February 6, Red Tuesday, Shanghai and Shenzhen Stock Exchange**.
In fact, the market sentiment was still very sluggish at the opening of the market on February 6, and small-cap stocks quickly fell, and Huijin announced: "Fully recognize the value of the current A** market allocation, and have recently expanded the scope of exchange-traded open-ended index ** (ETF) holdings, and will continue to increase the intensity and scale of holdings, and resolutely maintain the smooth operation of the capital market." ”
Traditional protected ETFs, four CSI 300 ETFs continue to receive funding**.
On the previous trading day, the CSI 500 ETF, CSI 1000 ETF, ChiNext ETF, and STAR 50 ETF also received funds on the second trading day**.
Except for the CSI 2000 and micro-cap stocks, the others** began to warm up at noon.
In the afternoon, as soon as the market opened, billions of funds from the north poured in, the main protective ETFs rose, the overall market soared, and even small-cap stocks opened the fall limit. Many** down limit on the previous trading day, and up limit on the next trading day.
The CSI 1000 stock index** and the CSI 500 stock index** were once close to the daily limit, the IM basis was once close to zero, and the IC basis fluctuated by positive and negative decimal values, which was breathtaking. In the time period when the disk protection funds have not been large-scale, the market has not fallen, which is a new phenomenon.
*There's nothing to say, let's go back to strategy.
Recently, small-cap stocks have been disorderly**, and as investors focused on "dilemma reversal", we are also busy picking up leaks at the low level.
Why dare to buy them near the down limit?
First of all, the direction of participation is long-term tracking, understanding;
Secondly, some subdivision leaders fell to 10 to 15 times the price-earnings ratio and 3%-5% dividend yield, and the growth was acceptable;
Finally, these high-quality**, because quantitative indiscriminate selling leads to liquidity risk, rather than a problem with the company's fundamentals, and we understand the cause and effect.
What we are gambling with is not the ** of chips, but the long-term value of the company is lower than **. Of course, this is not a recommendation for small-cap stocks, and we know that most small companies have a near-zero equity value.
With the recent sharp decline, investors should have noticed that the market ecology has changed dramatically. In the past, it was believed that market makers, large investors, institutions, and insiders were the main factors affecting the market trend; Now, it's snowballing, finger increase, and DMA. Money and information become programs and financial engineering.
Even if it is a big household, a cow scatter, or a dealer, they are also people, and when they face a big fall, they may not be able to cut the meat with their hands, and they may want to save themselves. But quantitative and financial engineering are different, they are emotionless, and the signal is that the machine sells without emotion. Investing is getting harder and harder. How can ordinary investors defeat the machine, I think quantification is fast to the extreme, we need to be slow to the extreme to have a chance; Compared with the speed of programs and AI, there is no future.