Rebirth of the Capital Legend

"But if the market is going to follow the logic of 'high-low switching', relatively speaking, the 'new energy industry chain' line is still a core main line with relatively greater opportunities, right?" Chen Guiyun said, "It seems that apart from the 'new energy industry chain' main line, other low-level market main lines have even fewer opportunities, and it is even more difficult to form a consensus expectation of long funds in the market."

"That's right." Liao Guoxiang nodded and said, "If you really want to do the 'high-low switching' line, then it is definitely better to choose the 'new energy industry chain' line. However, when thinking about speculation, expectations should be lowered and profits should be realized in a timely manner, otherwise it is easy to return the profits to the market."

"Hehe... So Brother Liao agrees that the market will go through a 'high-low switch' logic?" Li Jinshi smiled and continued, "Does he also think that this hype route is worth participating in in the short-term speculation?"

Liao Guoxiang responded: "I think it's completely fine to participate with a small position, but just don't get too involved in the play."

Since the market trend has formed a 'high-low switching' path, even though he does not think this line can maintain high continuity, he still has to respect the market trend changes.

Just when several core hot money investors of the "Fushan Group" were carefully analyzing the future market trends based on today's market trends and the Dragon and Tiger List data released by the two cities, predicting the future market trends, and planning to participate in the market's "oversold rebound" opportunity with a small position...

A discussion area on the entire network's stock investment exchange platform where countless retail investors gather.

The consensus on the market trend of "oversold rebound" and the view that the main line of "big infrastructure" is about to enter an adjustment cycle is becoming increasingly strong.

However, although the confidence of many retail investors and hot money in the market for the core theme of "big infrastructure" and the continued high-profile expansion of space is declining, although everyone believes that the market will most likely "switch between high and low" and there will be a wave of "oversold rebound" in the future.

But within various institutional groups, as well as in the eyes of securities investment institutions, market financial media, and financial bigwigs.

There is also public marketing.

The primary focus and core bullish targets of these large financial institutions are still concentrated in the core main line area of ​​'big infrastructure'. They still do not show much interest in the main line sectors such as 'new energy industry chain', 'film and television media', 'Internet software', etc. that are in a short-term oversold position, and generally believe that the core stocks of these sectors are still too expensive and are far from reaching the stage of high investment cost-effectiveness.

Of course, institutions are still continuing to sing the praises of the core theme of "big infrastructure".

In terms of public information, the positive news about relevant policy directions such as "supply-side structural reform", "new era road, maritime Silk Road", and "new urbanization construction" are still fermenting, and new related positive news are constantly confirming the ideas of institutions, further stimulating the overall bullish sentiment of the core theme of "big infrastructure".

In addition, the continued recovery of the external markets in the evening was a stimulus.

As a result, the bullish sentiment, which had clearly receded in the late trading session, was rekindled.

So, with a good bullish sentiment...

The next day, Wednesday, August 8, during the call auction phase of the two markets, the "big infrastructure" main line, which had been predicted to be bad by many hot money and retail investors, had shown huge differences during yesterday's trading, especially in the late trading stage. Most of the popular stocks on the "big infrastructure" main line, which had diverged rapidly, actually repaired the weak form of yesterday's late trading. Under the leadership of active long-term funds, they basically all showed an obvious trend of opening high and repairing.

Instead, it was the main line of the 'new energy industry chain' that showed unusual movements at the end of yesterday's trading, and even surged rapidly.

There are also core stocks in the low-priced and oversold sectors such as 'Internet software', 'film and television media', 'electronic information', etc. that follow the trend.

After a night of emotional fermentation.

It did not actually open strongly as expected by many hot money and retail investors.

"Eh... the core stocks of the 'new energy industry chain' that moved abnormally at the end of yesterday's trading, as well as the many core stocks of the 'film and television media', 'Internet software', 'electronic information' and other sectors that followed suit, did not open high today, but generally opened low." Noting the final call auction situation of the two markets, Xu Qiao, one of the main speculators of the 'Magic City Ultra Short Gang', was obviously a little surprised and said in amazement, "On the contrary, the 'big infrastructure' main line that was obviously weak at the end of yesterday's trading, unexpectedly continued to be strong and generally opened high. This opening situation... is somewhat unexpected, and also far beyond expectations."

