Rebirth of the Capital Legend

Yu Xiaolu thought for a moment and responded, "In terms of trading strategy, this aspect should be considered, but in terms of long-term investment strategy, I think Huayi Capital should still firmly believe in the core theme of 'big infrastructure'. And based on the past investment experience of this institution, they generally do not do short-term trading in this core investment."

"Yeah." Lu Xiangxiang nodded, thinking that it was useless to think too much at this time. After a pause, she couldn't help but say, "No matter how the specific trading strategy of Huayi Capital will change, we should stick to our own ideas and trading strategies and continue to see how the market volume changes in the next few trading days.

If there is no obvious sign of expansion in volume in the next few trading days.

At the same time, if this polarized trend in the market continues.

This shows that there is indeed not much incremental off-market funds entering the market, and it also shows that most of the funds that reduced their positions to take profits or stop losses in the main area of ​​"big infrastructure" did not remain in the market.

In this case, we should manage our positions well, be prepared to harvest some profits immediately, and be prepared to trade in waves.”

"Okay, Mr. Lu." Yu Xiaolu nodded and responded, "I will keep an eye on the market trends and the mood changes inside and outside the market."

As the two analyzed the market trend after the market closed and discussed the subsequent trading strategies...

At this time in the market, on the online stock investment exchange platform where a large number of retail investors gather, everyone is also discussing heatedly about today's "ice and fire" market trend, as well as the "big infrastructure" main trend that has set new rebound highs and has initially formed a situation where institutional funds are gathering together.

"I really didn't expect that institutions are still buying on a large scale on the Dragon and Tiger List."

"Isn't it said that you can't chase high prices in a bear market? Why are there still so many institutional funds chasing high prices to buy the core leading stocks in the main line of 'big infrastructure'?"

"I really didn't expect that institutions are still buying at high prices."

"The main fund product of Huayi Expedition 1 under Huayi Capital did not continue to buy today. I wonder what signal this sends?"

"High-priced stocks continue to rise, low-priced stocks continue to fall. Is the market crazy?"

"High and low are relative. The so-called low-priced stocks that plummeted today seem cheap and much lower than last year's bull market. However, a closer look shows that their fundamentals are still very bad, and the company's performance cannot support the current valuation at all!"

"In fact, today, a number of concept stocks in the main field of 'big infrastructure', such as 'Shenhuo Shares', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Shares'... these stocks have all retreated. Only the leading stocks with heavyweights are still relatively strong under the continuous buying of many institutional funds, but this strength should soon come to an end."

"I don't think so. I feel that the trend of market funds shifting to large-cap stocks seems to have just begun."

"Anyway, weak stocks must not be kept."

"In a bear market, it is even more important to group together strong stocks. After all, in a bear market, market liquidity is so limited. Under limited liquidity, large funds active in the market will naturally group together to speculate."

“I don’t believe that the core theme of ‘big infrastructure’ will end so quickly.”

"With such strong policy support and such strong expectations for changes in industry fundamentals, how could the market trend of the core theme of 'big infrastructure' end here? It will definitely end in the second half of the year, right? It is even possible that the core theme of 'big infrastructure' will continue into next year."

"Anyway, it's always right to follow the direction where the big market funds are concentrated."

"Yes, yes. With the huge amount of funds attracted by the recent core theme of 'big infrastructure', even if there are subsequent adjustments, it is definitely a buying point, not a selling point."

"As I said, when the market is below 3000 points, the opportunities definitely outweigh the risks."

"Yes, I am optimistic that the market will return to 3000 points by the end of the year."

"The current market trend and pricing power should have shifted to the direction dominated by institutions, right? It seems that the stocks that are supported by institutions recently have performed better than those that are focused on and dominated by hot money."

"The market has long been dominated by institutions. Just look at the market trends of liquor, white goods, and pharmaceutical sectors in the first half of the year. Unfortunately... we were slow to react and are only now reacting."

"The premium for institutional seats is now clearly higher than that for hot money seats."

