With leverage, institutions or large investors that allocate funds, and small retail investors all released concentrated selling pressure, the market index simply couldn't hold it back, and it immediately staged a flash crash-style dive.
None of them want to be locked up in a dark room for a year, and they are also afraid that they will receive a one-year gift package from the dark room, so they dare not take any chances.
After the NSE 50 index fell below 5,500 points, the 5,400 point mark was not taken over, and it was easily broken through directly, and it was still testing downwards, and then the 5,300 point point was also broken down.
Ever since the news flash pop-up window came out, the entire market has been in a unilateral downward trend without even a counterattack, swallowing up all the gains since April, and even more than half of the gains in March.
The Shanghai and Shenzhen stock markets next door also followed suit. When the New Securities 50 Index dropped hugely, it was impossible for the two markets next door to stay away from the incident.
Moreover, there are leveraged funds and over-the-counter capital allocation in the Shanghai and Shenzhen stock markets, which makes these people panic.
At this moment, the whole market is going on a panic stampede to flee. Those who are leveraged are frantically cashing out and deleveraging. Profit-taking funds are rushing to flee regardless of the cost. People who added positions or chased prices in the early trading also see the trend of the entire market leaking wildly.
I was stunned in Bengbu and regretted slapping my thigh.
The major stock forums and communication groups are in a state of flux at the moment.
[As soon as I got in the car, I just ate noodles!]
[Run quickly——!]
[I added positions in the morning to see a new high, but now everyone is stupid.]
[Turn off the lights and eat noodles...]
[Well, April was in vain and I lost 2 points. Today, the big negative line fell. It is basically no suspense to confirm that the 5554.06 point on April 8 is the top of this market.]
[Since the day before the surge on February 25, the management has been emphasizing not to use leverage or allocate funds, but some people just don’t listen. Even if the stabilization fund sells 1 trillion yuan, it can’t stop it, so it keeps going all the way...
(face covering/jpg)]
[The market soared from 4194.73 points at the beginning of the year to 5554.06, an increase of more than 1350 points, and a cumulative increase of 32.4%. It is indeed a crazy increase.]
[I remember that there are a few veterans in our group who are involved in over-the-counter capital allocation, and there is also one who borrows money from a certain treasure to add positions...]
[Made, it’s so exciting, it’s already out (laughing and crying.jpg). This retracement cost me 25 points, and I almost lost my principal. I will pay back the money tomorrow and never use leverage again. Damn, it’s white.
Playing, luckily I kept an eye on the board today, otherwise I would have lost my rhythm!]
[You are lucky. You have a profit margin, but it is a retracement. You have escaped a disaster. Those who chase the high today will be miserable, and it will be even more miserable if they are leveraged.]
[Others are afraid that I am greedy, so I want to enter the market and buy the bottom...]
[Take it easy.]
[Anyway, I didn’t add leverage, I’ll build a bottom position first.]
…
As of the close, the three major A-share indexes all fell and ended.
The SGX 50 Index plummeted -4.73%, the largest one-day decline in the past two and a half years, closing at 5277.28 points after the bell. The SGX market turnover increased significantly to 1,235.3 billion; the Shanghai Stock Exchange Index plummeted -1.70%, to 3215.04 points.
The turnover was 359.2 billion; the Shenzhen Component Index fell sharply -1.86% to 10224.31 points, with a turnover of 445.1 billion.
The total transaction volume of the three major markets was 2,039.6 billion.
The SGX market showed a general downward trend today, with more than 1,600 stocks only having more than 80 red stocks, of which as many as 137 stocks fell to their limit.
Funds from all walks of life have basically confirmed that a real major adjustment is coming. This super-large negative line has poured down, and it has been established that 5554.06 points is the stage high point of the New Securities 50 Index. It is impossible to break through in the short term. The first half of this year is
No need to think about it.
It is obvious that the management pulled out four unlucky people to sacrifice, and it has become intolerable to off-market capital allocation and leveraged funds.
If the funds in the market are leveraged and are not dealt with, these four unlucky guys will learn from the past. The leveraged funds and capital allocation in the market are very sensible, and they will not dare to hard-cap, but will deleverage and allocate their own dignity.
Because you don’t want to lose face, someone will help you face it later. The market prohibition package is a more powerful deterrent to big funds. Big funds would rather be fined than enter a dark room.
What is certain is that today's big negative line decline is just the beginning, and the reason is very simple. It is impossible for all the leveraged funds and allocations on the market to be sold out today. This is something most people know.
It is unlikely that too many funds will enter the market before the liquidation of leveraged funds is completed, and leveraged funds will not dare to leave under the shock of being banned from entering the market. It is inevitable that the market will continue to decline.
The market plummeted today, and the reason is pretty straightforward.
It was the SGX management's heavy attack on over-the-counter capital allocation and leveraged funds, and many people who were chasing highs suffered a big loss in early trading.
However, after the market closed, judging from the discussions in major stock forums and communication groups, almost no one criticized the management of SGX for crashing the market. Even those who had taken advantage of it, most of them pinched their noses and admitted it.
Too bad, in the past, I would have been scolded in all kinds of ways.
The reason why no one pointed the finger at the SGX management for the market crash was because most of the people who took advantage of the big losses in this wave knew in their hearts that they were not innocent, and many small traders secretly traded on the exchange.
Without leverage, even borrowing money to lengthen the SGX 50 ETF, let alone having the authority to speculate in SGX stocks.
Moreover, starting from February 22nd, the management of SGX repeatedly issued orders not to use leverage, not to use capital allocation, to invest normally, and not to bring illegal funds into the market. The wording became more and more severe each time, and stabilization funds all released trillions of dollars of selling.
pressure.
But not many people listened.
In the final analysis, they are still greedy and want to achieve financial freedom by getting rich in a big bull market, and then they can always be rich and popular without working in this life.
The management of SGX repeatedly issued orders, but most people took a chance and thought that it would be fine if they added a little leverage to make more money. They didn't copy to the bottom and didn't make much, so what happened to adding a little leverage?
The problem is that there are not a few people who think this way. There are almost as many people with similar thoughts as there are empty funds, and the reflection on the entire market is a very large volume. They know that it is not good to increase leverage and allocate funds, and they also know that
It is right for the management to strictly crack down on the allocation of leveraged funds, but everyone has their own little selfishness.
Now that the profits have been made in vain, there is no reason to scold the management of SGX. After all, there is nothing wrong with what the management did, and the lessons learned from the wave of 2015 are still there.
If we really wait until the NSE 50 index is pushed all the way to 10,000 points by leveraged funds and OTC funds before deleveraging and triggering a market collapse, it will inevitably be another epic disaster, and it will be even more serious than the one in 2015.
.
In the next five trading days, the NSE 50 Index shrank and fell continuously. Counting the negative line on April 22, it fell for six consecutive days.
In these five trading days, they fell by -1.24%, -0.48%, -0.97%, -0.82% and -0.62% respectively. The NSE 50 Index also fell back to 5062.98 points, and the latest daily turnover also shrank to more than 7,000.
100 million.
The cumulative correction in six trading days fell by -8.84%, and this continuous decline also filled the gap created on February 25.
This market correction was expected by most people. The unexpected thing is that the decline in these five days was less than what most people expected. When the big negative line exploded on April 22,
Everyone thought it would start with another 3 percentage points the next day, but it only fell by -1.24%.
It was not until the close of the next day that I understood why the sales did not continue. It turned out that the SGX Trillion Stabilization Fund took action to support the market. Public data showed that it took in a huge amount of 130 billion that day. If there was no stabilization fund, the abnormal situation would definitely continue.
