At 9:42 AM, the stock price of 'Teli A' flash crashed from its limit-up position of 71.98 yuan, plummeting like a cascading waterfall.
In just one minute, it wiped out all the gains made by the bullish funds in early trading, falling back below the 6% gain mark.
And as 'Teli A' broke its limit-up and fell back.
Its related 'State-owned Enterprise Reform' concept sector, as well as 'Chuansheng Jiuzhou', 'Yishang Zhanshi', 'Puyang Huicheng'... these follow-up stocks, also plunged rapidly.
Especially 'Chuansheng Jiuzhou', directly within one minute.
It plummeted from around a 7% gain on the board to near the flat line, burying all the bullish funds that chased in early trading.
At the same time, the broader market index, the 'Big Finance' and 'Big Infrastructure' core weighted sectors.
As well as other core concept sectors like 'Internet Finance', 'New Stocks', 'Industry 4.0', 'Lithium Batteries', 'Robots'... and even 'SME-GEM' concept stocks in the entire ChiNext and SME Board sectors, their market trends all reversed in an instant.
"Damn it, this is really bad luck, bought into another crash."
Seeing the rapid fall of 'Teli A' after its limit-up broke, and the flood of profit-taking selling on the market, in the internal group of 'Qilu Gang' main speculative funds, who were the main attacking force and the main sealing funds for the limit-up of 'Teli A' today in the early trading session, Zhao Zhiyuan of 'Weihai Rongcheng Shidao' at this moment felt a surge of frustration, and couldn't help but curse.
"The broader market sentiment is too poor."
Zhang Wei of 'Weihai Rongcheng Chengshan' was slightly calmer than Zhao Zhiyuan. He frowned and said,
"If it weren't for the overall bearish sentiment of the broader market, 'Teli A' forming a limit-up with shrinking volume today would have been perfectly fine."
"I didn't expect the market pressure to be so immense around the 3450-point level."
Zhao Zhiyuan said.
Zhang Wei sighed softly and said,
"Still insufficient incremental funds. The two rounds of stock market crashes have trapped a large number of active funds in the 4500 to 3500 point range. The trapped selling pressure is simply too heavy; with the current market liquidity, it's impossible to push higher."
"Ah... I really shouldn't have been so hasty."
Zhao Zhiyuan said with some regret.
"Don't panic, there's still a chance."
Unlike the two pessimists, Liang Jiucheng of 'Jinan Lishan Road', a core figure of the 'Qilu Gang', stared intently at 'Teli A''s market trend and said,
"Judging by the trading volume just released, the chip structure within the market hasn't completely collapsed, and the buying support on the board is still strong. Under this trend, there's still hope for a re-seal."
"Is there still hope?"
Zhao Zhiyuan asked with some doubt.
Liang Jiucheng pondered for a moment and said,
"Whether there's hope for a re-seal, we'll know if we try to pull it up."
With that, without waiting for a response from the two, he injected a sum of money into 'Teli A'.
As his funds entered, a large order of 2000 lots instantly poured onto 'Teli A''s board, absorbing the concentrated selling pressure, and temporarily pulled 'Teli A''s stock price back to its opening position in early trading, bringing it back above the 6% gain mark.
Immediately after, when his 2000-lot main buy order was exhausted by selling pressure.
For a moment, 'Teli A' did not continue its rapid decline; instead, driven by strong follow-up buying, it continued to surge inertially along the rebound trajectory he had initiated, breaking past the 7% gain mark and stubbornly stabilizing its market trend.
"Hehe... there really is a chance."
Seeing 'Teli A''s stock price recover, and the follow-up buying funds on the board being very active, Zhao Zhiyuan, whose confidence had been clearly dampened just now, couldn't help but let out a laugh, and his tense heart finally relaxed.
"Old Liang, you still have such unique insight!"
"Should we continue to buy?"
Zhang Wei asked, seeing that 'Teli A''s stock price seemed unable to fall further.
Liang Jiucheng's gaze remained fixed on 'Teli A''s market changes, seeing that the intraday volume had not shrunk at this time, and that bullish and bearish trading was extremely fierce.
