Starting with a fully invested A-share portfolio to become a capital...

Chapter 96 Bearish Engulfing Pattern in the Market

Shanghai University of Finance and Economics.

Wudong Road Campus.

Lecture hall 1-101 was still packed with people. Monday was the last day for teachers and students from Tsinghua University, Peking University, Fudan University, Shanghai Jiao Tong University, Southwestern University of Finance and Economics, and Central University of Finance and Economics to come and exchange ideas.

Unlike the "teacher-student discussions" of the previous two days, the third day's course was a practical course on the core of investment studies.

Bao Xingwei stood on the podium and picked up the roster to call out names.

"He Jing".

"arrive."

"Li Xueyan".

"arrive."

"He Tianlei".

"arrive."

One by one, the students answered quickly, but when Bao Xingwei read the last word, "Zhang Yang," no one responded for a long time in the lecture hall.

All of a sudden.

Everyone's eyes were on Zhang Yang.

Bao Xingwei also looked up at the counselor, Zhong Bohan, who immediately checked his phone and saw Zhang Yang's "preemptive" leave request in his QQ private messages.

[Zhang Yang]: Counselor, I need to ask for leave to go out for a day on Monday. Please approve.

The message was sent at 7:42 this morning, which made Zhong Bohan break out in a cold sweat and curse Zhang Yang countless times in his mind.

With Peng Ge, Xiong Xinghuai, and other deans of finance watching, he had no choice but to bite the bullet and lie for Zhang Yang, saying, "Dean, it's like this: Zhang Yang had an upset stomach last night and asked me for a day off. He's still out seeing a doctor."

"You ate in the cafeteria?"

Bao Xingwei's face instantly darkened.

These past few days, teachers and students from other universities have come to exchange ideas, and they've all been eating in the school cafeteria. If something goes wrong, wouldn't that be a disgrace to the school?
It's important to know that a large portion of the national funding allocated to Shanghai University of Finance and Economics is used for the food in the university cafeteria.

Why subsidize the school cafeteria?

The very practical reason is to take care of the economic problems of students from other places.

Students are employed and rely primarily on their parents for their livelihood.

There is a huge income gap between Shanghai and other places. If the canteen is not subsidized, there will be an imbalance between income and expenditure, where students earn Chinese yuan and spend US dollars, which is not conducive to their studies.

"Um... there might be other reasons."

Zhong Bohan regretted saying that Zhang Yang had an upset stomach; if this went wrong, several canteens at Shanghai University of Finance and Economics would have to undergo collective rectification.

But having already said it, he could only bite the bullet and continue explaining: "Zhang Yang just told me that it's nothing serious, just mild acute gastroenteritis, and I'll be fine after half a day of rest."

With so many people present, Bao Xingwei didn't say anything more.

But he absolutely had to send people to thoroughly investigate the cafeteria issue. Food is the most important thing for people. If the food we eat can't be guaranteed, then what's the point of running a cafeteria?

"Zhang Yang, you've ruined me!"

"Please forgive me, cafeteria staff!"

"God bless!"

Zhong Bohan began to pray in his heart.

Fortunately, few people heard their conversation. After understanding the situation, Bao Xingwei also lied and said, "Zhang Yang has gone out on business. Let's continue today's lesson."

He didn't mention that Zhang Yang was going out for medical treatment, thus saving face for "his own people".

Xu Zhiruo and He Jing couldn't help but marvel at Zhang Yang's courage; he actually skipped class and went to leverage his position to speculate in stocks.

It's important to know that the professors and deans who came to the university exchange over these three days are all titans in the financial field, and some of them are even teachers from the current national financial think tank.

Zhang Yang's decision to "act first and report later" was actually a last resort.

If he had told his counselor in advance, Zhong Bohan would definitely not have allowed him to take leave, and might even have gone to dormitory 308 overnight to do ideological work on him.

Since the outcome was foreseeable, leaving school first and then asking for leave became Zhang Yang's only option, but it would make things difficult for Zhong Bohan.

……

Although Zhang Yang was absent, the exchange between universities should continue.

After an hour-long lecture on "Investment Strategies," Bao Xingwei moved on to today's teaching topic: "Now we'll move on to the practical lesson."

"Practical courses?"

"Wow, you want to trade stocks in real time?"

"Is this the hidden perk of studying investment? What would happen if Dean Bao Xingwei started trading stocks himself and followed suit?"

"Needless to say, they'll definitely make a fortune!"

The students watching whispered among themselves; they were all there to audit the class.

It's common to audit classes at universities. As long as you want to learn, you can study from morning till night, and you can even audit classes from other majors without being kicked out just because you're from another major.

Upon hearing that there would be a practical course, He Jing glanced at Zhang Yang's usual seat and was vaguely worried that he might get carried away.

In stock market investing, as long as you don't use leverage, even if your investment is halved by 50%, you'll still have half of your principal.

However, if you use leverage, even a slight fluctuation could wipe out your entire investment.

