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

Chapter 97 The market is in complete chaos
Once a stampede of capital occurs, it's like a snowball rolling down a mountain; it only gets bigger and bigger, and no human can stop it.

At this point, the Shanghai Composite Index was no longer simply a bearish engulfing pattern, but rather a "tombstone at the summit," having directly broken through the 5-day moving average.

As any A-share technical analyst knows, when the 5-day moving average is breached, especially after the market has risen for five consecutive days, it indicates a strong bearish sentiment and a large outflow of major funds.

Northbound capital, often referred to as "smart money," saw a net outflow of 143 billion yuan, indicating that foreign capital is accelerating its withdrawal from the A-share market.

Domestic investors initially wanted to boost the index-weighted sectors to stabilize the market, but foreign investors were unmoved and continued to sell off their shares, as if they had inside information.

After struggling for a while, domestic investors simply followed suit and dumped shares at 2:43 pm, with net outflows approaching those of northbound funds.

With the market closing at 3 p.m., the Shanghai Composite Index fell 1.75% to 2579.75 points, with a volatility of 3.21%. The trading volume was 1723.22 billion yuan, 200 billion yuan more than the previous trading day, which is considered a slight increase in volume during the decline.

After the A-share market closed, Zhang Yang casually switched to the Hong Kong stock page.

Hong Kong stocks closed at 4 p.m., and their current trend is similar to that of A-shares. The Hang Seng Index reached a high of 17685.64 before falling back to 17087, closing with a disheartening upper shadow.

After five consecutive days of gains, the Hang Seng Index opened higher on the sixth day, but suddenly plunged in the afternoon. Many retail investors were already expressing pessimism in the comments section below the Hang Seng Index.

[Lazy Pig]: It's reached its peak. This time, the Hang Seng Index has definitely reached its peak. Foreign capital is rushing to exit, and southbound capital is sluggish again.

[Northern School of Gold Rush]: I bought at a high price this morning, and I'm down 4% this afternoon. Is this the fate of retail investors?

[Bald Eagle]: I started playing Hong Kong stocks because I heard it was a bull market, but I lost 10 yuan in half a month. The A-shares market is better because there are daily price limits. I was terrified of the Hong Kong GEM board; it gave me a heart attack.

[Tonight's Reversal Injection]: Don't panic, don't panic. Teacher Da Xiao said that we are currently at the infant bottom, and we must nurture its growth. If we persevere, we will definitely succeed!

Whether they are retail investors in A-shares or Hong Kong stocks, they all have one thing in common: they are easily exploited.

Zhang Yang glanced at the comments section, then switched to Eastmoney, Sina Finance, and Baidu Tieba to check the comments from retail investors, and found that today's plunge did not cause much panic.

The lack of widespread panic among retail investors is a negative factor for the market.

Why do you say that?

The stock market is a game where only the strong survive.

Institutional investors are watching retail investors, speculative funds are watching retail investors, all large-scale funds are watching retail investors. If retail investors do not panic and sell, where will the money come from?
Of course, stubbornly holding on is not the best solution, because you might end up with a special treatment (ST) designation, or worse, direct delisting.

After briefly understanding the situation, Zhang Yang analyzed: "The 3.21% fluctuation failed to dispel panic, and it seems that it will continue to decline. However, it's also good, the more the market corrects, the more funds will choose to cluster together, which is beneficial to short-term targets."

After a brief analysis, he switched to the news channel and Weibo's trending topics list to check the latest news on H1N1 influenza.

As a reborn individual, he knew very well that the H1N1 flu would sweep the globe, and no country would be spared.

Once news reports that mainland Chinese citizens have been infected with H1N1 influenza, related concepts will definitely attract a new round of attention from market funds, and may even be subject to speculation.

Those who frequently trade stocks have all heard the saying, "Buy when no one is interested, sell when everyone is talking about it."

The person who has always strictly adhered to this statement is Warren Buffett, the stock market guru.

His entry into the market always happened when no one was interested, and he would quietly leave once a large amount of market capital had entered.

This is why almost every year someone says that Buffett is old, Buffett is timid, or Buffett is no longer good.

However, the truth is that Buffett disdains trying to profit from the "tail end" of a trend. He has already made a fortune by eating the head of the fish, and trying to profit from the tail end would easily result in the loss of profits.

As the renowned American investment guru Jesse Livermore once said: "Paid-up profits are not money; real profits are. The market will give you a false sense of wealth until you learn to take profits in time."

Zhang Yang's profit expectation for the stock, Jianfeng Group, is to quietly exit the market when funds are at their most enthusiastic.

However, at present, the Peak Group cannot be described as enthusiastic, because the stumbling block that is Rhine Biologics has attracted too much attention.

"Junior Brother Zhang."

While Zhang Yang was still checking market sentiment, Zhang Xiaolong walked into the vice president's office.

"How were the profits today?"

he asked again.

Next to Zhang Xiaolong was trading manager Zhong Qifeng, clearly there to register the transaction records.

"Less than a million."

Zhang Yang got up from his chair to make it easier for the other party to record the statistics.

