When he arrived at Huaxin Securities' Financial Street Fuxing Road Branch VIP trading room again, he saw that the market had already opened.
Benefiting from the fermentation of favorable news last night, as well as the rebound in bullish sentiment and confidence in the bull market, both markets generally opened higher today and had been trending upwards since opening, even before Su Yi arrived.
"Brother Su, how was last night?"
Lin Minghui asked with a chuckle upon seeing Su Yi arrive.
After Su Yi left the hotel, he carefully recalled what happened last night.
The result was that he only vaguely remembered the events, but couldn't discern any specific feelings.
"It was good,"
Su Yi replied indifferently, then turned his gaze to the overall market of both exchanges.
Lin Minghui smiled upon hearing Su Yi's answer and said,
"It seems my hundred thousand yuan wasn't wasted. I thought you'd be lost in the land of tenderness today and wouldn't come to the trading room."
"Of course, I had to come,"
Su Yi said.
"How could I miss such a great opportunity to make money?"
"You're not still thinking about shorting stock index futures, are you?"
Lin Minghui said.
"The market is doing great today. I don't think it will fall again in the short term."
In the first half an hour after opening, his stock account had already recovered more than 1.5 million yuan.
This put him in a very good mood.
Su Yi stared at the fluctuating upward trend of the Shanghai Composite Index and said,
"The market is still in the phase of digesting yesterday's bullish sentiment. Whether the market can truly stabilize depends on whether the bullish forces actively taking over can withstand the selling pressure from the large amount of accumulated profit-taking yesterday, as well as the continuous exit of numerous leveraged funds, after the sentiment gradually subsides."
"Isn't it stable now?"
Lin Minghui asked, puzzled.
Su Yi replied,
"Of course not. I personally believe that the Shanghai Composite Index needs to continue to fluctuate and reach a new high with the help of bullish buying, after the positive news has been fully absorbed and during the period when sentiment is subsiding, before it can be considered truly stable. Otherwise... I think the market will most likely continue to fall."
After the previous continuous limit-down trend of thousands of stocks.
Many funds that bought above 4500 points on the Shanghai Composite Index in the early stage have now become trapped long positions, suppressing the market's upward movement.
In other words, the overall chip structure of the bull market has completely collapsed.
In this situation, trying to reverse the situation with just one piece of good news and one dead cat bounce is nothing short of foolish dreaming.
It's just that people are generally trapped in the illusion of a bull market, unwilling to wake up, unwilling to believe that the bull market has ended, and thus fail to recognize reality.
What's more, yesterday's extreme market surge accumulated so many highly profitable short-term profit-taking positions.
These profit-taking positions, driven by the strong desire of short-term investors to take profits, will also suppress the market's rise.
As Su Yi was explaining his views, the Shanghai Composite Index had already begun to fluctuate downwards.
However, due to the bullish market sentiment not having significantly subsided at this moment, and the continuously incoming bullish funds still barely able to absorb the selling pressure.
Therefore, the fluctuating downward trend of the Shanghai Composite Index at this time was not drastic.
Furthermore, many potential sellers in the market were still on the sidelines.
This resulted in the market's intraday volume showing a clear contraction during the Shanghai Composite Index's fluctuating decline, thereby continuing to send misleading market feedback to bullish investors.
"Volume expands during rises, contracts during pullbacks; this is a clear sign of a healthy uptrend."
Seeing the Shanghai Composite Index fluctuate downwards with contracting volume, the big traders in the trading room showed no panic.
Instead, some analyzed the market while continuing to increase their positions during the pullback.
"Buy another 300 lots of 'Huaguo Ping An'. This time, as long as the Shanghai Composite Index reaches 4500 points, I can recover all my previous losses."
"With the central bank's unexpected interest rate cuts and RRR cuts, it should at least rebound to 4500 points, right? I'll buy some more too."
"As long as the Shanghai Composite Index doesn't substantially break below 4000 points, the bull market is still on. Buying undervalued 'big finance' stocks is absolutely no problem."
"The continued easing of macroeconomic monetary policy will bring more incremental capital to the market. I believe today will still be a strong positive candlestick."
Amidst the generally bullish remarks from everyone...
Even Lin Minghui, looking at the more than 15 million yuan remaining in his account and his unused margin account, for a moment felt an irresistible urge to aggressively increase his positions at low prices, seizing the market rebound to recover all the losses from the previous month and a half in one go.
He appreciated Su Yi's daring to remain bearish.
But at this moment, he genuinely didn't believe the market would fall, which is why he was so aggressively eager to increase his positions.
After Su Yi briefly expressed his thoughts and views, seeing Lin Minghui's dismissive reaction, he didn't say anything further.
Whether it's stock investment or other financial transactions.
He always believed that all profits and losses depend solely on one's own understanding.
If one's understanding is not sufficient, even if others tell you the correct answer, or personally reveal the wealth code to you, you will most likely still not make much money, or even lose money.
Of course, if the capital volume involved in the investment is large enough to independently influence market trends.
