Rebirth of the Capital Legend

"There is no way it will plummet again. 4000 points is the bottom line of market correction that regulators can bear." A middle-aged man in a white shirt heard Su Yi's alarmist bearish remarks and couldn't help but respond, "Little brother, Just because you hold a short stock index futures order, you can’t be overly bearish on the market and encourage everyone to cut the meat at a low price, right?”

Su Yi glanced at the other party indifferently and said with a smile: "4000 points, is it considered a low level?"

"The well-known official media say that 4000 points is the starting point of the bull market. Why can't it be considered a low point?" The middle-aged man continued, "And the regulatory authorities' care for the 4000 point position of the Shanghai Stock Index is obvious. They have twice required brokerage companies to lower their prices. "With the mandatory liquidation line of the financing account, coupled with yesterday's special interest rate cut and reserve requirement ratio cut by the central bank, under the strong policy protection, there is no reason why the Shanghai Stock Exchange Index cannot hold this position."

"Yes, the market dived late today, but it did not fall below 4000 points." Another man in the trading room also said, "At this position, it is still not appropriate to be overly pessimistic."

Although everyone basically lost money today, some people even hit the limit.

But when the Shanghai Stock Index once again faced the test of 4000 points.

Having experienced the previous two times in which the Shanghai Stock Index quickly fell below and then quickly recovered, many people still stubbornly believe that this time the Shanghai Stock Index can stop falling and rebound from this position, and continue to rebound amid the positive fermentation of the central bank's interest rate cuts and reserve requirement ratio cuts. situation, and even restore the bull market trend.

Of course, investors are aware of the strong downside risk in the market and have turned from long to short.

There are also many major institutional groups that have begun to significantly change their investment strategies and trading strategies.

In the process of this investment sentiment gradually developing from a generally bullish trend yesterday to a long-short divergence, and even gradually leaning towards a short sentiment.

In the evening, good news came out again.

According to market news, the Ministry of Finance officially proposed measures for pension funds to enter the market.

The "pension market entry" that the majority of investors in the market have been waiting for year after year has finally come to fruition, and this will also bring hundreds of billions of incremental funds to the market.

The day before yesterday, the regulatory authorities revised the forced liquidation line.

Yesterday, the central bank made an emergency cut in interest rates and reserve requirement ratios.

Today, the Ministry of Finance put forward the opinions on the measures for pension market entry, and pension market entry has officially been implemented.

One good news a day really fully demonstrates that the regulatory authorities' attitude towards the stock market has changed from suppressing the market when the Shanghai Stock Index reached 5000 points to rescuing the market.

However, the chip structure of the bull market has been completely loosened.

Various leveraged funds and countless financing deals have been running wild in the continuous falling limit of 1,000 shares.

The hob, which killed many people, was already speeding down from the top of the mountain.

Under this situation, can relying solely on good news, without substantial strong intervention, really stop the market's downward trend and hold on to the so-called 'bull market starting point' of 4000 points?

Many people think it can.

But the result...

On the second day, the market's positive reaction to the "pension funds entering the market" did not even have a decent high opening.

The Shanghai Stock Exchange Index, Shenzhen Stock Exchange Index and ChiNext Index are all open flat.

However, the three main stock index futures contract products corresponding to the A50 Index, CSI 300 Index, and China Securities 500 Index respectively opened at a significantly lower state, and the new position orders and existing position orders of the three major stock index futures main contracts, The number of net short orders also hit new highs.

The opening shape of it all.

They all illustrate the weakness of the market, and they also reveal the fragility of the bulls.

"Sigh... such a huge positive, it didn't even open higher." In the VIP trading room of the Huaxin Securities Financial Street Fuxing Road sales department, I had a debate with Su Yi yesterday and believed that the Shanghai stock index would hold on to 4000 points. At this moment, the man saw that the Shanghai stock index did not respond to the positive news at all, especially when he saw that his own stock holdings opened sharply lower by 3 points under the stimulation of the positive news. His emotions suddenly broke down and he asked, "Where did so much selling come from? This is a completely unreasonable fall.”

