Black technology: a super empire spanning two worlds

Chapter 344 [An Unprecedented and Frenzied Market Situation]

The date is Tuesday, October 8th.

The first trading day after the National Day holiday arrived as scheduled, and the market continued the frenzied rally that preceded the holiday, with no end in sight.

The three major stock indices opened significantly higher: the Shanghai Composite Index opened 10.13% higher at 3674.40 points; the Shenzhen Component Index opened 12.67% higher at 11864.11 points; the ChiNext Index opened 18.44% higher at 2576.22 points; and the Beijing 50 Index opened 26.67% higher at 1115.76 points.

Even the Shanghai Composite Index opened at its daily limit, leaving countless investors in the market dumbfounded.

The entire market opened with thousands of stocks hitting their daily limit up. Even people who have been trading stocks for two or three decades have never seen such a scene.

Everyone exclaimed in astonishment, the market sentiment was so high it was unprecedented.

"Holy crap, they've all gone mad, completely mad, they've lost their minds!" A stock trader watching the market exclaimed in shock after the pre-market auction ended, "Lingjing Technology 'Linghuang,' with a market capitalization of tens of trillions, actually managed to open with a 20cm limit-up! I've never seen anything like it before!!"

According to Lingjing Technology's trading data, the company opened at a record high of 483.98 yuan, a 20.00% increase, and opened at the daily limit.

The market capitalization corresponding to the limit-up price reached 420094.64 billion yuan. A single 20cm limit-up day added a net increase of 7 trillion yuan in market capitalization, which is equivalent to 1 trillion US dollars at the current exchange rate. The total market capitalization also broke through the 6 trillion US dollar mark.

There were plenty of stocks that opened at the 20cm daily limit today, but for a mega-cap stock like Lingjing Technology, with a market capitalization of at least 35 trillion yuan, to open at the 20cm daily limit is truly astonishing to investors across the entire market. This is an incredibly crazy market.

Lingjing Technology's market capitalization of 42 trillion yuan is 3.5 times the combined market capitalization of all other stocks on the ChiNext board, and twice the total market capitalization of the Shenzhen Stock Exchange (21.09 trillion yuan). It is already on the same level as the total market capitalization of the Shanghai Stock Exchange (44.7 trillion yuan), with a difference of about 2.7 trillion yuan.

Given today's absurd market sentiment, a 20.00% gap up at the open is not the limit for Lingjing Technology itself, but rather the limit-up price is only 20.00%.

Likang Technology, listed on the neighboring Beijing Stock Exchange, also opened at the daily limit up today, rising 30.00% to 1845.99 yuan, setting a new historical high and pushing its total market value to 8583.85 billion yuan.

The price of 1845.99 yuan per share is only 40 yuan lower than the share price of Moutai.

Today, Moutai also opened near its daily limit, opening at 1886.12 yuan, up 9.27%. As the most expensive Moutai stock in the A-share market, it seems that Likang Technology will surpass Moutai tomorrow to become the stock with the highest par value per share in the A-share market.

……

In a certain city, Zhao Mingjie stared at the intraday chart of Likang Technology, his emotions in a state of extreme excitement.

"This year's absolute number one bull stock in the A-share market, I would call you 'Invincible Likang Emperor'!!!" Zhao Mingjie shouted excitedly, his voice cracking. The reason he was so excited was that he still hadn't sold the shares of Likang Technology he held.

He had been waiting for this stock to close with three consecutive negative candles before selling, but that hasn't happened yet. At most, it only falls for two days before rebounding. He has held onto the stock all this time without selling a single share.

At this moment, the market value of the 13.6 shares he holds in his account has reached 2.51 million yuan, with a holding cost of 1.47 yuan per share. The latest cumulative return on his holdings has reached +125477.54%, an increase of more than 1254 times.

Just over three months ago, his 13.6 shares were worth only 20 yuan, but now they are worth 2.51 million yuan.

When will Likang Technology finally peak? Nobody knows, not even Zhao Mingjie, because the price has risen far beyond his comprehension, and he doesn't know how to sell now.

If the goal is simply to sell off, any way of selling now is correct; 20 can be turned into 2.51 million.

