Rebirth of the Capital Legend

At 1:05 p.m., after just five minutes of concentrated buying.

The Shanghai Composite Index surged to a 2.5% increase, among which the A50 index sector soared by more than 3%. The component stocks within the sector were violently built up by buying funds. At this time, the two major weight sectors of banking and insurance rose rapidly, and "big finance" began to show a money-making effect.

At 1:10 p.m., faced with the core leading stocks of the "big infrastructure" main line that had already risen high or hit the daily limit, as well as popular concept stocks, the buying funds that followed the trend overflowed into blue chip stocks such as consumer electronics, security lenses, and chemicals, and drove the corresponding sector indexes to rise rapidly.

At 1:15 p.m., Minshang Bank rose by more than 5%, hitting a recent rebound high.

At 1:20 p.m., the check for "Hikvision" suddenly received a continuous large buy order of tens of thousands of shares. The stock price continued to rise to 7%, and the trading volume rapidly expanded.

At 1:30 p.m., after half an hour of fierce attack from active buying, the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index once again hit new intraday highs, and the Shanghai Composite Index approached the 2.8% increase. Even the relatively weak ChiNext Index saw an increase of more than 2% at this time, showing a trend of rapid catch-up.

At 1:42 p.m., Kewan Real Estate surged more than 7% and its share price returned to the 23 yuan mark.

At 1:51 p.m., within the main area of ​​"big infrastructure", a number of popular concept stocks such as "Shenhuo Co., Ltd.", "Pingmei Energy", "Tianshan Cement", "Beijiang Communications Construction", "Capital Group", "Yu Development", "Bayi Steel", "Linggang Co., Ltd.", etc., once again showed a trend of all-round limit-up. The bullish sentiment of the entire market was once again thoroughly ignited, and the intraday volume continued to expand.

"The bullish sentiment in the market in the afternoon seems to be spreading more rapidly." Noting the overall rise in the two markets and the continued increase in market turnover, Li Shangfeng, the trading team leader of the 'Nuoan Blue Chip Hybrid Selection' fund product trading room in the 'Nuoan Capital' company in Shanghai, stared at the market and said, "Isn't this emotional evolution... a bit too fast? It feels like the emotional changes in the two markets are a bit climaxing. If this continues, I'm afraid it won't be long before a short-term adjustment."

After hearing what Li Shangfeng said, Wang Shujie, the product manager of the Nuoan Blue Chip Hybrid Select Fund, responded: "The market is currently in a bear market, and in a bear market, the overall market confidence is obviously insufficient. In this case, if we want to reverse the market trend and build everyone's confidence in the long market, we must use drastic measures and use fierce fire.

Only by creating a sufficient money-making effect and hitting consecutive large positive lines can we attract the attention of off-market investors.

Only in this way can we attract off-market funds to intervene.

If you think about following the trend from the beginning and allow market sentiment to ferment slowly, then you are doomed to not be able to see a large and sustained rebound or even a main investment trend reversal.

After all, it has experienced a series of declines and the previous stock market crash.

Those who are still trading in the market are all veteran stock investors, while those who are off-market, after being reaped so badly by the market before, do not have enough money-making effect and are certainly unwilling to enter the market to trade again.

Therefore, I think there is no problem with the current trend.

There is no need to worry about the market sentiment being excessive at this time, leading to a concentrated sell-off of profit-taking. At this time, the more aggressive the active buying, the better.

Only when the index hits a big positive line can the stock market have an influence outside the circle.

Only then will more incremental off-market funds be able to intervene in the future. If we cannot achieve such market recognition, we will not be able to attract more incremental off-market funds to intervene.

Then this wave of market rebound led by the main theme of "big infrastructure" can lower expectations."

"But such a rapid rise and fall, without consolidation of the bottom chips, can easily cause a sharp adjustment and decline in the market." Li Shangfeng said, "Based on the current volume changes, the concentrated profit-taking and the concentrated selling of the unwinding orders in the market, once the sentiment drops slightly, it will be difficult to sustain.

If this happens, the buying will not be able to keep up.

If the index experiences a sharp plunge and individual stocks experience a drastic pullback.

Wouldn’t it have a greater impact on the evolution of the market’s bullish sentiment and the subsequent development of market trends?”