He knew there was an expectation for a re-seal of the limit-up, but it wasn't strong at the moment, so he couldn't help but say,
"Let's wait a bit longer. When its turnover rate further increases, the intraday volume starts to decline, and profit-taking has mostly cleared out, then it won't be too late to continue buying and aggressively attacking the market."
In the early trading phase, they had already accumulated a significant amount of chips in 'Teli A' at high prices.
At this moment, although the amount of funds they held was still quite sufficient.
However, the pace of accumulating chips should not be too fast.
Because the broader market sentiment had still not been driven up by 'Teli A', whether it was 'Teli A''s market trend or the broader market's trend.
In Liang Jiucheng's view, both still had a considerable degree of uncertainty.
In other words, at this time, if he were to aggressively attack the market and forcefully seal the limit-up, the selling pressure he would face would still be immense, and even if the limit-up were forcefully sealed, there would still be the risk of it breaking again if the broader market trend continued to worsen and overall bullish sentiment continued to collapse.
For core leading stocks...
After the first break of the limit-up, market sentiment might still be salvageable, and people would still harbor expectations and hope for a re-seal.
But if it broke the limit-up again after a second seal.
Then market sentiment would rapidly collapse, making it very difficult to recover.
Therefore, for Liang Jiucheng, who had already invested a large amount of capital and aimed to capitalize on 'Teli A''s re-seal trend, as well as for the entire 'Qilu Gang' main speculative funds, they only had one chance.
If this opportunity failed, then there was a high probability that the funds they had invested would be buried at the peak by declining bullish market sentiment and surging profit-taking.
"Okay."
Zhao Zhiyuan responded.
He gritted his teeth, feeling somewhat anxious, holding his funds, and following Liang Jiucheng's advice.
He continued to patiently wait for an opportunity.
As the three waited, and market trading time continued to advance.
'Teli A' encountered strong market resistance again when it oscillated upwards to the 8% gain mark.
At the same time, leading concept stocks in both markets, as well as the broader market indices and numerous core weighted stocks... also faced strong selling pressure, and after a brief, weak rebound, were forced to continue trending lower, sinking into a weak oscillating situation.
"It's still difficult to form a resonance in bullish sentiment!"
Seeing that 'Teli A''s market volume not only didn't shrink but continued to expand, and that profit-taking pressure once again suppressed the bullish buying power that was chasing, Su Yi frowned, knowing that the timing for 'Teli A' to re-seal the limit-up was not yet mature, and there was a high probability of further downside risk.
After a silent sigh.
He decisively continued to sell off his chips in small batches at its intraday high.
As Su Yi followed suit and sold off chips, in the internal group of 'Modu Chaoduan Bang' main speculative funds, where he belonged.
Xu Qiao, who was also closely watching 'Teli A''s market trend, said,
"Volume is rapidly expanding, profit-taking is concentrated and heavy, coupled with the decline in overall market bullish sentiment, and the broader market index encountering pressure and being fully suppressed by trapped selling... Under the combined influence of these factors, 'Teli A', this 'demon king' leader, will likely stop here."
"What a pity... such a good trend in early trading."
Old Zhang said,
"If the broader market could have cooperated a bit, 'Teli A' would likely have continued to achieve higher levels."
Old Wu thought for a moment and said,
"If you ask me, 'Teli A' shouldn't have hit the limit-up so quickly after opening. The broader market in both cities, despite such strong bullish sentiment in the morning, opened much lower than expected.
This indicates that the overall market trend today wouldn't be very good, unable to form a resonance in bullish sentiment. Naturally, it should have maintained a strong intraday oscillating pattern, and only sought an opportunity to hit the limit-up after extremely sufficient turnover."
"This isn't something any single fund can dominate."
Brother Chen said,
"The combined forces of various market funds will naturally exhibit extreme trends. The kind of trend you described can only be achieved in small-cap or even micro-cap concept stocks where a certain active speculative fund has independent control."
"Fortunately, we weren't eager to chase in early trading."
Xu Qiao said thankfully.
Old Zhang chuckled and said,
"'Teli A' today is probably going to trap a lot of people!"
"I guess Brother Su is going to take profits and exit today."
