Chapter 861 Don’t Be Held Hostage by Short-Term Market Sentiment!

As the mood in the afternoon brewed, the Shanghai, Shenzhen, and ChiNext indices fell rapidly as soon as the market opened. The main selling force on the market began to suppress the bulls more and more.

At 1:01, in just one minute, the Shanghai Index fell sharply to 1.67%, while the A50 Index fell to 2.69%. The three core themes of "big finance", "big infrastructure", and "military industry" continued to be sold off by a large number of main selling funds. The corresponding industry sectors, concept sectors, and their core weighted stocks also continued to dive rapidly.

At 1:02, the decline of the Shenzhen and ChiNext indices also expanded to 1.5%.

At this time, in the morning trading, the three core lines of "big consumption", "mobile Internet", and "smartphone industry chain", which once showed strong support, as well as the low-level non-popular "non-ferrous cycle", "petrochemical", "coal" and other main line-related industry sectors and concept sectors, also fell rapidly, completely losing the strength in the morning trading.

At 1:03, the intraday decline of "Huaxin Securities" reached 3.83%, and the trading volume broke through the 7 billion mark.

At 1:04, the stock prices of several major securities companies, including "Huashang Securities, Huatong Securities, Huatai Securities, etc.", fell by more than 3%.

At 1:05, the intraday decline of the "Securities" sector index reached 4%.

At 1:06, under the influence of the sharp decline of the ‘Securities’ sector, the ‘Internet Finance’ sector also plunged straight down. Among them, the hot stocks in the two sectors, ‘Tonghuashun’ and ‘Dazhihui’, fell again by 7% within the day, and the market decline of ‘Eastern Fortune’ reached 5%.

At 1:07, the banking and insurance sector index fell by about 2.5% within the day.

At 1:08, the check of ‘Harbin Investment Capital’ suddenly fell by 8%, showing a trend of limit down.

At 1:09, the check of ‘Lanshi Heavy Equipment’ suddenly went straight to the limit down again. At the same time, the decline of the ‘Military Industry’ industry sector index expanded rapidly, catching up with the decline of the ‘Securities’ sector index at lightning speed, and within the sector, the hot concept stocks such as ‘Hongdu Aviation’, ‘Aerospace Development’, ‘Huahang Heavy Machinery’, etc., also fell by 5% to 7% within the day.

At 1:10, the "steel" sector plummeted, squeezing into the top three of the decline list of a number of industry sectors in the two cities. Among them, the popular stock in the sector, "Bayi Steel", hit the limit down.

At 1:11, commercial real estate development, building decoration, building materials... a number of industry sectors in the main line of "big infrastructure" also quickly followed the trend and fell. Among them, in the "commercial real estate development" industry sector, the stock prices of "Huaxia Happiness" and "Kumho Group", which were once hyped in the early stage, showed a flash crash trend.

At 1:12, in the main line of "big consumption", the "automobile vehicle" sector turned green.

At 1:13, the intraday decline of "Huaxin Securities" reached 4%, and the trading volume on the market was still rapidly expanding, and the market selling orders were endless.

At 1:14, "Lanshi Heavy Equipment" hit the limit down, and the retracement exceeded 25% in just a few days.

At 1:15, the intraday decline of the ‘new stocks’ concept sector index reached 2.78%, and four stocks of the near-term new stocks have hit the limit down.

At 1:16, the intraday decline of the two stocks ‘Huake Jincai’ and ‘Shanghai Steel Union’ reached 7%.

At 1:17, the intraday decline of the ‘Internet Finance’ sector index reached 4%, and four stocks within the sector have hit the limit down.

At 1:18, ‘Beijiang Jiaojian’, a demon stock in the previous ‘big infrastructure’ main line, plummeted and hit the limit down.

At 1:19, the intraday decline of the A50 index approached 3% again.

At 1:20, the net outflow of main funds in the three core main line areas of ‘big finance’, ‘big infrastructure’ and ‘military industry’ reached 7.892 billion.

At 1:21, the intraday decline of the Shanghai Composite Index reached 2% and fell below 3,600 points.

At 1:22, the intraday decline of ‘Western Securities’ reached 7%. In just three trading days, the retracement also exceeded 20%.

At 1:23, the stock price of ‘Dazhihui’ fell to the limit.

At 1:24, ‘Dazhihui’ hit the limit, and the entire ‘Internet Finance’ sector index suffered another heavy blow, with a daily decline of 5%.

