Chapter 22 Short-term trends follow long-term trends
He pinched his thighs fiercely with his ten fingers and regretted:
"Why, why didn't you listen to Li Feng's advice earlier and cut your losses and buy index funds? That way, you could have saved a little."
"Why? Why didn't you listen to Sister Lin's advice earlier and cut your losses in time? That way you could have reduced your losses a little."
"Now look what's happening! A huge bearish candlestick has appeared, and I've lost 50% of my money in one fell swoop!"
"Fifty percent! More than 20,000 yuan, half a year's salary! All that work for nothing."
After a long while, he recovered his composure, glanced at the stock market, and stared at the K-line chart of Yijing Optoelectronics, which kept heading south without looking back, and muttered to himself:
"It's definitely a crash, it's a bear stock. If I don't sell it now, it's going to drop to over 2 yuan, or even over 1 yuan. That's it..."
"It's better to sell it sooner rather than later. It seems that I'm really not suited to stock trading. I'm not trading stocks anymore!"
"If I trade stocks again, I won't be named Yao!"
Then, he pressed a button and cleared his inventory.
Instantly, he breathed a sigh of relief, as if a heavy burden had been lifted from his shoulders.
But, I just breathed a sigh of relief.
Sun Yue, the editor from the office next door, walked in with a big bouquet of flowers.
The flowers are made up of 99 pink roses, dotted with baby's breath, which is very pleasing.
"Who sent it this time?"
Yao Jiuyi raised his head and asked.
"Oh, this time it was sent by Young Master Liu, or that tough guy named Yan." Sun Yue said.
Yao Jiu sneered, "That guy surnamed Yan gave it to me for free. Doesn't he know that Sister Lin doesn't like men? What did she say? All men are bad."
"Hahaha..." Sun Yue laughed and said, "What about these flowers?"
Yao Jiu thought for a moment and said, "Give it to me and I'll deliver it."
As he said that, Yao Jiu came to the studio with flowers.
Lin Menghan was staring at his phone with a gloomy expression. Thinking of today's stock market situation, he cursed inwardly, "Fuck you!"
He threw the bouquet of flowers into the trash can next to him.
Lin Menghan hid in the studio, frowning as she watched this thrilling day.
She looked at the terrifying 7.38% big negative line of Yijing Optoelectronics, and was glad that she cut her losses in time when it broke 4 yuan, but she was also worried about the bet she made with Li Feng.
The 2000 points have been broken. As the saying goes, there is no construction without destruction. Can this really trigger a new market trend?
impossible!
The bad news is pressing down, and the trapped shares are also pressing down layer by layer. Without a long period of cleaning, these trapped shares will not be forced to cut their losses. No one will rashly start the market!
At least, there should be no hope within half a year.
After she made this judgment, she felt much better. She walked out of the studio, took an interview assignment, and set off with Yao Jiu.
Time passes silently.
The stock market also moves at its own pace.
On the second day, November 28, there was another negative line, which brought the Shanghai Composite Index to 1973 points!
On the third day, November 29, there was another negative line, which dropped to 1963 points.
After two days of adjustment, there was another sharp drop, with the market hitting a new low of 1949 points during the trading session.
The stock market has become numb.
Because those who are trapped are already trapped tightly and don’t want to move, so they start locking their positions and pretending to be dead.
Those who are not trapped are holding their funds and watching the market plummet like a bottomless pit, but they dare not enter the market.
Zhao Xinyue looked at Qinling Cement and felt a little regretful.
Because, just after I bought 10% of the position, it fell another 5.19% the next day, and continued to fall on the third day.
Oh, if only I had bought it a day later.
She wanted to add more positions to lower the cost, but when she saw the market plummeting, she immediately gave up the idea.
Wait a little longer, wait a little longer.
As she thought this, she looked at Li Feng standing beside her.
Li Feng happened to put the last ten percent of his position in.
"You still buying?"
Zhao Xinyue was puzzled. "The five-day, ten-day, and thirty-day lines have all been broken, and this chart is a typical island reversal, accelerating the downward trend. There are also two large cliff-like bearish lines, and the MACD..."
"Looking at this trend, it will continue to fall to 3 yuan!"
Zhao Xinyue pointed to the K-line chart of Qinling Cement and said.
Li Feng's expression straightened up and he said:
"If you believe everything in a book, it is better to have no book at all. The same is true for candlestick charts."
