Chapter 66 This is a sick cow
Li Feng's heart was filled with alarm.
He finished the remaining knife-cut noodles in a few bites, hurried back home, closed the windows, drew the curtains, turned on the chandelier, and turned on the air conditioner. In an instant, everything around him became quiet.
Li Feng took a deep breath, sat quietly at the table, turned on the computer, and began to study the latest news, market conditions, and various information on the forum bit by bit.
But everything is so normal.
The trading volume of the Shanghai Composite Index is still around one trillion yuan, with neither a significant increase nor a significant decrease. All sectors are also rising in a healthy manner. Although theme stocks have risen a lot, the large-cap stocks in the market, such as banks, insurance, real estate, nonferrous metals, coal and other stocks, have basically not doubled in price, and still play the role of ballast.
As for the news, there doesn't seem to be any bad news, only good news.
Li Feng saw all this and thought about it in his heart. Not only did it not dispel his doubts, but it cast an endless shadow over his heart.
There must be something hidden in the dark that I haven't discovered yet.
However, no matter how hard Li Feng looked, he couldn't find it.
Taking a deep breath, Li Feng opened his trading account and reduced his position by half, which slightly relieved the panic in his heart.
The panic that enveloped Li Feng's heart lasted for several days.
Until June 12, the Shanghai Composite Index surged to 5178 points.
Amidst the jubilation, a piece of news suddenly caught Li Feng's eyes - ZJH issued a document, reiterating that all securities companies are not allowed to provide financing services to other institutions and websites.
After reading it carefully and savoring it slowly, Li Feng couldn't help but feel frightened.
He quickly picked up his phone and called Liu Ying.
After a long time, Liu Ying came back and asked quietly, "Brother Li, what's the matter? I'm in a meeting."
"Manager Liu, I heard ZJH is going to start investigating financing? Are you in a meeting...?"
"Yes, it's a meeting about cleaning up off-market financing. Alas... they started to spread rumors last month. Our sales department managed to hold on for a month, but now we can't take it anymore. I heard that the Hang Seng HOMS system docking port must be completely shut down, and other businesses also need to be rectified..." Li Ying scratched her head and said, "I'm going to the meeting first. Leave a message on WeChat if you have anything."
"good."
Li Feng hung up the phone and called Gan Yitong again.
Gan Yitong was also worried about the same thing.
Li Feng hung up the phone and looked up at the sky. He felt as if there was a huge mountain pressing down on him.
This bull market is a well-known leveraged bull market. There are billions of leveraged funds in the market. If deleveraging occurs, it will collapse like an avalanche, and no one in the market will be spared.
After taking a taxi, Li Feng returned to the trading room with a serious face, which scared Zhao Xinyue.
"Li Feng, what's wrong with you? You look so ugly."
"It's okay, Xinyue. When the market opens next Monday, all stocks will be sold at the lower limit! Don't keep a single share." Li Feng ordered.
"What? Clear the inventory? Clear the inventory at the lower limit?" Zhao Xinyue was stunned.
The A-share trading rules are price-first. In theory, if you sell stocks at the lower limit, as long as the stock is not at the lower limit, the position will be liquidated instantly.
Generally, this situation is only used when the stock encounters a major crisis and it is time to escape. In even more extreme cases, the stock will hit the lower limit the day before.
What on earth could have happened that made Li Feng so panic?
Immediately, she reacted and asked tentatively, "Why liquidate? Isn't the Shanghai Composite Index going to break through 6,000 points and directly break through 10,000 points?"
"Who told you it would exceed 6,000 points? Ten thousand points?" Li Feng said.
"Everyone thinks it will happen, but it won't. Just like in 2007, everyone thought 2008 would be the year of the Olympic Bulls. But then the Shanghai Composite Index plummeted to 1,664 points, and many stocks were left with only a fraction of their value."
"But, but whatever you say, you must have evidence. You can't just say it or guess randomly..." Zhao Xinyue looked at the red stock quotes, reluctant and unconvinced.
Of course, the stock market is booming now, and it is a good time to make money. How can it be related to clearing out stocks?
Li Feng took a deep breath and said, "ZJH reiterated the cleanup of margin financing. Didn't you read this news?"
Zhao Xinyue said indifferently:
"I've seen it. What's the big deal? I've talked about this several times, since May, and now, look, the market hasn't fallen, it's actually gone up... Maybe it'll go up again in a few days."