At 1:25, the number of stocks that hit the limit in the two markets has reached 73, and among these 73 stocks, 70% of the stocks that hit the limit are from the three main areas of ‘big finance’, ‘big infrastructure’, ‘military industry’, and ‘new stocks’.

At 1:26, in the two markets, the ‘Yuhang Holdings Concept’ sector index, which had been continuously pursued and taken over by various major funds in the market for more than half a year and continued to create new highs, fell by 5.65% during the day, leading the decline of the concept theme sectors in the two markets with a leading momentum.

At 1:27, the intraday decline of ‘Eastern Fortune’ reached 7%.

At 1:28, the intraday decline of the ‘Internet Finance’ sector reached 5%, and the share price of ‘Tonghuashun’ hit the limit down.

At 1:29, the share prices of the four major banks, including ‘Huaguo Bank’ and ‘Huashang Bank’, fell by 2%.

At 1:30, after half an hour of sharp decline, the Shanghai Composite Index fell by 2.33% on the day, losing 3,600 points completely, and fell below the 15-day line, rapidly approaching the 20-day line.

At 1:31, all the industry sectors and concept sectors in the two cities turned green.

However, in the absence of red plates in the two cities, the industry sectors and concept sectors with strong correlation in the two main lines of "big consumption" and "medicine", as well as various weighted stocks, are still the first hedging choice and buying targets for various fund groups in the two cities.

At 1:32, the intraday decline of "Huaxin Securities" reached 5%, and the intraday decline of the securities sector index also began to reach 5%.

At 1:33, the total net outflow of the main funds in the two cities reached 20 billion.

At 1:34, in the field of "Yuhang concept stocks", many small and medium-sized concept sectors with poor liquidity began to set off a limit-down trend.

At 1:35, the Shanghai Composite Index fell by 2.5%.

At 1:36, the A50 Index fell by more than 3.5% during the day. In three days, the retracement exceeded 10%, burying all the huge amount of funds that rushed in under the favorable conditions of the central bank's interest rate cuts and reserve requirement ratio cuts in the three core main areas of "big finance", "big infrastructure" and "military industry".

At 1:37, the stock price of "Tonghuashun" struggled for a while and was forced to close at the limit.

At the same time, due to the crazy sell-off of the "Internet Finance" sector index, the indexes of the two major industry sectors of "Internet Software" and "Internet Application" also fell by more than 3%, and caused the "domestic software", "network security", "mobile payment", "smart city" and other related concept sectors that were originally supported to show a clear trend of collapse and sell-off.

At 1:38, the Shanghai Composite Index fell by 2.67%, to around 3585 points.

At 1:39, after the two markets fell for more than half an hour in the early afternoon trading, fully venting the panic, the bargain-hunting plates that thought the Shanghai Composite Index had strong support around 3500 points to 3600 points finally began to pour in on a large scale, driving the Shanghai Composite Index, Shenzhen Composite Index, and ChiNext Index to fluctuate and rebound.

At 1:40, with the influx of bargain-hunting plates, the intraday decline of ‘Huaxin Securities’ narrowed to less than 5%.

At 1:41, ‘Tonghuashun’ opened the limit down.

At 1:43, the stock price of ‘Western Securities’ rebounded to less than 7%.

At 1:44, in the field of ‘big consumption’, core weighted sectors such as white goods, automobiles, retail, food and beverages, all turned red, and led the rise of a number of industry sectors and concept sectors in the two markets.

At 1:45, a number of stocks with the Chinese character "Hua" in their names, including "Hua Shang Bank, Hua Guo Bank, Hua Xin Securities, Hua Shang Securities, Hua Tong Securities, Hua Guo Construction, Hua Guo Railway Construction, Hua Guo Communications Construction, Hua Gong International, etc., rebounded rapidly, ushering in a wave of strong bottom-fishing buying.

At 1:46, the intraday declines of the industry sector indexes of "military industry", "securities", and "steel" that led the market decline narrowed to less than 5%.

At 1:47, the two major sectors of "pharmaceutical business" and "gene sequencing" rose abnormally.

At 1:48, the "film and television media" sector also followed suit and quickly reduced the decline in the market. At the same time, the weighted stock within its sector, "LeTV", quickly rose and turned red.

