongfang Holdings, which had been on the rise for four consecutive days, plummeted at the opening, closing at 13.08 yuan, a sharp drop of 6.11%.
The temporary shutdown of the "monster stock" to some extent also represents a change in the wind direction. However, even with today's sharp drop, Oriental shares have not broken the trend position.
Before the emergence of a large number of quantitative funds, there was a famous saying in the short-term A-share market: "Strong market makers will not go below the five-day line."
Regardless of whether this "Zhuang" exists, the five-day line trend is very important for short-term speculation.
Once the stock price effectively falls below the 5-day trend line, there is nothing wrong with reducing short-term positions. Since the speculation of Oriental shares, the closing price yesterday has risen by as much as 275% from the bottom.
With earnings per share exceeding 10 yuan and a large amount of profit-taking accumulated and market sentiment changing, the funds in Oriental Holdings showed differences for the first time today.
At 9:40, Dongfang shares surged to 13.90 yuan in a single transaction, and the stock price turned positive for the first time that day. Then it was immediately hit by a series of sell orders of more than 3,000 lots.
The differences are still very serious, and at this moment, the ChiNext Index has taken the lead in turning positive, and the decline of the Shanghai Composite Index has narrowed to 0.2%.
At 9:50, the Shanghai Composite Index followed the SSE 50, and the ChiNext and other indices turned positive during the day.
At this point, all three major indexes turned positive, and most of the indexes and individual stocks opened low and ended high!
After half an hour of fluctuation, the three major indexes all surged upward again, with increases of more than 0.5%. At this point, market sentiment gradually began to recover.
At 11 o'clock, securities and Internet finance sectors made a collective effort. Within half an hour before the midday closing, Dongfang Wealth and Tonghuashun both rose by more than 6%, and their share prices rose by more than 8%.
The Shanghai Composite Index closed at 2509.39 points at noon, up 1.83%. The ChiNext Index closed at 1221.99 points at noon, up 1.41%.
"What the hell! What's going on? The Shanghai Composite Index has risen by almost 3%. Has it really hit bottom?"
"MD, the financial sector is suddenly in turmoil. This must be another leak of information that we retail investors don't know about!"
"Damn, you ran away this morning and you're trying to catch me back this afternoon?"
"MD, just keep an eye on the hundreds of shares I have. He won't sell them unless I sell them."
The sudden riot before the midday closing of the Shanghai and Shenzhen stock markets left some uninformed investors at a loss, but Gu Junhao did know something.
"It should be related to the news of the reserve requirement ratio cut, which is probably beyond market expectations."
In terms of information sources, Gu Junhao must know more ahead of retail investors or even small institutions.
However, Gu Junhao rarely uses this kind of information to build a position.
After completing the position building in 2018, Junshi Group did not reduce its holdings even though it knew that the market would experience a severe correction throughout December.
It is a bit troublesome to build a position with tens of billions of funds. Anyway, the retracement will not fall below the cost price of building the position, so there is nothing to worry about.
There is no need to be too dedicated to taking management fees, not to mention that the company is preparing to relocate in December.
The news of a reserve requirement ratio cut has been circulating for a while during the holiday. Judging from today's riot mode, it is likely that it has been finalized.
With the help of the changes before and after a favorable news, the bottoming process of the second market of the entire market can be completed, which is in line with the habits of the A-share market.
It is a cliché that there is no need to be afraid no matter how much the market falls now. Moreover, at the speed of the Science and Technology Innovation Board, it is imperative to go online quickly.
The China Securities Regulatory Commission has held several meetings, and the first batch of listed stocks have entered the IPO coaching stage.
Whenever there is any large-scale IPO of individual stocks in the market, the index will be pulled up for a few days to maintain it, not to mention the launch of such a large sector.
How is it possible for such a strategic sector to be listed below 2500 points?
Many times, if you understand the general trend correctly, there is actually no need to be afraid.
In the afternoon, the three major indexes of the Shanghai and Shenzhen stock markets continued to rise. The Shanghai Composite Index closed at 2514.87 points, up 2.05%, and the ChiNext Index closed at 1245.16 points, up 2.52%.
