Rebirth of the Capital Legend

"It seems that there is nothing wrong with such a sharp drop." Hearing Xu Qiao's sigh, Lao Wu responded, "It has been fluctuating sideways, and the funds in the market have been unable to form a unified force on various main lines. Before seeing a clear signal to go long, the funds outside the market dare not enter the market on a large scale to increase their positions and buy stocks, which is not conducive to the recovery of market conditions and sentiment. Now that there is such a drop... the profit-taking and the stop-loss orders of the panic are forced to be smashed. This will enable the chip structure of each main line in the market to be adjusted as soon as possible, and will also make the investment and speculation cost-effectiveness of more main lines further highlighted.

In other words, a benign adjustment, a rapid callback with large volume...

In my opinion, it has no harm to the subsequent market trend but has many benefits.

Take the core theme of "big infrastructure" for example. Currently, many stocks in this core theme area have poor chip structure, and the profit-taking and free trapped shares have not been cleared out. The resistance to rising is quite large under the market fundamentals of relatively scarce liquidity.

At the same time, the core stocks of the entire main line are basically located in the core area of ​​​​the previous locked-in chips.

In the case that the profit-taking and free trapped shares have not been cleared out, even if the future expectations are still growing, a large number of funds inside and outside the market are unwilling to support these profit-taking and trapped shares that are still entrenched in the core main line of "big infrastructure". Only when this part of the funds in the market are poured out, the market becomes lighter.

Then, subsequent long funds will have the willingness and confidence to enter the market.

Only then can the core theme of "big infrastructure" be completely adjusted and return to the main upward breakthrough trend.

At present, it is obvious that the market's 'oversold rebound' line, led by the main lines of Internet software, new energy industry chain, film and television media, electronic information, etc., cannot drive the market index, nor can it form a consistent long-term force among various market funds.

Similarly, the two sub-sectors are 'consumer electronics' and 'security lenses'.

Judging from the market trends in the past two days, it is difficult to drive the overall market and form a synergy of funds within the market.

As for consumption, medicine, liquor, white goods, finance... these defensive main-line sectors, although they can drive the overall market index, they cannot enhance the overall bullish sentiment of the market, nor can they stimulate the unanimous bullish enthusiasm of institutions, hot money, and retail investors.

Therefore, if the market trend pattern is to be reversed, the investment sentiment of the entire market is to be further stimulated, and more off-market funds are to be attracted to enter the market, it is obvious that the core theme of "big infrastructure" must be the main task. This is also the fundamental reason why I believe that if the market wants to return to the main upward trend, the "big infrastructure" line must be adjusted, the internal chip structure must be re-consolidated, and the short-term profit-taking and free unwinding selling pressure must be cleared. "

"Old Wu, according to what you said, there is really no need to make any layout for the market's 'oversold rebound' line, as well as the two branches of 'consumer electronics' and 'security lenses'?" Xu Qiao asked, "Also, the market's large-scale decline will seriously damage the market's investment and speculative sentiment. Once the loss effect spreads, funds in the market will flee in panic, and the confidence in going long will deteriorate. In the bear market, it will be difficult to ignite the fire that has just been ignited in the market after it is extinguished. As the saying goes, the first blow will weaken the second and the third will be exhausted. At the current position, if there is an over-adjustment, the sentiment of going long will be killed, and a large amount of funds in the market will flee the market. Then the stock liquidity of the market will be even scarcer, and it will be impossible to launch the main upward trend you mentioned in the future."

"The change of sentiment is dynamic, and the ebb and flow of market sentiment is normal." Old Wu took over and continued, "I think as long as the underlying logic of the entire 'big infrastructure' main line is constantly strengthened, the future performance explosion expectations of a number of core leading stocks in the main line field will continue to increase.

So, after these stocks have fallen and adjusted, the cost-effectiveness of speculation and investment is constantly improving.

In the so-called financial market, as long as there are strong enough expectations.

Then, there will be no lack of capital participation in investment and speculation opportunities with extremely high certainty and high cost-effectiveness, and there will be no need to worry about not having sufficient buying.

As long as the core theme of "big infrastructure" returns to the upward trend.

