Volume 2: Storm Rising 2015 Chapter 134 Fishing in Troubled Waters
A duck is the first to know when the river water warms in spring. In the bottomless , institutions may be the duck floating on the surface.
Compared with retail investors who just go with the flow, institutions undoubtedly have greater initiative. A duck may only be able to make a splash in the water.
But if a bunch of ducks flap their wings together, the noise will naturally look huge.
In an office on top of the Magic City Bottle Opener Building, there are several large screens hanging on the wall, displaying a variety of professional stock market data in real time.
A group of people in suits and ties with serious faces sat in front of their computers, staring at the screens, following instructions and executing operations without daring to be negligent in the slightest.
This is also the professional quality of being a professional trader. As for decision-making issues, they don’t need to worry about them.
In an independent office on the other side, a group of institutional managers were sitting at the conference table, staring at the CRRC K-line displayed on the big screen, which was falling according to their script.
Ever since the merger news of CNR and CSR came out, CNR and CSR's chips have become popular in the capital market, making CNR and CSR the main battlefield for the game between institutions and retail investors.
Compared with retail investors who are always one step or even several steps behind, institutional funds have already rushed into the market, scrambling to buy shares and pushing up the share prices of CSR and CSR.
Until the suspension of trading for integration, the share prices of CNR and CSR had risen by more than 400%, and the high-speed rail concept was also heated up. Some high-speed rail concept stocks rose by more than 50%, and the market conditions were extremely hot.
Many hands make light work. With the support of the merger benefits and the fact that institutions hold a large number of chips, those who take the lead in going long on CSR and CSR will make the biggest profits, while retail investors follow closely behind.
Therefore, as soon as CRRC was listed, it showed a trend of consecutive gains. Market sentiment was particularly high, and retail investors who held chips were very fond of them, causing CRRC's turnover rate to remain around zero.
A hot market leader like CRRC is a rare piece of meat in the eyes of institutions. Although they have already made a profit, they still want to continue to expand their gains.
Capital is greedy and profit-seeking is its nature. Looking at such a big piece of meat, it is natural that people would want to take a few more bites and eat it all into their own stomachs.
The institutions lurking in CRRC are not stupid and will not easily hand over their chips. If they want to get more chips, they have to snatch them from retail investors.
Institutions are not fools, so are retail investors fools? To some extent, for institutions, it is true...
The reason why retail investors are called retail investors is naturally because they are scattered and go with the flow. They are indeed not as good as institutions that hold the initiative and the right to speak.
So we have the scene we see today, where several major institutions use CRRC as a battlefield and join forces to lure short sellers in an attempt to wash retail investors out of CRRC.
In terms of news before the market opened, institutions jointly spread a lot of negative information about CRRC, speaking ill of CRRC, the market leader. Combined with their financial strength, institutions joined forces to create a short-selling atmosphere.
From opening at the daily limit to canceling buy orders and dumping the market together, the entire set of operations was completed in one go, leaving retail investors delirious.
From the daily limit to underwater, from red to green, the K-line of CRRC showed a ceiling and floor. A large number of sell orders pressed CRRC's leader underwater, and the stock price fell from 21.51 yuan to 19.61 yuan!
Without institutional support, retail investors alone cannot reverse the trend. Scattered buy orders cannot stop the leading stock from falling. For a time, market sentiment turned from prosperity to decline, triggering panic selling.
Under the effect of the leading stock diving, the A-share index also fell, and many high-speed rail concept stocks also fell. Retail investors cried out "The stock market crash is coming, run away", and willingly handed over the chips in their hands.
"The move proposed by Mr. Chen to cut off the source of the problem is really a brilliant one!" In an independent office, a group of institutional managers were chatting and laughing.
"No, no, we still need everyone to work together. After all, if we want to short this 700 billion or 800 billion market, I alone can't do it."
"It was thanks to Mr. Chen's leadership that we all had such a good opportunity to make a fortune together."
"Shorting the market leader is really exciting and thrilling. Only Mr. Chen has the courage to do this."
"It's almost time, everyone, prepare to withdraw orders and buy shares. If the sentiment collapses, it will be difficult to repair it later."
"Then follow Mr. Chen's orders. We are counting on following Mr. Chen to eat meat."
As an order came out from this independent office, professional traders were already ready, ready to ignite the rockets for CRRC at any time.
At the same time, a fund of 50 million yuan quietly sneaked into CRRC's market, and before the institutions were ready to ignite, it sucked in large gulps of funds and sucked the blood of the institutions.
A large number of sell orders piled up on the board suddenly disappeared. Retail investors may not have noticed it, but sharp institutions have already reacted. Apparently, some people have already started to rush to buy!
Are you here to pick their peaches?
"Quick, cancel the order and grab the shares! Buy up!" Mr. Chen gave the order decisively. While glancing at a group of institutions in the office, he secretly cursed in his heart: a bunch of old foxes!
Obviously, someone was dishonest and sneaked in to grab the chips. Sure enough, I underestimated the greed of these old foxes. Cooperation? Pah!
A group of people looked at each other with different expressions. Who knows if Mr. Chen is putting on a good show in front of them?
As institutions withdrew their sell orders, a large number of buy orders appeared. With the support of billions of funds, CRRC was like a rocket that was fired, and its K-line soared into the sky!
At this time, the retail investors who sold their shares realize that they have been cheated. Those who are quick may be able to cancel the order, but those who are slow to react can only look at the transaction order and cry.
"Dogecoin dealer, he's doing T!"
"Fuck! The house I've guarded for so long was actually washed away."
"Ugh, spit before you leave. Can't I just stop playing?"
Play is play, noise is noise, no one can go against money. After realizing that CRRC was trying to lure short sellers, a large number of retail investors who had not had the opportunity to get on board before decisively followed suit and rushed to buy.
With the help of institutions and retail investors, CRRC's stock price suddenly soared from underwater to the sky, and once again reached the daily limit! More than 1 million buy orders were placed on the board, causing countless retail investors to curse.
Zhou Dongsheng looked at his stock account with excitement. He didn't expect that he actually made a perfect T by following the banker!
He realized something was wrong as soon as CRRC's stock price reached its daily limit. The plummeting stock price appeared to be fear in the eyes of retail investors, but Zhou Dongsheng actually saw the word "greed".
After all, knowing that CRRC has yet to become a magic car and the A-share index is still a long way from 5,000 points, Zhou Dongsheng saw this wave of market makers inducing short selling as like Buddha cutting his own flesh to feed the eagle!
Zhou Dongsheng decisively bought the bottom and started to accumulate shares when the stock price plummeted and turned from red to green. He accidentally established a position at the lowest price of 19.61 yuan.
A mere 50 million yuan of funds placed in a market like CRRC is just an insignificant little fish. Zhou Dongsheng took advantage of the situation to build a position and buy at the bottom.
At the same time, it also alarmed the market maker. After he built up a position, CRRC’s stock price could no longer be suppressed. It soared into the sky and hit the daily limit!
Zhou Dongsheng not only snatched 50 million chips from the dealer, but also took advantage of the favorable situation and directly made a floating profit of 10 points, which meant a profit of 5 million in one go.
Such a perfect T operation is enough for any retail investor to brag about for a year. Zhou Dongsheng thought it was better to share the joy with others than to enjoy it alone, so he sent the screenshot to the small group of four people.
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