"The market maker already controls most of the chips in this stock, so naturally they will make the candlestick chart move in whatever way they want."
"Look, a while ago, it was bucking the trend and rising instead. Why is it now falling in sync with the market?"
"It's obvious that they're using the broader market to clean up the market and absorb shares."
Zhao Xinyue was a little skeptical and asked, "Really? What if the dealer has sold all the goods?"
"There's not enough space, time, or volume," Li Jian analyzed. "Market makers' funds have costs, and profits are planned."
"For a sole market maker like this, the stock price must be raised by at least 50% before the stock can be easily sold. Look, it's only been fluctuating for three months, and the increase is only 20 points. The trading volume is so small, how can the stock be sold?"
Zhao Xinyue seemed to be lost in thought.
Li Feng continued: "Capital is bloodthirsty."
"We need to put ourselves in the dealer's shoes and think about how greedy and mean they are. This way we can grasp the essence of the matter."
"The current surge in prices is, firstly, to grab the chips that are bleeding, and secondly, to wash out the retail investors who are not resolute, making it much easier to push the market up in the future."
After hearing this, Zhao Xinyue suppressed her fear and bought another 10% warehouse of Qinling cement.
Comforted: Even if there is a loss, it is not much.
What if you make money?
According to Li Feng's estimation, the price should increase by one-fold, which means two thousand yuan, which is almost equal to my monthly salary.
Thinking of this, she became greedy again and wanted to increase her position by another 10%.
However, when I saw the green market, I completely gave up the idea.
Zhao Xinyue turned her head and saw that Li Feng had a WeChat account open on his computer and was communicating with his friends in the group.
The group created by Li Ying is basically composed of veteran stock investors. At this moment, the Shanghai Composite Index plummeted, and the group suddenly exploded.
"Looking at this trend, the bears are advancing straight ahead, as if entering an empty land..."
"Judging from the K-line arrangement, the Shanghai Composite Index has fallen below the annual line and is looking at support at 1664 points. If it reaches that point, it will be like going back to 2008 overnight!"
"In the past few days, the banking sector has been strongly supporting the market. If there is a rebound in the future, the index will have room to fall further. The liberation bottom is not the bottom..."
The stock investors are all experienced and can speak very convincingly.
Zhao Xinyue bit her lip, feeling somewhat worried about the China Minsheng Bank that she had just invested heavily in a few days ago.
She glanced at Li Feng and saw no fear on his face.
Then he asked, "Will the banking sector make up for the decline?"
Li Feng thought about it and said, "It's highly likely that it will, but it's also highly likely that it won't."
"Hmm?" Zhao Xinyue frowned and asked, "What do you mean?"
"I mean, I don't know how this short-term trend will develop. After all, the funds in the banking sector are complex, with both public and private equity funds and various institutional hot money, so the trend is very unpredictable," Li Feng analyzed.
"But when we trade stocks, we must always keep in mind one principle: short-term trends must be subordinate to long-term trends!"
"Since we believe the market is about to experience a rebound, we must focus on this major, long-term trend. Whether there will be a rebound or not is a short-term trend and will not affect this long-term trend."
"The fact that the banking sector is bucking the trend and strengthening can be interpreted as a market support, predicting a rebound in the future. Of course, it can also be interpreted as capital influx, predicting future strength. This is the charm of the stock market."
"The same event, the same K-line, can be interpreted in two ways: positive and negative, long and short. It is precisely because of this that transactions can be completed and liquidity can be formed."
Zhao Xinyue felt relieved after hearing this, but when she turned around and saw the green loss amount in her stock account and the equally green K-line of the market, she couldn't help but become worried again.
"When can I make money..." Zhao Xinyue couldn't help but sigh.
Li Feng smiled and consoled him, "There's no construction without destruction. The harder you compress a spring, the faster it bounces back. Look at the market and Qinling Cement. They've fallen so much they're practically ruined. If they bounce back, it'll be terrifying."
"Really?" Zhao Xinyue asked happily.
"It's genuine," Li Feng said confidently, "The chips have been collected, and they will be distributed and converted into cash sooner or later."
"Market makers are not the kind of children who give away money. They come to the stock market to act as scythes. They are very hard-hearted. Even if there are no conditions, they will create them to harvest retail investors."
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