Rebirth of the Capital Legend

"It seems that it is time to participate with a light position, or to rest with an empty position." Xu Qiao sighed and said, "The market's profit effect is rapidly declining, while the loss effect is starting to become larger and larger, which means that the next market trend... is very likely to have relatively large fluctuations."

“It is estimated that it will go back to the low point of the previous two days’ adjustment.” Lao Zhang responded.

"I'm afraid it's not as simple as a retracement to the low point of the previous two days." Old Wu said, "Since the previous high point cannot be touched here, it means that the entire oscillation range platform has not been explored. In other words, the low point of the previous two days is very likely not the low support position of this round of oscillation platform."

"Old Wu, what you mean is..." Xu Qiao asked, "the market is likely to plummet next?"

Old Wu nodded slightly and continued, "If it doesn't go up, it will go down. Since the current market sentiment and the amount of long funds can't support the upward breakthrough of the market index and the corresponding core main line, then naturally it can only continue to adjust downward and look for downward support. Not to mention the possibility of a sharp drop, at least a large downward adjustment is very likely to occur. After all, if there is no room for killing, there is naturally no way to clear the profit-taking and locked-in positions in the market, and it is impossible to reduce the selling pressure on the market. Only by killing harder and killing out the short-term spatial amplitude can the internal chips at this stage be fully exchanged, and more support and momentum can be accumulated for the subsequent market to continue to break through."

"Old Wu means that at this position, the market will adjust more drastically. In fact, it will not be bad for the overall market trend and trend changes." Brother Chen also responded at this time, "My thoughts are consistent with Old Wu. I also think that at this position, it is necessary to sell down and kill the panic selling. Continue to clear the accumulated trapped chips in the market, which will be more conducive to the subsequent market outbreak."

"Anyway, it's always a good idea to avoid it for now... right?" Xu Qiao continued.

"That's for sure." Brother Chen responded, "At this time, when the market's loss effect has gradually spread, you can either follow the example of many institutional funds in the market and hold defensive sectors such as medicine, consumption, and finance, or choose to go short and wait for the market to have a clearer entry point."

"Old Chen, where do you think the market will most likely adjust downward?" asked Old Zhang.

Brother Chen responded: "It's hard to say. Let's take it one step at a time. I think when the market will improve and when the bottom of the oscillation range will be found, it still depends on where the 'big infrastructure' line has strong support. When the internal selling pressure on the 'big infrastructure' line starts to fail to hit the stock price, even if the main funds flow out, the stock price will find it difficult to continue to fall. The market index is likely to have bottomed out."

"The core theme of the market is definitely 'big infrastructure'," said Lao Zhang, "but I feel that the performance of the index is more closely related to sectors such as medicine, liquor, white goods, and finance!"

Brother Chen continued to respond: "Although the sectors such as medicine, liquor, white goods, and finance are more closely related to the Shanghai Stock Exchange Index, these sectors have basically reached a relatively high level and entered the stage of expectation realization. It is difficult for them to have a big rise or fall in the short term.

What's more, these defensive sectors are originally used by the "national team" to stabilize the index.

Therefore, the market's money-making and money-losing effects, that is, intuitive emotional expressions, have no influence on the trends of these defensive sectors at all."

"What about the Internet software, film and television media, electronic information... these low-level oversold main lines?" Lao Zhang said, "If the 'big infrastructure' main line continues to adjust, will the market have the opportunity to 'switch between high and low'? Can these oversold main lines continue to rebound from oversold positions?"

"I think it's difficult." Brother Chen said, "Internet software, film and television media, electronic information... and other low-level oversold main-line sectors have basically been completely abandoned by the main funds in the market. Even if there are occasional oversold rebounds by hot money in the market, their sustainability is obviously questionable, and participation is extremely low."

"Mr. Zhang, if you want to trade in the short term, you must go to the place where the main funds are concentrated the most." Old Wu said, "Why do you want to go into Internet software, film and television media, electronic information... these oversold main line sectors?"

Lao Zhang responded: "I've seen these sectors fall for a long time, and after all the institutions and hot money have fled, the chips are relatively clean."

