Chapter 241 Manipulating Market Sentiment
On Thursday, August 8, the Bluetooth speaker was broadcasting the latest morning financial news of the day.

Xie Jingxing wiped the sweat from his forehead, took off his running shoes and sportswear, took a quick shower for three to five minutes, changed into casual formal clothes, and passed by a restaurant and picked up two eggs and a pie.

"Jingxing, there's porridge cooking in the pot. I'll serve it out right away."

"No, you're busy. Eating too much in the morning will make you sleepy."

Xie Jingxing said hello to Aunt Fangfang, and ate his eggs and pie in a hurry while standing in front of the water bar. He also had a fresh cup of coffee, which he filled with ice cubes, shook evenly, and drank in one gulp. He then made another cup of black coffee with ice and put it into a thermos.

I picked out a pair of car keys that matched my clothes from the entrance, went out, got into the car and looked in the rearview mirror: "As expected of me, the most beautiful kid in the Magic City."

I put on flashy sunglasses and stepped on the accelerator. The royal blue BMW M8 sped out. The leather smell in the car was a bit strong. I lowered the window while waiting for the traffic light. I turned my head inadvertently and met the eyes of a beautiful girl with a good figure and long hair in the next lane.

He immediately showed a charming and handsome smile that could not be found even on Baidu, and the beautiful girl raised her mobile phone without saying a word to show the WeChat QR code.

Ahem, recently the shantytown renovation policy was issued and the Lujiazui commercial center is expanding southwards. There is construction dust everywhere.

Roll up the car window and slip away.

We arrived at the Grapefruit Capital office feeling refreshed. Zhan Yunping and his team of three were gathered together to freely discuss the day's market analysis.

"Good morning, Airibatti. Let's have a meeting. Today, we continue to clear our positions and buy Meidu Special Steel. We have listed three stocks, namely, Dongfang Fortune, Tonghuashun and Beisheng Pharmaceutical, as key follow-up targets. The Internet, combined with the concepts of non-bank finance and mergers and acquisitions, will become a horizontal segmentation hotspot extended from the financial reform of the 'New Nine Articles' as the market enters a platform period."

After a few days of warming up, Xie Jingxing switched states smoothly and perfectly adapted to the work rhythm of the secondary market.

Meidu Special Steel is undoubtedly the next focus, but a position of up to 5 billion requires alternative investment plans and strict operating disciplines.

After a 30-minute morning meeting and reaching a consensus, Xie Jingxing drank up the iced coffee in the thermos and went to the toilet to take a big dump.

As for the effect of coffee in refreshing you, it is another matter. However, it is very effective in clearing the stomach and intestines and detoxifying. Everyone who has used it says it is good.

After returning to the office and sitting down, Zhan Yunping and his team of two went to the trading room. At 9:15, the market entered the 'call auction' stage.

The Shanghai Stock Exchange main board performed flatly. The stock of Coal City Special Steel opened higher, with large buy orders of 2000/3000 lots lined up. Five minutes later, at the last few seconds of 9:20, the buy orders disappeared.

Sporadic buying orders of several or dozens of shares by retail investors automatically queued up for execution, and the intraday chart of individual stocks slowly turned downward.

This method of taking advantage of high-frequency order cancellations during the call auction phase to create a false upward trend and manipulate market sentiment is not uncommon, but retail investors always live up to the name of "leeks" and never learn their lesson after being fooled a thousand times.

Xie Jingxing looked at the market dynamics and a thought flashed through his mind. What should he do with the early profit-taking? Although the price went up and the orders were withdrawn, there were no large sell orders. Did he want to sell at a sideways price and leave?
In a short while, the time-sharing chart fell to the underwater opening, and the low-level oscillation increased in volume. The sell orders at the price of 5 accumulated to 7000 lots.

Sporadic small buy orders appeared on the computer screen one after another, offsetting the sell orders and disappearing. Every time they jumped to the sell price of 5, they disappeared into thin air. One could only see the number of sell orders decreasing and increasing.

