Rebirth of the Capital Legend

"Okay." Bao Yongquan responded, "I also think we should allocate some stocks in the liquor, white goods, and pharmaceutical sectors as a defense. Looking at the market trends over the past six months, every time there is a major adjustment or fluctuation in the market, various on-site fund groups will gather towards the liquor, white goods, and pharmaceutical sectors. This has almost become a kind of inertia."

In his view, the main line of "big infrastructure" has insufficient expected certainty.

At present, it is still a relatively radical main line concept and a main line field with a higher investment risk preference. It is more dependent on the market's bullish sentiment and incremental funds.

However, the expectations for the major sectors of liquor, white goods, and medicine are relatively certain.

And because many institutional main funds are gathered here, there is sufficient accumulation of chips, and there are fewer retail investors, making it easy for institutional main funds to control the market.

It belongs to the low-volatility main line sector with reduced investment risk appetite.

Well, at present, when the main line of "big infrastructure" has not yet been fully unveiled and completely consistent expectations have not yet been formed, it is still necessary to arrange some positions as a defense.

The two of them were carefully analyzing today's market trends and the underlying logic of the "big infrastructure" main line.

While making the portfolio adjustment strategy...

At this time, the many retail investors gathered on the online stock investment platform were already cursing.

"This trend is really amazing. The market opened so well in the morning, but it ended up like this."

"Damn it, I lost 12% today. The key is that there is a high probability that I will have to bear the loss of a lower opening tomorrow. Sigh... I really shouldn't chase high prices."

“Sure enough, chasing highs in a bear market is the source of losses!”

"How could the market collapse so quickly? Wasn't the main market trend of 'big infrastructure' hyped up only these two times?"

"Aren't Pingmei Energy and Huaguo Zhongye the two companies that are the core leaders of this round of 'big infrastructure'? Why did they fall so badly?"

"Oh, I'm speechless. Whatever I buy, it falls in price."

"The intraday loss is more than 15%, can you believe it? I just cut my position and stopped the loss of Baofeng Technology in the early trading, and chased Pingmei Energy. When I looked at the closing, Baofeng Technology turned red, and Pingmei Energy almost went through the floor. It's really... I almost exploded."

"This trend is killing me. It really doesn't allow anyone to make any money at all."

"Oh my god! All the funds I took over during the day have been killed. With this trend... the market will definitely open much lower tomorrow!"

"Will it not fall again? I shouldn't have sold it today."

"It feels like we are going to hit a second bottom. The huge volatility in today's trend shows that there are huge differences in the market here, and it is not so easy to go up."

"The main reason is the lack of volume. Today's market trend has such a big fluctuation, but not much volume has been released."

"Indeed, there is insufficient follow-up of off-site funds."

"The entire 'big infrastructure' theme, all the popular leading stocks, almost collapsed."

"Not only is there a lack of follow-up from off-site funds, but the confidence of active funds in the market to go long is also seriously insufficient."

"I really can't be too optimistic. Every time the market sentiment turns to the same, I know it's going to be bad. Sure enough... the market is too weak."

"I knew that in a bear market, I couldn't think straight, damn it."

"With the same underlying logic support, why can't the main line of 'big infrastructure' develop into a sustainable market like the previous liquor, white appliances, and pharmaceutical sectors?"

“I feel like the logic behind the two is somewhat different.”

"The liquor, white goods, and pharmaceutical sectors are supported by actual performance, while the stocks related to the real estate, building decoration, building materials, steel, coal, nonferrous metals and other sectors in the main line of 'big infrastructure' are currently only supported by expected logic and favorable policies, and there is no actual performance reflected yet, right? Since there is no actual performance reflected, it means that there is a certain degree of uncertainty in the expected logic."

"Yes, in a bear market, the most important thing is the certainty of expectations."

“It’s really better to hold on to the core stocks of white goods, liquor, and pharmaceutical sectors.”

"Indeed, I didn't think highly of the core stocks in the white goods, liquor and pharmaceutical sectors before, thinking that these big stocks had risen too much. Now... looking back, these big stocks are still safe. Moreover, overall, these big stocks have outperformed the overall market index in terms of sustainability."

"I just feel that the stocks of liquor, white goods and pharmaceutical sectors have risen so much that I am a little reluctant to buy them."

"The more you dare not buy a ticket, the more it will go up in price."