"It's really a bit surprising." Lao Zhang said, "I originally thought that in the main field of 'big infrastructure', several core hot concept stocks that plunged at the end of yesterday's trading, such as 'Beijiang Communications Construction', 'Huaxin Cement', 'Tianshan Cement', 'Capital Group'... these stocks would definitely open much lower, but I didn't expect that not only did they not open much lower, they didn't even open low at all. Almost all of them opened strongly higher after repairing, which was really beyond my expectations."

"The entire 'big infrastructure' main line showed an obvious strong recovery trend in the call auction. It should be due to the favorable policy stimulus last night, right?" Old Wu took over at this time and said, "Also, the 'big infrastructure' line has continued to rise so much in the early stage, and a breakthrough trend has been formed. The main funds in the market have intervened too deeply, and it is not so easy to stop profit and leave the market. Naturally, the market trend will fluctuate.

Of course, the fundamental reason is that the logic of the "big infrastructure" line is strong enough and the market consensus is strong enough.

There is still too much capital both inside and outside the market that missed out on this core market trend.

Therefore, in this core area, as long as the relevant core stocks fall, the funds will continue to flow in. "

"Look at the opening pattern. At the end of yesterday's trading, we finally hit the recognizable 'new energy industry chain' main line, and the market's 'high-low switching' oversold rebound logic. Is it just a waste?" Xu Qiao was a little confused about the opening results of the two markets. "It doesn't make sense. Logically speaking, the 'big infrastructure' line has reached this position, and it has already touched the deep locked-in area of ​​internal chips. Coupled with the short-term profit-taking selling pressure, the pressure to continue to expand upward is very great. The market's 'high-low switching' oversold rebound logic should also be a natural thing. Why did it form such a call auction result?"

"The oversold rebound logic of 'high-low switching' is still smooth at present." After staring at the opening of the two markets and pondering for a moment, Brother Chen responded, "The short-term repair trend of the main line of 'big infrastructure' cannot change the fact that its internal chip structure is loosening. In other words, the good news can delay the change of short-term market trends, but it cannot prevent the actual trend of the market from changing."

"According to what you said, Brother Chen..." Xu Qiao paused and said, "Do you still think that the market will follow the 'high-low switching' trend?"

Brother Chen nodded and said, "I think so."

"Then why do the corresponding stocks in the low-level sectors appear to be weaker in the opening pattern?" Lao Chen asked, "If the market is to continue the trend of yesterday's closing... the main line of 'big infrastructure' continues to diverge, and the low-level main line continues to open strongly."

"The market trend has inertia," said Chen. "The recent continuous rise in the 'big infrastructure' line has accumulated money-making effects, as well as trend power and favorable news stimulus, which can induce funds that were previously missed to continue to follow up.

As for the oversold sectors such as 'new energy industry chain', 'Internet software', 'film and television media', and 'electronic information', the market sentiment and investors' confidence in going long are very weak.

This weak bullish confidence and market sentiment also have inertia.

In addition, the original main line of "big infrastructure" has developed to its current position, which has a strong siphon effect on active funds in other main areas of the market.

There was also the unusual movement of the 'new energy industry chain' at the end of yesterday's trading, which accumulated some speculative funds for short-term speculation the next day.

These groups of speculative funds have a strong desire to sell when they have already made profits.

These factors have led to the current opening pattern.

However, no matter what the opening pattern is, changes in sentiment and trends are actually happening among the major market trends.

Signs of loosening of chips within the entire "big infrastructure" main line are becoming more and more obvious.