"I don't think so." Wang Shujie stared at the trends of the two markets, smiled, and continued, "Shang Feng, take a closer look at which stocks have been the main targets in the past two days. At this stage, which funds are the most aggressive?"

Li Shangfeng was surprised when Wang Shujie asked this question. Then he carefully observed the corresponding leading stocks on the market, paused, and said, "From the current market, large-cap stocks should be stronger than small-cap stocks. Most of the leading stocks are heavyweight stocks, and most of them are low-valuation blue-chip stocks in traditional industries, as well as blue-chip stocks with good performance in sectors such as liquor, medicine, white appliances, consumer electronics, and chemicals."

"That's it." Wang Shujie nodded slightly and said, "Although the current market sentiment is rising, the activity of hot money in the market is increasing rapidly, but in general, the funds that dominate the market trend are not these hot money, nor the concept small-cap stocks that have been hyped up before.

In other words, the market's investment style is obviously different from before.

As long as the mainstream buying funds are concentrated in the blue-chip and white horse sectors with good performance, the main funds that dominate the market trend are dominated by institutions.

Then, the previous situations of sharp rise and fall, speculation on stocks with low prices and small-cap stocks will not occur.

To be honest, I am very excited to see this change in market investment style, and I am very confident about the reversal of this round of market trend.

Based on past market trends...

Market trends and investment styles are like a constantly swinging pendulum.

During last year's bull market, various funds concentrated on speculating on concepts, which eventually triggered a stock market crash and caused countless retail investors to lose all their money. Of course... it also made countless people wary of this kind of speculation, and gradually feel that large-cap blue-chip stocks and white horse blue-chip stocks are relatively safe.

This change in thinking logic will inevitably bring benefits to blue-chip stocks and high-performance white horse stocks.

This brings about significant changes in valuation.

It will also drive a lot of active funds in the market into these blue-chip and white horse stock areas.

This is a major reason why the Shanghai Composite Index has been stronger than the ChiNext Index and the A50 Index has been independent of other market indices over the past six months.

At a time when various funds are gradually converging towards blue chips and white horses.

Now, coupled with the recovery of the fundamentals of many industries, I feel that a new round of market cycle has been slowly born, and this investment style and cycle evolution should be said to be healthier for our A-share market than the previous hype model. "

"According to what Mr. Wang said, if the main funds from all parties in the market will increasingly converge on the market's undervalued blue chips and white horses, and will gradually or even completely abandon the hype style of conceptual themes, then it is really possible to change our A-share investment ecology." Li Shangfeng thought carefully about what Wang Shujie said and responded, "In fact, compared with the U.S. stock market, our A-share market has many high-quality stocks, and they are even more undervalued.

If the value of these stocks can be fully discovered by everyone.

And as the fundamentals of various industries recover, valuations can be repaired, and performance can show expectations of sustained growth. So, I feel that our A-shares seem to be expected to usher in a relatively long-lasting benign bull market! "

"Yes, that's what I mean." Wang Shujie said, "In my opinion, the current outbreak of the core theme of 'big infrastructure' has not only triggered the short-term bullish market, but is also likely to completely change the investment style and investment ecology of the market, making funds increasingly concentrated on high-quality blue-chip and white horse stocks, and emerging from a healthier trend.

In fact, this point of my opinion also includes my view on the change in market investment style.

Many smart funds in the market have already noticed it.

For example, Huayi Capital, a core institution with a large amount of funds in the industry, is currently popular among everyone.

Remember last year, Mr. Su of Huayi Capital was still mainly speculating on concepts and sentiments? But now look at the holdings of this institution.

Basically, we have completely shifted our holdings to blue-chip and white horse stocks.

It is said that the investment style of this institution is completely different from before. In fact, it is because of the pendulum effect of the market that the investment style of the market has changed.

This institution is simply adapting to changes in market investment style.

I have to say that Mr. Su from Huayi Capital is truly a genius in the stock investment market. He is extremely sensitive to changes in market investment styles and the grasp of investment opportunities.”

"Mr. Su from Huayi Capital is definitely a powerful person," said Li Shangfeng. "Otherwise, the influence of this organization wouldn't be so great."