That's another story.
However, in the market, 99.99% of investors cannot possess such a massive amount of capital.
As everyone's thoughts and ideas varied.
Market trading hours continued to advance, and after a brief pullback with contracting volume, the Shanghai Composite Index once again returned to its intraday high near the midday close.
However, it was somewhat regrettable that.
Even though the Shanghai Composite Index returned near its intraday high, it was consistently unable to create a new intraday high.
In the afternoon, the Shanghai Composite Index continued its volatile upward movement, attempting to challenge the intraday high several times, but all attempts were unsuccessful.
Seeing that the Shanghai Composite Index's several upward attempts failed to surpass the previous high, Su Yi knew that the bullish power and emotional boost brought by the central bank's interest rate cuts and RRR cuts were almost exhausted.
Thus, his eyes gradually sharpened, and he struck the keyboard without hesitation.
Using his stock index futures trading account, when the CSI 500 Index Futures main contract fluctuated near the 9000-point mark, he directly placed an order to short 50 lots of the main stock index futures contract.
A few minutes later.
All 50 lots of his main stock index futures short sell orders were executed.
However, after the orders were executed, the market did not fall as he expected.
Instead, it sharply rose again, continuing to challenge new intraday highs.
Su Yi looked at the 50 lots of main stock index futures short positions that had been executed, with losses rapidly approaching over 200,000 yuan in an instant, yet his expression remained very calm.
These 50 short contracts only consumed a total of 7.2 million yuan in margin from his account.
Given his current capital account balance, even if he made a temporary misjudgment and his short entry point was unfavorable.
The short-term losses incurred would not pose a significant position risk to his account.
"My goodness, Brother Su, you're getting crazier and crazier."
Beside Su Yi, President Deng, noticing Su Yi directly shorting 50 lots of stock index futures, was utterly astounded.
"Your orders are getting bigger and bigger. If you misjudge the direction, the more than 20 million yuan you earned earlier could very likely vanish into thin air!"
Su Yi tilted his head to glance at President Deng and said with a smile,
"What if I'm right? I believe that in trading, as long as the risk-reward ratio is reasonable when placing an order, and the buying and selling timing aligns with one's own trading system, then even if the outcome is wrong, timely stop-loss isn't really an issue."
After speaking, Su Yi quickly turned his gaze back to the market of both exchanges.
He saw that after approaching its previous intraday high, the Shanghai Composite Index indeed began to fluctuate downwards once again.
And this time, Su Yi noticed that during the Shanghai Composite Index's fluctuating decline, the intraday volume began to noticeably surge, and the speed at which the Shanghai Composite Index plummeted also accelerated significantly.
Before long...
Just when everyone thought the Shanghai Composite Index would stabilize again after falling to its intraday low.
Unexpectedly, at 2:06 PM.
The Shanghai Composite Index, with a perfect dive, directly broke through its previous intraday low, rapidly eroding all of the day's gains.
Immediately after, Su Yi noticed that during the Shanghai Composite Index's straight plunge, the speed of intraday volume expansion was getting faster and faster.
He knew that the massive potential selling pressure that had been accumulated on the sidelines was now, seeing the complete exhaustion of bullish market power, rushing to sell.
Understanding this, he decisively took market price short positions.
Aggressively increasing his positions by chasing the falling CSI 500 Index Futures main contract points with strong selling.
At 2:12 PM, after the Shanghai Composite Index erased all of its intraday gains, it continued to plummet.
Su Yi added another 28 lots of stock index futures short orders.
At 2:15 PM, after a high-platform dive, the Shanghai Composite Index continued its plunge, extending its decline to over 1%.
At this point, Su Yi, through continuous shorting, already held a total of 89 lots of stock index futures short positions in his account.
At 2:20 PM, the Shanghai Composite Index continued to plunge rapidly in deep waters, with the market's decline further expanding to over 2%.
At this time, Su Yi's stock index futures account had completed its plan to establish a total of 100 lots of stock index futures short positions, consuming 13.79 million yuan in margin, with an average holding cost of 8960.38 points.
After he completed establishing his positions.
The bulls organized a counterattack near the 2% decline level of the Shanghai Composite Index.
However, due to the extremely weak active buying power in the market, it simply couldn't withstand the massive potential selling pressure that had already taken on a panicked form.
Consequently, the counterattack organized by the bulls only brought a weak rebound to the Shanghai Composite Index for less than 10 minutes.
It was then directly crushed by the enormous panic selling.
Subsequently, at 2:35 PM, after the bull's counterattack was dismantled and crushed, the Shanghai Composite Index plunged again, extending its decline to over 2.5%.
And then...
Facing a flood of incessant panic selling, the bulls completely collapsed, and the market's panic selling sentiment rapidly escalated.
And as the market's panic selling sentiment experienced a sudden, exponential increase.
In the last 25 minutes of the trading session, the unilateral plunge, regarded as a 'nightmare' by hundreds of millions of investors in the market, made a comeback once again!
(End of Chapter)
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