"That's true. I didn't dare to buy it, so the price kept rising. I thought the stock was cheap, but after I bought it, it kept falling."

“Cheap goods are not good, and good goods are not cheap. This saying still seems to be valid in the stock market.”

"You should still buy performance leaders, as only performance leaders are safe."

"I feel that the trend of the 'big infrastructure' line is not going to emerge. The biggest reason is that there is a lack of substantial and major positive drivers. If you think about it carefully... the outbreak of the 'big infrastructure' core line is mainly due to the large-scale purchase of 'Hua Yi Capital' headed by President Su. It seems that the outbreak of this main line and the focus of many funds on the 'big infrastructure' main line are mainly due to the influence of President Su."

“To put it simply… the core logic is still lacking and cannot be unanimously recognized by the vast majority of major funds in the market, right?”

"I think so. After all, the 'supply-side structural reform' plan was proposed at the end of last year. There was not much capital speculation before, but now it has suddenly started to be speculated. I think the logic is somewhat lacking. After all, this is not a new positive factor and has limited impact on the market."

"It's all about performance. Isn't performance the fundamental logic behind the rise in stock prices?"

“Even if the fundamentals turn around, the performance will probably lag behind by at least half a year, right?”

"It will take more than half a year. If the performance of many stocks in the main line of 'big infrastructure' is to catch up, it will probably take at least next year to have relatively ideal results." "Next year? Then the performance is too slow to be realized. No wonder it can't be hyped up."

“I don’t know if you have noticed that the market is no longer popular with concept speculation, or in other words, the concept speculation market dominated by hot money is difficult to be recognized by the majority of funds in the market, and it is also difficult to develop a sustainable market.”

"I discovered early on that the recent market trend, the A50 trend, has been stronger than the ChiNext."

“The whole market is tilting toward large-cap stocks.”

"But now many blue chip and white horse stocks have risen to high prices. It's really hard to buy them."

"Force yourself to buy, otherwise you will be short."

"In fact, I think there is no problem with the underlying logic of the core theme of 'big infrastructure'. Looking at the entire market, in addition to the liquor, white goods, and pharmaceutical sectors with relatively high expected certainty, the core stocks in the real estate, building decoration, building materials, steel, coal, nonferrous metals and other sectors in the 'big infrastructure' main line are still the stocks with the strongest future expectations and the highest expected performance elasticity in the entire market."

"Expectations and such are not that important. The key is to have the funds to buy."

"That's right. What the market lacks right now is capital."

"As long as there are no problems with expectations and the underlying logic, there will definitely be funds buying such a cheap stock price, right? What's more... one day's market trend can't determine anything."

"The key is that today's market trend is really ugly."

"The main line of 'big infrastructure' was discovered by Mr. Su. If Mr. Su has not sold it yet and is still locking or increasing his position, I am still optimistic that the main line of 'big infrastructure' will have a second wave of market after adjustment."

"Boss Su...shouldn't you have sold it?"

"You'll know after looking at the Dragon and Tiger List data later. I don't think I sold it."

"Mr. Su, in the field of 'big infrastructure', has bought leading stocks in the industry, right? I feel that this type of stock has limited elasticity and is of little reference value for the trend of the entire 'big infrastructure' main line market."

"How can it be that the reference is not meaningful? Look at the impact of 'Qianzhou Moutai', a leading consumer stock, on the entire consumer sector of the market. As long as 'Qianzhou Moutai' rises, the entire consumer sector of the market will move abnormally and there will be valuation increases. The same is true for the leading stocks in the main line of 'big infrastructure'. As long as these leading stocks can open up space, small stocks in the main line will be easily hyped."

As everyone discussed heatedly...

The time soon came to 5 o'clock in the afternoon, and the Dragon and Tiger lists of the two cities were announced.

According to the Dragon and Tiger Lists published by the two cities, the main hot money groups such as the 'Fushan Group', the 'Yuhang Group', and the 'Qilu Gang' are basically in a net selling state.

However, the "Fuxing Road" that everyone paid special attention to was not on the list.

In other words, the stocks related to the selling of chips by "Fuxing Road" did not appear on the Dragon and Tiger list of the two cities due to their lack of volatility.

Seeing that 'Fuxing Road' did not appear on the Dragon and Tiger list, the list was sold out.

