Chapter 123: The Inevitable Battle
April 8, 2023 is week 6, Zhang Sheng came to Yuansheng's house early to discuss the 10 new shares of the main board system to be listed on the first week of next week...................................................................................................................................
Zhang Sheng: The 10 new stocks in 1 next week, is the main force bound to be speculated?
Yuansheng: It's definitely going to be hyped!
Zhang Sheng: What is the necessary reason? Are all 10 up?
Yuansheng: 10 new stocks, there must be some up, and some should also fall (or fall on the first day, or start to fall on the second day).
Why do the main forces have to hype them? Let's see when was the last time a new stock on the main board could rise and fall casually on the first day?
The last new stock that could rise and fall on the first day of the main board was Zhejiang Shibao, which was listed on November 2, 2012, and the first day of the main board new stock was 44% system.
The first day of the new stock rose and fell by 44% of the system, resulting in a good new stock on the first day of the direct rise of 44%, almost no trading volume, from the second day, with VIP channel of the big money every day to hang the price limit board (up 10%) queue up to buy shares, after N consecutive days of the limit, the new stock rose to the limit, at this time the new stock because the stock price has been too high, 95% of the probability is that there is no hype value, followed by a continuous decline........
Therefore, the system of the first day of 44% of new stocks has systematically blocked the opportunity for the main force to buy a large number of good new stocks at a low level. Good new stocks are basically 12-32 up limits before they can be opened, in order to buy a large number of them, at this time, it is estimated that it is too high, the smart main force has given up on it, at least it is temporarily abandoned, and so it falls for a period of time, it has fallen enough, if it is really good, really promising, the main force and then slowly buy at a low level..................
It is precisely because of the 44% IPO system that there are very few opportunities for big bull stocks to appear in the main board new stocks. Now, new stocks under the main board registration system can rise and fall at will in the first 5 days, and the 10% rise and fall system will only be implemented from the 6th day. In this way, from the system, it provides the main force with the opportunity to quickly open positions, suppress, shuffle, and pull up at a relatively low level......... Of course, the main force will adopt the tactics of attacking the east and the west, preemptively, and then attacking, and all 36 tactics will be used, and they will fight to their heart's content in the new stocks.
In 1990, there were A-shares, from 1990 to December 15, 1996, the stock rose and fell casually, and the new shares were one of the most popular and hyped varieties in the past 6 years because they were clean and did not have a locked market. Since December 16, 1996, all stocks have implemented a 10% rise and fall system (new stocks can rise and fall at will on the first day, and the system is 10% from the second day), and in the nearly 16 years from December 16, 1996 to November 2, 2012, the main force has chosen to speculate on some new stocks, so that the new stocks become big bull stocks.
Because the first day of the new stock is random rise and fall, therefore, the main force generally takes the following methods to speculate on the new stock they like: the first new stock, because the subject matter is good, the quality is good, if the funds to recognize it are not much, the opening price is relatively low, the main force on the first day to buy a large number of high, the day to pull up, the second day to continue to pull up, speculation for a period of time rose N times, to complete the first wave of speculation. There are very few such IPOs.
The second is that the theme is good, the quality is good, and there are more funds that agree with it, which leads to it opening high and going high, and the second day of the fall limit board opens (unable to sell), after 3 consecutive fall limits, and then V-shaped reversal, and then out of a wave of bull market. Guanhao Biotech is a representative work of this stock.
The third model is: the subject matter is good, the texture is good, and there are more funds to identify with it, which causes it to open high, rush up, and fall back............ As a result, all the people who bought on the first day were trapped, and only after falling for N months did they slowly reverse in a V-shape and get out of a wave of bull market. Such a process takes N years, and the average person can't stand such a long time.........
Most of the new stocks are general stocks, there is no big main force to fancy it, its ups and downs, can only follow the market, there is no law at all, smart money is to give up this kind of new stocks...........
Zhang Sheng: On the first day, it will rise and fall casually, and from the second day, it will be a 10% rise and fall system, which is very convenient for the main force to launch a blitzkrieg. This blitzkrieg is divided into 2 types, the first is a bright blitzkrieg: that is, the main force buys enough chips on the first day (the turnover rate of new stocks on the first day is generally between 60-92%, and the main force is easy to buy enough chips), and the opening price limit on the second day, or the fast price limit.......... This was followed by a wave of upward movement.
The second is the feminine tactic, or the tactic of retreating. That is to say, the main force does not buy enough chips on the first day, it does not want to pull up immediately, it can open and sell on the second day, causing it to open with a falling limit, or open sharply lower. At this time, many retail investors will follow the trend and sell. As soon as there are many people who follow the trend, the new stock will be defeated like a mountain, and the limit will fall quickly, and countless orders will be pressed on the position of the limit limit........... On the 2nd and 3rd days, the lower limit was opened.
After falling like this for a while, many retail investors are afraid of this new stock, thinking that the new stock has no main force, but in fact, this main force likes to be a more vicious method........ It is also called the method of washing and absorbing goods after N months, and after N months, we will look back: this is a big bull, buy at a low level, and in a few months, or 1 year, it will rise N times. Can you find such a business in your life? Only in the stock market does it happen often.
Yuansheng: Opposite. The main forces are very good at studying and making use of the advantages and disadvantages of the system to formulate strategies and tactics. To put it bluntly, on the first day, it will rise and fall casually, and on the second day, the 10% system will be used, either by using the price limit or by the method of falling limit, to achieve its own goals, and to play most of the retail investors who do not know how to do it in the palm of the stock.
Zhang Sheng: There are many major talents, and they use the collective wisdom, and the average retail investor is not their opponent at all.................
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After chatting for a morning, Zhang Sheng had something to leave........ They agreed to discuss in detail tomorrow the specific tactics of the 10 registration-based new shares in next week's 1...........