The "Stock Market Dragon and Tiger List" is not unfamiliar to every stock investor, but there are not many people who pay attention to it every day, which ignores its value. In fact, the Dragon and Tiger List can serve as a benchmark for stock selection or a reference for buying and selling stocks. Now let's take a look at the Dragon and Tiger List.
1、 What is the Dragon and Tiger List? What are the rules for disclosing the Dragon and Tiger List?
The Dragon and Tiger List is a list of stocks that the exchange will comply with disclosure rules, and the top 5 trading funds of the branches will be announced.
The disclosure rules of Shanghai and Shenzhen are different. The Shanghai Stock Exchange generally discloses the top three stocks that meet the criteria, while the Shenzhen Stock Exchange discloses the top five. The number of disclosures in the Shenzhen stock market will be higher than in the Shanghai stock market. Generally, data for the Shenzhen stock market is released at 4:30 pm after the close, while data for the Shanghai stock market is released around 5:30 pm.
Disclosure rules:
(1) The deviation value of the rise and fall has reached 7%.
(2) The amplitude exceeds 15%.
(3) The cumulative increase or decrease within 3 days has reached 20%.
(4) The turnover rate reaches 20%.
The Shanghai Stock Exchange ranks among the top 3 in terms of meeting the criteria, while the Shenzhen Stock Exchange (SME board, Shenzhen main board, and ChiNext board) ranks among the top 5 each.
2、 How should we view the Dragon and Tiger List?
There are two types of seats in the names of the trading branches on the list, one is for institutional use and the other is for speculative capital.
Institutions (public and private): The institutional seats mainly include funds, securities firms, social security, insurance institutions, etc., and the unified name on the list is "Institution Exclusive". Institutions are the most important force in the capital market, especially public funds, which hold a large amount of capital. Due to the nature of institutional trading by the state, it is not allowed to engage in buying and selling opposite behaviors of the same stock on the same day. So the typical feature of a typical institution's disk is the interval pulse up attack, and the Dragon and Tiger List displays the institution uniformly.
Floating capital: generally refers to investors with a large amount of funds, sensitive to the market, and who make a living by investing in stocks. At the opening, we will conduct long-term tracking of market hot money and label strong hot money as first-line hot money. First tier speculative investors generally have the ability to explore, ignite, and guide emotions in individual stocks and sectors.
Overall, institutional buying tends to focus on fundamentals and medium - to long-term investments, while speculative positions often engage in quick in and quick out speculation. So the stocks bought by institutions in a concentrated manner have relatively stable chips, which is considered good news, while the stocks bought by speculative investors in a concentrated manner may have a fierce short-term rise, but there is no room for them to smash the market.
3、 How to use the Dragon and Tiger List for stock investment?
Pure speculative capital showdown (all trading seats are speculative capital)
1. The comparison of power between the buyer and the seller shows that the larger the total amount of the buyer, the better. The total funds of the top 5 buyer seats are much greater than those of the top 5 seller seats. And the cost of buying one should be much higher than the cost of selling one, preferably 1.5 times or more. The difference in the amount between buying one and buying two should not be too large, otherwise it may easily lead to one dominant company, and the future market means significant selling pressure.
2. If it is the first time reaching the limit up, in the trading data of the Dragon and Tiger List, the best buyer data is pure buying, indicating that the market will continue to rise after new funds enter. Also, after the first limit up, pay attention to whether buying a seat directly results in elimination, lock up, continue to increase and buy, or make a price difference? Usually, being directly eliminated represents a one-day tour of the market, and locking up positions indicates that the market is sustainable, waiting for other funds to relay and rise. Continuing to increase buying indicates strong optimism. Making a price difference indicates that the purchasing power is not strong enough. The major market trends of individual stocks are all completed by the relay of hot money, and it is not a single hot money that drives the development of the entire market. Therefore, usually after 2-3 limit up days, if you buy one and continue to lock up your position, other speculative funds will only wait and see, because the selling pressure caused by the large position is also significant. Only after being eliminated from the market, other speculative investors consider entering the market to relay the rally. So the turnover rate in the middle and early stages of the market is a very important reference indicator. The departure of one speculative investor will attract the entry of another speculative investor. Another situation is the hot money that rises and falls at the same time, with the limit up for the purpose of investing a small amount of capital to achieve the limit up effect, and the sustainability is not too strong.
3. Pay attention to the identity and trading style of speculative investors, whether they are well-known first tier investors or unknown ones? Have you been frequently listed recently? How is the trading style? Is it mainly for one-day tours, frequency bands, or enjoying dancing with institutions. Usually, the reputation of one-day investors is not very good, and being on the list will not have a driving effect on the market, but rather dampen the enthusiasm to go long. Wave band speculative funds are more popular.
4. Pay attention to the popularity of buyer seats on the Dragon and Tiger List data, the more well-known the better, and the more quantity the better. For example, the appearance of three or more famous speculative funds, such as Galaxy Shaoxing Road, Everbright Hangzhou Qingchun Road, Everbright Fenghua Nanshan Road, Caitong Wenling Donghui North Road, CITIC Hangzhou Yan'an Road, CITIC Hangzhou Ding'an Road, Huatai Yitian Road Rongchao Business Center, represents the high recognition of this stock by first-line speculative funds and its sustained strength in the future market.
Game between speculative capital and institutions:
1. The more institutions appear among the buyers, the better, and the larger the proportion of the institution's daily purchase amount to the total transaction amount, the better. The higher the concentration of one-time locked chips, the better. Because the fundamentals of individual stocks invested by multiple institutions are relatively good and meet the standards of market research and evaluation, it usually triggers a mid-level market trend! When hot money and institutions reach a consensus and work together to push up stock prices, the short-term explosive power is often strong, and the probability of continuing to rise in the future is also high.
2. It is best for the buyer to purchase one seat for the institution, and for the seller to have no institution among the five seats;
3. If both the buyer's seat and the seller's seat have institutions present, the fewer institutions present in the seller's 5 seats, the better, and the smaller the amount, the better. If the seller's institutional seats are comparable or even more than the buyer's institutional seats, it indicates that there are significant differences between institutions, and the short-term direction is uncertain. For the speculative capital seats in the transaction data, they will also give up and should wait and see for clarity.
4. When all 5 seats of the buyer are speculative capital, while all seats of the seller are institutions, it indicates that institutions have long had the idea of being eliminated. It may be due to a change in the fundamentals of the stock or other uncertainties that have led institutions to adjust their positions and exchange shares. In addition, this situation often occurs at the high end of stock price speculation, when institutions consider the risk to be high, they will group shipments, usually hitting the limit down.
5. When the buyers are all institutional and the sellers are all speculative positions, if the stock price is already at a high level of speculation and such trading data occurs, the institution has the suspicion of interest transfer. Using the institutional effect to attract retail investors to buy at a high level to help speculative investors sell smoothly.
In this cooperation, institutions are the leaders, while speculative funds are the promoters. Although their interests overlap, they do not conflict. In the short term, speculative funds make a profit and leave, as most of it is their own money. And institutions are not at a disadvantage, as the boost of speculative capital instantly increases the average cost of the market. Institutions cannot come out in a day just after entering, so the future market will continue to develop in a healthy manner. As retail investors, we naturally like to operate in stocks that are stable and have profit expectations.
