The Son of Finance of the Great Age

  Chapter 954 Splendor and Destruction

  On Tuesday, May 19, the market returned to near 4200 points after experiencing the previous period of down and shock. As the economy continues to decline and growth data continues to decline, the stock market continues to rise, which has completely become a negative indicator of economic development.

There is another seemingly reasonable explanation for this strange thing: the logic of the start of the market lies in the improvement of policy expectations caused by the economic downturn. Continuous good news will be released, which is the basis for the current stock market rise, and the bull market will continue the current pattern in this expectation.

   At first glance, there is nothing wrong with this logic. But if you think about it a little bit, you will find that there are many uncertainties in it. Because even if the policy of stabilizing growth is strongly introduced, it cannot guarantee that the economy will grow again, and the most important thing is that the current policies tend to stabilize economic growth rather than stimulate economic growth, that is, to stabilize the current economy. The speed of growth, rather than making the speed of economic growth faster.

  Assuming these policies are fully effective, the best outcome is that the economy grows at its current pace, reflected in the same smooth exponential growth in the stock market. However, the current growth momentum of the stock market index is not like this at all, but a scene that the national economic growth will be greatly accelerated.

  This is where the logical error lies, but under the current situation, no matter whether it is the main board or the GEM, there is no logic to speak of. As long as there is relevant news, whether it is good or bad, the stock price will continue to rise.

  The news on this day mainly focused on medical reform, interest rate liberalization, stock registration system, improvement of the exchange rate market, and railway construction. Although the recent market turnover is only about 300 billion due to the reduction of leverage effect and the slowdown in the growth rate of the number of new shareholders, these news still promote the rise of the market, even though some funds were frozen yesterday when a batch of new shares were listed.

   On the same day, Gutian rose from 4285 points to 4419 points, an increase of 134 points compared to yesterday's closing price, an increase of 3.13%. After two weeks of sluggishness, the capital market once again blew the slogan of rising.

   On the 20th and 21st, the stock market broke through two positive lines again and stood firmly above 4500 points.

   On the 22nd, the stock market once again rose more than 100 points in a single day, breaking through 4600 points. On the 25th, it rose by more than 150 points and directly stood at 4,800 points. On the 26th, it rose another 97 points and successfully broke through the 4,900-point mark, which is only a thin line away from 5,000 points.

  Although it only rose 30 points on the 27th, it broke through 4950 points smoothly during the session and at the close.

  Everything looks so good, the 5,000-point mark is within reach, and the Huaxia stock market will usher in a new beginning.

   As the saying goes, all good things come in a long way. Just when the stock market was still a mile away from the historical moment, an accident happened. On the 28th, the stock market ushered in a major setback, and the plunge occurred earlier.

  The stock market opened that day, and the stock index was at 4943 points. Before ten o'clock, the stock market continued to rise, reaching as high as 4986 points at one point. Just when people thought that the historic moment of breaking through 5,000 points had arrived, the situation changed. At around 10:30, a large amount of selling orders appeared in the heavyweight stocks, and the prices began to stagnate and tend to fall, which prevented the entire index from continuing to rise.

Soon, what happened to the heavyweight stocks spread to the recently popular subject stocks. Maybe it was for safety reasons, or maybe they were satisfied with the profits made in the past few days. There has also been a large-scale sell-off of theme stocks. This large-scale sell-off undoubtedly poured a basin of cold water on the heads of fanatical investors, making them calm down a lot at this moment.

  Some people are watching, but more people are participating in this sell-off, and the herd effect starts to spread around. The strange thing is that many people just saw the large-scale sell orders and panicked, and couldn't wait to sell the stocks in their hands. And as this sell-off progressed, more and more people joined in, completely unaware of what it was for.

  It must be emphasized here that whether it is an ordinary investor or a fund manager, the psychology of integer points is very complicated. On the one hand, they all hope to break through this number, on the other hand, they also know that the more accidents there are at this time. So at this time, while they are looking forward to the continued rise of the index, they are also guarding against accidents.

  When the sell-off occurred, many people thumped in their hearts, secretly said "it is true", and immediately joined the sell-off army without thinking, no matter what the reason is, this is a typical herd effect.

   Panic is spreading. Although there is an hour break at noon, this crazy market cannot be stopped at all.

  After the market opened in the afternoon, there was a bigger sell order in the heavyweight stocks, and there were traces of selling regardless of cost. Although there were also a lot of funds secretly absorbed, they couldn't hold the momentum of selling at all. But for the most sought-after theme stocks, it was almost impossible to find buyers, and the market was overwhelmingly selling frantically, and soon the first stock with a limit-down appeared.

   Immediately after that, the second branch and the third branch appeared...

  The market is in chaos, panic is spreading everywhere, and people keep selling their stocks, even today's most sought-after theme stocks are no exception.

   On the other side of the heavyweight stocks that determine the index, although there are repeated funds to buy bottoms, it cannot curb this panic. Fortunately, in this sector, because there are many institutional investors and value investors, even though they were quite panicked, they did not plummet as they did in theme stocks and ChiNext.

