Rebirth of the Capital Legend

Moreover, the rebound speed of the weighted core stocks is greater than that of ordinary small-cap stocks.

In the entire market, the rebound strength of many stocks in the "big infrastructure" main line, as well as the strength of active buying, are also significantly greater than those of other main line sectors.

This shows that even after the market rebounded for several consecutive days.

Even though a number of stocks in the main area of ​​"big infrastructure" have reached this position, they have accumulated a lot of profits.

However, the main inflow direction of the active capital groups in the entire market and the incremental capital groups that continue to pour in from the off-market is still centered around the theme of "big infrastructure."

“I feel like this is still a point to add to the position due to emotional divergence!”

Noticing the subtle changes in the market, especially the divergent trends of the main sectors in the short rebound after the market plunge, at this time in Shanghai, Nuoan Capital has already transferred its main positions to the "New Energy Industry Growth Hybrid Fund" product trading room in the "Big Infrastructure" main field. Trading team leader Bao Yongquan pondered for a moment and said, "The market volume is still expanding and the support is strong. I think this rebound is likely not over yet."

"The active buying in the main field of 'big infrastructure' is indeed quite good." Hearing Bao Yongquan's words, Yang Shengfan, product manager of the 'New Energy Industry Growth Hybrid Fund', responded, "But the market divergence is really big. For example, 'Shenhuo Shares', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Shares'... these popular concept stocks basically opened high and then fell back. In addition, the hot money selling power on these stocks is very strong, and they are obviously in a short position."

"Shenhuo Shares, Pingmei Energy, Tianshan Cement, Beijiang Communications Construction, Capital Group, Chongqing Development, Bayi Steel, Linggang Shares... these popular concept stocks in the main line of 'big infrastructure' generally have large short-term gains, and it is normal for hot money to take profits and withdraw." Bao Yongquan said, "But in the current market, it is obvious that the financial power that can guide emotions and influence the main trend, as well as the pricing power of individual stocks in the market, is no longer in the hands of a group of hot money in the market, but the big institutions that have gathered here have the final say.

As long as institutions dominate and control the core market with heavyweights, there will be many industry leading stocks that will not collapse.

That whole 'big infrastructure' theme.

As for the overall market trend, it is difficult for it to be driven into collapse by concentrated selling of short-term profits.

In fact, in the entire "big infrastructure" main line area, after the first wave of sell-offs at the beginning of the trading session, the trends of the weighted core large-cap stocks and the blue-chip stocks with good performance have formed a differentiated trend from other related stocks.

In other main concept areas, the trend, rebound strength, and buying power of core large-cap stocks are also significantly greater than those of small-cap stocks.

As long as the core large-cap stocks with weights in the main field of "big infrastructure" and a number of industry-leading stocks can hold steady.

Then, the stocks of the popular small-cap concept of the main line of "big infrastructure" that are experiencing concentrated selling pressure from profit-taking should not fall much, and may even rebound. "

"According to your idea..." Yang Shengfan pondered for a moment and said, "Xiao Bao, you are still thinking of having our fund further increase its holdings of the core leading stocks in the 'big infrastructure' main line, and further increase our fund's holdings in the 'big infrastructure' main line field, right?"

Bao Yongquan chuckled and said, "I can't hide my thoughts from Mr. Yang. Indeed... I just want to increase our fund's holdings in the main line of 'big infrastructure' at a time when sentiment is divided, profit taking is concentrated, and related core stocks are in the process of intraday adjustments."

"Are you so optimistic about the subsequent development of the main line of 'big infrastructure'?" Yang Shengfan asked.

Bao Yongquan responded: "There is no reason not to be optimistic. The underlying logic is so clear. Moreover, the expected logic of the core theme of 'big infrastructure' and the recognition of funds are obviously becoming more and more consistent.

Judging from the expectations of a comprehensive reversal of industry fundamentals and explosive performance of a number of core leading stocks in the next few quarters.

In fact, the current share prices of these core leading stocks are still quite undervalued.

As long as the market sentiment supports it and big funds agree with the main line of "big infrastructure", the overall trend is upward.

Well, I'm sure...

After this short-term emotional divergence, the core theme of "big infrastructure" will definitely continue to rise.