Hearing the other party's calm tone and the statement "less than a million," Zhang Xiaolong overturned his previous judgment of Zhang Yang.

This composure and calmness is something that children from ordinary families can never possess.

If an ordinary family earned one or two million in just a few days, wouldn't they be as overjoyed as Fan Jin after passing the imperial examination?

But can it be flamboyant?

It felt like I earned one or two million Happy Beans.

It was this nonchalant attitude that completely changed Zhang Xiaolong's opinion of Zhang Yang, and he couldn't help but wonder: "Could it be that Zhang Yang's family doesn't support him investing in stocks, so he's using leverage? Otherwise, he shouldn't be so calm after making so much money."

He had initially thought that Zhang Yang, like Tao Yuang, was a gigolo who lived off women, but now, looking back, things seemed a little off!

Not only Zhang Xiaolong, but Zhong Qifeng, looking at Zhang Yang's calm and composed demeanor, became even more certain that the latter's background was unfathomable and that he was very likely a legendary second-generation red.

Zhang Yang didn't have mind-reading abilities and didn't know what they were thinking. Seeing that the two of them hadn't made any further moves, he said again, "If there's nothing else, I'll go back first and come back tomorrow."

"okay."

Zhang Xiaolong was the first to come to his senses.

Zhong Qifeng: "Take care, Mr. Zhang."

The two watched Zhang Yang leave, and only after his straight back disappeared did Zhong Qifeng and Zhang Xiaolong go to Sun Yiheng's office and open the daily holding details of the margin trading account.

Rhine Biologics: Holding 12.45 shares at a cost of 24.08 yuan, with the current price at 32.36 yuan, representing a 10% increase. The total profit is 103.18 yuan, and the total value of the holdings is 403.88 yuan.

Jianfeng Group, holding 53.59 shares, with a cost price of 5.34 yuan, and a current price of 6.45 yuan, representing a 10% increase, has yielded a total profit of 81.68 yuan and a total value of 345.66 yuan.

It's worth mentioning that after Zhang Yang sold 20 shares of Jianfeng Group, he did not repurchase them, so the total value of Jianfeng Group shrank by 129 million. However, the total profit of 81.68 includes the gains from the increase in the value of the sold shares.

After selling his stocks, Zhang Yang didn't leave the 129 million yuan idle. Instead, he invested it all in a one-day reverse repurchase agreement for treasury bonds. Today's interest rate is 1.74%, which will yield a profit of about 60 yuan.

Money is earned, but it's also saved. He won't let his money lag behind inflation, especially since he's currently using leverage, which costs him thousands of yuan a day.

"Two stocks hit the daily limit again! It's only been a few days, and Mr. Zhang has already made 184 million yuan. If I had that kind of money, I wouldn't need to work." Zhong Qifeng said with envy.

If he could turn back time, he would want to go back to a week ago.

If he had gone all in on either Rhein Biotech or Pinnacle Group back then, he would be financially independent by now. "He's one of the few people I've ever seen who can make a profit in the stock market."

Zhang Xiaolong couldn't help but sigh, and the image of Zhang Yang flashed through his mind.

He was also a little angry. Why was it that, as fellow students of Shanghai University of Finance and Economics, he suffered repeated losses in his investments while others won every time? Could it be that the major players were really monitoring his account?

Zhang Xiaolong was completely baffled and realized the gap between them.

He echoed Zhong Qifeng's sentiment that if he had earned 184 million, he would have stopped immediately, bought five houses in third- or fourth-tier cities, and lived comfortably off the rent.

……

After leaving Hongyue Investment, Zhang Yang found a high-end internet cafe, and for privacy, he even went to a more expensive private room to surf the internet.

While operating in the Hongyue Building is convenient, the privacy is extremely poor.

Moreover, Zhang Yang didn't want to expose too much of his privacy, such as his Joker account and VIP research report group, so he simply came to an internet cafe to do post-market analysis.

By 2009, internet cafes had gradually become the main venue for "Dungeon & Fighter," but other games also accounted for a significant portion, such as Warcraft, Fantasy Westward Journey, and Conquer Online.

Just as Zhang Yang walked into the internet cafe, he heard someone shouting and directing his gang to intercept a caravan. This is a common gameplay tactic in Legend-style games, but the person was playing "Zhengtu".

After turning on the computer, Zhang Yang put on his headphones, opened Kugou Music, and played the latest popular songs to "resist" the noise of the internet cafe.

Immediately afterwards, he opened Baidu Tieba, logged into his Joker account, and shared his trading experience from the day.

Today's trading ideas are shared for reference only and do not constitute any investment advice.

News:
The World Health Organization has once again warned that H1N1 influenza is spreading globally.

Travelers infected with the H1N1 influenza virus have been reported in Japan, South Korea, and Hong Kong, China, so it is necessary to pay close attention to policy measures.

After the market closed at 3 p.m., rumors circulated that Huijin Investment Ltd. would increase its holdings in bank stocks. As of now, ICBC, Huaguo Bank, and CCB have not issued any announcements in response.