  Finally, when the market closed on this day, the stock index fell by more than 320 points, a staggering 6.5% drop, and the stock index instantly returned to around 4600 points, and the gains in the previous few trading days were completely swallowed up. More than 500 stocks in the market fell by the limit, and more than 2,000 stocks fell. There are only a handful of stocks that can finally maintain their rise throughout the day.

  The performance of the market on this day was unanimously called a "slump" by the outside world.

  After the event, people summed up the reasons for the sharp drop on this day, which can be roughly divided into reasons such as the re-listing of new shares, the decline in the leverage of the two financial institutions, and the intensive reduction of holdings by listed companies. But none of them can convince the market, because these news are not available in today's session, they are all disclosed recently. In other words, the previous market did not fall because of these news, but these news happened when it hit 5000 points.

  Amateurs don’t know the inside story, but for some professionals, this plunge contains a lot of important information, the most critical of which is that the crash is about to begin, and this is a preview.

Ordinary investors did not realize that the danger was gradually approaching, and after the market closed, they made self-comforting adjustments one after another. At the same time, some securities firms with bad intentions also shouted that this was the profit-taking in the early stage, and it would not affect the bull market. pattern. Subsequent market performance also confirmed this point. On the third day of the decline, the market soared by 217 points, an increase of 4.71%.

With the lessons learned this time, when the market faced 5,000 points again, it was not so turbulent. Although the index soon stood firm at 4,800 points again, within the next five trading days, the market fluctuations were very small. It was not until June 5 that the market broke through 5,000 points with very slight fluctuations.

  After experiencing a sharp drop, the stock market still has not changed the essence of the bull market, and finally broke through this historical threshold in the midst of expectations. This achievement made many stockholders rejoice, and some of them even expected a new high of 6,000 points.

On June 8, the next trading day after breaking through 5,000 points, the stock market once again pulled out a dazzling positive line. It continued to rise by 108 points that day, or 2.17%. It only stayed at 5,000 points for one trading day before continuing to rise , There is no sign of nostalgia at all.

   This performance made the market even more crazy. 800 billion funds were traded that day. No matter from the index or the trading volume, the market showed a scene of continued prosperity.

  But no matter how gorgeous the fireworks are, they will eventually be shattered one day. The stock market is no exception, especially after the signal that more than 500 stocks collectively lowered the limit was sent out, the well-informed in this market have received the signal of the collapse, and those ordinary people who are not alert enough are still immersed in a false prosperity among.

  The decline began on June 15. Before that, the market continued to rise after breaking through 5100 points, although the magnitude was not as strong as before, and the index did not break through 5178 points. But no matter what, the market is still rising every day.

Judging from the news of this day, there is no obvious bad news, but there are a lot of good news, such as the robotics industry, such as the innovation of securities companies, such as energy conservation and emission reduction, but no matter what, the market is falling. It fell from 5174 points to 5048 points, a drop of 103 points, a drop of exactly 2%.

   After rising for eleven consecutive trading days, it was the first time that there was a considerable decline, but people are still saying that this is only a phased adjustment, and the market did not crash or panic.

  The next day, the stock market fell again, and there was a gap at the opening. It fell another 175 points throughout the day, a drop of 3.47%, and the index fell directly from 5004 to 4887 points. Of course, this decline continued to be regarded as a signal for adjustment, and many funds took advantage of this opportunity to rush into the market in an attempt to buy the bottom at this time, and the trading volume was once close to 900 billion.

Sure enough, on the day of June 17, after two consecutive days of decline, the stock market rose. It rose by 80 points that day, and the index returned to 4967 points. It seems that the adjustment stage is almost over, and then The market will return to near 5000 points.

   But many people don't realize that this is just the beginning of the stock market crash, and the index will never return to 5000 points in the next few months or even years.

  On June 18, the stock market continued to fall. This time it fell by 182 points, or 3.67%, from 4942 points to 4785 points, which was one step further away from the expected 5000 points.

  What many people don’t realize is that in these three small-scale declines, the index has fallen from the highest point of 5178 points to 4785 points, a full 393 points, a drop of 7.5%. They are still immersed in the market adjustment, and then continue to rush to the fantasy of 5,000 points, but they don't know that many long-planned institutions have raised their butcher knives and are silently chopping at their heads.

  June 19, a historic day, the avalanche of the stock market officially kicked off from this day.

The news of the day was all positive, including the transformation of the steel industry, the Internet conference, the profit of the air transport industry exceeding expectations, and the holding of a big data conference. In the news, financial stocks suffered a comprehensive setback, and theme stocks were also sold off in a huge amount. The main force's intention to smash the market was very obvious. The index broke through 4700 points, 4600 points, and 4500 points in a row, and fell 307 points all day, a drop of 6.42%.

  The decline was very similar to the previous plunge, but different from the previous plunge, this time more than 1,000 stocks fell to the limit, and the market was full of sorrow.

Thanks to the book friends "Flying Bird and Fish", Shahuer, Sweetness and Tenderness, bafeite, 13971545012 for voting for the monthly ticket! I checked the information for a long time, and it's getting late... I won't say anything else, it's time to sort out my thoughts tomorrow, Continue to conceive new content and prepare for the stable update next week. The final stage of thinking is obviously not keeping up. I hope everyone will forgive me for the lack of update. The author is very grateful~

  (end of this chapter)