My Fintech Empire

New Town, Jingxinju Villa.

Today is Thursday, March 7th. More than half an hour has passed since the market closed. Fang Hong couldn't help laughing when he saw the closing price of the SGX 50 Index and the recent five consecutive rises that set a new historical high.

Now the market has formed a consensus on a comprehensive bull market. Many people firmly believe that the A-share market has entered the third round of a bull market cycle. This time, the SGX market is no longer the only bull market. The two neighboring markets are also bullish. In such a bull market cycle, the target price of the SGX 50 Index is seen by most people as a height of 10,000 points.

The SGX market has maintained a trillion-dollar transaction market for 14 consecutive trading days, but the five consecutive rises in the past five days have underperformed the Shanghai Composite Index. The Shanghai Composite Index has successfully returned to the 3,000-point mark because the financial brokerage sector in the two neighboring markets has strengthened again in the past five days after adjusting for a few days, leading the index.

The current market volume is so large that the performance expectations of brokerages have been blown up by stock commentators and teachers.

During these five days, Fang Hong did not allow the stabilization fund to release large-scale selling to suppress the market's bullish sentiment, because the effect was not great, and it was still necessary to cooperate with the negative resonance to suppress it.

Once the trend consensus is formed, it is indeed not easy to suppress, and the SGX does not have too many short-selling tools. The current top-level design is biased towards bulls.

The current situation is very obvious. Not only some institutions, especially private equity institutions, are leveraging heavily, but many stockholders are leveraging to varying degrees. The trading volume of the six new certificates 50ETFs is quite explosive.

At this moment, Fang Hong was calling Tian Jiayi and instructing him: "Let the SGX speak out again against leveraged funds, and the wording must be severe."

Tian Jiayi replied on the phone: "I'm afraid it will be difficult to suppress it effectively."

Fang Hong was quite calm and said: "Just add layers of leverage. If leverage is still rampant all the way, we will directly pull out a few typical leveraged funds to sacrifice, and give them a one-year market ban package. If it still can't be stopped, we will pull out a few more typical ones and give them a three-year market ban package."

The current market trend has formed a consensus of a comprehensive bull market. It is very difficult to resist the trend, but it does not mean that it cannot be suppressed. There are still many tools in hand.

Fang Hong is not preventing the market from rising, but it cannot rise in the form of leveraging a small amount of funds. Such funds are unstable. The more brutal the rise, the more tragic the collapse. The lesson of the catastrophic market in the second half of 2015 is profound enough.

…

In the evening, the SGX released a message late at night, once again emphasizing the prevention and resolution of financial risks. In the announcement, the issue of illegal entry of leveraged funds, off-market financing and other funds into the market was mentioned five times in a row, and a series of harsh words such as "zero tolerance", "strict investigation", "strict control" and "strict management" were used for illegal entry of funds into the market.

Funds from all walks of life in the market were shocked, and it felt quite serious.

In addition, there were rumors that the brokerage firms in the two neighboring cities also issued bad news and were guided by the village window.

Under the support of the two bad news, the next day, Friday, the three major A-share indices opened low in the auction. The SGX 50 Index broke through the 5,300-point mark in the call auction, and opened sharply lower by -1.49%. After the opening, it opened low and fell sharply, and the 5,200-point mark was also broken.

At 9:30, the Shanghai and Shenzhen stock markets opened next door. The securities sector exploded at the opening. The sector index opened at a low price of -6.43%. A large number of securities stocks opened at the limit down. After opening low and rising, they rebounded for more than an hour and then exploded again. The securities sector once plummeted 9 points in the afternoon, and the screen of securities stocks was full of limit downs.

Today, the capital began to flee obviously. The three major trading markets were all falling in large volume, and the profit-making funds followed suit. According to the news last night, the management intended to cool down the market. Everyone was afraid that there might be some bad news on the weekend.

As of the close, the three major stock indexes of the A-share market fell across the board, and a large negative line poured down, directly swallowing up the gains of the previous five consecutive positive lines.

The Xinzheng 50 Index fell -3.55% after the market, reporting 5145.89 points, with a large turnover of 1306.3 billion; the Shanghai Composite Index fell -4.40% to 2969.86 points, losing the 3000-point mark; the Shenzhen Component Index fell -3.25% to 9363.72 points.

