MTL - The Son of Finance of the Great Age-Chapter 1003 Blown away
Chapter 1003 Sweeping Thousands of Miles
Because on the delivery day of stock index futures, some short sellers frantically smashed and fled, so the stock index fell by more than 6% that day. However, Shi Zhongshi was acquiescing to this trend, and he focused his energy on stock index futures. Therefore, although the short sellers smashed the market in the spot market, the decline in the stock index futures was not so obvious. In the end, a large number of short sellers had to hold their noses and leave the market.
Then there was a considerable rebound on the 19th, which was really in Zhongshi's calculations. The intraday index once climbed more than 3,800 points, and finally stayed at 3,794 points, a slight increase of 1.23%.
On the 20th, the first day Zhongshi disappeared, the bears couldn't wait to launch an attack. Although the central bank conducted reverse repurchases with a total scale of up to 150 billion today, this benefit did not save the market.
At the beginning of the market opening, the bulls took advantage of this news to attack 3800 points, but they were attacked by the bears. This time the short sellers changed their strategy, instead of entangled with the bulls on the stocks publicly held by the bailout funds, they focused all their firepower on those companies that were not favored by the bailout funds but were leaders in their own industries. This change immediately caused a change in the market. When seeing that the market is green and only a few lonely stocks are red, the choice of wait-and-see funds becomes very limited. Either they chase the stocks favored by rescue funds, Or be forced to leave temporarily. Under the influence of this kind of psychology, the index soon fell.
At noon, the index officially announced that it had lost 3700 points. The market's judgment on the market outlook has shown a polarized trend. On the one hand, sectors such as big data and state-owned enterprise reform continue to be sought after by funds, but apart from these hot sectors, other related companies appear to be lifeless. The linkage effect between the plates has not been displayed at all, and the connection between them has been completely cut off by the short sellers. There are fewer and fewer options available, and more and more funds are flowing out.
At the final close, the index stopped at 3664 points, and fell 129 points, or 3.42%.
Amidst the bleakness, not many people noticed that the rescue funds did not make much action on this day, and those stocks that were disclosed to be increased by the rescue funds performed well today. But what the market has not figured out is that this is due to hot money from all walks of life chasing these stocks, rather than rescue funds.
If they had known this earlier, they might have been able to get out of the subsequent crash in time. But it is a pity that this news is highly blocked, and the short sellers who are well aware of this will not choose to spread this news at this time.
On Friday the 21st, after making sufficient preparations, Xu Fei finally released his big move.
In fact, rumors began to spread from the night before. First, there was a news about the position statistics of public funds. A certain media posted such a news on their official Weibo, which immediately ignited public opinion.
Public funds are building positions, not only on the same day, but gradually building positions step by step when rescue funds flooded into the market some time ago. So far, compared with the last big drop, the entire public fund industry has secretly reduced its holdings of more than 100 billion stocks. This means that at least more than 100 billion funds have flowed out of the stock market.
It is important to know that these are only public funds with rigid holding rules. As for those private funds with larger scale and looser rules, it is not known how many billions of funds have flowed out.
As soon as the news came out, many retail investors realized that at this stage of the index's rise, they had become the "taker" of the market. This discovery made them panic. It is almost a nightmare for stockholders to be locked in a high position. This kind of nightmare is about to happen again. How can they not be panicked?
Secondly, some institutions successively announced their forecasts on the PMI index for the previous month. This index directly reflects the confidence of the manufacturing industry, of which 50 is the line of prosperity and contraction, above 50 means that the manufacturing industry is expanding and the economy is improving, and below 50 means that the economic situation is in the opposite direction.
Among the predictions of these agencies, it is generally found that none of the data exceeds 50, the highest prediction is 49.1, and the lowest is 47.2. To put it simply, they also generally believe that the managers' purchasing index has not recovered above the line of prosperity and contraction, which means that the manufacturing industry continues to decline and the economic situation is still not optimistic.
Among the supporting indexes, the new order index, new export order index, output index, and employment index all fell, both on a month-on-month basis and year-on-year. The market quickly formed a consensus that even after the official index is released tomorrow, it will not be much stronger than these predictions. Last month, the economic situation continued to decline as if it had become inevitable.
Furthermore, because the stock index fell sharply on the futures delivery day, the financing scale of the entire market was reduced by as much as 20 billion. This news is consistent with the nature of the news of the reduction of holdings of public funds, reflecting that customers with large funds in the market are reducing their operations and leverage. As the so-called Prophet of Plumbing Duck in Spring River, because the market fluctuates violently in the short term, it is not uncommon for customers with large funds to appropriately reduce their operations. However, this news, combined with its release on the same day, gave stock investors a sign that the bulls are retreating.
The last bad news is that in the previous August, the large-value transactions were decreasing. This news is not too new, because funds continue to flow out. But for ordinary shareholders, this news also has an impact on their psychology to a certain extent.
In addition, on the same day, due to the continued depreciation of the renminbi, the U.S. stock market fell by 2.06%, which to a certain extent also formed a negative for China's capital market.
