Short make a comeback! The first bearish in the early hours of this morning officially struck (229）！
The comeback of short-selling is inseparable from a negative impact, and the rumor is that "brokerages will liberalize DMA trading". DMA business (long and short income swap) is the manager through the broker's proprietary trading desk to increase leverage, the leverage is generally 2-4 times, the participants are brokerages and private equity. At present, the regulatory requirements for the DMA business of brokerages are gradually clarified, and some brokerages say that only institutional self-operated funds are allowed to operate, and the funds raised before will be gradually cleared, for the leverage ratio, if there are raised funds in the future, the leveraged products can only be leveraged by 2 times, and the leverage ratio of self-operated funds is unchanged at 4 times. Small-cap stocks directly related to the DMA business are back on the horizon**. The abnormal increase in trading volume on Wednesday is likely to be related to the resumption of DMA business.
Another factor on Wednesday is that after the continued surge, there is a need for a break in the market itself, especially the micro-cap index rose by more than 50%, accumulating a lucrative profit-taking order, and micro-cap stocks fell the hardest on Wednesday, with their indices falling 994%。Wednesday does not mean the end of the market, but only the reversal of the profit-taking digestion, after all, the various efforts before the Spring Festival cannot be ruined.
The comeback of shorting should not be underestimated! It's not as simple as we seem! "China's quantification, which is always full, is the backbone of the big A. Cai Meijie, chairman of Ningbo Lingjun, wrote a paragraph in August 2023 to defend quantification, feeling that China's quantification has endured too much unwarranted malice, saying that quantification is pure ignorance, either stupid or bad. Is it really a ridge beam? At the beginning of the Year of the Dragon in 2024, Lingjun was arrested, presenting a very intuitive reality, their full position is to short the national team, how bold is Lingjun?
On February 19, the real first trading day of the Year of the Dragon, the market was expecting A-shares to continue the rally of the previous year, because January fell too hard, and many products were liquidated. However, within 1 minute of the opening of Lingjun, a number of its ** accounts automatically generated trading instructions through computer programs, concentrated on a large number of orders, and sold 119.5 billion yuan, ** sold 137.2 billion yuan, for a daily turnover of trillions of A-shares, Lingjun's sale is a dime, but the two major exchanges are quite angry.
Wednesday** is nothing more than a huge shock shuffle correction caused by the upward rush hitting the downward 30-week line. Today** will be supported by the 10-day line, and then rise again to return to the vicinity of the 5-day line, waiting for an opportunity to fight the 3,000-point mark again.
Looking forward to today, excluding the impact of sudden major news, the main operating range is 2950-2985 points, the limit operating range is 2935-3000 points, and the maximum amplitude is 65 points. It is expected that today's ** inertia low opening probability is large, and then by the upward 10-day line support and rebound again, the final shrinkage K yang line for the coffin in February.
Recently, I have repeatedly reminded that the risk of strong **end** of small and medium-cap stocks has been fulfilled, or that sentence: these strong ** small and medium-cap stocks have never seen the real bottom, after this strong **, the next 2 years will continue to fall, many ** will have a decline of 70% or even more than 80%, of which hundreds need to be delisted.