My fintech empire.

Chapter 1432 [The market will not calm down without a few typical sacrifices]

Tuesday, August 3th.

Following yesterday's strong rebound, today the gap that opened lower last Friday was directly filled, and then another upward gap was created.

Judging from the K-line combination of the Xinzheng 50 Index, the gap that opened sharply higher on February 2 formed an "island-type" K-line combination, and the two K-lines last Friday and yesterday, one negative and one positive, formed a new "island-type" reversal trend within the "island-type" K-line combination.

Today, the New Securities 50 Index opened higher by +0.64%, and returned to the 5300 point mark through a call auction. It fell slightly during the session but did not fill the upward gap, and continued to open higher and higher.

Around 11:47, major market software pushed messages:
【The SS50 Index rose by +1.07% to 5345 points, setting a new record high. 】

Those who sold their shares at a loss last Friday and did not buy at the bottom are now patting their thighs on the back of seeing the market reach a new high. Those who missed out on the opportunity are regretting not entering the market when the bull market turned around.

At around 13:39 in the afternoon, major market software pushed the message again:
[The New Securities 50 Index continued to strengthen in the afternoon, with the increase expanding to +2.30%, reaching the 5400 point mark in one fell swoop, setting a new historical high. ]

Investors were stunned to see the New Securities 50 Index surge to 5410.24 points. It only fell back for one day? And then it hit a new record high? What happened to the slow bull market? What happened to the steady bull market?

I am afraid that the index will directly break through 5500 points this week. A lot of funds have been forced to short sell and can’t help but enter the market again at high prices.

There was a decline in the late trading. The SGX 50 Index rose by +1.96% today to close at 5392.00 points. The total turnover of the SGX market was 10797 billion, which was higher than yesterday, continuing to refresh the record of consecutive trillion market turnover. It has been 17 consecutive trading days that the daily turnover of the SGX market has exceeded one trillion.

……

New city, quiet villa.

"...Looking at the situation, if we don't pull out a few typical cases to sacrifice, I guess the market won't calm down." Tian Jiayi, who had returned to the villa, was chatting with Fang Hong about the current market trend. After a while, she looked at Fang Hong and asked, "Is the stabilization fund increasing its efforts to release selling pressure?"

Hearing this, Fang Hong shook his head and said, "No, let's finish the original plan first. But you are right, just shouting and the stabilization fund can't suppress the bullish trend, we must pull out a few typical examples to sacrifice."

Tian Jiayi immediately said: "SGX is actively and strictly investigating margin financing and leveraged funds."

Fang Hong nodded: "Report to me when you have the results."

The trillion-dollar stabilization fund is currently forced to make big money and forced to buy low and sell high. Fang Hong is quite speechless about this. Institutions that do not want to make money and do not aim to make profits are making huge profits in the market.

However, the money earned by the stabilization fund will eventually be used to support the market.

Now, we are fearless in charging forward with leveraged funds, but Fang Hong is basically certain that when the time comes, a few typical cases will be used as sacrifices, and the leveraged funds and off-market financing that have entered the market will retreat across the board. The punishment of market ban will have a strong deterrent effect on leveraged funds.

At this time, Tian Jiayi said, "According to the news from the SGX, the strict investigation of off-market financing and leveraged funds has achieved initial results. It's no problem to use a few typical cases as sacrifices. Should we implement it as soon as possible?"

Fang Hong rejected the proposal and said, "Not now. The deterrent effect of market ban is very strong. The leveraged funds and margin funds in the market will be very panicked about being banned from the market and will collectively withdraw. At that time, the market will inevitably fall sharply. If we don't hold on, it will cause a collapse and stampede."

After a pause, Fang Hong added: "The stabilization fund will have to come out to support the market to prevent the market from collapsing precipitously, but we stars cannot let the money used to support the market go unnoticed. The stabilization fund should release the selling pressure first to free up funds."

