[Red Envelope] Chuan Chuan keeps causing trouble! What should we do next week?

The market isn’t doing too well, but looking back at the trading throughout the week, it seems the market has started to attempt breakthroughs in several directions! [淘股吧]

First of all, of course, it’s this wave of tightly-held Huadian Liaoneng.

To make a bold decision to push for nine consecutive boards at this time is indeed daring, and this chart seems to remind me of a deceased friend?

But the main control’s display of having their thoughts written all over their face

ultimately makes it difficult to say that it really reaches such an ideal state!

Aside from the capital betting on Huadian Liaoneng continuing,

there’s also a batch of capital betting on the suspension of Huadian, then the market retreats for a few days, before new tightly-held stocks emerge.

Therefore, on Thursday, some capital went for Farsen.

This point, we mentioned before the market opened on Thursday.

The reason we didn’t trade Farsen during the day was that the movement of Huadian Liaoneng on Thursday was simply too strong!

In fact, the vast majority of us knew that Huadian Liaoneng would suspend boards on Thursday.

However, the previous period of stocks continuously hitting boards had such a dismal profit effect that capital had a sense of catharsis for Huadian, which had finally broken out.

No matter how they tried to smash it down during the day, it just wouldn’t break until the end when it couldn’t hold the last plunge.

Even so, the next day still provided a profit effect, once wanting to rebound to the limit up.

In such a case, naturally, it wasn’t very friendly to Farsen.

Because what we were doing was betting on Huadian’s suspension, with capital holding expectations for Farsen!

So, as long as Huadian was still on the board during the day, Farsen couldn’t be strong.

It’s like XinduoDuo; they genuinely have money, so they can bet on the floor for daily trading.

But Huadian only plunged at the end, so there was little room for capital to operate.

However, the next day, Huadian confirmed the suspension, so capital aggressively targeted Farsen, and the bidding resulted in a premium of six to seven points.

Some teachers say it was XinduoDuo who went for Farsen, hence the premium.

This is putting the cart before the horse.

In the previous round where XinduoDuo was penalized, any stock they were in had to be given a one-word limit down.

The reason they could bring back the seat premium is that they could see the underlying logic of trading and genuinely make a profit, right?

What we should pursue is the model, not the seat!

In addition,

we can also see some profit effects in Meinuohua.

On one hand, there’s an expectation for a further drop in the index, which we’ve discussed before.

In the case of the index dropping, the pharmaceutical sector’s tightly-held stocks are an old tradition.

On the other hand, indeed, recently, the premiums of tightly-held stocks have generally risen, although their movements may vary.

There are stocks like Meinuohua that hit consecutive boards, and there are those like Farsen that hit limit downs.

But the final results are all positive.

However, what I want to say here is actually unrelated to the underlying stock.

At first, when Meinuohua had two limit ups, the market’s reaction to Meinuohua’s convertible bond was tepid; it was only during the subsequent two limit ups that capital began to believe in the power of holding together.

In this case, on one hand, we can consider whether there are safer and more flexible targets to bet on for T+0 when there’s a holding together.

On the other hand, the recent profit effect of 20cm is really outrageous; we can see if, after Meinuohua’s convertible bond, there will be a strengthened profit effect in the direction of 20cm?

Before, we said the market rebound would last for three days.

Although Thursday was indeed a bit lacking, it barely poked its head out.

Then “smart capital” knew everyone would sell on Friday to bet against the negative macro environment over the weekend, so they started selling directly on Thursday afternoon.

After the quantitative selling finished, there was actually a panic buying opportunity on Friday.

Of course, this buying capital is likely also quantitative, buying from themselves.

Now it’s the weekend, with external negative factors settled, and the U.S. stock market has also plummeted, so we can consider continuing to increase positions on Monday.

It should be said that the market’s sensitivity to external negative factors is actually getting lower and lower; more so, quantitative capital is betting that you will move in this direction, hence the trading.

This is a good thing, indicating that quant has already incorporated external risk factors into the overall trading system; at least in this direction, it will become increasingly traceable rather than aimlessly pressing buttons.

The market is getting better, and our curves need to improve as well!

Never forget the youthful ambition of soaring high, once promising to be the best in the world!