Chapter 387 Short Squeeze!
"The market's long and short sentiments have converged. There shouldn't be too many surprises in today's market conditions, right?"
At 9:25 a.m., in the trading room of Yuhang and Yuhang Investment Company, Li Meng observed the overall high market performance and said with a smile: "The two main market lines of 'infrastructure' and 'state-owned enterprise reform' are very important to the market." The siphon effect of main funds is becoming more and more powerful, and it feels like... it is going to accelerate the main upward trend!”
"Well, that's more or less the case." Su Yu nodded and responded, "The emotional and financial aspects of the two main lines of 'infrastructure' and 'state-owned enterprise reform' have begun to resonate strongly."
"But when the market opened, the overall trading volume of call auctions in the two cities was even smaller than yesterday." After hearing what Su Yu and Li Meng said, Wang Can observed the market performance and said with some worry, "This can show that the mood is stable. Can the resonance of capital indicate that this round of rebound is coming?”
Su Yu smiled and responded: "After increasing the volume, it is a good thing to reduce the volume. If the market continues to increase the volume today, it means that the chip structure on the market is still unstable and the differences are still huge."
"That's right!" Zhao Lijun answered, "After such a high change of hands yesterday, the relative shrinkage today proves that the new funds from all parties are relatively reluctant to raise funds after getting the chips. Because everyone has strong confidence in the market outlook, this is why the market's long sentiment is high, but the market trading volume is shrinking. In fact... this should be similar to the speculation of individual stocks. "
"Just like the trend of Beixin Road and Bridge, the leading stock that has received the most attention in the market."
"This check has clearly gone through four stages since it started at the bottom."
"The first stage is when it starts, with a sharp increase in volume at the daily limit. Judging from the K-line chart, the trading volume of Beixin Road and Bridge that day was almost three times that of the previous day."
"Then, the second stage is after Mr. Su's 'resurrection road' seat appears on the Dragon and Tiger list."
"At this stage, due to the rapid rise in the majority of investors' bullish sentiment on this stock, a large number of investors holding shares on the market were reluctant to raise money, and it also led to the rapid follow-up of various funds outside the market. These two reasons The simultaneous effect caused the Beixin Road and Bridge to shrink significantly at the 2 or 3 daily limit. "
"After the third board, due to the impact of risk aversion before the holiday and the decline in the entire market's capital, Beixin Road and Bridge encountered great differences in its impact on the fourth board, and began to fluctuate significantly again. This is the third stage, that is, shrinkage After that...the stage of re-increasing volume.”
"Then, when the volume increased significantly and the internal chip structure was adjusted sharply."
“Because the index broke through the 2,200-point mark, because of the recovery of funds after the holiday, and because of the increasing expectations of investors in the market for the market outlook, it directly led to a large-scale increase in follow-up orders on and off the market. At the same time, the funds held on the market also changed. We have to start saving money again, so... Beixin Luqiao's stock price has moved from a large-volume to a shrinking stage. This is the second stage of main rise after differentiation and adjustment, and it is also the fourth stage I am talking about. "
"There is a strong correlation between the market trend of a single stock and the market trend of the entire market."
"Therefore, based on the path of Beixin Road and Bridge's speculation and the changes in volume and energy, we can predict the market as a whole, as well as the two core main lines of 'infrastructure' and 'state-owned enterprise reform'."
"Well, not bad!" Su Yu heard Zhao Lijun's analysis, looked at him with admiration, and replied, "The so-called 'one leaf can tell the autumn', the overall analytical logic is what Lijun said, Whether it is the market changes of individual stocks, the main line market, or even the market changes of the entire market, it is not a good phenomenon to blindly follow the increase in volume and price, but also depends on the specific position and sentiment changes. "
"Yes!" Liu Yuan responded hurriedly after Su Yu finished speaking, "Thank you, Master and Senior Brother Zhao, for clearing up the confusion."
"But with the volume of the two main lines of 'infrastructure' and 'state-owned enterprise reform', if it continues to break through rapidly and continues to have a more serious financial siphon on the market, then the market differentiation should become more serious, and I am afraid that there will be more room for the market index. It’s hard to really open it, right?” Zhu Tianyang thought for a while, but still had many questions in his mind, “And... Mr. Su, if the market continues to maintain a state of stock game, it will be accompanied by the two major issues of ‘infrastructure’ and ‘state-owned enterprise reform’. As the main market rises, the funds needed to support these two main markets will also increase exponentially, right?”
"However, looking at the growth of active funds in the market, I'm afraid... even if the two main lines of 'infrastructure' and 'state-owned enterprise reform' continue to siphon active funds from other sectors of the market, it will be difficult to achieve a sustainable market that is too high."
"So, I think... we still can't be too optimistic."
