Font
Large
Medium
Small
Night
Prev Index    Favorite Next

Chapter 389 Value Stock Trap

"Brother Zhao, it seems that you have funds to enter the market?"

Donghai City.

Huatai Securities Huanghe Road.

In a large, well-soundproof room, a middle-aged man in his forties looked at the rebounding Shanghai Composite Index and said in surprise.

However, "Brother Zhao" sitting next to him didn't seem to hear it at all. He just stared at the computer screen in front of him. It wasn't until a few minutes later that he said dullly: "It seems so, but

I'm not sure..."

He has been trading in stocks for more than ten years and is one of the earliest stock investors in China.

Logically speaking, he has rich experience and has seen all kinds of trends.

But now that the stock market has been falling for several consecutive years, no matter who is a technical person or a value investor, they have been tortured by this long bearish journey and have completely lost their temper.

Most investors have lost more than 90%.

If anyone knows that you are trading stocks, it will be a very embarrassing and ruinous thing.

A large number of large investors, bookmakers, and small private equity firms have been completely strangled. The securities sales department has nothing to do but play cards and watch TV dramas every day. A large number of small brokerage firms have gone bankrupt and been merged, and the market has become a piece of cake.

During these four years, there have been many rebounds, both large and small.

Even every time the decline stops, financial experts and senior analysts will jump out and swear that the market has bottomed out and it is an excellent opportunity to buy the bottom.

But it will soon be slapped in the face and fall to a new low.

As a result, more bargain-hunters have become deeply involved.

Even China International Capital Corporation recently issued a report that "it will break through 700 points during the year."

At this point in the market, many people have become desperate, so even if there are signs of a rebound, many big investors like Mr. Zhao still have a wait-and-see attitude.

"Hey, I originally thought that if it broke through 1,000 points, it would definitely trigger panic selling and a sharp decline. But it turned out that the decline stopped at 998."

The middle-aged man who spoke first looked at the market trend and said with a rather regretful tone.

In fact, his mentality also represents that of most people.

Many people no longer have any hope for the stock market and just want to break the pot. They wish that the market index would return to zero and then close down completely.

Even when the stock index fell below 1,000 points, an interesting scene appeared on the trading floor where only a few investors were playing poker and chess.

There was a round of cheers and applause.

Those who didn’t know better thought it was because the stock market had risen sharply.

From a side perspective, we can also see how disappointed investors are with the market.

However, just when they were undecided.

Suddenly, a large amount of money poured into the market, and several red trading volume bars rose from the ground.

The market index instantly exceeded 1%.

The real estate and non-ferrous metal sectors both experienced short-term sharp pullbacks.

Large, regular and rhythmic buying orders appeared concentrated in some stocks.

In just over two minutes, Xijiang Copper, Zhongrun Resources and other stocks rose by more than 7%.

"Enter half of the warehouse first, you can be sure that an institution has entered the market!"

Seeing this scene, Zhao Wan no longer hesitated and directly issued a buying order to his friend.

His operating style has always been based on short-term trading and chasing the rise.

In addition, the success rate is quite high, so it is quite famous in the stock circle of Donghai City.

"Is this... could it be other hot money? Do you want to take a look again?"

Middle-aged people have also discovered these buying orders, but they are still instinctively afraid of the market, fearing that they will be caught halfway up the mountain.

"No need to read, just buy! Institutional orders are generally relatively regular. They have a large amount of funds. They usually buy stocks strategically. They will not place orders in gradients like professional hot money or some small funds.

Adjust strategy."

Zhao Wan was very sure.

Then, without caring about anything else, he quickly opened several accounts and started placing buying orders.

The middle-aged man stared at the market of Xijiang Copper and found that indeed, almost every minute, 3,000 or 5,000 round-number buy orders appeared on the market.

Or, there are some buying orders with round amounts, which is very consistent with their impression of the main institutions as "lazy".

After thinking about all this, he quickly opened the account and performed the operation.

Sure enough, a few minutes after they bought, Xijiang Copper quickly hit the daily limit and was firmly blocked by hundreds of thousands of large orders.

In the afternoon of that day, the market as a whole showed a rebound trend and the trend rose steadily.

As of the close, the increase reached 2.05%.

In the evening, the China Securities Regulatory Commission issued the "Administrative Measures for the Repurchase of Public Shares by Listed Companies (Trial)".

The Ministry of Finance also lowered the stamp tax rate on securities transactions from 2% to 1%.

All kinds of benefits come together.

If these "normalized" news policies have become numb to investors, what really excites them is the latest issue of the Securities Times.

They interviewed many well-known figures in the securities industry and used a large amount of space to report on the detailed progress and plans at the "rescue meeting."

Among them, Chen Jie said that "the stock market has reached its lowest point in the next twenty years, and the stock market has been seriously underestimated." A large number of long-term remarks, such as "the stock market has been seriously underestimated", are tantamount to injecting a shot in the arm into the long-dormant A-share market.

In addition, the report also vaguely revealed that six or seven securities companies have applied for loans from the central bank and are preparing to enter the market.

With so many positive blessings.

June 7th.

The Shanghai Composite Index lived up to expectations, opening with an increase of 2%, and then continued to advance with great success. A large amount of funds poured into the market, and the brokerage sector collectively hit the daily limit.

Then there are some blue chip stocks, closely followed. (This time it is energy, steel)

The rising tide of thousands of stocks is coming one after another.

The market enthusiasm that had been suppressed for four consecutive years also broke out in full at this time, and the market growth was soon pushed up to a staggering 8.21%.

In one fell swoop, it set a record for the single-day increase and the largest single-day transaction since 2002!

In the next few trading days, many institutions accepted central bank loans and entered the market one after another, basically establishing the technical trend of a thousand-point bottom.

Because of this, at this time, whether it is an institution or ordinary investors, if they want to make more profits, they will inevitably face the problem of re-selecting stocks.

That time and that moment.

Infinity Securities in South China City.

Chen Jie was discussing position adjustment with his subordinate Tan Jiong.

However, sitting on the sofa next to him was a middle-aged man with a broad forehead and a square face.

He waited quietly without any sign of impatience.

"Mr. Chen, Donghai Motors, Qilu Petrochemical, Yangzi Petrochemical, Yangtze Electric Power, Baosteel Co., Ltd., these are the representative stocks of the "Five Golden Flowers", what do you think?"

Tan Jiong took out a piece of compiled information and handed it to Chen Jie, while standing beside him and explaining it carefully.

The "Five Golden Flowers" are the five major sectors of automobiles, petrochemicals, electric power, steel, and finance. He has paid attention to the changes in these industries very early.

After several years of continuous decline, the price-to-earning ratios of many stocks in these sectors have fallen to less than five times, and he believes it is a good time to buy.

However, Chen Jie shook his head: "The stock prices of the companies you mentioned are indeed undervalued, but it may not be the best choice to be purely undervalued in the A-share market."
Chapter completed!
Prev Index    Favorite Next