The buy orders were like stones thrown into deep water, no trace of them was seen after all the orders were taken. The share price of Meidu Special Steel remained volatile underwater throughout the morning, closing at -2.3% at noon.

The market value of the 10,000 positions purchased yesterday turned green and the floating loss increased, but Xie Jingxing did not issue any operation instructions.

“It looks a bit like a wash.”

"Well, the turnover rate was stable in the morning, and the volume release was slightly lower."

"Why don't you run or fight?"

During the lunch break, Zhan Yunping and his two companions filed out of the trading room, while Ji Zhiqiang stretched lazily and complained.

"In the past month, the price of Coal City Special Steel has increased by more than 100%. There are a lot of profit-taking orders in the early stage. It is normal to consolidate and ship according to the technical conditions."

Xie Jingxing calmly analyzed: "But we made a statement yesterday. If the main funds in the early stage want to continue playing, ideally they will quickly sell some of their chips to wash out the profits of the retail investors in the early stage."

"In other words, they will dump the market in the afternoon? If they want to sell out, the market will still fluctuate underwater in the afternoon." Wan Xue thought quickly and followed the train of thought.

Xie Jingxing shrugged: "If I were them, I would do the same, so we absorb the stock in the afternoon to increase the turnover rate."

Zhan Yunping and Ji Zhiqiang looked at each other in bewilderment. The call auction in the morning was a false alarm, and the market was quickly dumped in the afternoon. The retail investors who made money in the early stage will run away like frightened rabbits.

The purpose of washing the market can indeed be achieved, but doing so is too damaging to morale, and it will consume a lot of funds to push the market up in the later stage.

Market sentiment is a very important indicator in short-term trading. After all, compared with the European and American financial markets where professional institutions are the absolute main players, there are a large number of non-professional retail investors in the domestic market.

When a stock experiences large fluctuations in price, it is difficult to make rational decisions.

Therefore, whether it is the operation of the main funds in the Meidu Special Steel check in the morning, or the accumulation of funds in the afternoon to increase the turnover rate as mentioned by Xie Jingxing, they are all manipulating market sentiment.

There are nearly 3,000 stocks in the two markets, more than half of which are junk. The daily trading volume is sluggish and there is no liquidity, so naturally no one is willing to buy them.

On the contrary, if the opponent accumulates funds and maintains a high turnover rate, the liquidity of individual stocks is positive and good, and it seems that there is "buying momentum".

After a few simple chats, they stopped talking as soon as they walked out of the office. Instead, they started to attack the restaurant downstairs for increasing the price of a simple meal of braised pork with rice by two yuan. Obviously, the price of pork in the vegetable market has been reduced by fifty cents recently...

Secondary market practitioners have always been like this. Billions of dollars in the market are empty numbers that cannot bring out a single word of the work environment. Back to reality, the price-increased braised pork rice bowl is very satisfying to eat, and it would be perfect if you add a cup of milk tea.

The huge sense of contrast tests one's ability to withstand pressure, or in other words, one has to fight against human instincts, fear, greed, loneliness... Doubt and self-doubt run through the entire transaction.

It requires a good mentality and self-regulation ability. Xie Jingxing enjoys this feeling. Today, Mr. Xie is treating us, not only milk tea but also ice cream!

Wan Xue sipped her milk tea and watched Ji Zhiqiang eat ice cream in big mouthfuls. She secretly pulled out a digital scale from under her workstation and smiled with a pair of small canine teeth to comfort herself: "It's okay to eat a little on an indulgence day."

Zhan Yunping lay down in his office chair and lazily patted his stomach. The free braised pork was delicious. It was a pity that the lunch he brought from home was wasted. After get off work, he went to buy an ice cream and brought it home for his girlfriend to try. She worked hard to cook every day.

The trio rested and gathered their strength while waiting for the opening. Xie Jingxing opened a bottle of bourbon whiskey in his independent office and had a sip.

In the blink of an eye, the afternoon trading opened, and the intraday chart of the Coal City Special Steel stock continued to fluctuate underwater, with a lukewarm trend and shrinking volume.