"So, we don't need to pay too much attention to the short-term emotional fluctuations in the market." Wang Shujie paused and continued, "We just need to grasp the actual changes in the market. As long as the buying trend of various funds in the market and the direction of continuous capital inflow are still developing towards blue-chip and white horse stocks, then when the market investment style has obviously shifted, we can have a higher expectation for the subsequent market.

Moreover, our focus should not be limited to the core theme of "big infrastructure".

Compare this with the core theme of 'big infrastructure'.

In fact, the 'consumer electronics', 'security lens', and 'petrochemical' sectors are also in a clear cyclical recovery state, and the high-performing core leading stocks in these major sectors have very low valuations, and their current stock prices are quite cheap.

Take advantage of the fact that major institutional groups in the industry have not yet discovered this valuation trough.

We can also divide our positions into these major sectors and there is no need to keep focusing on the popular leading stocks in the "big infrastructure" main line.

These popular leading stocks were bought up in large quantities by the institution "Huayi Capital".

It has generally risen by about 20% recently.

Compared with the leading stocks with good performance in the 'consumer electronics', 'security lens' and 'petrochemical' sectors, there is not much cost-effectiveness left.

As long as the market's actual investment style is gradually tilted towards large-cap stocks.

Then, the high-quality stocks in these sectors that I just mentioned will definitely be discovered by funds in the future and will definitely receive concentrated investment.

Again……

In our opinion, we can’t just look at the hot sectors, we still need to have a certain divergent thinking. ”

Li Shangfeng was shocked when he heard Wang Shujie's analysis. He couldn't help but cast his eyes to the sectors such as 'consumer electronics', 'security lenses', and 'petrochemicals' that Wang Shujie just mentioned, focusing on the core leading stocks in these sectors. He responded: "Mr. Wang is really amazing. Indeed, my vision is still too narrow. I didn't notice the overall changes in the market investment style and ignored the real trend of the market."

Wang Shujie laughed and said, "I just discovered this today. I was thinking before that Mr. Su from Huayi Capital is obviously a hot money investor. Logically, the investment style of the fund products he manages should be closer to the original Zexi Group, but he turned to the path of value investment.

Now, I finally figured it out.

It's not that this guy's investment philosophy has changed, but the actual trend of the market has changed.

This person is just following the market trend and adjusting his investment strategy in a timely manner. If the market trend changes again in the future and the trend of concept speculation is formed again, I feel that this person will adjust the corresponding strategy again and change his investment style and thinking again.

To put it bluntly, this person is one of the top trend investment experts in the market.

Moreover, the market trend followed by this person is not the trend shown on the K-line at all, but the trend of capital investment style inherent in the market.

Compare the K-line trends of the market.

The change in the style of big funds is the real trend of the market and where the greatest investment opportunities lie! "

He had not realized this before, so he had unclear understanding of the trends of core leading stocks in the liquor, white goods and pharmaceutical sectors and did not make much profit.

Now, after understanding this relationship and sorting out the real trend changes in the market.

He decided to change his mindset, increase his positions significantly, and embrace the blue-chip and high-performance stocks that showed a change in industry fundamentals in the market.

"I understand, Mr. Wang." Li Shangfeng suddenly understood and said with a smile, "I will immediately follow your instructions and have the traders adjust their positions to the core leading stocks in the 'consumer electronics', 'security lens', and 'petrochemical' sectors. However... I wonder what Mr. Wang thinks about the target?"

"What do you think?" Wang Shujie asked with a smile, "Which stocks in these major sectors do you think have the greatest potential for explosive performance, and are most likely to receive continued purchases from various institutional funds and joint efforts from various funds as the overall investment style of the market shifts?"

Li Shangfeng thought for a moment and said, "Based on the current market trend, stocks with corresponding recognition and capital attention, such as 'Lixun Precision', 'Wanhua Group', 'Hikvision', etc., should be eligible. However, for specific analysis, I think we still need to conduct in-depth research and tracking."

"Your stock selection ability is quite good." Wang Shujie agreed with a smile, "I also look at these stocks, but if you want to take a large position, you must further analyze and research. But for now... build a base position first and pay attention to the continued trend. There should be no problem." (End of this chapter)