"Not bad!" Su Yu said after listening to Zhu Tianyang's analysis, "It is foreseeable that as the two core market trends of 'infrastructure' and 'state-owned enterprise reform' continue to advance, the market differentiation effect will definitely become more and more serious. However, as long as the strong money-making effect on the market still exists, the incremental funds that continue to follow up outside the market can make up for the lack of funds received to a certain extent. "
"Of course, one bite won't make you a big fat man."
“With the continuous accumulation of profits on the market, as the large number of hold-up orders accumulated in the early stage of the market continue to be sold, and with the valuation and expected space of the main line market, the price/performance ratio is gradually lost.”
“The potential amount of funds received in these two main directions will definitely gradually decrease.”
"Until the market's long and short positions reversed again."
"It's just that all this happened... With the flow of major funds in the market and the continuous changes in stock prices, there will definitely be obvious signs."
"As long as we stay sober and don't expect excessive risk profits."
"When the top characteristics of the market are highlighted, we can react in time and make corresponding investment strategies."
"Well!" Zhu Tianyang responded, "I just raised some concerns. Didn't President Su also say that when considering the buying point, we should also anticipate the position of the selling point?"
Su Yu smiled and said, "You analyzed it very well. Indeed, the most important thing in trading is to stay sober at all times, analyze objectively, and operate objectively."
"If there is no major negative news in the market next, according to this market sentiment, it is not impossible for the index to break through 2,400 points, or even try the pressure of 2,500 points." Li Meng took over and said, "So, we can still be optimistic for the time being."
As everyone analyzed and discussed...
The short five-minute suspension time passed in a flash, and the market ushered in the formal continuous bidding transaction.
After just five minutes of emotional brewing, the stock market of the two cities just began to jump, and a large amount of off-site follow-up funds swarmed in.
Among them, the fields of "infrastructure" and "state-owned enterprise reform" are still the main directions of various funds.
Such as Beixin Road and Bridge, Shibei Hi-Tech, Shanghai Sanmao, Chongqing Development, Beijiang Communications, Shanghai Construction, Shanghai Steel Union... and other popular concept stocks, after opening, the stock prices of various stocks once again surged and rose sharply after the opening, and rose sharply like lightning.
At the same time, such as China Railway, China Metallurgical, China Construction, China Communications, China North Railway, China South Railway, Gemdale Group, Wuhan Iron and Steel, China Baosteel, Conch Cement... and other popular stocks of "infrastructure" and "state-owned enterprise reform" also began to surge in volume at the beginning of the session, showing a collective upward trend.
And with the overall abnormal movement of these stocks, the Shanghai Composite Index opened 0.67% higher.
After the official opening, its increase also rose rapidly, quickly surpassing the 1% increase and standing at 2280 points.
Then, at 9:33, only 3 minutes after the opening.
Beixin Road Bridge once again closed the daily limit, with a total of 78 million transactions on the market, which was significantly smaller than yesterday.
At 9:35, after Beixin Road Bridge successfully closed the daily limit, a number of concept stocks in the two main areas of "infrastructure" and "state-owned enterprise reform" moved more frequently.
At 9:37, the leading real estate, public transportation, building decoration, and building materials industry sector indexes, as well as the "high-speed rail", "Shanghai Free Trade Zone", "state-owned enterprise reform", "commercial real estate development" and other major concept sector indexes, all rose by more than 2%.
At 9:39, 95% of the hundreds of concept stocks in the fields of "infrastructure" and "state-owned enterprise reform" reached the red market.
At 9:43, Shibei Hi-Tech hit the daily limit price, completing three consecutive daily limits, becoming the strongest mainline concept stock besides the market leader Beixin Road Bridge.
At 9:46, the market trend spread from the fields of "infrastructure" and "state-owned enterprise reform", and a number of consumer white horse stocks in the main board direction, such as Midea Electric, Gree Electric, Qianzhou Moutai, Haier Shares and other institutional heavy-weight "value investment" concept stocks, showed obvious abnormal movements.
At 9:49, the market trend further spread to the "growth stocks" field of the small and medium-sized board and the ChiNext.
At 9:51, the Shanghai Composite Index quickly stood at a 1.5% increase, while the Shenzhen Index and the ChiNext Index also rose by more than 1%, and the general rise in the two markets was formed again.
At 9:55, Shanghai Steel Union hit the daily limit, and the "Internet Finance" sector broke out.
At 9:57, Huaguo Petroleum moved abnormally, and the A50 Index rose by 2%, leading the rise of the two major indexes.
At 10:01, after a rapid rise in half an hour after the opening, the Shanghai Composite Index reached the 2,300-point line, and the money-making effect of the two markets continued to explode.
However, even if the money-making effect of the two markets was enthusiastic within half an hour after the opening.
In many unexpected related sectors, such as nonferrous metals, coal, banks, securities, insurance, military industry and other concept sectors, the performance of related component stocks is still sluggish. Not only is the active buying volume scarce, but the main capital flow on the market is still showing an outflow state.
