2014-2015 A-Share Leveraged Bull Market Initiation
Capital Req:High
Entry Window:2014-07 to 2014-11
Exit Window:2015-05
Execution Directive:
Max leverage long on Chinese brokerages (e.g. CITIC) and railway construction stocks.
Preparation
- Open a margin trading account with a Chinese brokerage (requires 500k RMB minimum). Alternatively, find an OTC margin platform (HOMS system) for higher leverage.
- Secure your principal capital and set up a 1:2 to 1:3 leverage ratio.
Execution Steps
- Accumulate positions in top-tier brokerages (CITIC Securities) and state-owned rail companies (CSR and CNR) between July and Nov 2014 as the market bottoms near 2000 points.
- Nov 21, 2014: The PBOC cuts rates. When the market opens, brokerage stocks hit limit up consecutively for weeks.
- Hold firmly and let profits run. Roll floating profits into more leverage. Ride the "Internet Plus" tech bubble in early 2015.
Exit Strategy
- By May 2015, as the index breaches 4500 and heads to 5000, market euphoria reaches peak insanity.
- The government signals a crackdown on OTC margin trading. Liquidate all positions and pay off all margin debt between late May and early June 2015 (near 5100 points).
- Withdraw cash immediately before the devastating June 12 crash triggers thousands of limit-downs.