"Despite this, several hot stocks in the 'big infrastructure' sector dominated by hot money are still going strong today. I feel like they can still go up a bit!"

"You mean Greenland Group, Huaxin Cement, Huaxin Building Materials, China Railway Construction... these stocks? Although the exposed seats of these stocks are dominated by hot money, there are also a lot of institutional funds, right? Moreover, these stocks are also the core leading stocks of the main line of 'big infrastructure', and cannot be discussed with the logic of small-cap concept stocks."

"The Greenland Group's check continued to rise today, and I didn't see any of the major speculators from the Qilu Gang leave the market. Does this mean that the other party should have locked their positions?"

"It's obviously locked, but... I definitely can't accept this ticket tomorrow."

"Yes, today the sentiment of the main line of 'big infrastructure' is a bit divided. I am afraid that the whole sector will be more divided tomorrow. Even if the 'big infrastructure' line can still move forward in the future, at this position, it is necessary to further clean up the floating chips and make some adjustments."

"Yes, wait for adjustments and continue to focus on the core!"

"Internet software, film and television media, electronic information...are there really no opportunities in these sectors?"

"The market is now embracing traditional sectors and avoiding emerging technology sectors. At present, these sectors definitely have no opportunities."

"The main funds in these sectors are all fleeing with stop losses, so how can there be any chance?"

"I'm stuck with 50% of my money on the stock of 'NetSpeed ​​Technology'. Should I close my position? Seeing that the 'big infrastructure' line in the market is rising so hotly, I really want to close my position and buy some."

"There's no need to hold this check for 'NetSpeed ​​Technology', right? The Internet software sector has no value after last year's bull market hype, and the trend of 'NetSpeed ​​Technology' stock obviously has not attracted much attention. I estimate that even if there is a structural market trend in the future, this check will continue to fall." "'NetSpeed ​​Technology' is fine, but I bought 'Storm Technology', which has fallen by 70%. Now I want to cut my position, but I can't do it!"

"It's time to cut. Looking at the current market trend, it seems that for a long time to come, concept stocks without performance support will not have any big market momentum. It is obvious that a number of institutional groups in the industry have completely abandoned concept speculation and growth stock investment. Funds are now leaning towards blue chip and white horse stocks."

"Oh, really... in the end, I feel that the broad market stocks are more stable!"

"That's right. Stocks without performance support will eventually return to where they started to rise."

"I think it has nothing to do with the direction and style of funds. The fundamental reason is that the current market liquidity is limited and there is not enough funds to drive the general rise of the market. If there is continuous inflow of incremental funds from the OTC market and the market can turn from bearish to bullish, the elasticity of small-cap stocks will definitely be higher than that of large-cap blue chips and white horse stocks."

"Bear turns to bull? At the moment... it's impossible."

"All the liquidity in society has been attracted by the recovering property market. How much additional funds can flow into the market? It is impossible to think of a bull market at this time."

"To be honest, the money-making effect of the current real estate market is far stronger than that of the stock market."

"If I wasn't so deeply trapped and couldn't bear to sell my shares, I would have sold my stocks and taken out a loan to buy a house. I have a friend who bought a house worth 200 million yuan six months ago, and now it has risen to nearly 350 million yuan. With this money-making effect, how can funds not flee the stock market to speculate in real estate?"

"Is the recovery of the property market so exaggerated? Hehe...it seems that we should hold on to the core leading stocks of the real estate sector."

"House prices in many cities have risen by at least 50% in the past six months. However, it is not cost-effective to speculate in real estate or buy houses for investment at this time. It is better to buy the core leading stocks of the real estate sector. As long as the property market continues to pick up, the performance of these real estate stocks will sooner or later be reflected. If the performance soars, the share prices of these leading stocks in the real estate sector will definitely rise."

"The underlying logic behind this round of 'big infrastructure' mainline surge is the recovery of the real estate market, right?"

"There is also the influence of macroeconomic policies. Policy stimuli such as 'the new era of land and maritime Silk Road', 'supply-side structural reform' and 'new urbanization construction' have also played a huge role."