At half past one, Xie Jingxing picked up the phone and said, "Buy 10,000 lots at a low price."

"Ten thousand hands."

Zhan Yunping repeated and confirmed to Wan Xue that unlike yesterday's purchase at the daily limit, a normal low-buy position building instruction would not have a specific purchase price.

Their job is to break down 10,000 lots into small buy orders, to prevent large buy orders from pushing up the stock price, and to absorb shares at the lowest possible price.

17.96 lots were bought at 600, and 17.94 lots were bought at 200. Buying orders were executed piecemeal in seconds, and turnover rate and volume were quietly released, showing an upward trend in the time-sharing chart. Then the selling orders increased, and a large amount of pressure orders appeared at the selling price of 5, and the trend turned downward.

Zhan Yunping sensitively lowered the price of the unit. He suddenly said, "17.5 cents, I'm stopping."

"Wait a minute, I still have 800 lots left, buy in at the end of the trading day."

Wan Xue frowned as well. The two of them bought the 10,000-lot split order separately. Each had their own freedom. They just had to complete the investment manager's instructions on time.

As for who has a higher purchase cost and who has a lower purchase cost, it depends on personal performance evaluation.

17.4毛3001手，17.4毛3001手，17.4毛3001手，卖盘瞬间爆量出现三笔一模一样的巨额单量。

The intraday chart dropped violently, the dark green drop of -8.9% is very eye-catching, a fierce market crash is coming!
Sporadic sell orders appeared and then became more and more numerous. Frightened retail investors sold their orders like a flock of sheep being driven, until the stock price hit the limit down, and a huge amount of sell orders piled up at the limit down.

"Buy in, take as much as you can, and be careful not to break the price limit."

The landline rang with Xie Jingxing's vague instructions. Wan Xue looked at Zhan Yunping, and they both raised their eyebrows helplessly.

The main funds in the early stage were very considerate, and this time they smashed the market violently and washed out a large number of chips.

As of the closing, including the 3.8 lots opened yesterday, the Zhan Yunping trio had accumulated a total of 17.71 lots, with an average holding price of 6730, a holding market value of 316 million, and a floating loss of million, which almost broke the limit down.

"It's Xihua Securities' Beijing Tianshan Road Sales Department. Whose seat is this?"

After the closing meeting and review, Xie Jingxing found the source of the previous main funds on the "Dragon and Tiger List".

At the same time, in a trading room far away in Beijing, someone was also asking: "Whose seat is the Juntai Modu Huaihai South Road Sales Department?"

"I don't know. It seems to have just emerged recently?"

"Check it out. The operation method is quite gentle, unlike those famous speculators."

"I remember they seem to have more than one seat. They will definitely start raising funds tomorrow. We'll look at other seats then. It feels like a private placement."

The conversation was brief and a few heads gathered together to discuss tomorrow's trading strategy.

The official website of the exchange and several stock trading software will count the stocks with excessive daily gains or losses, which means that a large amount of funds are sold or bought.

Well-known hot money investors all have fixed trading seats that they often use, such as the Yuezhou branch of Galaxy Securities owned by top hot money investor Zhao Qiang, the Lazarus branch where retail investors gather together, and Grapefruit Capital's seat at the Huaihai South Road branch of Juntai Securities.

Public funds, private funds, pension insurance funds, etc. are institutional seats, and there are also special seats such as the Shanghai-Hong Kong Stock Connect.

These well-known special seats are often active on the market's dragon and tiger list, and can be used to identify the seats, thus showing the so-called market appeal.

If a pension fund's dedicated seat buys a large amount of a certain stock and it is listed on the Dragon and Tiger list, then retail investors know that this check is relatively safe; if a certain stock that is notorious for short-term speculation and profiteering is listed on the Dragon and Tiger list, retail investors should be careful.

…………

"I see Luo Yonghao is going to have a live debate. Can I contact him?"

After finishing the review and dealing with the various tasks at hand, Xie Jingxing called Song Anli.