Many stock market investors who have committed suicide due to excessive stock trading have invariably used leverage, either through off-exchange margin financing or personal loans. This is also why the government has been slow to allow securities companies to launch margin trading channels.

Bao Xingwei's assistant, Cheng Hongfa, opened Huaxin Securities' main website and then projected the image onto a screen on the side of the podium.

"Alright, Dean."

"Ah."

Bao Xingwei responded.

At this moment, the projection screen showed that the Shanghai Composite Index and the Shenzhen Component Index opened higher. He then asked his first question: "Can anyone tell me why the A-share market opened higher today?"

"There are positive financial developments. The Ministry of Commerce and Hong Kong Island have just signed the Sixth Supplementary Agreement to CEPA, which relaxes the conditions for Hong Kong Island banks to set up offices in the mainland, which is conducive to investment between the two places."

"The healthcare sector, driven by the H1N1 influenza, is showing a strong upward trend."

"Foreign capital is flowing in like crazy."

The students eagerly took turns answering questions, trying their best to showcase their abilities.

With financial heavyweights like Bao Xingwei, Peng Ge, and Xiong Xinghuai all present, how can one build top-tier connections without taking this opportunity to showcase oneself?

Just like trying to pick up girls on the street, he didn't even dare to approach them. Without their contact information, there was no way to take things further.

He Jing, sitting in the middle of the third row, didn't answer. She seemed a little distracted, as she was currently more worried about Zhang Yang's off-site financing issues.

As a conservative investor, she never considered using leverage, feeling the risk was too great.

Unlike He Jing's worries, Xu Zhiruo firmly believed that Zhang Yang would not suffer a margin call. Even if he did, he would only lose a few million yuan, and she could always ask her parents for another million yuan.

……

Bao Xingwei on the podium, as well as the university teachers and students who came to exchange ideas, could not have imagined that Zhang Yang, who was absent, had already gotten involved, not only playing with real money but also using leveraged funds.

noon.

Zhang Yang randomly picked a Cantonese restaurant.

While he was eating, trading managers such as Zhong Qifeng and Lu Haoyang followed him into the Cantonese restaurant and mingled with him at the table as if they were old friends.

"Mr. Zhang, your stock picks are amazing! They hit the daily limit again today." "Yes, Mr. Zhang, the H1N1 flu concept is incredibly hot right now. How did you know it would spread to Asia?"

"I heard that shikimic acid is out of stock, and major pharmaceutical companies have issued warnings."

At this moment, the faces of Zhong Qifeng, Lu Haoyang, and others clearly showed two words—greed.

Now, it's possible that these trading managers, like Zhang Yang, have leveraged their positions to aggressively trade Jianfeng Group's stock.

Zhang Yang sighed inwardly and reminded him, "Pay close attention to the market. The H1N1 flu concept is very complicated right now. Take profits when you can."

"Profit taking?" Zhong Qifeng was somewhat surprised, and he quickly asked, "Mr. Zhang, are you going to dump the shares?"

"I just went in."

"This... oh this..."

Everyone instinctively tensed up and looked at Zhang Yang with concern.

Keep in mind that they had just bought in this morning. If Zhang Yang had chosen to dump the shares today, they wouldn't have been able to cut their losses.

"I won't sell today, I'm just reminding you to take profits as soon as possible. The H1N1 flu concept is too unpredictable, and Jianfeng Group may not be able to keep hitting the daily limit."

Zhang Yang has made his point very clear: if these people continue to be greedy, he will not feel any remorse even if they all jump off buildings.

In his previous life, as a fund manager at Bridgewater Associates, he had seen too many greedy people and witnessed countless moments of people jumping off buildings.

Why did he deliberately emphasize his own understanding during the discussion class?

Many investors who suffer margin calls and commit suicide are fundamentally due to a lack of understanding, whether of the market or themselves.

Just like a novice entrepreneur, when he hears that others are making over a thousand yuan a day by opening a milk tea shop or fast food restaurant, he thinks he can do it too. He doesn't care about the location, customer traffic, or target group, and just blindly goes into business, often ending up heavily in debt.

"call--"

Zhong Qifeng, Lu Haoyang, and the others mostly ignored what they were hearing; all they knew was that Zhang Yang wouldn't be dumping his shares today.

These people were not related by blood, and there was no tangible benefit to them. If they wanted to consult about stocks, Zhang Yang would basically use polite words to smooth things over.

……

After lunch, he returned to Sun Yiheng's office to rest.

He had only dozed off for a short while when his Nokia phone, which was on his desk, started beeping. It was Zhang Yang's alarm for 1 a.m.

1 pm.

The A-share market reopened.

The market plunged at the end of the morning session and continued its downward trend in the afternoon. Securities stocks attempted to rally, but were ultimately pushed down by profit-taking.

After five consecutive days of price increases, most funds urgently need to be cashed out.

When funds are withdrawn from the stock market and there is insufficient buying support, a correction will naturally occur; this is part of the stock market game.

1 points.