At the same time, we can also see that among the popular stocks in the "big infrastructure" main line on the list, there are still many institutional seats that actively buy.

We can see that the main force behind the intraday market crash is mainly hot money and potential medium and large individual investors.

For a moment, the originally panic-stricken market sentiment calmed down a little.

After all, as long as the institutions in the market and "Huayi Capital" headed by Su Yi, the core main institution with great influence on the market, do not dump the market and do not reduce their positions on a large scale, it means that in the main line of "big infrastructure", the chips of the new institutional main funds are locked normally, which means that the core main line of "big infrastructure" may restart the upward trend and get out of the upward trend again after the short-term market panic dissipates.

What's more, despite the relevant sectors and stocks in the main field of "big infrastructure".

The intraday trend is rather bad.

However, in terms of volume, it has only formed a mild expansion trend. It has not formed a huge volume, nor has it formed a too heavy locked-in position that cannot be eliminated in a short time.

"I didn't expect that the main funds that smashed the market today were mainly hot money and retail investors. The main funds of various institutions, as well as the institution 'Hua Yi Capital' that intervened on a large scale before, did not show any signs of reducing positions and stopping profits." After reviewing the data of the Dragon and Tiger List of the two cities, Jia Yongxiang, the trading team leader of the 'Hua Rui Performance Growth No. 1' fund product trading room inside Hua Rui Fund Management Company in Shanghai, said with emotion, "It is really surprising that hot money and retail investors can work together to smash the market like this."

"Not surprising," said Song Shaopu, product manager of the Huarui Excellent Growth Fund No. 1. "The market lacks liquidity, and the overall confidence in long positions is not strong. In addition, the core theme of 'big infrastructure' has been rising for several consecutive days. On the market, there is a serious accumulation of short-term profit-taking. Once hot money and big investors lead, it is easy to cause the market sentiment to collapse, and once the sentiment jumps, it will naturally form a panic stampede and sell-off situation."

"Originally, I was relatively pessimistic about today's trend," Jia Yongxiang said, "but now after seeing the data of the two cities' Dragon and Tiger List, I suddenly feel less pessimistic."

Song Shaopu nodded slightly and said, "Actually, there's no need to be so pessimistic."

"However, if there is no particularly strong positive news tonight, the market will open sharply lower tomorrow, which should be a foregone conclusion." Jia Yongxiang said, "But after the low opening and the sell-off, I think it is a good buying point. Many institutions have locked their positions, plus Huayi Capital is firmly holding positions. The chip structure of the "big infrastructure" line, after today's violent fluctuations and turnover, and tomorrow's sell-off and cleanup, the upward resistance seems to have become lighter."

"If there is a sharp drop in the early trading tomorrow, it is indeed a good buying point." Song Shaopu agreed. "Looking at the entire market, at the current node, it seems that large funds are flowing in and out, and expectations are strong. The core theme with high investment cost performance is really only the core theme of 'big infrastructure'. In fact... the main funds of various institutions, as well as the institution 'Huayi Capital', continue to increase their holdings of the 'big infrastructure' main line chips, which is completely correct. If the market can gather a concentrated long sentiment in the second half of the year, and the market can have a decent sustained rebound, then this wave of market conditions will inevitably be born in the field of 'big infrastructure' main line."

Jia Yongxiang smiled, his eyes sparkling, and said, "I think so too. The market sentiment fluctuated, the trend adjusted, institutions increased their holdings, and retail investors and hot money reduced their holdings. This is in line with our original expectations. It also increases the probability of a subsequent outbreak of the main line of 'big infrastructure'."

"Since you think so too..." Song Shaopu said, "Then let's follow the established strategy and proceed with the next portfolio adjustment plan."

"Okay." Jia Yongxiang nodded and responded, "If the market moves as we expect tomorrow and shows a rapid downward trend, I will ask traders to further increase their positions in the main area of ​​'big infrastructure', especially in the core stocks related to the 'real estate' sector."

"It still depends on the news in the evening." Song Shaopu replied.

He then turned his attention to the market financial information platform.

Unlike the majority of retail investors who hope that there will be some major positive news in the market to stimulate the stock market and stimulate the main line of "big infrastructure", Song Shaopu at this time hopes that there will be some negative news in the market to suppress emotions and market conditions, giving the fund products they manage a better buying point for increasing their holdings. (End of this chapter)