At 1:49, the intraday decline of the Shanghai Composite Index narrowed to about 2% and returned to 3,600 points.

Later, when the Shanghai Composite Index returned to above 3,600 points, a group of market followers began to pour in more and more, and quickly took over the chips of the major main lines.

"Alas... It's scary, but... it finally stabilized."

At around 1:55, in the main fund trading room of Chenghua Public Fund Company in Yanjing, fund manager Gong Tiancheng stared at the major indexes that had returned to the 3,600-point mark and were gradually recovering their losses. His frown finally relaxed slightly, and he sighed: "This wave of selling is really fierce. I almost thought the market was going to collapse, but fortunately... it finally recovered."

In the past three trading days.

Because their fund products are fully invested in the main line of "big finance" and have not been reduced in time.

Therefore, the losses are extremely heavy.

The retracement of the net value of fund products is also quite serious.

"The short-term bottom-fishing market has taken over the panic selling on the market." As Gong Tiancheng sighed, Zhou Qiang, the assistant to the fund manager and the head of the trading team, was still staring at the real-time changes in the two markets in the trading room, and replied, "But... Mr. Gong, I feel that it is still difficult for the market to stop falling at this position, and the core main line of "big finance" has basically no strong support after the full withdrawal of the main funds of the "Yuhang system". All the main funds are reducing their positions to stop profits.

If we continue to lock positions in this main line area, or increase positions at low levels to buy bottoms and go long.

I am afraid that we will become more and more passive.

So, I suggest that we take advantage of the bottom-fishing market to come in, the market has short-term support and liquidity, and we have recovered a little blood, and quickly reduce our positions, temporarily stay away from the core main line of "big finance" which is in the eye of the tornado storm, and reduce the retracement of the net value of our fund products."

"Do you think the logic of the core line of 'big finance' has changed?" Gong Tiancheng asked.

Zhou Qiang pondered for a moment and replied: "There is nothing wrong with the fundamental logic. It is just that the chip structure has clearly shown signs of collapse, and the main force of the 'Yu Hang System' has an impact on the market. The impact on market sentiment is so great that we have to pay attention!”

"Since the fundamental logic has not changed, why should we reduce our positions?" Gong Tiancheng said, "Is it because of changes in market sentiment and the influence of so-called main funds? Xiao Zhou... I think we who invest and trade still can't It’s easy to be kidnapped by market sentiment!”

"Mr. Gong, I don't think this is kidnapping." Zhou Qiang thought for a while and tried his best to persuade, "Since we know that the short-term market adjustment has not ended, and the overall chip structure of the core line of 'big finance' has been loosened, we If there is a better buying opportunity at a low level, then why not leave first, reduce the retracement of the net value of the fund product, and then wait until the market adjustment is over to regain the chips at a low level?”

Gong Tiancheng looked at Zhou Qiang and said with a smile: "Theoretically, the trading strategy you mentioned is not wrong, but the short-term trend of the market and the short-term correction trend are so easy to grasp? What's more, we The opportunity has been lost. At this moment, the index has fallen to the position of 3,600 points, and has quickly retraced more than 200 points in the short term. At this time... if we sell again, I am afraid that retail investors will be a bit bearish and kill the fall.

Furthermore, since there is no problem with the fundamental logic of the bull market.

The main fundamental situation of the entire "big finance" has also undergone drastic changes due to the central bank's monetary policy shift and the arrival of the bull market.

At the same time, due to the doubling of transaction volume in the two cities, there is also a rapid growth in the balance of financing.

It provides a very strong impetus for the performance of the "securities" sector in the main line of "big finance".

So, when these fundamental logic and performance expectations have not been fulfilled, it is still the same sentence...all declines are good opportunities to buy.

I don’t know what the main motivation of the ‘Yuhang Department’ is.

Why choose to reduce positions and take profits on a large scale near this position?

However, as far as our trading strategy is concerned, before these fundamental logics change, I think there will be no problems with our investment strategy and trading strategy.

‘Don’t be afraid of clouds covering your eyes’!

We must look at the correctness of investment strategies from a medium- to long-term perspective. We must not be swayed by short-term market sentiment, nor can we be blinded by short-term emotional panic.

No matter what kind of drastic adjustment trend occurs in the market at this moment.

To put it bluntly, in the process of market trends developing and gradually reaching the top, there are just one or two stumbling blocks. If you endure it, it will pass! "(End of chapter)