Chapter 17: When the Devils Are Weeping in Hell

Saturday, June 27, 2015

When the devils are crying in hell

The Shanghai Composite Index almost hit a record, falling 334.91, or 7.4%; The small and medium-sized board and the gem are even more miserable. Heavy 100 drop limit.

In the face of such an irrepressible diarrhea market, theoretically speaking, the management department should come out to appease the market sentiment, or prescribe the right medicine to let the diarrhea be suspended to prevent the body from prostration and even death due to extreme dehydration. Everyone is looking forward to the management department prescribing antidiarrheal drugs over the weekend, but to everyone's disappointment, the mainstream media "China Securities Regulatory Commission: The recent sharp decline in the stock market is a spontaneous adjustment", throwing out "The CSRC Response: It is a natural adjustment The economic trend has not changed" and other innocuous arguments, because even in the years of China's rapid economic development, the stock market has not become a super bull market, but the bear crown is the world, so if the stock market bull and bear are linked to the economy, it is undoubtedly a joke. Due to the indifference of the management department, the A-shares after the sharp fall are full of uncertainty next week.

The speed and decline of this decline are far beyond many people's expectations, and even the old investors who have been immersed in the A-share market for decades are also shocked. Because in the absence of obvious bearishness, just squeezing the bubble has caused such a big turmoil in the stock market, which is even more violent than the original 530, which is indeed unexpected.

Stockholder "Huige" said, "Last Friday's purchase of heavy hundreds, it was only a tentative purchase of the bottom position, and this afternoon gave the opportunity to re-position." Why dare to "receive blood" when others avoid it, first of all, it is a judgment of the general trend, and then it is an understanding of the quality of the heavy hundred. Maybe there is a lower level below, and it will suffer from adjustment, and when you look back after a while, this is also a relatively low area. It's much better than chasing up, and you can hang up and buy it very calmly. This is also what I understand as low sucking, people abandon me and take it. This friend has 20 years of stock experience, can be regarded as the first generation of shareholders, although there will be pessimistic estimates, but this kind of decline must also be beyond his expectations. He is really taking the knife in the low position (I personally think that although the short-term quilt, this kind of active trapping will not last long.) I have more than 10 years of stock experience, and I can be regarded as a second-generation shareholder, but I have also been blindfolded and lost a lot. The third generation of new investors in the market was panicked.

In this round of decline, there has been a phenomenon of more killing, those fund group stocks began to kill each other, the decline led to the liquidation of financing orders, and the liquidation led to the fall of the stock market, and then more financing orders were closed, so a vicious circle. The initiators of this round are those big capital groups, who are speculating in groups. This round of the stock market is so crazy, it is inseparable from the madness of these big funds, and those demons who use leveraged funds must also suffer from unspeakable purgatory in this round of decline, and they are also crying and screaming in hell.

When the devil is crying in hell, we should calm down, analyze objectively, and closely observe the future trend.

First of all, whether this round of decline will stop soon, and there will be a round of rebound.

Personally, I think that this round of decline is coming to an end, some people think that it will fall below 4000 points, I feel that it may fall below 4000 points intraday, 4000 points may be a strong support, and the rebound market will open at any time.

Secondly, what is the real reason for this round of market, is it afraid that the stock market will rise too fast, which will lead to the so-called capital market reform and the abortive death of new stock issuance. If that's the case, then it means that the management still has a way to get the stock market back, the current decline, it's just an intermission, and as long as the stock picks properly, the lost profits may come back.

But what if the stock market fell for something else?

What if the management is worried that the funds will move too quickly and cause the bank to be risky, and the management hopes to drive the funds that are trying to move out of the bank back to the bank through the decline of the stock market?

What if, in order to save the real estate market, the management drove the money that went into the stock market back to real estate? Let everyone think that the stock market is not a place for investment, and real estate is a place for long-term investment? And the task of issuing new shares has been overfulfilled.

If this is the case, expectations for the market outlook will need to be lowered further to prevent the stock market from actually entering a bear market.

Therefore, with many questions, to think and judge independently, and get the answers you want, it is better than watching the news and being led by others in a daze, and if you want to make money without using your brain, you will only become meat on the board in the end.

If a friend of the "Huige" sees this post, please leave your opinion, I am grateful.

At the same time, I hope that more stock market heroes will leave a message to express their opinions, thank you first.