This shows that the market is pushed up by the two main lines of "infrastructure" and "state-owned enterprise reform".
Part of the carrying force still comes from the siphoning of funds from the weak sectors of the market.
At the same time, it also shows that the incremental funds in the market are not enough to support the comprehensive market development, indicating that the current market has not yet gotten rid of the essential market pattern of "stock game".
"Fuck, it refuses to pull back, and it doesn't even go back to 2200 points."
Seeing the index rushing towards the 2300-point mark in one breath, and the bullish sentiment inside and outside the market completely turned to the same, at this moment, someone in the Yuhang hot money group where Su Yu was located couldn't help but sigh excitedly: "Short squeeze, a complete short squeeze, this wave... should be able to attack with confidence."
"Indeed, today's market performance is really extremely strong."
"2300 points should not pose any pressure threat at all, this wave... the index is likely to break through 2400 points or above."
"Don't look at the index, let's talk about how to do individual stocks?"
"Buy whatever you want, no matter what you buy today, you should be able to make money."
"It's a pity that Beixin Luqiao's price limit rose too fast. By the time I exited the position and followed up on the Shanghai Trade Trade check yesterday, it was already too late to go back and place an order to buy again."
"After all, the two cities are the core leaders. Under this market situation, the daily limit is basically inevitable."
"Four boards in a row!"
"Counting the first wave of market conditions that started at the bottom, today's daily limit is already on the seventh board. Sure enough... Mr. Su is still a bull. Any stock that is speculated will definitely become a monster stock. There are no exceptions."
"The checks from Shibei High-tech, Shanghai Steel Union, High-tech Development, Shanghai Construction Engineering, and Chongqing Development have also reached their limit. Hey...what else can I buy at this time?"
"Beijiang Communications Construction! The stocks that Brother Zhao focuses on are obviously expected to reach their daily limit today."
"Otherwise, large-cap blue-chip stocks such as MCC and China State Construction are also good, as is China Fortune Land Development, which has a heavy position in Ge."
"Forget about the big market stocks, let's assist Brother Zhao!"
"Damn it, I was talking about Beijiang Communications Construction just now, but I didn't expect this stock to hit the plate straight away."
"Damn it, you didn't keep up!"
"Is this Brother Zhao Zengcang? Isn't it too violent?"
"Hey, now I can only go to Delong to deliver my luck. It's really... a hesitation, and I haven't caught up with anything!"
"I directly work for Kumho Group. Although this check has a large market value, its circulation is very small, and it also belongs to the 'real estate' sector. It is also supported by Mr. Su's position concept. Although the position is not low now, it should be It can still rise.”
“Damn it, Gemdale Group has reached its daily limit!”
"The real estate sector is leading the rally, and real estate is going crazy today!"
"I bought it without thinking. I feel like I won't be able to take a sip of the soup if I hesitate any longer."
"Explosion, this market is too explosive."
"Haha, it's true...the rebound of the market has not been so refreshing for a long time. Mr. Su is really going to make a lot of money again with this wave."
"It's necessary! Look at this market...at a glance, it's full of people carrying his sedan chairs."
When many hot money tycoons lamented and turned to aggressively increase their positions...
In the Magic City, inside Yinghui Fund, there are two major fund product trading rooms, ‘Yinghui No. 1’ and ‘Yinghui No. 2’.
Fund managers Liu Guanhai and Shao Xiaoyun couldn't help but sigh and stamp their feet in anger as they looked at such an extreme market trend, thinking about the missed opportunity to increase their positions yesterday and the large-scale loss of holding chips.
"Mr. Liu, what should we do now?"
When Liu Guanhai sighed one after another and looked very anxious, Yu Lei, the head of the fund trading team, couldn't help but ask.
Liu Guanhai hesitated for a while, thinking about the mistakes he had made before, he couldn't help gritting his teeth and said: "What can I do? Chase at a high level. The market has formed a complete breakthrough trend. If you keep waiting... it will only become more and more short." It’s awesome, but it will only become more passive at that time.”
When Yu Lei heard Liu Guanhai's words, he sighed helplessly.
Then, he quickly ordered the traders to quickly pursue their positions and continue the strategy of increasing their positions that they had formulated before.
At the same time, in another 'Yinghui No. 2' fund trading room, after hesitating for a long time, Shao Xiaoyun reluctantly issued an order to chase higher and get back the chips he sold yesterday. He paid the due price for his once cleverness. cost.
The same goes for Yuhang, Modu, Yanjing, and Shenzhen.
Many large institutions, especially fund managers and traders who had participated in offline investment exchange meetings held by Oriental Fortune during the May Day holiday, and who disapproved of Su Yu's "bull market theory", now saw the momentum of the index. Ruhong didn't give a single opportunity to pull back and increase positions, and had to chase positions at high levels in the session to follow up, helplessly supporting Su Yu, whose heavy positions were in the two main areas of 'infrastructure' and 'state-owned enterprise reform'.