"Besides, look at the trading volume and the K-line trend. It's so healthy..."
Li Feng shook his head and said, "Wrong, totally wrong!"
"Xinyue, Menghan, you must remember that in the stock market, understanding comes first, not listening to news or looking at candlestick charts. This determines the success or failure of your investment. Understanding first and foremost is the overall stock market trend. Whether the market is bullish or bearish, you must follow the trend and not go against it!"
"A bull market, after all, is just a manifestation of currency, driven by capital. Now that the central bank has strictly cleaned up margin financing, the stock market has become like water without a source and a tree without roots. Collapse is only a matter of time."
"Look at this data. The total market capitalization of the two stock exchanges is only over 50 trillion yuan, but the combined leverage on the exchange and off-exchange has reached 5 trillion yuan, accounting for 10% of the market capitalization of the two markets. This bull is a leveraged bull, an unhealthy and sick bull!"
"And, let me emphasize again, K-lines are just tools, they can't predict the future. The stock market is a chip game, a money game, not a chart game. If you blindly look at charts, draw lines, and analyze volume, the more you learn, the more you'll become trapped, unable to extricate yourself, and thus ignore the huge dangers around you."
“If you learn a skill, you may become a good craftsman, but you will never become a master.”
After a pause, Li Feng added:
"I just talked to Liu Ying and Gan Yitong. This is absolutely true. They are also worried and are cleaning up their high-risk stock financing business."
"But, but a few days ago, didn't they say that 4000 points was the starting point of the bull market? The official media kept blowing the whistle and published seven or eight articles in a row about how to improve the stock market. You kept saying that our country's stock market is a policy-based market. It shouldn't be possible for it to go into a bear market just because of this financing issue, right?" Zhao Xinyue hesitated and still didn't believe it.
"Xinyue, you must remember that when you look at a person or a thing, don't look at what he says, but look at what he does. The higher-ups have the intention of revitalizing and improving the stock market, but the key is that this bull has mutated into a leveraged bull, a margin bull, and a bull with mad cow disease. It cannot be cured." Li Feng emphasized.
After a pause, Li Feng continued, "Funds, funds, everything depends on funds. Once the funds flowing into the stock market are strangled, this sick bull will collapse."
"I've said before that there's no bull market when there's inflation. This is also due to capital. When inflation is high, it's accompanied by sharp interest rate hikes, which inevitably leads to a continuous outflow of funds from the stock market, thus causing a bear market. The shift from bull to bear in 2007 was caused by this reason."
Lin Menghan thought for a moment and said:
"LeTV, Eastmoney, and CRRC have indeed seen their prices rise quite a bit, increasing by three to five times. But the China Merchants Bank and Kweichow Moutai we bought haven't increased much, not even by a factor of two. Should we sell them too?"
"Sell!" Li Feng sighed helplessly. "A gentleman doesn't stand under a wall. Even if these blue-chip stocks don't rise much, they will be affected if the stock market collapses."
Li Feng said a lot of things in one breath, and his words were very serious. Zhao Xinyue and Lin Menghan were shocked and tried to operate their stock accounts in a panic.
Li Feng looked at their panicked expressions, and an idea struck him. He said, "Xinyue, Menghan, you still have my account. Don't sell the remaining 100 shares. Hold them and experience the severity of the bear market. It's useless to just hear about this kind of thing. You have to actually hold a position in it."
The two nodded, but they still didn't quite understand.
"Well, since the stock market is going to go into a bear market, should we return the accounts we used to help others invest in new stocks?" Lin Menghan suddenly asked again.
"Keep buying new shares and don't pay it back. If you pay it back to them now, they will definitely not be able to resist and will enter the market to buy stocks again. Wouldn't that harm them? Keep it. When the stock market falls and new shares can't be issued, return the account back." Li Feng said.
Li Feng had just finished speaking when Master Zang urged him again on WeChat.
Li Feng patiently advised them to wait for a few months before entering the market, but Master Zang was very stubborn and said that the account had already been opened and they had to buy stocks today.
Li Feng had no choice but to organize his thoughts and send his opinion that the stock market was about to change and that it had already reached the top of the bull market.
As a result, as you can imagine, Master Zang still didn't believe it.
Everything is so familiar, just like 2007 all over again.
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