However, Zhao Mingjie chose to continue holding the shares and stick to his original plan. He would sell after three consecutive days of decline, and he would not change his position even if the stock hit the daily limit down, as long as it did not close for three consecutive days.

Likang Technology's current annual starting price is 3.22 yuan, and the current annual increase has reached +57228.88%, with an annual increase of more than 572 times.

Starting from the historical low of 1.07 yuan, the maximum increase in the range reached +172422.42%, a cumulative increase of 1724 times, which is outrageous.

What's even more outrageous is that this only took a little over five months. Back then, Lingjing Technology's stock price, which started at 0.42 yuan, didn't achieve a 1700-fold increase in just five months.

Countless stock market investors exclaimed that they had never seen anything like it before and were in awe. Likang Technology's popularity and reputation in the A-share market are now known to everyone.

……

At 9:30 a.m., when the market opened, the three major stock indexes quickly plunged, and the gains narrowed rapidly, resulting in a peak right at the open.

The market was indeed extremely overbought, with the Shanghai Composite Index opening with a gain of over 10%, having already exhausted all the potential gains at the open. Since it had already risen, it could only fall.

Those who rushed in this morning were a bit dumbfounded, because the market was plunging. The Shanghai Composite Index fluctuated and fell all the way down after the opening, and the gains narrowed further in the afternoon, finally closing at 3490.23 points, up 4.59%.

深成指收涨+9.17%，创业板指收涨+17.25%，北证50指数收涨+24.71%，科创50指数收涨+17.38%。

These major indices all experienced a sharp drop around 10:30 am, but recovered significantly in the afternoon. However, none of them exceeded the opening price, which was the highest price of the day, and all of them formed an extremely long lower shadow.

Today's market saw extremely volatile fluctuations, with 99% of individual stocks exhibiting a "V"-shaped intraday trend.

In terms of individual stocks, Lingjing Technology plummeted from its limit-up price at 10:42 AM, hitting a low of 409.18 yuan, narrowing its gains to +1.45%. However, the market rallied again in the afternoon, and it eventually closed up +11.07% at 447.97 yuan, with a total market capitalization of 38.88 trillion yuan.

Today, the total turnover of the A-share market set a new historical record, reaching 3.95 trillion yuan, an increase of 1.05 trillion yuan compared to the previous trading day.

Lingjing Technology also broke its trading record today, with a total turnover of 7035 billion yuan, surpassing the previous record of 6986 billion yuan and setting a new record for the largest single-day turnover in history. Likang Technology, listed on the neighboring Beijing Stock Exchange, experienced even more dramatic intraday volatility. Around 10:40 AM, the stock briefly plunged from its daily limit up to negative territory, but then staged a dramatic V-shaped recovery in the afternoon, ultimately closing at 1845.99 yuan, successfully reclaiming its daily limit up.

The daily candlestick chart shows a super long lower shadow "T" shaped candlestick.

Likang Technology's trading volume today was also outrageous, reaching 854 billion yuan, breaking the record for the largest single-day trading volume in history. The combined trading volume of all other listed companies on the Beijing Stock Exchange today did not even exceed 400 billion yuan, making Likang Technology's volume 2.25 times that of Likang Technology alone.

Moreover, a record was set today: the most expensive stock in the A-share market changed hands from Moutai to Likang Technology, because after Moutai opened high and then plunged, it failed to recover and instead closed down 1.45%, with the stock price closing at 1699.12 yuan.

As a result, Likang Technology became the stock with the highest face value.

Even after the market closed, investors in the A-share market remained extremely excited. Many investors did not realize that today's three major stock indices had reached their peak and would not be broken through this year. This bull market came too crazy, but it also came too fast.

Judging from the index, this was definitely the craziest and shortest bull market in the history of the A-shares market, lasting only 6 trading days. Many people didn't even realize it was over before it ended.

However, while the overall bull market has ended, the bull market for some sectors and individual stocks is not over yet, or may have only just begun.

……

The following Wednesday.

After yesterday's frenzied market activity, today saw a sharp correction.

The three major indices all fell sharply, and market sentiment turned drastically. The Shanghai Composite Index fell 6.62% to close at 3258.86 points; the Shenzhen Component Index plummeted 8.15% to close at 10557.81 points; and the ChiNext Index plunged 10.59% to close at 2280.10 points.

