Chapter 79 The Fourth Thousand Stocks Limit Down
After cursing, he felt much relieved and began to study stocks seriously. He first read how the big Vs in the forum analyzed the market trends, and then studied the trends of major sectors and popular stocks. Finally, he downloaded the two most famous books, "Detailed Explanation of the Stock Market Scripture" and "Secret Records of Strategy for Steady Profits by Following the Market Leader", and studied them hard all night without even sleeping.
"Light position, split position, leader, follow the market maker, fight against the market maker..." Liu Bin's eyes were red, and he muttered to himself while operating the software and screening stocks that met the requirements.
Suddenly, a stock once named Duolun Shares appeared before his eyes, which made him brighten up.
The company issued an announcement on May 11 that it would change its name to Pitupipi and enter the field of Internet finance, standing on the hottest trend now. With the support of this favorable factor, it hit the daily limit six times in a row. After adjusting for a few days, it hit the daily limit two more times. The stock price rose from the lowest point of 10.50 yuan before the launch to 25.51 yuan, more than doubling.
This is not the point. The point is that after only five days of adjustment, this stock fell from 23.86 yuan to 11.61 yuan, directly halved, and fell to near the detonation point.
"According to the wave theory, the top of the first wave is 23.86 yuan, and the second wave fell to 11.61 yuan. It should be the third wave, the largest wave, soon. From the perspective of the dealer's shipping method, they must create a double top to sell. Now that the first top has just been created, there will be another wave to form the second top. Now is the bottom. From the perspective of the chip institutions, it is impossible for the dealer to sell all the goods in a few days. This is a wash-out. From the perspective of the coordination of volume and price..."
"I only enter with half my position. If things go wrong, I'll get out..."
Liu Bin repeated it over and over again, and before he knew it, the stock market opened.
Monday, July 1, 2015.
The Shanghai Composite Index opened at 4214 points, down -1.47%, which was relatively normal. After all, it had surged 5.53% yesterday, so it was normal for profit-taking to occur. Pitupi opened at 13.30 yuan, down -3.07%, and then quickly rose. After 13 minutes, it was flat. Liu Bin slapped his thigh in regret and said:
"If I had known earlier, I would have bought it sooner. This is three points! Three points is more than 500,000 yuan!"
He sighed while observing the Shanghai Composite Index. He saw that after 20 minutes, the Shanghai Composite Index had flatlined and was fluctuating around 4250 points. The Pitupixi also adjusted up and down around 13.70 yuan.
"It seems that the market has stabilized. I will be patient and wait until two o'clock in the afternoon before entering the market." Liu Bin resisted the urge to trade. He looked at the overall market and individual stocks. He hurriedly ordered a takeout for lunch and was very busy.
Two o'clock in the afternoon finally arrived, and Liu Bin bought half of Pitupi with one click, with a cost price of 13.5 yuan, a position of -1.7%.
"Well, it's an ideal position." Liu Bin lay leisurely in the chair, watching the market.
However, at this time, the more you look at the market, the more something seems wrong. The market started to plunge at two o'clock, and it jumped by dozens of points. At 14:15, it fell below 4200 points; at 14:37, it broke through 4150 points; just 3 minutes later, at 14:40, there was another fierce decline, just like the Milky Way in the sky, plunging three thousand feet, and directly broke through 4100 points, and fell to a low of 4043 points.
The Shanghai Composite Index plummeted -5.23%, or 223 points, throughout the day; the ChiNext Index plummeted -3.47%, or 99 points. A total of 941 stocks in both markets hit their daily limit, nearly leading to another 1,000-stock limit-down period. Trading volume on the Shanghai Composite Index shrank, reaching only 838 billion yuan.
This means that in just 12 trading days, the Shanghai Composite Index plummeted 21%, which is rare in history.
It plummeted from 13.5 yuan to the limit down in one breath, and was locked at the limit down position of 12.35 yuan.