Compared with the bottoming day on October 19, 2018, the trend of the two market indices is almost exactly the same, with almost no big positive lines.
It took 54 trading days in total, and the Shanghai and Shenzhen stock markets completed the second bottoming out before the first weekend of 2019.
At 6:30 in the evening, the central bank issued information on reserve requirement ratio cuts, which will be reduced by 0.5 percentage points on January 15 and January 25 of this year respectively.
This RRR cut will release about 1.5 trillion yuan of funds, and a net release of about 800 billion yuan of long-term funds, which is far beyond market expectations.
This may be one of the reasons for today's big rise.
The positive impact of the unexpected reserve requirement ratio cut over the weekend did not bring about a big surge in the second week of trading like the one on October 22 last year.
The market changed its style and moved slowly upward with small positive trends. During the five days of trading in a week, the Shanghai Composite Index had three positive and two negative trends.
In the second week of 2019, the Shanghai Composite Index closed higher for the second consecutive week, rising 1.55% this week, and the index returned above the weekly five-day line.
This week, the central bank reiterated its decision to maintain the sound development of the stock, bond and foreign exchange markets , and at the same time declared that it would reduce unnecessary intervention in the trading process in the future.
But it also reiterated that reducing intervention does not mean no more supervision; a large positive line that opened low and closed high, a stable trend of the weekly index and individual stocks.
At this point, the Shanghai and Shenzhen stock markets have officially determined the "market bottom" after the stock market crash and rescue in 2018.
The market bottom of the Shanghai Composite Index is slightly lower than the policy bottom, while the ChiNext Index has a double bottom.
In addition, after Maotai Liquor Industry stabilized at 600 yuan with a weekly increase of 2.03% last week, it continued its upward trend this week, raising its share price to 635.88 yuan with a weekly increase of 5.63%.
After three consecutive
In the future, there will be no more buying opportunities for the Maotai stock price below 600 yuan.
As of the close of January 11, Junshi Capital held a total of 18.2684 million shares of Maotai Liquor, with a total investment of approximately RMB 10.052 billion.
The holding cost is above 550 yuan. Based on the total shares of Maotai, Junshi Group’s current shareholding ratio is approximately 1.45%.
In the future, this 1.45% stake in Maotai Liquor will create countless profits for Junshi Capital, whether in terms of stock price increases or dividends.
Whether now in 2019 or in the future, Gu Junhao has completed all the arrangements the company can make in the A-share secondary market.
In the absence of extreme variables, Maotai Liquor and other first- and second-tier liquor brands that are simultaneously building positions this time will be able to guarantee the company's profits.
Next, what Gu Junhao has to do, in addition to continuing to build positions in US stocks, is to patiently wait for technology stocks to take off again before the Science and Technology Innovation Board goes online.
In the following two weeks, the Shanghai and Shenzhen stock markets continued to maintain a steady upward trend. The Shanghai Composite Index showed a trend of four positive lines on a weekly basis for the first time since 2018.
As of January 31, 2019, the Shanghai Composite Index closed at 2584.57 points, up 3.64%. The highest point of the month reached 2630 points, once again testing the 2600 point level.
As the weighted market returned in the second half of the month, the ChiNext Index was obviously weaker than the Shanghai Composite Index. That month, the ChiNext Index fell 1.80% to 1277.99 points.
There is only one trading day left in the Year of the Dog 2018, February 1, and the Lunar New Year’s Eve will arrive on February 4.
Friday, February 1, 2019, is the last trading day before the Spring Festival.
The Shanghai Composite Index closed up 1.30% at 2618.23 points, and the ChiNext Index soared 3.52% to 1271.27 points.
Before the Lunar New Year's Eve and the Spring Festival, the new village chief took office with three major moves: the Science and Technology Innovation Board, the cancellation of the 130% margin trading liquidation line, and the encouragement of securities firms to buy A shares.
At the same time, the Shanghai and Shenzhen stock markets also welcomed the arrival of the new village chief with a big rise. The new generation is better than the old one~