This shows that in the short-term market trend, the market's 'high-low switching' trend is inevitable, but there will be some twists and turns in this process of change. "

"Brother Chen is right." Old Wu took over and said, "On the one hand, after the abnormal movement of the 'new energy industry chain' at the end of yesterday's trading, it needs to step back and confirm today. On the other hand, for the core theme of 'big infrastructure', many speculative active funds in the market have been involved too deeply. They need to take advantage of some positive news last night to guide emotions and stabilize the market, giving themselves a stable opportunity to stop profit and exit.

After all, the market changed very quickly at the end of yesterday's trading.

Many active main funds concentrated in the main area of ​​​​"big infrastructure" did not have time to react at all.

If I'm right...

After the market opens, the core theme of "big infrastructure", except for a few core leading weight stocks dominated by large institutional funds, other concept stocks and related stocks are likely to rise and fall in large volume. On the other hand, the related stocks of low-level sectors such as "new energy industry chain", "Internet software", "electronic information" and so on are likely to open low and go high after falling back, forming a rebound. "

"Then I'll take advantage of your good words, Old Wu." Old Zhang chuckled, "Wait for the market to open and the 'big infrastructure' main line to rise rapidly under the favorable conditions. I will pick up some low-priced core stocks of the 'new energy industry chain' main line."

As soon as he finished speaking...

The brief 5-minute trading break has passed.

At 9:30, after just five minutes of emotional buildup, the two markets entered the formal continuous bidding trading session.

The two markets were just beginning to move, with positive bullish sentiment and good call auction trends leading to a rapid upward trend in all the core hot stocks in the entire "big infrastructure" main line, including several hot concept stocks that had plunged in the late trading yesterday.

A large number of follow-up buy orders poured in, causing a number of "big infrastructure" main-line stocks to form a counter-envelope pattern.

On the other hand, the main stocks of the 'new energy industry chain' moved abnormally at the end of yesterday's trading.

Many core stocks such as 'Dofluoro', 'Tianci Materials', 'Tianqi Lithium', 'Ganfeng Lithium', etc., fell against the trend and gave up the gains in yesterday's late trading.

At the end of yesterday's trading session, other low-level oversold stocks followed suit.

The performance at the beginning of the trading session is even weaker.

"Fuck, what's going on? Has the idea of ​​'high-low switching' failed again?" Seeing the 'big infrastructure' main line rising rapidly all the way, and starting to frantically siphon active funds from other main line sectors in the market, and the main board field, especially many constituent stocks of the A50 index, also followed suit and rose. In the 'Suzhou system' main hot money group, which had already made a large-scale layout in the low-level main line field of 'new energy industry chain' and got the first-hand chips, and was about to set off the market's 'oversold rebound' trend, He Zhong stared at the rapidly changing stock market in the two cities, and was completely dumbfounded. "Fuck... Is the 'big infrastructure' line so strong? Can this be repaired?"

"According to normal trends, the 'big infrastructure' line should have collapsed at the opening today." Hearing He Zhong's complaints, Zheng Jinming responded, "Unfortunately, last night's favorable policies and the publicity and stimulation from major institutions and financial media have given this core line a short-term life extension. Since the 'big infrastructure' line cannot collapse for the time being, naturally, there will be no funds paying attention to the oversold main lines at low levels, and there will be no market."

The entire market, the Shanghai Composite Index and the ChiNext Index, the high-level core group main line and the low-level oversold concept main line.

Those are two extremes.

Moreover, in the minds of the major core funds in the market and even many retail investors, the market trends of the two are like a seesaw effect.

This effect is not affected by the dominance of capital or human will.

This is a market phenomenon that is inevitably formed due to the lack of market liquidity.

"Alas, this is difficult. It is said that those who predict the market one step ahead are prophets, and those who predict the market two steps ahead are martyrs." Zhang Xinlei, who is also a core figure of the main hot money of the 'Gusu system', smiled helplessly and said, "We have all become martyrs. Look at the strength of funds following the trend at the beginning of the trading session. After another divergence to consensus, a number of stocks in the core main line of 'big infrastructure' are obviously going to hit a new rebound high." (End of this chapter)