Earlier this month, mobile phone review self-media Wang Ziru harshly criticized the various problems of Luo Yonghao's Hammer phone. Then one night, a review website under his name suddenly appeared and registered more than 3,000 accounts in batches.

It gave low scores to the Hammer phone, while giving full marks to the Xiaomi phone, and also messed up the ratings of Apple and other phones.

Many of Luo's fans were angry and cursed. Wang Ziru stood up to explain that he was innocent and had already resorted to legal procedures to resolve the issue. He also sarcastically implied that it was the Hammer fans who maliciously attacked and smeared him.

There are also messengers of justice who are trying to take advantage of the situation and accuse Wang Ziru of taking money from Xiaomi to discredit Hammer. Otherwise, how do they explain the manipulation of Apple's ratings?

After the public war of words lasted for several days, Luo Yonghao made a loud and brilliant appearance and invited Wang Ziru to the Youku platform to live broadcast the confrontation. The two agreed to meet on the 22nd of this month.

The impact of this quarrel was widespread. It was recorded in history that Luo Yonghao fought against Wang Ziru, and the number of people online for the live broadcast was nearly one million. It was one of the nodes that completely pushed mobile phone technology to the forefront and made people brag about it.

At one point, there were golden quotes like being kept by someone and talking about independent personality. Ten years later, Wang Ziru joined Gree Group. He claimed that he never looked at his salary slip and felt warm in his heart when he could listen to Ms. Dong Mingzhu's teachings every day.

Xie Jingxing has some respect for Gree Tiger Cao Dahua, who is comparable to the Tiger of the Serious Crime Unit. He will definitely have to see him up close if he has the chance.

…………

Interspersed with daily trivialities, Friday, August 8, the last trading day of the week soon arrived.

It still opened high and closed low. Xihua Tianshan Road Sales Department sold some of its profitable chips, and Xie Jingxing bought them all, maintaining some kind of subtle tacit cooperation and shock washing. The technical trend showed a sideways consolidation state, and the volume increased and closed higher at the end of the day.

As of the closing of the day, a total of 12 lots were held through Juntai Huaihai South Road Sales Department, Juntai Headquarters, and three seats dedicated to institutions, with a market value of 2.08 million yuan and an average price of 17.37 cents.

"The efficiency of absorbing funds is too low. We have to speed up next week." Xie Jingxing was not very satisfied with the closing meeting again.

Zhan Yunping expressed his opinion: "Today, in order to maintain high turnover liquidity and wide-range shock washing effect, we always keep the accumulation of funds in a certain price range, which is a bit slow."

"Then let's try another approach and use the method of absorbing chips to drive up the price. We need to acquire at least 10 billion yuan in chips next week, otherwise this short-term trend will be meaningless." Xie Jingxing made the decision.

With yesterday's accurate prediction as a foundation, Zhan Yunping and the other two had no choice but to believe it.

Using the accumulation of funds to drive up prices is also a characteristic of hot money operations, which includes many unclear specific operating methods, which can be simply summarized as a large-scale turnover of chips.

As stock prices rise, the holding costs during the chip turnover process will inevitably increase. Therefore, even if a monster stock apparently rises tenfold, the rate of return for hot money may only be about five times.

Given their positions, there is really no profit to be made if they accumulate less than 1 billion yuan in the early stage.

But it is also worth being thankful for that, with a total of 10 billion in principal + 26 billion in floating profit + 20 billion in leveraged funds, the positions totaling more than 1 billion, and the leveraged funds matching is not achieved through a single account seat (Note ).

The three channel seats, namely, Xiyou’s own dedicated institutional seat for private equity license, Juntai’s trust sub-account group seat on Huaihai South Road, and the financing seat at Juntai’s headquarters, can avoid some transaction risks at the regulatory level.

Among the numerous penalty cases posted on the official websites of relevant regulatory authorities, there are countless examples of various trading methods using trading accounts.

After all, Xiyou is a legitimate licensed institution. With the amount of capital it has, it has the means to reasonably control compliance risks so as not to make things too ugly.

(End of this chapter)