The total turnover of the three major markets increased to 2490.4 billion, once again breaking the record of the largest single-day total turnover in the history of the A-share market. The new record of 2.43 was only set on February 25, and it was broken again today.

The Xinzheng 50 Index fell sharply today and stopped at the upper track of the gap on February 25. This gap has a strong support. There was no follow-up when it fell all the way during the intraday. At this position, it is obvious that there is a large-scale fund bottom-fishing.

However, the market fell sharply today, and it did not cause too much panic from the emotional point of view. At this moment, the comment area of ​​the Xinzheng 50 Index stock bar is also hotly discussing and analyzing the market.

[I think this is the characteristic of a bull market, a slow rise and a sharp fall. Besides, I worked for nothing this week. I failed to lock in the profits and lost everything. ]

[The management said that they would conduct a strict investigation on the allocation of funds and curb the surge. In fact, in the long run, this is a good thing. ]

[It is rare to see the bull turn back. If not add positions now, when? ]

[But this Yin swallowed five Yangs, it was quite scary. ]

[What are you afraid of? It's just the will of the management. What the country wants is a slow bull, a healthy bull that goes up in the long run, not a crazy bull. Otherwise, it will be a mess like in 2015. ]

[It should have fallen. In terms of technical form, it should not have risen for so long. The divergence is so serious that only leeks who don't care about risks will buy like crazy. ]

[Today's market crash has two conclusions. One is that the market has not stabilized yet, and the other is that a large-scale adjustment has finally come. Funds that missed the opportunity can consider entering the market gradually. I have always believed that the stock market cannot keep going up without adjustment. This time, the market has rushed from 4194 points to 5300 points, with almost no decent adjustment. This state is impossible to continue. ]

[Didn't the market just reach 3000 points? ]

[Who told you that the market refers to the Shanghai Composite Index? Who looks at the Shanghai Composite Index now? The A-share market that is leading the market now is called the New Securities 50 Index. Thank you. ]

[Okay...]

[It's like a train, fully loaded with 2000 people. At the beginning, investors hesitated and only 500 people got on the train and drove away at high speed. Because the speed was too fast, investors dared not get on the train, but a train with 2000 people can't carry only 500 people, so it must come back to pick up people, and it will go back and forth many times to pick up people, at least 1800 people must be carried to continue moving forward. For investors, if the market rushed too fast and you dare not enter the market, and now you are afraid to get on the car when it reverses to pick you up, then you need to reflect. ]

[Don't study why the market fell sharply. Every time the market falls sharply, it always happens when the news and technical aspects resonate, and this time is no exception. A decline does not mean that it is not a bull market, and a short squeeze cannot mean that the bull market has turned back. ]

[Today's decline is the intention of the management. What they want is not a crazy bull market with skyrocketing growth, but a slow and steady bull market. Moreover, if you pull back your fist and hit it out, it will be more powerful. If there is no correction, where will the right opportunity to get on the car come from? ]

…

From the perspective of market sentiment after the market, everyone is not panicking at all. In fact, this wave of rapid sell-offs has made many funds that missed the opportunity feel that it is a rare bull market that has turned back, and the market trend after the opening of next Monday has received the most intuitive response.

On Monday, March 11, the A-share market opened. The three major stock indexes opened higher today and rebounded sharply. The big negative line gap-down on Friday prompted more funds that missed the opportunity to enter the market. During the weekend, all major stock forums and communication groups were shouting that it was hard to buy a bull back.

At the close of the day, the New Securities 50 Index rose by +2.77% to 5288.41 points, rebounding the negative line entity; the Shanghai Composite Index rose by +1.92% to 3026.99 points, regaining the 3000-point mark; the Shenzhen Component Index rose by +3.64% to 9704.33 points, also strongly rebounding the negative line.

The three major trading markets had a total transaction volume of 1956 billion, of which the SGX market had 1011.5 billion, and created a record of 16 consecutive trading days of maintaining a trillion market transaction volume, and the record is constantly being refreshed.

… (End of this chapter)