This will naturally drive the market index higher, boost the overall bullish sentiment in the market, and restore investors' expectations for future market conditions.

What's more, isn't the 'Hua Yi Capital' institution headed by Brother Su still increasing its holdings in the main field of 'Big Infrastructure'? Brother Su's prediction of market sentiment is a top expert. When the time comes... when the main line of 'Big Infrastructure' is adjusted, he will have so many chips in the market, and he will definitely use his influence to reignite the 'Hua Yi Capital' institution-related trading seats.

After all, it is the absolute main force and guiding capital in the main line of "big infrastructure".

The whole market cooled down again, valuations were compressed, and he and the fund he managed suffered huge losses.

Furthermore, even if Brother Su can keep his composure, the major institutional groups in the industry that have been deeply involved in the core area of ​​'big infrastructure' will not fail to guide the market and maintain the main trend of 'big infrastructure' in order to compete for the performance ranking in the second half of the year, right?
What's more, at present, even in the foreseeable second half of the year and next year.

The expectations for the entire "big infrastructure" main line, especially the "real estate industry chain" related main line sectors, are much stronger than the liquor, white goods, consumption, and pharmaceutical sectors that many institutions have previously held. It is also easier to stimulate market bullish sentiment than a number of defensive main line sectors, and it is easier to form a market-wide consistent bullish force.

So, we can basically conclude that...

The entire domestic real estate market has entered another bull market.

The core theme of "big infrastructure" must be supported by strong underlying logic and will definitely come out after adjustments."

"I still admire Lao Wu's broad-minded vision." Lao Zhang chuckled and took over the conversation, "I agree. Looking at the core main lines in the entire market, I still think that the main line sectors related to "big infrastructure" and the related core stocks have the most certain future prospects and the most cost-effective investment and speculation. The two branch sectors of consumer electronics and security lenses that Lao Chen discovered before are still too small in size and cannot accommodate too much large funds, resulting in a low resonance with the market sentiment and it is difficult to drive the overall market sentiment. This is also the reason why the two branch sectors quickly rose in the early trading today, but the entire market collapsed.

If we want the market to improve completely, we really need the core theme of "big infrastructure" to stand out.

Unfortunately, the internal chip structure of the "big infrastructure" line does have some problems, and the short-term profit-taking and free locked-in chips have not been completely sold out. In fact, various funds in the market have already tried to do the "big infrastructure" line yesterday.

Facts have proved that before the internal chip structure is adjusted, the current market stock of funds cannot pull it up at all and cannot form a combined force.

In this way, it is only natural for the market to adjust downward.

Since the upward resistance is so great, we can only sell downward first to clear the upward resistance. "

"It is definitely not possible for the two branches, consumer electronics and security lenses, to take on the main market role." Hearing Lao Zhang mentioning himself, Brother Chen responded in the group, "The size of these two branches is destined to only serve as a companion market for other core lines in the market.

But in terms of fundamental changes and future expectations...

I believe that many of the core leading stocks in the two branch fields of consumer electronics and security lenses are no weaker than the core leading stocks in the main field of "big infrastructure".

In fact, these two branches can also be used as a safe haven for some market funds during the adjustment of the main line of "big infrastructure". At least the cost-effectiveness is higher than that of the core leading stocks in liquor, white appliances, consumption, and medicine, which are already heavily favored by institutions. "

“It seems that all the opportunities you mentioned are dominated by institutions,” Xu Qiao said. “I don’t like to be a supporter of institutions.”

"The market trend is like this, there is nothing we can do about it, we have to follow the market." Old Wu said, "The hot money in the market has lost the market pricing power, and now the hot money seats in the market, except for the super premium seats like Su Brothers' Fuxing Road, overall, the premium of hot money seats has fallen far behind that of institutional seats.

Observe the recent trends of many small and medium-sized stocks.

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On the Dragon and Tiger List, the subsequent trends of small and medium-sized stocks with institutional participation, especially the follow-up effect of retail funds on the market, are obviously stronger than those of small and medium-sized stocks with the participation of hot money.