The Shanghai Composite Index showed a bearish engulfing pattern.

What does "yin enveloping yang" mean?
It is a candlestick pattern in stock market technical analysis, which refers to a bearish candlestick completely covering the body of the previous bullish candlestick.

To put it bluntly, not only was the gap from May 11th filled, but the gains from last Friday were also wiped out.

At this point, the Shanghai Composite Index is quoted at 2589 points, having already broken through the 2600-point mark, and is still searching for a bottom.

Zhang Yang didn't forget his VIP research report group clients and immediately opened QQ to send out intraday alerts.

[joker]: The market has risen for five consecutive days, and the gap-up opening this morning caused a profit-taking frenzy. Group members who have already left the market can continue to observe. Those who have not left should not rush and wait for the trend to rebound. In the medium to long term, I still maintain a bullish outlook.

"Snapped--"

Press Enter to send a message.

The VIP research report group, which had already surpassed 300 members, instantly erupted in excitement.

[White Sanctuary]: I was just about to sell and make a profit, but since the group leader said so, I'll wait for a rebound before leaving the market to maximize my profits.

[Collapse God]: A correction is indeed needed. The market has risen for five and a half consecutive days. If it doesn't correct today, it won't be the A-shares market I know.

[TV Soros]: Hey, group leader of Peak Group, I saw your holdings chart and bought 10 worth of shares. Can I still hold them?
[White Cat]: @joker, I also bought 5 shares of Peak Group. Could you tell me, Joker, how many days can I hold it?
Zhang Yang usually avoids answering questions about individual stocks, but he made an exception when it came to Jianfeng Group: "Jianfeng Group is affected by the global spread of H1N1 influenza. It is expected to rise in the short term. Remember to sell your shares when it reaches your expectations."

After sending the message, he didn't continue checking the group messages, but instead switched to the forum to edit his trading strategy post for the day.

Since starting the "joker" account, the income from market research reports has become increasingly stable.

However, most retail investors don't actually understand market research reports. They pay to join groups just for the flamboyant intraday alerts.

90 yuan is not much for a stock investor. As long as they successfully time the market top once and avoid the losses from the decline, they can recover their investment many times over.

However, there are also some people, or rather, speculative investors, who join the group not for early warnings, but to read market research reports and join in the fun.

……

And at the same time.

the other side.

Huajin City, Jiangsu and Zhejiang Province.

The headquarters building of the Peak Group.

Upon Xu Xiang's arrival, Vice President Cao Ruizhe personally received him and inquired about his purpose, asking, "Mr. Xu, are you here to conduct market research?"

Field research is the most laborious and expensive method, but it is also the most transparent and effective research method.

Take Changan Automobile, which was hyped up recently, for example. Before Liao Guopei and Chen Sanrong planned the hype, they personally went to Chongqing to conduct market research on the Yuexiang model.

It turns out that the Yuexiang model is selling very well, with many offline stores saying that you need to pre-order and there are no cars available at the stores.

Since the Yuexiang model is selling well, Changan Automobile naturally has something to promote.

"That's it."

Xu Xiang nodded.

He had no prior contact with the Peak Group and did not know anyone in the company, but in order to bring down Liao Guopei and avenge the deception, he still tried to persuade him, since he had private equity channels and could cash out discreetly.

"Is it the shikimic acid production line?"

Cao Ruizhe asked again.

“That’s right.” Xu Xiang nodded and continued, “I’ve heard that your company has the most advanced ‘Stachys Acid Extraction Technology’ in China, and I’d like to come and see it for myself.”

"I'm afraid this will disappoint Mr. Xu. Our headquarters is in the construction field, while the biopharmaceutical division is a subsidiary in Tianjin," Cao Ruizhe replied with a smile.

Xu Xiang paused for a moment, but quickly recovered and took out two business cards, saying, "I have a friend who works in private equity. Your company's stock price is fluctuating a lot right now, so if..."

He drew out the last syllable, stopping short of making a point.

By mentioning the keywords "private equity" and "stock price," even a fool would know what Xu Xiang was implying.

As the vice president of the listed company, Cao Ruizhe was naturally aware of the shady dealings between private equity firms and company shareholders.

Despite his surprise, he still accepted the business card and replied, "I will pass it on. Is there anything else, Mr. Xu?"

“Yes, there’s one more thing.” Xu Xiang smiled and invited, “I wonder if President Cao has time tonight? This is my first time in Huajin City, and I would like you to be my guide.”

If you want a horse to run, you have to feed it grass. If you don't give it some benefits, how can you expect it to work sincerely for you?

The two looked at each other for half a second, and Cao Ruizhe smiled and said, "Since this is President Xu's first time here, I will naturally do my best to be a good host."

I forgot to wish everyone a Happy Dragon Boat Festival, so I'm making up for it now. Happy Dragon Boat Festival and Happy Children's Day to all my readers! Also, I'm begging for some monthly votes for the new book to help it climb the monthly vote charts! Please!

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(End of this chapter)