"After all the hassles, we still have to stimulate the real estate market to boost the economy!"

"Of course, it is because real estate is so closely tied to the macro economy."

"In fact, the core theme of 'big infrastructure' was previously disliked by various market funds, which led to the current large expectation gap."

"Yes, last year, there was a big hype about emerging economies and mobile Internet, and now everyone is speculating on the cyclical reversal of traditional industries. It feels like the market is really magical."

"Everything is cyclical. This means there are no good industries or bad industries, only differences in expectations."

With the discussions of many retail investors on the market's stock investment exchange platform, and after everyone reviews the market, they make expectations and judgments about the subsequent market trends.

At the same time, on financial media websites and institutional platforms...

The voices that continue to be bullish on the market, firmly believe in the reversal of the real estate market cycle, and are optimistic about the investment opportunities in the main line of "big infrastructure" are also continuing to spread.

"Institutions and the media are still bullish on the market and the core theme of 'big infrastructure'!"

Noticing the voices of market institutions and financial media, Li Jinshi, one of the main speculators of the "Fushan Group", said: "Old Chen, Brother Liao, aren't the reactions of these institutions and media a bit over the top? The more bullish they are, the less confident I feel about the subsequent trend of the core theme of "big infrastructure"."

Really good things, investment opportunities with huge expectation gaps.

In his opinion, institutions will not promote and be bullish in such a big way. After all, they don’t even have time to buy the stocks themselves, so why would they promote them so much?

"These institutions' publicity only proves one thing," Chen Guiyun replied. "It shows that these institutions have already completed the initial position building in the core theme of 'big infrastructure', and they are not confident about the subsequent trend of this core theme. Therefore, they use this form of public bullishness to take advantage of the current hot market sentiment to attract more follow-up funds to enter the market to support them.

Of course, on the other hand, we also hope that more incremental off-market funds will come in to add some confidence to the subsequent market.”

"No matter what, this is a good thing after all." Liao Guoxiang said, "The market is getting hotter, more incremental funds are involved, liquidity is high, and there will naturally be more opportunities. So, no matter what the motives of these institutions and financial media are, such publicity is a good thing for the market as a whole. Of course, for those of us in the market, it is definitely necessary to maintain a calm judgment on the market trend.

It is difficult to see what the long-term trend of the core theme of "big infrastructure" will be.

But the short-term trend...

Judging from today's market conditions and the strength of bullish support for related stocks, it is obvious that the short-term speculation sentiment is likely to come to an end.

In the next few days, or at most a week, this core line will inevitably see a relatively large adjustment trend again.

If we are determined to see the long-term trend of this core theme, or we want to change our investment thinking and embrace the core weighted leading stocks.

When this core line is adjusted, it is a good time to adjust the position and buy. "

"So, Brother Liao is planning to take profits on all the 'big infrastructure' main short-term concept stocks in his hands?" Li Jinshi said with a smile, "I think the current market sentiment is also a bit declining. Today's market trends are actually very divergent. The GEM Index and the Shanghai Index are so polarized that it is impossible for them to last long and cannot continue."

Liao Guoxiang responded: "If the short-term sentiment is not right, it is always right to stop profit first. Market opportunities will always exist. In a bear market, the last thing to fear is selling chips. Because in the market atmosphere of stock game, there is no continuous and sufficient buying to take over. No matter how strong the underlying logic is, the trend cannot be coherent. Because in the case of obvious lack of buying, investors will inevitably have doubts, constantly doubting the logic and the trend."

"Brother Liao is right." Chen Guiyun responded, "Under the condition of limited liquidity, no matter how strong the main line is, its trend cannot be achieved overnight. The trend of any main line is born in despair, slowly moves forward in doubt, gradually peaks in consensus, and ends in madness. We don't need to be too anxious. If the logic of the core main line of 'big infrastructure' is strong enough and the expectations are strong enough, no matter what the opinions of these institutions are, it will eventually come out under the concerted efforts of the market." (End of this chapter)