My Fintech Empire

As soon as the market opened at 9:30, short sellers tentatively attacked bank stocks. The banking sector opened slightly lower -0.10% and plunged -4.28% within four minutes of the opening. However, Fang Hong reacted immediately and mobilized funds to defend. Within minutes, the banking sector index surged by 4 points and was close to turning red.

Short sellers also followed suit, quickly knocking the bank index back to 3 points again.

However, it seems that the fluctuations are huge and evenly matched. In fact, the amount of energy is not exaggerated. Both sides are obviously not serious and seem to be testing their opponents' reactions.

At the same time, investors were panicked when they saw the trend after the opening, because the index opened lower and moved lower. In the first five minutes, it quickly dived below the 3,400-point mark and dropped to 3,381.54 points. The decline expanded to -3.58%. The pessimism continued. The market spread rapidly.

Seeing this trend, stock investors are extremely pessimistic. Could it be that even God K can't hold back this market? Is it really going to be a complete failure?

Time passed by, and at 9:45, fifteen minutes after the market opened, the market index continued to fall and was about to break the previous low, and the decline was about to expand to 4 percentage points.

At this moment, the friendly forces can hardly sit still. The current market sentiment is extremely fragile. If confidence completely collapses, even if it is pulled back by then, it will take a lot of effort.

At this moment, the market's confidence is infinitely close to the edge of complete collapse.

At this moment, a friendly trader couldn't hold it anymore and was about to speak, but at this moment Fang Hong suddenly said first: "Today's strategy is very simple. Using the principle of short squeeze, the short sellers sold the stock index futures contract yesterday." If all limits are hit, short sellers will not be able to continue to open positions and will not continue to sell in the spot market.”

Fang Hong continued calmly, decisively and clearly: "Secondly, on the lower limit of the 07 contract, all major short positions were locked by opening long orders, but strong short selling was made on the 08 contract, and the main pull was on the 07 contract, thereby opening up the gap between the 08 contract and the 07 contract. price difference, and then restrict the opening of short positions. Yesterday, Zhongjin Financial Exchange was unable to open positions, which is very good.”

What? Want to forcefully smash futures contracts? The friendly forces present wondered if they had heard wrongly.

Having said this, Fang Hong looked around at the friendly forces on the main screen and suddenly smiled, and then further elaborated: "Since the 1507 contract will be delivered for spot delivery next week, short sellers must move their positions by then. However, due to the price difference between the two contracts , moving short positions will cause heavy losses. As long as we repeatedly control the recent contracts, we can close the door and beat the dogs until all the short positions are finally wiped out."

"If hedge fund short sellers want to recover their losses, they can only go to the spot market to buy stocks, and they are forced to go long there. But I pulled all the stocks, and the short sellers couldn't buy the stocks at all. At this time, a large number of stocks were suspended. If I don't buy high-quality stocks, the short seller will have the only choice at that time, which is to take whatever order I want him to take. He can't even say no, because if he doesn't take the short position, he may die. If he takes it, he will die. Maybe it can save his life."

After speaking, there was silence throughout the whole process, and everyone was stunned.

The trader from the friendly forces who was the first to recover and regain his senses exclaimed on the spot: "Wonderful, so wonderful. Good guy, how much courage does it take to give up futures? But to give up futures, the amount of funds needed now Needless to say, think about it, the futures index fell by 200 points, but the stock index rose by 200 points. If this continues, will short sellers still dare to go short?"

He understood Fang Hong's strategy and said excitedly: "How can we go short when the futures index and the spot price are inverted? As long as the futures index opens tomorrow and the futures index continues to fall to the limit, and then violently raises the spot price to the daily limit, all the stocks will rise to the daily limit. Open, the two are upside down and then doubled, and with the help of the key window period of spot delivery next week, haha, the short sellers will be fully liquidated. Even if they don’t explode, they will have to peel off their skin, and they will be disabled if they don’t die.”

Having said this, he excitedly added again: "One more thing, Comrade Fang Hong had a bloody battle with the short sellers in the past two days, especially the iron-blooded duel between Zhong Guoping and Ping An yesterday. I guess the leverage used by the short sellers in order to raise funds is not low... "

His camera suddenly looked directly at Fang Hong and asked: "Could you have already started planning for today's fatal blow on Monday, July 6th? You deliberately used these two days to trick the short sellers into investing in the sky." Amount of chips, and then catch them all today?"

Fang Hong smiled and said nothing and did not answer.