Otherwise, how can we say that the stabilization fund is forced to sell high and buy low? However, no matter how much money the stabilization fund makes, it is ultimately for the purpose of stabilizing the market. The money earned will not flow into the hands of any private institution. Moreover, the larger the capital volume of the stabilization fund, the stronger the market's bottom-line strength will be, and the stronger the market's ability to resist risks will be.

The original intention of establishing a stabilization fund is to stabilize the market. To put it bluntly, when the market is too hot, it will release the selling pressure to cool it down. When market confidence is insufficient and continues to fall sharply, it will inject a large amount of liquidity to support the market and give support to market confidence.

……

In the next two days, the Xinzheng 50 Index continued to pull back, closing down -1.37% and -1.23% respectively, but rebounded +1.45% and +1.42% in the next two days, returning to the 5400 point mark again and closing at 5404.05 points, but did not set a new historical high.

截止3月18日周一，新证50指数重回5400点后，新交所市场连续21个交易日维持万亿市场成交。

The next day, Tuesday, the 19th, the SGX 50 Index fell slightly by -0.37% to close at 5384.30 points. Today, the turnover of the SGX market shrank to 9939 billion, and the consecutive trillion-dollar market turnover ended at 21 trading days.

In the next three trading days of this week, the market fluctuated sideways at a high level between 5400 and 5370 points, and the trading volume further shrank to more than 8000 billion. Judging from the volume, the funds did not seem to be rushing as fiercely.

However, the index did not break through and is still running around the historical high of 5400 points.

By the next week, the Xinzheng 50 Index began to pull back continuously, falling by -1.43% and 1.09% on Monday and Tuesday respectively, falling below the 5300 point mark, and then fluctuated between 5255 and 5295 points for the next two days.

……

Friday, June 3.

When the market opened today, the three major stock indexes were quite stable before 10 o'clock in the morning, but after 10 o'clock they started to rise again, showing no sign of weakness at all.

Yesterday was Thursday, May 5th. The SGX Trillion Stabilization Fund announced that the 28 billion fund operation had been completed. Various funds in the market reached a consensus and the biggest selling pressure is gone!
The market has been adjusting during this period, and a lot of funds are waiting until after May 5, because the stabilization fund had announced long ago that it would complete the release of the next 28 billion chips by May 5, and it also announced on time yesterday that all the chips had been released.

The biggest selling pressure in the market has disappeared.

This was like a signal to ignite, and funds once again started to surge.

Even in the comment sections of major stock forums, many stockholders shouted: The stabilization funds have been sold out, the biggest selling pressure is gone, go for it!!!

Moreover, in addition to the "good news" of the selling pressure from the stabilization fund at this point in time, a series of good performance news have appeared one after another, and major listed companies have begun to announce their annual performance reports.

Just yesterday, seven listed subsidiaries of Kunpeng Technology, Bionic Power Company, Maker Workshop, Matrix Quantum, etc. announced their 2018 performance. The results were very impressive, generally slightly exceeding expectations. Some companies, such as Bionic Power Company, had performance that seriously exceeded expectations. The company's final annual report showed a net profit of 2018 billion yuan in 179.33, more than 1 million yuan more than the previous annual report performance forecast announcement.

In addition, several securities firms announced their 2018 performance last night. Without exception, their performance has soared significantly. With such a large market trading volume, it is a market consensus that the performance of securities firms is not bad. This year's trading volume has exploded. It was originally expected that the positive news would be fulfilled, but because of the market's expectations of a bull market at the beginning of 2019, the performance expectations have been further strengthened.

Big financial stocks such as brokerage firms also led gains in the three major trading markets throughout the day.

Today, the Shanghai and Shenzhen stock markets were stronger than the SGX market, but the SGX 50 Index was not too weak either. It regained the 5300 point mark and returned to a trillion-dollar market turnover.

截止收盘，新证50指数上涨+1.82%，报5358.31点；沪指大涨+3.20%，报3090.76点；深成指大涨+3.77%，报9906.86点。三大市场成交合计18399亿。

……