Chapter 155: Technical Pullback

Chen Yang knew why Yexin was in a bad mood. Because Xingcheng Heavy Industry and Yun Cheng Bio's two stocks all opened lower, and within less than five minutes of opening they all hit the daily limit down.

Xingcheng Heavy Industry fell from 22.39 to 20.15. Yun Cheng Bio fell from 25 to 22.5.

The key problem is that these two stocks actually had no strong big capital stepping up to support the price!

You should know that when Chen Yang previously traded these two stocks, those wealthy institutions and hot money skilled at short-term operations with huge funds would usually take some action. This time, however, it was the opposite: not only did they not intervene to stabilize the situation, they instead massively dumped their holdings, continuously offloading large amounts. Even worse, retail investors seeing this also followed suit and fled like startled birds. This situation is too strange.

Chen Yang suspected there was definitely a conspiracy. One possibility is that institutions and hot money secretly colluded, in cahoots, jointly plotting this operation to suppress the stock price. Their aim might be to accumulate shares at low prices to later gain greater profits; or they might want to create panic through this method, causing other investors to dump their shares, thereby disrupting market order.

Another possibility is that some strong hot money joined forces, deliberately conducting a large-scale washout operation. These hot money players are well-versed in market tricks; they know how to exploit investors' fear to achieve their goals. By sharply lowering the stock price in the short term, they force weak-willed retail investors to cut losses and exit, then they take the opportunity to accumulate shares at low levels, waiting for the right moment to suddenly push the price up and reap huge profits.

But Chen Yang knew the trump card. Their doing this was actually a new opportunity for him.

The current question is how Zhuo Wenyuan will act on his side? Since the big capitals want to set up a trap, they couldn't just create a single limit-down. Zhuo Wenyuan wants to raise the price and offload, which is highly likely to fail, and he might even become the one left holding the bag. If he doesn't raise it, he'll have to face pressure from Yexin and those investors.

Of course, Chen Yang felt no sympathy for Zhuo Wenyuan. Since he's doing short-term trading, he must follow discipline and take profits when good. He actually greedily wanted to earn several consecutive limit-ups—how could there be such a good thing?

The current market situation is generally poor; the major positive news from last weekend only lasted two days. Other big capitals seeing Zhuo Wenyuan and his group eating meat every day—how could they not be jealous?

Moreover, not only Xingcheng Heavy Industry and Yun Cheng Bio. Xinfei Technology also had capital trying to smash the board today, placing a large number of sell orders. But they underestimated the enthusiasm of other capital and retail investors for this stock. In just a few minutes, Xinfei Technology hit the limit up again. The stock price rose to 20.19.

This Xinfei Technology stock had fallen from over forty yuan; in the middle it was pumped up again by Wang Yichen, then it dropped to twelve point four. Chen Yang estimated that this stock would need to exceed thirty yuan before its upward momentum slows. He will check the situation and flee before that.

So, these days, aside from watching Xinfei Technology's movements, he and Su Mingyue have nothing to do.

Chen Yang gave Su Mingyue a suggestion: let her pick a few quality stocks to swing trade on her own. First use a small amount of capital to test the waters; if it works, increase the investment. After all, the stocks they've been trading have been eyed by others; if they don't develop new potential stocks, they'll only be able to stay out of the market.

Meanwhile, on the other side of Xingcheng, Zhuo Wenyuan has been driven nearly mad by Huang BaiMing. Facing the smashing of the board by various capitals, Zhuo Wenyuan dares not lightly raise the price to offload. Because everyone is fleeing, if he dares to raise the price, others will dare to sell everything. By then, not only will his shares not sell, but he'll end up helping others take over.

But Huang BaiMing no longer trusts him, constantly insisting on raising the stock price back up.

Zhuo Wenyuan looked at the data: the entrusted sell-off funds for Xingcheng Heavy Industry were 500 million, and for Yun Cheng Bio 350 million. They originally had 400 million in liquid funds, now half has been withdrawn. Using these remaining funds, even raising just one stock would be enough to choke.

More importantly, both stocks are at high levels, and the pressure to take over is also large. If mishandled, all the funds could end up trapped.

"Mr. Huang, the other side's purpose is unclear; I don't suggest raising the stock price to offload. If everyone wants to stop loss, they can only place sell orders at the limit-down price, selling as much as they can. What can't be sold, keep placing limit-down orders at night, striving to clear everything in tomorrow's call auction."

Huang BaiMing sneered: "Zhuo, look at the trading situation before you speak, okay? Everyone's placing limit-down orders, others are already ahead—do we even have a chance to escape? I still suggest raising the price to adjust everyone's sentiment back, then we can flee."

Zhuo Wenyuan countered Huang BaiMing: "What if everyone's sentiment doesn't adjust back? How much capital do we have to take over? In the current situation, we need to invest at least 500 million."

Huang BaiMing thought Zhuo Wenyuan wanted them to increase investment again, and he was a bit unhappy. He asked Zhuo Wenyuan: "Can't your company help raise it a little?"

Zhuo Wenyuan shook his head and said: "Our company has already done a risk-control analysis; none of it looks good."

Huang BaiMing instantly became furious. He again questioned: "Why didn't you exit yesterday? You clearly made enough profit, and I also advised you to take profits when good, but you just wouldn't listen!"

Zhuo Wenyuan lowered his head embarrassedly. This really was his mistake. Yesterday his mind was full of how to deal with Chen Yang, constantly watching the situation at Xingcheng Securities, and he relaxed his vigilance toward other capitals.

Moreover, he privately also intended to prove he could earn more than Chen Yang. He wanted to earn an extra limit-up.

But his well-laid plans were shattered by other tiger-eyed big capitals. As soon as the market opened, the market sentiment for both stocks was maliciously dragged down by other capitals.

"Mr. Huang, I just want to help everyone earn a bit more money. Stock market changes cannot be controlled by anyone; yesterday's rise and today's fall are quite normal. In short, I promise everyone: those who lost today, I will later help you earn it back."

Huang BaiMing still wanted to say something, but Yexin stopped him. The more imminent the crisis, the less the team can afford chaos. She said to Zhuo Wenyuan: "Zhuo, just directly say what we should do to get through this crisis!"

Zhuo Wenyuan still held to his original opinion: "I suggest cutting losses, striving to offload both stocks we hold by tomorrow. Once the wind passes, we'll come back strong."

Huang BaiMing snorted coldly, thinking Zhuo Wenyuan had run out of tricks. So he didn't bother saving face and directly called Chen Yang.

"Chen, have you seen today's stock market situation? Can you help think of a solution?"

"Mr. Huang, don't worry, it's just a normal technical pullback. If you currently have no chance to offload, best to stand by and wait for a low point to replenish the position."