At this moment, all the friendly forces present throughout the meeting were filled with wonder and astonishment: Ah, this...

The friend just now couldn't help but fist-bumped each other, laughed and said repeatedly: "You can win ninety-nine times, but if I win the hundredth time, you will lose everything. Haha, even if the short position doesn't get liquidated this time, then I have to peel off a layer of skin severely. In this situation, I can now directly conclude that the winner has been decided, and it is a good move to close the door and beat the dog. I admire you!"

This friendly trader is now full of admiration for Fang Hong, making no secret of it.

The strategy is actually very simple. It is also the revenge of the short sellers on the futures index that has dug a sinkhole for themselves. The most fatal thing is that it ignores the window for delivery to move positions to the next month. Today, the 1507 contract, which will be delivered in cash next week, immediately hit the daily limit. The 07 contract hit the limit, and the 08 contract was fully short-sold. At the same time, all spot prices hit the limit, making it impossible for short sellers to buy the stock. The futures and futures prices were inverted, and the price difference continued. If the short seller moves the 07 contract to 08, he will face huge losses. If the leverage is high, the position may be liquidated and the hammer will be moved.

In this case, the situation encountered by the short seller is, to put it bluntly, it costs 10 yuan to buy and 5 yuan to sell, resulting in a net loss of 5 yuan. The point is that I don’t want to sell to you for 10 yuan yet. I want to sell for 20 yuan or 30 yuan. Here you go, you still have to buy it, and in the end you still have to sell it for 5 yuan.

It sounds slow but in fact less than a minute has passed. At this moment, even if the mole wanted to deliver the message, it was too late. Fang Hong decisively ordered on the spot: "Everyone, execute it..."

He quickly made arrangements, and all friendly forces immediately carried out the tasks assigned to them. Now even the moles had to carry out the tasks, otherwise they would be exposed immediately, because the moles knew beforehand that the relevant parties had sent people to the village. If he dares not to do it now, he will grab a pair of silver bracelets on the spot, and he won't even have a chance to run away. If he just holds on, he might still have a chance.

…

A minute later, just when the confidence of hundreds of millions of investors in the two cities outside was on the verge of collapse, an epic rally suddenly appeared, leaving everyone stunned, their eyeballs dropped to the ground, and their jaws dropped to the ground in shock. .

Total short squeeze!

An epic full-scale short squeeze!

A miraculous and unprecedented short squeeze!

It kicked off at 9:47, and saw the market index rising in a straight line with an elevation angle of more than 70 degrees without any retracement. By 10:00, after a 13-minute rise, the Shanghai Stock Index continued to gain momentum, regaining 3,400 points one after another. The three integer marks of , 3500 points and 3600 points have risen straight from close to -4% to +2.91%. In just 13 minutes, the Shanghai Stock Exchange Index has increased by nearly 7 percentage points.

Investors from all walks of life outside, including hot money, retail investors, large investors, and private equity investors, all looked at the current market trend in astonishment.

Because thousands of stocks almost uniformly moved toward the daily limit, many people said that this momentum and scene was the first time they had seen it in their lives and that they had never seen it before.

Around 10 o'clock, major market software push messages:

[The A-share market staged a "big miracle day", with thousands of stocks in the two cities hitting their daily limits at the same time, and more than 1,200 stocks hitting their daily limits in a straight line]

At this moment, the GEM index rose by +3.03% and the daily limit was closed, the small and medium-sized 100 index rose by +3.38% and the daily limit was closed, the small and medium-sized innovation index was fully closed by the daily limit, and all small and medium-cap stocks were completely closed by the daily limit.

As for why the small and medium-sized innovation index does not have a daily limit of +10%, but a daily limit of +3.03% and +3.38%, the reason is also very simple, because there are too many suspended companies now, and more than a thousand listed companies have not resumed trading. The stocks of small and medium-sized startups that were suspended from trading have now reached their daily limit, so the relevant stock indexes have been closed at more than 3 points.

At the same time, the short army was caught off guard when they saw this formation, but they quickly came to their senses and now fully understood Fang Hong’s intention. The expressions of the traders of the short army changed drastically, and they understood Intention but everything was too late, nothing could be more terrifying than this.

I don’t know, maybe I can feel better. After thinking about this, the traders on the short side felt numb, especially some who followed Fang Hong in the bloody battle in the past two days and did not hesitate to use high leverage to borrow funds. In their consciousness, When he was about to be blasted by his opponent in a precise direction, his eyesight went dark and he almost fell over.

…