After dinner, Su Yi watched TV with his parents for a while.
Then, he returned to his room to browse weekend market news and information, and to formulate his trading plan for tomorrow and beyond.
Among his review of domestic and international news.
One piece of news quickly caught his attention.
The news reported that due to recent weather, Chile's Atacama region in the north experienced severe continuous rainfall and floods, causing a certain degree of disruption to transportation.
On the surface, this was just a common piece of foreign disaster news.
However, once Su Yi had focused his attention on the 'new energy industry' sector, especially 'lithium batteries', he became particularly sensitive to this news.
Because he knew that the Atacama region in northern Chile is the world's largest brine lithium extraction region.
Severe flood disasters, in addition to disrupting transportation, also increase the difficulty of enriching brine lithium extraction, thereby hindering lithium production in this region.
As the world's largest brine lithium extraction region.
Global lithium giant SQM has a lithium carbonate production plant with a capacity of over 35,000 tons built here.
In addition to SQM, another major lithium giant, Albemarle's Rockwood, also has a lithium carbonate production plant with a capacity of over 25,000 tons here.
If the production of these two major lithium giants in this region is affected.
Then, Su Yi estimated that the entire upstream raw material end of 'lithium batteries' would soon experience a severe supply-demand gap.
At that time, coupled with policy inclination, the further maturation of power battery technology, the continuous breakthroughs in new energy vehicle sales, and the increased demand from the 3C battery industry and energy storage sector, he predicted that this supply-demand gap would very likely rapidly widen, pushing raw material prices to skyrocket.
"It seems the opportune wind for 'lithium batteries' has finally arrived!"
Su Yi gazed at the news, his eyes gradually sharpening, and he already had a clear plan for tomorrow's operations.
As he was forming his post-market analysis plans.
The market's bullish sentiment was also continuously fermenting.
This led to the major indices opening significantly higher across the board when the two markets opened the next day.
And the stocks Su Yi was closely watching – 'Tianqi Lithium', 'Ganfeng Lithium', 'Do-Fluoride', 'Tinci Materials' – also showed a significant gap-up rally amid the indices' overall strong opening.
Facing the significant gap-up in his target stocks, Su Yi was not in a hurry to establish positions and grab shares.
Because he knew that the index's chip structure adjustment at the bottom was not complete, and it fundamentally lacked the momentum for a strong, sustained upward breakthrough.
As expected, as he continued to wait.
After the two markets officially opened, the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index surged for less than 5 minutes before quickly diving lower.
Among them, whether it was the target stocks Su Yi was watching.
Or the military industry concept stocks, sub-new stocks concept stocks, and internet finance concept stocks that had been hyped as core market hotspots during the preceding period, all of them exhibited a gap-up opening followed by a dive, and many related concept stocks had already erased their opening gains, falling into negative territory, showing a 'green' (loss) status.
Even sectors like securities in the 'big finance' main theme.
Amidst the current market volatility and pullback, they were like they had been hit by some major potential negative news, plunging wildly and falling sharply.
"Why is the securities sector performing so weakly?"
While observing the trends of several target stocks, Su Yi noticed the abnormal performance of the securities sector and couldn't help but frown.
The trend of the entire market requires the resonance of sentiment and capital to form.
Although the 'securities' line is not the core hotspot of the current market, a collective sell-off and widespread collapse of such a heavyweight sector will still quickly affect the sentiment of the entire market and attract concentrated follow-on selling from potential sellers.
At the same time, it will also lead to widespread speculation among market investors about potential major negative news.
At 10 AM, amidst intense trading in the two markets.
Burdened by the concentrated, high-volume sell-off in the 'securities' sector, the banking and insurance sectors within the 'big finance' main theme, as well as core concept themes like 'internet finance', 'securities finance holdings', 'state-owned enterprise reform', and 'national defense military industry', all experienced rapid dives, with market hotspots completely wiped out across the board.
At 10:20 AM, the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index all registered intraday declines of over 1.5%.
At the same time.
Due to the approaching expiry date for stock index futures.
The CSI 500 Index Futures main contract, CSI 300 Index Futures main contract, and A50 Index Futures main contract all experienced extremely intense long-short trading and market fluctuations.
Among them, the 'CSI 500 Index Futures main contract' at this moment broke through the intraday low set just over ten minutes earlier, pushing its intraday decline directly to 3.5%, significantly weaker than the index's trend.
At 10:30 AM, as the two markets continued their inexplicable decline, bullish market sentiment began to collapse across the board.
Meanwhile, some negative rumors also began to circulate in the market.
"What's going on? This plunge is a bit ridiculous!"
Sensing a new liquidity crisis in the market, 'Old Zhang' from 'Xinzha Road', a member of the 'Modu Ultra-Short Group' main speculative capital internal chat where Su Yi was, asked with some confusion.
"I heard they're going to completely clear out leveraged financing in the market,"
Said 'Brother Chen' from 'Xinyue Road'.
'Old Zhang' from 'Xinzha Road' wondered,
"Weren't they already cleared before? What's going on? Does the regulatory body not want the market to recover at all? Damn it... just got out of the ICU, haven't even caught my breath, and now I've been hit hard in the face again. Looks like... I'll have to go back to the ICU."
"No need to look..."
Said 'Old Wu' from 'Yintai Road',
"My holdings are already in the ICU."
"All market hotspots are gone, it's really exaggerated,"
Xu Qiao also sighed helplessly at this moment.
"Military industry, sub-new stocks, internet finance, 4G, Industry 4.0, securities finance holdings, reverse mergers... all dead,"
Said 'Old Zhang' from 'Xinzha Road',
"With this trend, the market is going to be cold today!"