"This opening is seriously below expectations."

"Are there funds deliberately investing in stocks and then profiting from short-selling stock index futures? In the past two trading days, the number of open positions in stock index futures has increased dramatically."

"With such an opening, the Shanghai stock index's 4000 points is really dangerous."

Seeing that the market had no reaction to last night's good news, several large investors in the trading room who held heavy positions were a little depressed and complained one after another.

"Old Lin, is it time to reduce the position in your stock account?"

Amid everyone's complaints, Mr. Deng, who was already clearly bearish, took a look at Lin Minghui's stock account with a holding market value of more than 5000 million and said.

Lin Minghui replied: "It is already reducing. I originally hoped that the market would open higher today and give me a better point to lighten my position. Unexpectedly... Alas, the market trend is really weak. The good news has not responded. Many stocks fell to the limit yesterday. , the market opened today and it fell straight down to the limit. It’s simply, with this form, it would be strange if it doesn’t fall.”

Before, he was still thinking that the Shanghai stock index was less than 6000 points, so he would not reduce his position or be bearish.

Now, seeing the Shanghai Stock Index teetering at 4000 points, he really has no confidence in the bull market and no longer expects the Shanghai Stock Index to return to 5000 points.

Thinking of this, Lin Minghui couldn't help but turn his eyes to Su Yi.

In the past half month, if Su Yi had not continued to be bearish and short-selling, he might not have changed his views so quickly, and he might even have added a long position at 4000 points to gamble.

Su Yi noticed Lin Minghui's gaze, but he did not respond.

At this moment, he had his hands on the keyboard, waiting for the market to enter the continuous bidding trading stage, looking for opportunities to continue shorting the stock index.

While he was waiting, a few minutes later, the market entered the continuous bidding trading stage.

The three major indexes of Shanghai Stock Exchange, Shenzhen Stock Exchange Index and ChiNext Index turned red for a moment, and then were directly suppressed underwater by the surging selling force.

After that, it only took three minutes.

The Shanghai Stock Index plummeted to a 2% decline, breaking through 4000 points.

As for the Shenzhen Stock Exchange Index, ChiNext Index, and China Securities 500 Index, they all fell to more than 3% declines.

In a daze, countless investor groups did not react at all, and the market was already in a plummeting state, with hundreds of stocks falling to the limit.

After that, the Shanghai Stock Index fell close to 3 points.

The bulls organized multiple counterattacks in a row, hoping to regain the 4000-point mark and once again gather the market's bullish sentiment.

As a result, everything was in vain.

Every time the Shanghai Stock Index approaches 4000 points, it will be suppressed by stronger selling orders.

Su Yi would also short-sell 4000 lots of the main contract of the China Securities Exchange 10 Index futures every time the Shanghai Composite Index approached 500 points to encourage the Shanghai Composite Index to return to 4000 points.

Just under the bulls' continuous counterattacks that seemed tenacious but actually weak.

When the time reached around 1:30 pm, the Shanghai Stock Index still had not overcome 4000 points.

The remaining bull confidence and bull market belief in the market finally collapsed completely and could no longer withstand the continuous short selling pressure.

So, after 1:30.

The market's unilateral plunge has happened again.

The Shanghai Stock Exchange Index once again broke through the 3% decline position, while the ChiNext Index and the China Securities 500 Index went straight to the 5% decline position.

And the index is plummeting.

Market liquidity also continued to plummet, and countless stocks hit their daily limits one after another.

At 2 o'clock in the afternoon, the market once again experienced the phenomenon of "thousand shares falling to the limit".

The alarms in the account data centers of countless securities companies and over-the-counter financing companies sounded one after another. Countless financing and financing investors were wailing. The liquidated accounts once again showed exponential growth in the market's avalanche-like trend. , the market liquidity crisis reappears!