Liu Bin stared at the limit-down line, still unconvinced. He refreshed the webpage several times and checked his phone several times before he was sure that he had hit another limit-down. He couldn't help but groan and said,
"Why am I so unlucky? Why, why does it always drop to the limit every time I buy? Why, why does it always drop to the limit every time I buy? Could it be that the market maker has been monitoring me? Is he always observing my movements?!"
"One limit down price is more than one million yuan!"
Suddenly, he remembered something, looked up at the camera on the ceiling, and anger rose in his heart. He picked up the chair next to him, stood on the table, and swung it over.
“Crack!”
The camera was knocked down and fell to the ground.
He was still not satisfied, so he stomped on it a few more times and hit it hard with a chair until the camera was smashed to pieces, and then he felt relieved.
The anger in his chest subsided, but the loss in his account could not be recovered. He refused to accept it and flipped through the two downloaded books over and over again, muttering:
"That's right, that's how it should be done. The pattern, indicators, volume, and price all match. What's wrong? What's wrong?"
"Maybe, maybe it's the damn market that's wrong!"
He repeated it several times, but he didn't believe it at all: "Could it be that I've been hit by too many limit-down stocks and lost my confidence? Well, let me see what everyone is saying in the forum first."
The atmosphere in the stock forum was very strange, and no one dared to say that 4,000 points was the bottom.
Those who were still showing off last night have been slapped in the face. Some of those who were short yesterday are still short and are laughing, while others bought stocks and are regretting it. For the crazy market where thousands of stocks often hit the limit down, investors no longer dare to make predictions. Once they make a prediction, they will be slapped in the face the next day. Many investors have been slapped in the face these days, and they will never forget it for the rest of their lives.
As a result, some investors began to place their hopes on metaphysics, such as feng shui, hexagrams, the Book of Changes, and yin and yang. They stopped counting waves and drawing lines, and began to tell fortunes, read scriptures, and look at their fate.
A silent fear once again enveloped everyone, including Liu Bin.
"Tomorrow, leave the market as soon as it opens. Don't hold on to it to prevent the tragedy of Yin Zhijie from happening again!" Liu Bin set operating disciplines for himself.
In the evening, there are only two good news.
First, ZJH stated that margin trading contracts will be allowed to be extended and the 130% forced liquidation line will no longer be restricted.
Article 2: The two exchanges will lower market transaction fees.
"The good news is just average, I must escape tomorrow!" Liu Bin repeated it over and over again, and did not sleep well all night.
Thursday, July 2, 2015.
This morning, People's Daily Weibo paid attention to the stock market: "See you today, stock market."
The Shanghai Securities News published an article: "United as one, stabilizing market expectations."
The stock market crash seems to have attracted the attention of the upper echelons.
However, the market is still developing according to its own inertia.
The Shanghai Composite Index opened at 4058 points, and after a brief resistance, it suddenly broke through 4000 points a minute later, completely shattering the backbone of the bull market and shattering the fantasies of countless investors.
“Run! Run!”
"The 4000 point mark has been broken! The bear market is really coming!"
"There's no bottom in a bear market! Now, it's going to drop to 3,000 points, maybe even 2,000 points. We'll have to fight for several more years to defend that level!"
Investors fled the market frantically, with wave after wave of selling.
At 10:34, the Shanghai Composite Index plummeted to 3914 points. After a brief respite, it surged again around 2:00 PM, directly breaking through 3900 points and then 3800 points! It plummeted to a low of 3795 points! A drop of over 200 points in an instant!
Finally, it closed at -3.48%, 3912 points. The trading volume of the Shanghai Composite Index shrank again, with a turnover of only 736 billion.
Black Two O'Clock Returns!
The Shanghai Composite Index broke through three major thresholds: 4,000 points, 3,900 points, and 3,800 points.
4000 points completely lost! A total of 1525 stocks in the two markets hit the limit down!
The fourth time that thousands of stocks hit the limit down!
Looking at these despairing figures, countless investors felt dizzy.
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