It is not difficult for people with a little investment logic to find out that in fact these so-called bad news are not very convincing. Among them, the three news of "decrease in holdings of public funds", "reduction in financing amount" and "decrease in large-value transactions and sluggish trading volume" basically belong to the same event, but they are interpreted from different aspects, thus forming different information. The most important point is that the reduction of holdings of public funds is not during this period of time, but continues to reduce their holdings. Why there is no relevant news before this, but it chooses to explode on this day, the meaning of which is very worth pondering .
As for the PMI, it can be said that the meeting coincides with the meeting, or it can be said that it is carefully arranged, because the PMI data has always been released on this day. And the last U.S. stock market fell, the logic of which is a bit nonsense. Although the two markets are not isolated and separated, looking at the performance of the entire Huaxia stock market, the connection between the two is really negligible, even dispensable.
But no matter what, once these five negatives were thrown out, they immediately dealt a major blow to the confidence of institutions and ordinary investors, so that the market fell by 55 points as soon as the market opened that day.
Some professional bulls didn’t take these bears seriously, and started to try to attack upwards after the market opened, and the index also rose slightly, but this was only on the premise that the shorts hadn’t exerted their strength yet. Soon overwhelming shorts appeared in every corner of the market, whether it was blue chips, weights, ChiNext or popular stocks, the shorts all sold on a large scale without exception.
The market was just as predicted by those few pieces of news. This time it exacerbated the panic in the market, and soon more funds joined the ranks of selling. plummeted.
"No, this situation cannot continue!"
At the headquarters of Huatou, Zhou Deping, Li Rong, Zhao Fei, and Wang Jintang all changed their faces when they saw the index drop rapidly. If you do it, the previous efforts will be completely obliterated."
"But…"
After listening to Zhou Deping's analysis, several people showed embarrassment. They didn't know that the situation was critical, but they were also very aware of their current difficulties. Among them, Li Rong said, "We only have about tens of billions of funds on hand. There is simply no way for funds to compete with the general trend.”
"But anyway, we have to do something!"
Zhou Deping said without a doubt, "Although we can't compete with the general trend, we must let the market know that the rescue funds are working hard. If we don't show up all the time, the market will not be able to see it."
"So I suggest that we start with two heavy resource stocks, send our signal, give the market a positive response, and at the same time push up the market index as much as possible. What do you mean?"
Among the people present, Zhou Deping had the oldest seniority, and his usual style was also the calmest. However, at this time, he couldn't hold back anymore, so he proposed such a radical plan.
"I have no opinion."
"I agree."
"It seems that this is the only way!"
After the other three people looked at each other, they agreed without the slightest hesitation.
Soon, trading orders were issued to traders, and then tens of millions of funds poured into the two giant stock markets of China Petroleum and Sinopec. With the intervention of this strong capital, the originally green stock market The stocks of these two companies stopped falling quickly and began to gradually recover the lost ground. After half an hour, the stocks miraculously turned from green to red, and they successfully rose.
"is that useful?"
Xu Fei, who was far away in Suhai, naturally saw all this in his eyes. After carefully observing the market, he found that as expected, the rescue funds only appeared on these two giant companies. Other companies including It was previously disclosed that there was no new huge amount of money in the stocks held by the bailout funds. Immediately, he smiled and ordered the traders, "Regardless of these two companies, continue to suppress the index."
He came directly to avoid fighting.
The news that the rescue funds appeared on the two giant stocks quickly spread like wildfire and spread throughout the entire market. There are also some investors who start to buy rashly without knowing what is going on, because according to the previous rule, generally the rescue funds first send out signals on some heavyweight stocks, and then launch a large-scale attack at a later time, thereby turning the market in one fell swoop situation. This trick has been tried and tested for them, so when they learned that the bailout funds appeared, they immediately operated according to their previous experience.
But this time it is different. Although the two heavyweight stocks are alive and well, the rescue funds have never appeared in other stocks. On the contrary, with the further intensification of short selling, the index fell further, and soon 3600 points were declared to be lost.
Near noon, the index has dropped to 3550 points.
Some investors still had confidence in the bailout funds, but by the afternoon trading hours, they were completely desperate. The announcement of the PMI data confirmed the news of the previous day that China's economic situation has not improved. This news not only obliterated the counterattack of the bulls, but also made the market sentiment deteriorate sharply. In addition, not only did the bailout funds not appear in other stocks in the afternoon, but even the previous two heavyweight stocks were attacked by short sellers, gradually narrowing the gains, and finally turned green.
The discoloration of the two heavyweight stocks eventually became the last straw that crushed the market.
The index started to go down all the way since then, and successfully fell below 3500 points at 2:30 in the afternoon, and the lowest dropped to 3490 points. Then the final profit-taking and adjustment, and finally stayed at 3507 points.
The stock market fell 156 points that day, or 4.27%. Compared with the 4,000 points five trading days ago, it has fallen by nearly 500 points. However, all this is not the end.
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(end of this chapter)