As for the main line of 'new energy industry chain' that we have kept as a base position, as well as other main line holdings, I think there is still no expectation for the market situation at present.

Moreover, if the expectations for the core trend of "big infrastructure" become clearer and clearer, the consistency of expectations will become stronger and stronger.

So, under the circumstance that the main line of "big infrastructure" continues to siphon active funds from the market and the main funds of institutional groups.

The trend of other stocks related to the main market lines will naturally become weaker and weaker.

After all, this is a bear market, and a bear-bull conversion of the entire market is unlikely to happen.

Since liquidity is unlikely to change much, the liquidity of the main line of "big infrastructure" will be sufficient, and the liquidity of other main lines will naturally become increasingly scarce.

Originally, the 'new energy industry chain', 'Internet software' and other related sectors tend to be oriented towards the 'technology' main line.

Expectations are gradually weakening.

Subsequently, as liquidity is siphoned off by the main line of "big infrastructure", the trend of individual stocks in the relevant main sector areas will naturally become increasingly difficult.

There are less than two quarters left until the end of the year.

Although the net asset value performance of our fund is acceptable, it is not excellent either within our company or among fund products of the same size in the entire industry.

Therefore, in order to achieve better fund performance at the end of the year and to further increase the net value of our fund products.

I think we are there when there are clearer investment opportunities in the market.

We should decisively continue to reduce holdings of stocks in the 'new energy industry chain' and other stocks that are biased towards the 'technology' main line, such as 'Internet software', and further reduce the weight of holdings in other main lines, thereby increasing our holding weight in the 'big infrastructure' main line and maximizing the market excess profits. "But our fund's current holding weight in the 'big infrastructure' main line is already approaching 60%." Yang Shengfan said, "I'm afraid it's not appropriate to continue to increase holdings? Moreover, the recent wave of 'big infrastructure' main line market is almost showing a forced rise trend.

The relevant core weighted stocks have been rising for almost a week.

It is currently quite far away from the lower support level and the medium and short-term moving averages.

According to the technical trend, these stocks need to adjust closer to the moving average. If we further increase our holdings on a large scale at this time, it is inevitable that we will be suspected of chasing high prices!"

"Even if the core stocks have the need to move closer to the moving average from a technical perspective," Bao Yongquan said, "it does not mean that the stock price will fall sharply. I think that with the continued active buying of these core weighted stocks, even if there is an adjustment, it will be a sideways adjustment at most. Therefore, the risk of increasing our positions at this time is not great. On the contrary, if we do not buy at this time, we can maintain the fixed holding structure of the fund.

What if these stocks continue to rise and develop independent trends?

Then, if we miss this buying point, the cost of adding more stocks later will be even higher, and there is a high possibility that there will be no buying point. "

As he spoke...

The market currently being traded has seen new changes.

The stock market indices of the two cities rebounded briefly for more than ten minutes before turning around and plunging again.

When the index turned downward, the vast majority of stocks in the two markets followed suit, and profit-taking was still happening in the market, and then retail investors were reaped the benefits of their emotions.

The core leading stocks in the "big infrastructure" main line that should have turned around and dived along with the index.

However, it maintained a sideways trend and did not fall at all.

Moreover, stocks like 'Anhui Conch Cement', 'Poly Real Estate', 'Gemdale Group', 'Oriental Yuhong', 'Huaxin Building Materials', and 'Shenhua Coal', which are the core groups of stocks with high recognition from the main market funds and strong expectations for explosive performance, not only did not follow the decline of the index, but instead showed an upward trend against the trend.

Obviously, as the market trading time progressed... Yang Shengfan also noticed this.

So, he stared at the changes in the two markets and pondered carefully for a while, thinking that the market's large-cap and small-cap styles were indeed in a clear switch, and the core leading stocks of the core theme of "big infrastructure" were indeed, as Bao Yongquan said, continuing to siphon the market's active capital groups and a number of institutional main capital groups that continued to go long.

"Okay." After thinking for a while, he turned his gaze to Bao Yongquan and said, "According to your idea, we will continue to increase our positions in the main area of ​​'big infrastructure', but..."