This shows that the market pricing power is indeed dominated by institutions. At the same time, the reaction and attitude of many retail investors in the market towards institutional seats have also changed significantly compared with last year and even the beginning of the year. Now there are quite a few retail investors who are willing to support institutions and follow the trend of institutional stocks. "

"This phenomenon is actually very easy to understand." Brother Chen said, "In a bear market, market liquidity is limited. Generally, after buying, institutions will not dump their shares the next day and leave the market. They will lock up their shares relatively quickly. With the help of institutions, the selling pressure will naturally be smaller, and the stock price will be easier to pull up. The possibility of a premium the next day will also be higher. In fact, in the current market, not only are there more and more retail investors following the trend of institutional seats, but there are also more and more hot money in the market that follow the trend of institutional seats. This is a manifestation of insufficient market liquidity."

"That's true." After hearing Brother Chen's analysis, Lao Zhang nodded and said in agreement, "The premium for institutional seats is indeed getting higher and higher. I heard that many hot money in the circle are planning to get institutional seats to hide their purpose of market manipulation."

"Hehe, don't mention it... borrowing an institutional seat to play around is really a good idea." Xu Qiao smiled and said, "Now in the market, except for Brother Su's 'Fuxing Road', basically other seats have no premium. So why don't other hot money borrow Brother Su's seat?"

"I think Brother Su's Fuxing Road seat has become a monopoly seat." Old Wu said, "The tens of billions of trading accounts of Huayi Capital, which Brother Su manages, are all set up in the Fuxing Road branch of Huaxin Securities. Other funds should not be able to open accounts in this seat anymore."

"That's right." Xu Qiao said, "If the seats are not monopolized, fakes will appear frequently in the market, and it will be a mess. Everyone should still hope that the 'Fuxing Road' seat will continue to maintain a premium."

Lao Zhang laughed and said, "If anyone is shameless enough to borrow Brother Su's seat, once it is exposed, they will be too ashamed to stay in the circle."

Following the discussion of several major speculators in the group...

As the market trading hours continue to advance, the main line of "big infrastructure" and the main line of the market's "oversold rebound" are still continuing to fall.

Moreover, due to the joint sell-off of the two core main lines.

The entire market is extremely lacking in hot spots, and the willingness of on-site funds to go long is extremely low.

Except for defensive sectors such as liquor, white goods, medicine, consumption, and finance, which were still able to barely hold on to the red, the declines in the indices of other major industry sectors and concept sectors all reached more than 1%. Among them, the Internet software, film and television media, steel, coal, real estate development and other sectors were hit hard, leading the decline in the two markets, with the sector indices falling by more than 2%.

Finally, when 11:30 am arrived, the two markets closed.

Due to the serious impact of the sharp correction of the core market line, the three major indexes closed down one after another, and the market volume increased significantly compared with yesterday, completely showing a trend of large-scale decline.

"This adjustment trend is really fierce!" Li Shangfeng, the trading team leader of the 'Blue Chip Hybrid Selection' main fund product trading department of 'Nuoan Capital' in Shanghai, sighed helplessly after seeing the market performance after the midday closing. "The core hot spots are all gone, and almost all funds in the market are panic selling chips. In addition, we originally thought that the defensive main line sectors such as liquor, white appliances, medicine, consumption, and finance could barely hold up. Unexpectedly, near midday, these defensive sectors were also driven to dive by the 'big infrastructure' main line and the 'oversold rebound' main line."

"Well, this adjustment trend is indeed fierce." Wang Shujie, the product manager of the main fund "Blue Chip Hybrid Selection" beside Li Shangfeng, nodded and responded, "The bullish sentiment in the market has almost collapsed across the board, and more than 90% of the stocks are showing a downward trend. And judging by the situation... this panic selling sentiment has not been fully released in the morning market trend. It is estimated that the market trend in the afternoon will most likely be uglier than that in the morning."

"The trend in the morning was actually fine, but after 10 o'clock, the trend was completely wrong." Li Shangfeng said, "There was no negative stimulus on the news, so why did the market suddenly collapse? If a unilateral plunge really formed in the afternoon, I'm afraid the market will be difficult to recover in a short period of time. I was thinking of taking advantage of the return of major funds from various markets to the 'big infrastructure' main line to increase our positions in the 'big infrastructure' main line. Now it seems... we may have to wait a little longer." (End of this chapter)