Volume 2: Storm Rising 2015 Chapter 256 History Repeats
June is almost over, which means that almost half of 2015 has passed.
This June was an almost magical month for the entire stock market. The stock market surged by more than 200 points on June 1, marking the beginning of this bull market.
In just one trading week, the market broke through the previously elusive 5,000-point barrier and headed for the sky.
The market in the second trading week did not disappoint retail investors at all. Despite ups and downs, it always remained around 5,100 points, as if accumulating strength for the next wave of peak-to-peak momentum.
Retail investors opened accounts and increased their positions. With the encouragement of the big guys and stock analysts, the stock market could easily reach 7,000 or 8,000 points, let alone 6,000 points.
Those who knew thought it was stock speculation, while those who didn’t thought it was an auction where the highest bidder won. After all, someone had called it 10,000 points.
Under this blindly optimistic mood, the expectation threshold of countless people is getting higher and higher, and the vast majority of people are unable to extricate themselves from this woven big web, indulging in a dream of decadence and extravagance.
Little did they know that a bloody mouth had already opened under the net, waiting for more people to jump in.
In the third trading week, the market began to plunge sharply, from the highest point of 5178 points to 4478 points. The full 700-point correction made countless people frightened and unable to sleep at night.
At this time, some people have already realized that something is wrong and are about to wake up, but a dose of "anesthetic" of "Don't panic, it's just a technical adjustment" is injected, which calms the emotions of many people.
After all, their original intention was to make money. If they choose to cut their losses once they are trapped, wouldn’t they become "fools"?
Just like what the big guys in the discussion forum said, we must keep calm and remain calm even if Mount Tai is collapsing in front of us, not to mention that the mountain hasn't fallen yet.
After the Dragon Boat Festival, two consecutive days of slight rebounds seemed to be the long-awaited turnaround in the market, but starting from the third day, the collapse trend has gradually emerged.
On June 25, the market fell again by 162 points to close at 4527 points, barely holding the 4500 point mark. At the same time, major negative news came out off the market and began to ferment.
After the stock market closed, major discussion forums were extremely lively, with many experts and specialists sharing their own experiences and making excuses for today's plunge.
"Don't panic, everyone. Today's plunge was mainly caused by a large number of forced liquidations of off-market margin trading. This wave of deleveraging implemented by the regulatory authorities may seem to be a negative, but from another perspective, isn't it a positive?
Although removing leverage and eliminating bubbles will trigger a round of sharp declines, it will also greatly release the pressure of the market going up, which is very conducive to a slow bull market in the future..."
No matter how much the experts say, it will be of no avail. The market's sickle has been raised high. If reality had a background music, it should be "The god of death is coming to take people away~"
On June 26, the stock market crashed with a loud bang and plunged more than 100 points in the call auction phase, opening at 4,399 points below the water. Unfortunately, the market is not in the mood to play games with you.
When I opened the stock software, I thought I was in the prairie. Everywhere I looked, it was green. It can be said that "the green in the garden cannot be contained, and a red apricot blooms out of the wall."
The previous limit down of thousands of stocks was just the beginning. On June 26, more than 2,049 stocks in the two markets hit the limit down. There was a scene of ghosts howling inside and outside the market, and no one was spared.
The market index plummeted by more than 300 points, returning to 4192 points, which perfectly interpreted the phrase "return to the situation before liberation."
At this time, even the old stock investors who had been calm before could no longer hold on. No matter how much floating profit they had in their accounts before, they could not withstand such a market drop. They regretted it in their hearts and wished they had sold it earlier...
Unfortunately, there is no if. The panic in the market has spread. Facing the market's open bloody mouth, everyone woke up from their dreams and realized that something was wrong.
Let alone a bull market right now, we can’t even touch the bull’s tail. No matter how much we regret it, it will be of no avail. It is better to think about how to stop the loss in time.
Fortunately, the arrival of another weekend can slightly ease the panic caused by thousands of stocks hitting the daily limit and stampede-like escape in the market.
At the same time, investors' calls for a rescue of the market began to grow louder, hoping that good news would come out over the weekend to support the collapsing A-shares.
As long as the stock can be opened, it will be fine. It will give a chance to sell at a loss and run away! As for whether to make money or not, the unconscious stockholders dare not think about it.
From opening an account and entering the market with the hope of making a small profit, to being trapped in stocks, craning your neck to wait for the market to be untied and get your principal back and "stop playing".
Now, the humble ones just want a chance to cut their losses and run away. God knows what they have been through.
It can only be said that Big A is a cure for all kinds of dissatisfaction. As the most expensive financial learning software in history, it has indeed given countless people a vivid financial lesson.
Amid the long-awaited call, the central bank attempted to save the collapsing building over the weekend by announcing a 0.25 percentage point interest rate cut and a targeted reduction in the reserve requirement ratio, which had the double benefit of a double reduction.
The national team has begun to intervene to rescue the market, which is a good thing. At the same time, it also sends a signal to countless retail investors, "Don't blame me for not reminding you. If you don't run away, you will be beaten!"
Of course, people who pretend to be asleep can never be woken up. After all, they always think that they are one of the very few.
The law of profit and loss in the financial market is just like the gambler's theory in a casino. The vast majority of people are always the ones who lose money, and only a very few people can make money.
The ratio is not even "80:2" but "90:1" or even more. Who doesn't want to be that "1"?
However, all the gifts of fate have already been secretly marked with a price. If you sit at the card table and become a gambler with all you have, you must be prepared to lose everything and go bankrupt .
At the end of June, the stock market reopened for business. Thanks to the stimulus of the central bank's double cuts, the market index opened higher at 4,297 points, leaving ample room for retail investors who were ready to run away.
However, seeing that the market is showing signs of recovery, coupled with the stimulus of the double reduction in benefits, perhaps with the national team's rescue, the market can be revived?
Driven by the gambler mentality, many people were hoping for a lucky break. However, with another loud bang in the trading session, the market index opened high and ended low.
The market broke through 4200 points, 4100 points, 4000 points, and 3900 points in succession! The 4000-point mark was like a piece of paper, and the double-cut benefits were like a mirage. The market once again turned into a prairie, and more than 1,500 stocks hit the limit down!
Once the limit-down mode for thousands of stocks was activated, it seemed like it could not be stopped. After nearly half a year of slow bull market, the market had plummeted by a thousand points in just 10 trading days.
The market panic is unstoppable. We are only halfway up the mountain, and there is still some distance to the foot of the mountain...
But anyone who has climbed a mountain knows that the time it takes to go down the mountain is much shorter than the time it takes to go up!
It took 10 trading days to go from 5000 points to 4000 points, so what about 4000 points to 3000 points? I'm afraid it will be even shorter!
Zhou Dongsheng naturally did not miss this "wonderful" moment of historical re-enactment. After all, Zhou Dongsheng was still thinking about "saving the market". Who else but him could protect the market for the country?
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