He paused and continued, "We have to be more selective in the stocks we want to increase our positions in. At the same time, we have to further eliminate the weak and retain the strong stocks in our existing holdings."

"Okay." Bao Yongquan felt indescribably happy when he saw Yang Shengfan agreed.

He responded, and without waiting for Yang Shengfan to give any more instructions, he immediately turned around and conveyed the relevant trading instructions to the traders behind him.

And the traders received relevant trading instructions.

His fingers quickly tapped on the keyboard, quickly cutting his holdings in the main areas of "new energy industry chain", "Internet software", "electronic information", etc. At the same time, he also used the remaining funds in the account to buy the core weighted leading stocks in the "big infrastructure" main line that were either sideways or rising against the trend.

Of course, at this moment, there are a large number of capital groups and investors who are paying attention to the market trends.

They're not the only ones doing this, either.

Many investors who realize that on-site investment is switching to large-cap stocks and who realize that profit-taking is a good opportunity to adjust their portfolios after the divergence of sentiment on the main line of "big infrastructure" are also doing so.

And everyone's relatively consistent convergence also led to the subsequent market trading time.

Except for the "big infrastructure" main line, other market main lines are getting weaker and weaker. The entire market shows a trend of divergence, with the strong getting stronger and the weak getting weaker.

"It's really weird." After seeing the divergence of market sentiment, the high-level core leading stocks gradually fluctuated to repair the intraday plunge, while other small-cap concept stocks that were already at low levels, as well as other main-line weighted stocks, continued to fluctuate downward, creating new intraday lows, and were increasingly abandoned by funds. Yuhang, in the 'Yuhang main group of hot money', Zhao Qiang couldn't help but wonder, "Originally, the profit-taking in the market should have hit the main line of 'big infrastructure'. At the beginning of the morning, the first divergence occurred, and the core sector that showed a concentrated plunge trend was indeed a group of stocks in the main field of 'big infrastructure'.

Now looking back...

Surprisingly, the stocks related to the core theme area of ​​"big infrastructure" have recovered the plunge in the early trading session.

As for other stocks that were originally following the trend and were dragged down by the main line of "big infrastructure", their trends are getting weaker and weaker, and the rebound amplitude is lower and lower. "

"The strong will always be strong, and the weak will become weaker." Hearing Zhao Qiang's words, Lao Yang in the group said with emotion, "In a market dominated by stock-based games, this kind of on-site trend is too normal. In the entire market, the main line of 'big infrastructure' has the strongest money-making effect and the highest liquidity. Naturally, those funds in the market that failed to participate in the first and second waves of rebound will take advantage of this wave of market sentiment divergence to remove the weak and retain the strong, and quickly adjust their positions to focus on the main line of 'big infrastructure'. This is due to the unanimous expectations of various fund groups in the market, and also due to the joint efforts of funds in the market."

"It's not as simple as 'the strong will always be strong, and the weak will always be weak'." Sun Chengyu also responded at this time, "In the entire 'big infrastructure' main line field, in fact, small-cap concept stocks, even some popular concept stocks, have collapsed a lot. The 'big infrastructure' main line stocks that have truly stepped out of the shock repair pattern and completed the early diving trend are mainly concentrated in the core weight leaders.

And judging by the active buying situation...

It is mainly because of these weighted core leading stocks that the buying power is stronger.”

"It looks like institutions are tending to form a group..." After hearing Sun Chengyu's interpretation of the market, Lao Yang thought for a moment and said, "It feels like a new round of institutional grouping is taking shape. At present, the market has seen a continuous surge in the prices of 'Shenhuo Shares', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Shares'... These hot concept leading stocks, with the future trend of institutional funds forming a group, are likely to be unable to outperform 'Conch Cement', 'Poly Real Estate', 'Shenhua Coal'... These stocks. It feels like the overall investment trend of the market and the main funds are about to change drastically."

"Institutions are banding together?" Zhao Qiang was stunned and asked, "What is the direction of this? Does it mean that the future market will only speculate on large stocks instead of small ones? How to speculate on the core stocks with a market value of tens of billions or hundreds of billions? In a bear market, in a market where stock is being played, in a market with extremely scarce liquidity, can the elephants of weighted stocks dance?" (End of this chapter)