Chapter 55: The End of the Dragon Head
After leaving the sales office, it was already noon. After the two had lunch, Zhang Yiru hurried to work. Gu Junhao originally thought that since he had already taken a leave of absence, he might as well take a day to have fun and celebrate.
However, Zhang Yiru said that the dinner just now was just a celebration, and she still had to go to work and strive to become a regular employee as soon as possible and get a higher salary. In her words, she is now a person with a mortgage.
Gu Junhao was a little speechless about this. He really didn't need her to pay for the several thousand yuan mortgage every month. If he didn't want to save some money to prevent accidents, he could have paid the full amount directly.
After sending Zhang Yiru back to the company, Gu Junhao took a taxi home, turned on his computer, and looked at the morning market.
After creating a high of 1559.77 in the morning session today, the ChiNext Index plunged downward at 10:10. Within 40 minutes, the plunge once exceeded 3%. The Shanghai Composite Index maintained a volatile market in the red.
"Isn't this a bit too violent? The volume has increased a lot, and there is a trend of reaching the peak." Although a large drop was recovered by the close of the morning, it was almost two o'clock in the afternoon, and the index still showed no trend of turning positive .
Looking at Wangsu Technology again, it has turned red, but I don’t know if it can continue to reach a high point today.
Throughout the day on Tuesday, the turnover of the ChiNext increased to 48 billion yuan, and the decline also reached 1.69%. Wangsu Technology closed in the green at 136.98 yuan, and the turnover increased to 583 million, continuing the trend of increasing volume and stagflation.
On Wednesday, the ChiNext rebounded slightly, closing up 0.84%. Wangsu Technology went against the market trend and closed with a false positive line, but actually closed down. Judging from the K-line, three dojis appeared at the high level, and the three-day trading volume was nearly 1.4 billion yuan.
"This wave should have really reached its peak. The index is not looking good right now, and there are not many opportunities for high-level funds to escape."
On Thursday, February 13, the statutory decline day, the ChiNext opened lower and continued to decline throughout the day, closing down 3.56%. The index also fell below 1,500 points, closing at 1,485.13 points.
More than half of the GEM-related stocks fell by more than 5%. Wangsu Technology also had a huge negative line pressure, breaking the five-day line price and closing down 6.7% on the day. By the end of the trading day, the Shanghai Composite Index also plunged under the influence of this sentiment, down 0.55%.
The market's bullish sentiment is gradually weakening, leaving retail investors with few opportunities to escape, but most retail investors have not realized this at this time.
The reason is nothing more than the rebound on Friday the 14th and Monday the 17th. The index re-stood above 1,500 points, which gave the market illusions once again.
Even Gu Junhao's post in Taoguba had some questioning voices. One has to know that when the ChiNext Index fell in the previous trading days, there were still all kinds of praises in the posts.
However, Gu Junhao ignored all this and continued to watch the market with an empty position. He was still observing the new target, Dafu Technology. He could choose not to buy it, but he could not ignore the market and keep a sense of the market.
Dafu Technology's recent trend also follows the ChiNext Index, first falling and then rising. Based on the judgment of the index, no good buying point can be found.
In the third week of February, the ChiNext Index continued to maintain its trend of falling from highs. The rebound did not exceed the high point, and the volume of falling was huge. On February 20, it was another Black Thursday, and the index fell by 1.89%.
The Shanghai Composite Index also rebounded to 60 days, and closed with a long upper shadow negative line on the 20th. The market conditions in both markets were not optimistic. Within the following four trading days, the Shanghai Composite Index closed with four consecutive large negative lines until the close on February 25. The index fell from a high of 2177.98 points to 2034.22 points at the close of the 25th, a drop of more than 7%.
February 25, 2014, Tuesday, will surely be mentioned by many investors. On that day, both stock markets plummeted, and the ChiNext Index also plunged rapidly from the historic high of 1571.40 points in the early trading, and funds fled frantically.
At three o'clock, the market closed at 1472.69 points, down 4.37%. The intraday high and low points fell by more than 100 points, which was as tragic as it could be.
The index fell by more than 4% in one day. One can imagine the situation for individual stocks in the sector. Although they were in the green in the morning, countless stocks fell by 5% in the afternoon, and the majority of stocks also hit the daily limit.
Oriental Fortune fell more than 7%, Tonghuashun hit the limit, Dafu Technology hit the limit, and Wangsu Technology, a bull stock from last year to early February this year, hit the limit today.
After Wangsu Technology plunged from its historical high of 141 yuan on the 19th and fell for three trading days, it began to dump the stock without any scruples at the beginning of today's trading.
When the ChiNext Index was still trading at a high level, large sell orders of thousands, 2,000 or even 5,000 lots frequently poured in from the Wangsu Technology trading desk.
Even though he was the first to announce his 2013 performance results last night, with a huge increase in full-year earnings, he still couldn't stop the outflow of funds. In hindsight, it seemed more like a process of taking advantage of favorable news to sell shares.
Leading stocks collapsed, core concept stocks in popular sectors fell across the board, and even some stocks that institutions have flocked to were not immune. The ChiNext Index also had a turnover of nearly 80 billion today, setting a new high since the index was established.
The massive outflow of funds means that adjustments to the ChiNext are inevitable. In Gu Junhao's view, it is a foregone conclusion that the ChiNext index will once again drop to around 1,200 points.
After hitting the daily limit on the 25th, Wangsu Technology failed to rebound on the 26th and continued to open lower, falling 3.56%.
In Gu Junhao's mind, the downward gap of high-priced stocks means the complete end of the market, and the subsequent trend is more of a futile struggle of the trapped funds.
In most cases, if the stocks held by Gu Junhao show a downward trend after a sharp drop from a high level, and he does not escape in time, he will choose to cut losses at the first opportunity.
As expected, within the following trading day, Wangsu Technology once again hit the limit down. By the last trading day of this month, the stock price had fallen to 108.70 yuan, a 29.7% drop from the high of 141 yuan and a 24.3% drop from the price at which Gu Junhao sold it.
And all this happened in just fourteen trading days. It can be said that the market was extremely tragic in the second half of February. In more than a dozen trading days, both popular stocks and indexes suffered huge declines.
Of course, these are all good things for Gu Junhao. The market creates opportunities during declines. The newly observed target, Dafu Technology, also fell back into the 15 yuan box again during the adjustment in the second half of February, and the trading volume shrank to 40 million yuan.
If the index can stand firm in the box during the adjustment next month, it will be an opportunity to build a position. If it breaks the box, you will have to give up this target and can only wait for Dongfang Wealth. Dongfang Wealth has fallen to around 16 yuan today. It seems that my judgment is not wrong.
"A leading stock has come to an end, and I don't know which will be the next one." Gu Junhao left a qualitative sentence in his post on Taoguba to Su Technology.