In terms of individual stocks, only 295 stocks rose, while 5043 stocks fell. Only 51 stocks hit their daily limit up, while 854 stocks hit their daily limit down.

Lingjing Technology also closed with a large negative line today, falling 10.47% in after-hours trading to 401.05 yuan. The total turnover for the day was 5128 billion yuan, a decrease of 1907 billion yuan compared to yesterday. The total market value also fell back to 34.81 trillion yuan. From yesterday's opening price to today's closing price, the market value decreased by 7.19 trillion yuan.

Likang Technology also experienced a significant correction today, plummeting 26.48% in after-hours trading to close at 1357.25 yuan. The total trading volume for the day shrank to 644 billion yuan, and the market capitalization fell back to 6311.21 billion yuan.

The title of the most expensive stock in the A-share market was held by Likang Technology for only one day before it was taken over by Kweichow Moutai.

Moutai also plummeted by more than 7% today, closing at 1571.27 yuan. Main board stocks also hit the daily limit down of 10%, while Likang Technology, listed on the Beijing Stock Exchange, hit the daily limit down of 30%. Moutai would need to suffer three daily limit downs to catch up with today's plunge.

It's worth mentioning that Likang Technology opened lower and then rose in the first half hour this morning, even hitting a new high. However, today's highest point was a very special number, with the price reaching a high of 1919.19 yuan.

Many investors, upon seeing this price, immediately exclaimed "top of the range!" and ran, only to see the price plummet afterwards.

There are indeed precedents to learn from. When Likang Technology's first major upward wave reached its peak after forming a "27.27" double number, it also peaked after forming a "777.77" triple number in its second major upward wave.

Moreover, after the peak, the correction was more than halved, so short-term funds with the first move decisively dumped shares and ran away.

Off-market funds are also hesitant to enter the market because the price has already been halved twice. They plan to wait until the price drops further before entering, as entering now could result in significant losses. Those who have already entered the market are willing to wait for the price to drop further before investing.

Today, the entire market experienced a significant correction, with more than 5000 stocks declining across the two exchanges.

The market had been severely impacted by the large gains in the previous six trading days, which had accumulated a huge amount of profit-taking. The profit-taking led to a sharp market correction.

In addition, market expectations for the policy have been adjusted, and some investors have chosen to take profits.

On Thursday and Friday, the market continued its sharp correction. Likang Technology rebounded by 13% intraday on Thursday, but then plunged in the afternoon, ultimately closing up 3.55%. However, this did not stabilize the market, and on Friday it fell sharply by 14.54%, hitting a low of 1150.32 yuan before closing at 1201.12 yuan, with its market capitalization falling back to 5585.2 billion yuan.

In the four days following the holiday, the stock price fell by a cumulative 40.06%, seemingly heading towards a 50% drop, just like the previous two times.

Lingjing Technology also continued its adjustment. On Thursday, it opened slightly lower, then rose after the initial drop, before falling back to close down 0.34%. On Friday, it opened lower and continued to fall, hitting a low of 375.37 yuan during the day, before closing down 4.90% at 380.12 yuan. Its market value fell back to 32.99 trillion yuan.

In four days, the cumulative pullback from the high point reached -22.43%, which is quite a significant drop.

Although Lingjing Technology's pullback was not as drastic as that of Likang Technology, its market capitalization is simply too large. In just four days, its market value has fallen from a peak of 42 trillion to the current 32.99 trillion, a reduction of 9 trillion.

However, the lows reached by these two companies this Friday are also the bottom of this correction, and both are their respective historical lows, so they are unlikely to fall back to these levels in the future.

Some investors, clinging to outdated ideas, hoped to wait for Likang Technology to plummet like it did the previous two times before entering the market, but they couldn't wait any longer, because Likang Technology stabilized and rebounded in the following week.

Similarly, Lingjing Technology is also expected to stabilize and rebound next week.

The two companies' stock prices began to move in tandem. Before the "September 9.24th rally" began, the two companies were moving in separate directions. Likang Technology's stock price soared, while Lingjing Technology was still adjusting.

However, after this adjustment, the two companies began to influence each other's trends, no longer going their separate ways, but starting to resonate in unison.

……

(End of this chapter)