Old Wu said,
"In this wave, Brother Su entered with a heavy position from the bottom and has almost doubled his profit."
"Perhaps those two or three large selling orders of ten thousand lots when 'Teli A' just broke its limit-up were placed by Brother Su."
Xu Qiao said,
"Brother Su's ability to time his selling points is truly enviable!"
As the few in the group spoke...
'Teli A''s stock price plunged again, and in an instant, it fell back to an intraday low.
Meanwhile.
'Chuansheng Jiuzhou', a stock highly correlated with 'Teli A''s trend, had already plunged for a second time, falling into deep negative territory; its market decline expanded to 3%, and its intraday volatility had already reached 10%, completely burying any funds that had bought into this stock at any point during the day.
"Brother Sun, this round of rebound should be over now, right?"
Amidst 'Chuansheng Jiuzhou''s rapid plunge, Zhao Qiang, a core player in this stock, was also closely watching it, as well as 'Teli A''s market trend.
While selling off his chips to take profits, he messaged Sun Chengyu:
"I've taken profits, I feel there's a very high probability the market will crash today."
"Taking profits at this position and at this time node is perfectly fine."
Sun Chengyu replied,
"I've also sold to take profits. 'Chuansheng Jiuzhou' will likely hit its limit-down today, but 'Teli A' is still performing quite stubbornly on the board. The broader market and all major core concept sectors are plunging like this, yet this stock can still remain in positive territory."
"It is indeed very stubborn."
Zhao Qiang responded, staring at 'Teli A''s market trend,
"But no matter how stubborn it is, it will eventually be dragged down by the broader market."
"What a pity, if only market sentiment were a little better..."
Sun Chengyu sighed.
Zhao Qiang replied,
"Nothing to regret. 'Teli A' reaching this height has already exceeded everyone's expectations. I never thought its third wave of speculation could achieve six consecutive limit-ups."
"I don't know which fund was primarily buying 'Teli A' in early trading today."
Sun Chengyu said,
"That fund is probably going to lose a lot of money today."
"It should be a powerful speculative fund with a relatively large capital base in the industry."
Zhao Qiang said,
"This fund took on a massive amount of chips in early trading. I'm not sure how they dared to intervene with such significant additional positions at this level."
Sun Chengyu said,
"Actually, in the early trading phase, 'Teli A''s market trend had no problems whatsoever. However, the broader market's trend was too poor, and 'Teli A' was consistently unable to reverse the overall market's bullish sentiment, thus failing to form a consistent resonance with the broader market in terms of bullishness.
In other words... 'Teli A''s bullish sentiment was still present, it was just completely dragged down by the broader market."
"Before, this stock could drive bullish market sentiment."
Zhao Qiang said,
"Why can't it do so this time?"
Sun Chengyu replied,
"It's simple: the Shanghai Composite Index has reached a critical resistance level due to accumulated trapped selling, and also, after this rebound following the National Day holiday, enough profit-taking has accumulated.
Many funds can no longer suppress their desire to take profits. As such... under the double pressure of trapped selling suppression and profit-taking, without the support of core weighted sectors, 'Teli A' alone naturally can't drive the market."
"Damn it... limit-down!"
No sooner had Sun Chengyu finished speaking than Zhao Qiang instantly exclaimed in surprise.
Then, when Sun Chengyu's gaze returned to 'Chuansheng Jiuzhou''s board.
He saw that in the interim of their conversation, 'Chuansheng Jiuzhou' had plunged in a straight line with frantic volume, pushing its stock price to the limit-down.
And accompanying 'Chuansheng Jiuzhou''s flash crash to limit-down.
Its related 'State-owned Enterprise Reform' core sector, as well as leading stocks in other core concept sectors like 'New Stocks', 'Lithium Batteries', 'Industry 4.0', and 'Internet Finance', also plunged collectively again, their stock prices wiping out intraday gains and falling into deep negative territory.
Even 'Teli A', the market's core leader, whose market trend had been relatively resilient.
Consistently maintaining positive territory no matter how profit-taking selling suppressed it, was now also suppressed below the waterline by panicked market sentiment and continuous profit-taking, with its market turning from red to green.