Market Analysis:

This morning, driven by the positive news of "Supplementary Agreement Six," bank stocks surged, pushing the market to a high of 2663.95 before quickly falling back. The fundamental reason was that after continuous gains, profit-taking was urgent, causing a sell-off. However, the possibility of hidden negative news cannot be ruled out.

Investor sentiment:
Northbound capital outflowed significantly, followed closely by domestic capital, but H1N1 flu-related concept stocks are still favored by market funds and deserve more attention.

Today's trading activities:

Considering potential profit-taking, we reduced our holdings in Jianfeng Group by 20 shares in advance to ensure liquidity. We remain optimistic about the short-term upward trend of shikimic acid concept stocks.
Less than ten minutes after the post was published, Zhang Yang's chat group received dozens more application messages, and the number of followers on the Joker account reached 1643.

After all the data was approved, he continued to organize today's market data.

……

The magnificent sunset fades away with the passage of time, replaced by a prison-like darkness.

When office workers return home, some "corporate slaves" who don't have time to trade stocks are checking out rumors about speculative capital to enjoy while eating.

The H1N1 influenza concept stocks have seen three major ups and downs: Linyi Biotech and Jianfeng Group, followed by Hualan Biological Engineering, and now Da'an Gene has surged to its daily limit in late trading. Will the influenza testing concept continue to attract market funds?

Is Sun Ge starting his own venture? Da An Gene's stock price surged to the daily limit with 30 lots of buy orders at the close. Which of the following sectors—shikimic acid, viral vaccines, and influenza testing—will become the leading concept stock for H1N1 influenza?

Rhine Biologics Abandoned? Ningbo Investor Ma Xinqi Responds Strongly!

"Zhang Mengzhu updates his Weibo, stating that vaccination is the best way to combat the H1N1 influenza virus!"

News about speculative capital is flooding social media, and countless stock market investors are watching with great interest.

From Xu Xiang's hype surrounding shikimic acid to Zhang Jianping's support for influenza vaccines and Sun Guodong's backing for influenza virus testing, H1N1 influenza has become a huge prize in the capital market.

At this point, apart from retail investors, small-scale speculative funds are all making a choice: shikimic acid, flu vaccines, or flu virus testing.

It's important to understand that market funds are limited. Speculating on a particular sector or concept stock will inevitably draw away some funds, and the sector that draws away funds will often decline. This is what is commonly referred to as sector rotation.

And it's not just the stock market; the world's money is also finite.

Behind every country's currency lies an anchor to real assets, labor force, and sovereign credit.

A small country like Zimbabwe perfectly illustrates what it means to print money without an anchor; its currency is less valuable than toilet paper.

Unlimited money printing will not bring unlimited hot money. Even a powerful country like the United States would not dare to let the Federal Reserve print 100 trillion dollars. It would only secretly inject liquidity and then go to the Middle East to find a value anchor.

……

And on the other side.

Jiangsu and Zhejiang Ningbo.

Ma Xinqi, holding the phone, reported the afternoon trading situation to Xu Xiang.

"Brother Sun has already driven up the price of Da An Gene to the daily limit. This company has the support of Sun Yat-sen University's scientific research background and was a major supplier of testing reagents during the SARS outbreak."

"Just do your background check." Xu Xiang was still in the hotel private room, waiting for Cao Ruizhe, the vice president of Jianfeng Group, to arrive.

"correct."

Ma Xinqi then thought of something and continued, "Brother Sun asked me to ask you whether we should give up on Rhine Biologics. Now that Alliance Leader Zhang is grabbing the concept, a lot of speculative funds have flowed to his side. You know the situation of Rhine Biologics stock; it has no real support."

He really wanted Xu Xiang to sit down and have a good talk with Liao Guopei about a win-win cooperation.

Because speculative investors like Liao Guopei and Chen Sanrong are involved in Jianfeng Group, if they don't force the stock to hit its daily limit down to shake out retail investors, they won't have a chance to get involved at all.

Tickets are sold out; you can't buy them even if you want to.

But Ma Xinqi knew very well that Xu Xiang's personality was inherently arrogant; he would rather lose money than make money with his enemies.

"Not only can we not give up, we must continue to push it to the daily limit." Xu Xiang first gave a positive answer, and then explained: "If we give up pushing it up, Jianfeng Group will really become the leader in shikimic acid, which will also be a threat to Da'an Gene."

"I've already contacted the top management of the Peak Group. If all goes well, Shadowless Kick will know what's what."

Seeing Xu Xiang persist in pushing up the price, Ma Xinqi also expressed his concerns: "I am mainly afraid of a trading halt for investigation. The H1N1 flu-related concepts are making too much noise right now. If regulators intervene, it could easily cause panic among retail investors."

"..."

Xu Xiang was silent for a moment, then calmed down considerably before saying, "Let's hype up Da'an Gene first, so that Rhine Bio can have some chips to play."

Chapter 5 on the release date. A total of 20,000 words were updated today. Your handsome author did it! The update schedule will be slightly adjusted after the release, possibly one chapter each in the evening and early morning. Thank you so much for your support, dear readers! Thank you so much!

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