"Is Brother Su still resting now?"
'Old Wu' from 'Yintai Road' lamented helplessly,
"Ever since Brother Su rested, I haven't made any money these past few days, it's really uncanny."
Xu Qiao said,
"He should still be resting, haven't seen Brother Su's name on the Dragon and Tiger List recently either."
As he spoke, Xu Qiao started to tag Su Yi in the group.
Su Yi saw the message and replied,
"I was just planning to open a position this morning, didn't expect it to collapse like this."
"Which line is Brother Su planning to open a position in?"
Xu Qiao asked tentatively.
"Whichever line can truly drive sentiment, that's the one I'll go with,"
Su Yi said.
"Currently, it seems 'state-owned enterprise reform' is still the main concept theme with a bit of resistance on the market."
The 'lithium battery' line that he intended to heavily invest in.
Before completing his position building and before the entire main theme trend emerged, he would not easily share his logic or call on others to follow and enter the market.
After all, this could easily disrupt his position-building plan.
He would only occasionally share his logic and views on core hotspots like 'state-owned enterprise reform' that can accommodate huge capital volumes and consistently attract the attention of major market funds.
Because for such core hotspots, liquidity is relatively abundant.
Even if he shared his logic and views, his position-building plan would not be affected by others following suit.
On the contrary, the gathering of follow-on buying would be even more conducive to the trend he desired to emerge.
"'State-owned enterprise reform' as a main concept theme?"
Xu Qiao pondered for a moment and said,
"The market is a mess; although this line shows resistance, it should be difficult for it to remain unscathed, right?"
"'Teli A', that 'monster stock' Brother Su previously led, is quite tenacious today!"
Said 'Old Zhang' from 'Xinzha Road'.
"The broader market is down almost 3 percentage points, but this stock can still maintain a gain of over 5 percentage points."
"Unless it hits the daily limit, it's useless,"
Said 'Old Wu' from 'Yintai Road'.
"But at this time... who dares to go against the trend to lock it in? Moreover, this stock has already halved rapidly from its peak, and the trapped selling above is still very heavy. Once the initial surge to the limit fails to coalesce sentiment and capital synergy, then it's all over; it's sure to be buried by massive trapped selling."
"An expired leader is worse than a dog; 'Teli A' should not be able to have another rally, right?"
Xu Qiao said.
"At best, it's the trapped main funds from the previous period saving themselves; a rebound would already be good."
"You can't say that..."
Su Yi said,
"Retail investors' memories can sometimes be very stubborn. As long as expectations can be met and sentiment coalesced, nothing is impossible."
"Brother Su wouldn't still want to trade this stock, would he?"
Xu Qiao heard Su Yi's words and said, slightly surprised.
He couldn't see any further potential in this stock.
Similarly, others in the group also couldn't see any further potential in this stock and didn't quite agree with Su Yi's logic.
"It's not impossible!"
Su Yi replied with a smile.
Then, without waiting for a reaction from the others, he threw a 20 million yuan main buy order onto 'Teli A', which was struggling to hold on and was noticeably independent of the broader market trend of the two cities.
Su Yi didn't know who was currently propping up 'Teli A's stock price.
But combining his historical memory with the current market pattern and trend, he could clearly see that 'Teli A' still held market attention, and that it remained the core leader of the entire 'state-owned enterprise reform' concept theme.
Within the 'state-owned enterprise reform' concept theme, it can still gather sentiment and capital.
While still being a core market hotspot.
As long as he could dominate 'Teli A's trading, creating a strong money-making effect.
Su Yi believed that this 'monster stock', which had achieved the highest speculation space and strongest money-making effect during two rounds of stock market crashes, could still make a king's return, coalesce market capital, and reach new heights.
When 20 million yuan in main buying capital rapidly poured into the market.
'Teli A's stock price surged straight from a gain of 5.13% to a gain of 9.19%.
"Oh... the selling pressure here is much lighter than I expected!"
Noticing that his 20 million yuan had almost pushed 'Teli A's stock price to the daily limit, Su Yi was slightly surprised.
However, he then pondered for a moment.
But he also understood why the selling pressure on 'Teli A' at this moment was so much lighter than expected.
Because after the devastation of the second stock market crash, the funds that had taken on 'Teli A's shares at the 40-50 price range were already trapped at the peak.
And after a period of continuous bottom-consolidation with shrinking volume, funds willing to cut losses had naturally exited.
Now, 'Teli A's stock price is still roughly double the space distance from the 40-50 peak price range of the last hype cycle.
In other words, at this level, aside from the stop-loss selling, the chips are essentially in a vacuum.
After all, during the stock market crash, this stock plummeted with consecutive daily limits due to a lack of liquidity, and the massive amount of shares taken on at the peak had barely undergone any significant turnover.
And in stock trading.
He knew that as a group, retail investors shared a psychological inertia.
That is, when they are only slightly trapped or losses are not significant, they can often cut their losses in time.
But if they are deeply trapped, with losses exceeding half or even more, their choice is often not to cut losses, but to hold onto their positions, lie flat, and play dead.
This is why 'Teli A'.
Despite the extremely heavy trapped selling internally, the selling pressure on the market at this time was paradoxically very light.
After understanding this point.
Su Yi unhesitatingly continued to invest capital and attack 'Teli A's trading.
1,000 lots, 2,000 lots, 5,000 lots...
After continuously buying 10,000 lots, he had pushed 'Teli A's stock price against the trend to the daily limit.
(End of chapter)
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