Chapter 24: Secret Passage
broken!
The market is plummeting...Qinling Cement is also plummeting!
The stock price suddenly dropped from 5.63 yuan to 5.2 yuan, and is still falling.
During the trading session, there were continuous large orders for active selling, and small orders also fled.
This time, Estee Lauder has fallen to the bottom. If it falls further, I'm afraid that durian will also fall to the bottom.
Zhao Xinyue panicked, threw away the vegetables and meat in her hand, and ran to the computer desk.
"Oh no! 5.1 yuan has been broken, it will soon be 5 yuan, hold on, hold on..."
"Ouch, where did that 30,000-lot sell order come from? Feng, come and take a look, we can't hold on to 5 yuan anymore, there are too many sell orders..."
"Look at this green bar on the MACD, it's almost reaching the sky... And this turnover rate, it's about to break 10%! If it can't recover at the close, it will be a big black candlestick..."
"Do you think this is the main force shipping out the goods?"
Zhao Xinyue felt anxious.
Li Feng turned his head and saw Qinling Cement was selling madly without looking back.
Look at Zhao Xinyue again, her eyes are fixed on the computer screen, as if she wants to get into the computer to see what the dealer is thinking.
“Stop looking!”
Li Feng closed his laptop and said, "It's useless to read it. Reading too much will only do harm."
"Why?"
Zhao Xinyue reached out her hand and resisted the urge to open the laptop screen again.
"With such violent fluctuations in the market, on the one hand the market makers are distributing some chips, and on the other hand they are trying to arouse the fear in the hearts of retail investors and cooperate with the market makers to crash the market," Li Feng explained.
"Cooperate in crashing the market? Isn't the dealer trying to raise the price to sell?" Zhao Xinyue asked puzzledly.
"Only by washing away the floating chips can we better pull up the price," Li Feng explained.
"There are generally three stages in a market manipulation by a banker. The first stage is market control. This stage can take a long or short time. Some bankers have the channels and resources to complete it in a few months, while others need several months or even half a year."
"The second stage is to push the price up. This stage is very short, usually completed within a month. The trend of the market-manipulated stocks is very sharp. The first step is to push the price up by consecutive limit-ups to break away from the cost zone. The second step is to continue to push the price up to reach the predetermined price."
"The third stage is to maintain sideways movement, with constant fluctuations, and distribute the remaining chips."
Li Feng paused, then pulled up Qinling Cement's K-line chart on his computer and continued, "Currently, Qinling Cement has just risen rapidly, breaking away from the dealer's cost zone. It's only increased by a little over 50%. If the dealer distributes chips here, their ambitions are too small."
"Any banker is bloodthirsty, and I believe this banker is no exception. He will definitely take advantage of the market to continue to push up Qinling Cement's share price, and then slowly distribute chips."
Zhao Xinyue hesitated for a moment, then slowly asked, "Dinner market? Has the dinner market started?"
"It's started!" Li Feng said with finality.
"Impossible?" Zhao Xinyue couldn't believe it.
Then, she quickly opened her laptop and pulled up the K-line chart of the Shanghai Composite Index. Pointing at it, she said, "Although the market has rebounded quite a bit in the past few days, it's still hovering around 2060 points and hasn't even broken through 2100 points. How come it's starting to rebound?"
"Xinyue, you only see the trees and not the forest," Li Feng sighed. "These past few days, you've only been looking at Qinling Cement. Haven't you even looked at Minsheng Bank?"
"Minsheng Bank?" Zhao Xinyue pulled up the Minsheng Bank K-line chart and asked doubtfully, "It's indeed increased a bit, but it's only 10%, roughly the same as the overall market. Is there anything unusual?"
Li Feng smiled but said nothing.
With a light click of the finger, the K-line charts of the four small banks, namely Minsheng Bank, China Merchants Bank, Shanghai Pudong Development Bank and Industrial Bank, as well as the stock K-line charts of the four major banks, namely Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Bank of Communications, were brought out one by one.
"Did you figure out anything?" Li Feng asked with a smile.
"Sector market?" Zhao Xinyue asked puzzledly.
"This young man is teachable!" Li Feng praised. "On December 5th, the banking sector saw unusual movement, and many people thought it was a move to support the market."
"However, a closer look reveals that differentiation has already occurred within the banking sector. The four smaller banks, Minsheng Bank, China Merchants Bank, Shanghai Pudong Development Bank, and Industrial Bank, not only released a huge amount of trading volume on December 5, but also the trading volume has not declined in the following days."
“Even Industrial Bank and Shanghai Pudong Development Bank saw their share prices surge by more than 10% in just a few days!”
"Only 10%..." Zhao Xinyue said disappointedly.
Hearing this, Li Feng smiled bitterly and said, "Why? You're used to making quick money, and you're not used to making slow money?"
"Your Qinling Cement is a small-cap stock with a single market maker. How can it compare to these large-cap bank stocks? Your small-cap stocks can only accommodate hundreds of millions of dollars at most, while this bank sector can accommodate billions, tens of billions, or even hundreds of billions of dollars, and each of them is a heavyweight on the Shanghai Stock Exchange."
"Their rise and fall can really affect the overall market trend."
"And, the overall market trend can in turn affect the trend of individual stocks. This is a mutually influencing and mutually reinforcing process. Although you look down on bank stocks, you should not look down on them either. They are the real stabilizer and the hurdle that cannot be overcome in investment."
Zhao Xinyue put away her contempt and continued, "Are you saying that this wave of eating boom has been triggered by bank stocks?"
"That's right."
Li Feng said, "The trend of large-cap stocks is different from that of small-cap stocks. They are large in size and have strong inertia. Once the market starts, it will take at least three to five months to distribute all the chips. After all, the main players have to make a living."
"Also, do you believe in conspiracy theories?" Li Feng suddenly asked.
"Conspiracy theory?"
"That's right. Launching a mid-level market like the banking sector is not something that can be decided by one or two people, nor can it be controlled by hundreds of millions or even billions of funds. It must be planned in advance," Li Feng said, pointing to the Shanghai Composite Index chart.
"Look, the banking sector, especially the four small banks, was already strong when the market broke 2,000 points last time. This time, the Shanghai Composite Index fell to 1,949 points, but bank stocks not only did not fall, but instead rose sharply."
"This shows that when the market was fluctuating around 2000 points, and everyone was attracted by the battle for 2000 points, a major player had already quietly lurked in and made a covert move. Now that the trading volume is increasing, we are in the second stage of the major player pushing up the stock price."
"However, many people are still shrouded in the shadow of the market falling below 2000 points and hitting 1949 points a few days ago, and they are unable to extricate themselves."
"Really?" Zhao Xinyue was delighted when she heard that.
If the market really picks up, my half-investment in China Minsheng Bank might also see a surge.
In an instant, she felt that the Estee Lauder set she had just lost had flown back to her.
"Really! If you don't believe me, let's try it and you'll know." Li Feng said as he opened the Taoguba forum.
"How to try?" Zhao Xinyue moved her face closer, and a faint fragrance came through her hair.
Li Feng sniffed and said, "Let's test the mood of the stockholders."
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