Of course, amidst the continuous plunges of major concept sectors and the crashes of popular leading stocks, the trends of the market's major core indices were also rather dismal.
Whether it was the Shanghai Composite Index, the Shenzhen Component Index, or the ChiNext Index.
By the time 'Teli A''s market trend turned from red to green, their market declines had all expanded to 2%.
Among them, the SME Board and ChiNext Index, primarily composed of 'SME-GEM' concept stocks, saw their market declines plummet to around 3.5%.
"Unbelievable, the entire market has formed a unilateral crash trend."
At 10:47 AM, with all of the top 20 most-watched stocks turning red and falling, and several stocks already hitting their limit-down, He Chong of 'Gusu System' main speculative funds, who had just escaped from 'Chuansheng Jiuzhou''s limit-down, exclaimed in astonishment:
"I never expected that the strong bullish market sentiment from last night and this morning would turn out like this."
"This is the volatile financial market!"
Zheng Jinming in the internal group of 'Gusu System' main speculative funds sighed,
"I knew that overly consistent expectations never lead to anything good."
"Ah, in this wave, we didn't make any money on 'Chuansheng Jiuzhou'."
Old Qian sighed.
Zhang Xinlei said,
"Don't talk about making money; it's good enough to have escaped. Looking at this market trend, it's like a new round of stock market crash has begun."
"'Teli A' has also crashed."
He Chong said,
"It seems even the leader can't hold up."
"Everything is falling apart!"
Old Qian said,
"It's not even 11 AM yet, and the market has already unilaterally plummeted. If this continues... the ChiNext Index might not stop until it's down 5 points."
"I don't feel there's any negative news; this crash is truly inexplicable."
Zhang Xinlei said.
Zheng Jinming thought for a moment and said,
"The market has reached a severe pressure level; if volume can't keep up, then naturally all the trapped selling and profit-taking will flood out. Alas... looking at it this way, the market is still too fragile. Before, I even expected this rebound to reach 3600 points, or even 3800 points. Now... it seems very difficult."
"With 'Teli A' crashing, I don't know when the next leading stock will emerge."
He Chong said,
"Under this kind of trend, it feels like there's no opportunity even for 'high-low switching'."
Zheng Jinming said,
"Let's keep our hands in check for now. In this kind of market where everything is falling, buying any stock would be wrong."
"Market sentiment is leaning completely towards the bearish side."
Old Qian said.
"Bullish-bearish sentiment shift..."
Zhang Xinlei said,
"Today, there should only be selling points, no buying points."
Amidst everyone's ongoing discussions.
Market trading hours continued to advance, and the entire market, as trading time progressed, continued its unilateral crash trend.
Until the midday close.
The Shanghai Composite Index had already plunged to a 2.53% decline.
As for the ChiNext and SME Boards, which performed the most miserably, they both plummeted to nearly a 4% decline.
Then, after the midday sentiment brewing.
When 1 PM arrived, both markets once again entered the continuous auction trading session.
The entire market's panic sentiment began to further breed and intensify, causing even more trapped selling and profit-taking to pour out.
This also completely suppressed the enthusiasm of various active funds to buy into the market.
In this situation, where bullish and bearish sentiment became increasingly imbalanced, bullish funds' desire to buy decreased, and selling pressure grew.
The broader market indices of both cities, their major concept sectors, and their respective core leading stocks.
Their trends became increasingly extreme.
At 1:27 PM, the ChiNext Index briefly touched a 5% decline on the board.
At 1:35 PM, the Shanghai Composite Index's decline briefly expanded to 3.57%, with a single-day drop of over 100 points.
At 1:46 PM, hundreds of stocks in both markets hit their limit-down again; all the hot concept sectors and their core weighted sectors were in a state of freefall, and no market sector could still generate profit-making effects.
However, in this situation where the entire market had almost shifted towards a liquidity crisis.
'Teli A', despite being deep in negative territory, unexpectedly still showed remarkable resilience.
Its market decline was not only significantly smaller than that of the ChiNext Index, but various funds buying at the dip continued to pour in, subtly showing a trend of suppressing selling pressure.
(End of Chapter)