"Film and television media, electronic information, Internet software... these oversold main-line sectors, even if the internal chips are relatively clean, but without the support of long sentiment and other main funds willing to follow the joint force, they are equal to zero." Old Wu said, "Admittedly, investors have been completely locked in the concept stocks related to these main-line sectors. Before their stock prices have not touched the core area of ​​the locked-in disk, it does not take much effort to raise the stock price, nor does it require too much capital, but in the end... the stock price still needs to be raised for someone to take over. If no one takes over, even if the stock price is raised, it will not be able to sell, and it will not make much money. Moreover, in the current market, the active retail investors who are still trading on the floor are basically old stockholders with a lot of mature experience. In the absence of macro fundamentals expectations and future performance explosion expectations, it is not realistic to rely solely on capital advantages to raise stock prices and attract these guys to follow suit and take over the chips.

These are also the main oversold sectors such as Internet software, electronic information, film and television media, etc.

After every rapid rise, the stock price falls back quickly, which is the fundamental reason why the stock price cannot remain stable at a relatively high level.

The speculative funds that had previously participated in these oversold main lines were basically forced to stop losses without making any profits and exited the market at a loss, so I think... there is no need to pay too much attention to these oversold main line sectors.

In general, at present, there are expectations and emotions in the market. There are major funds willing to follow the trend and speculate, and there are also a large number of retail investors willing to chase high prices to take over the main sectors. Basically, there is only the "big infrastructure" line left.

It's just a pity...

At present, the internal chips of the "big infrastructure" line are still relatively chaotic.

Profit-taking chips, free unwinding chips, trapped chips seeking to stop losses...all kinds of chips are gathered together, but they are temporarily unable to form a unified force.

We can only wait for these chips to be cleared out and the internal chips to settle further before there will be a clear opportunity to intervene."

"Old Wu is right." Brother Chen responded, "We still have to focus on the main line. In a bear market, the liquidity of the market is very limited. Non-mainline sectors have no expectations and no strong underlying logic. It is difficult for them to obtain liquidity. Without liquidity and the attention of the core active capital groups in the market, it is naturally difficult to generate market trends and it is difficult to have a good return on investment."

"Okay." Lao Zhang said, "Then let's continue with the 'big infrastructure' line."

"It seems that there has been no movement in Brother Su's 'Fuxing Road' seat recently." Xu Qiao said, "Is it possible that the main fund product 'Hua Yi Yuan Zheng No. 1' managed by Brother Su has already completed its position building?"

Old Wu said, "It is likely that the position has been built. Brother Su basically does not do short-term trading now, so it is difficult to see Brother Su's seat on the Dragon and Tiger list."

"Without Brother Su's seat guidance, I always feel that the market sentiment is a little lacking." Xu Qiao said.

"Brother Su's trading direction is just an assist to help the market rise or fall." Brother Chen said, "If the market wants to really come out, I think it still depends on the real joint efforts of various funds in the market."

"The key is this combined force... it's hard to say." Xu Qiao said, "Now many institutions in the market are becoming more and more low-key, and basically they will sell as soon as they can make a profit."

"There's nothing we can do about it." Brother Chen said, "In a bear market, people are always competing with each other."

"Let's see how the market trends this afternoon..." Xu Qiao thought for a moment and responded, "I really can't get excited. The loss effect is too bad. I can only take a short break."

Following the discussion among several core hot money investors in the 'Magic Capital Ultra Short Gang' hot money group...

At this time, countless retail investors gathered on the stock investment discussion platform across the entire network were also quite disappointed with the market trends and performance in the morning.

And most people are pessimistic about the market trend in the afternoon.

"It's really weird. Every time I think the market will rise, I increase my positions, but the market rises and then falls. Sigh... It looks like the trend in the afternoon will be worse than the morning. Today is another day of losing money!" "Indeed, the current market ecology is so bad, damn... I can even blow up if I hit the first board."

"I bought this check for 'Oriental Yuhong' at a high price. Isn't it said that this is a blue chip stock? Isn't it said that blue chip stocks have small fluctuations and are not prone to big rises and falls? It hasn't even closed yet, and I've already lost seven points. I feel that when it closes today, there is a high probability that I will lose a limit down!"

"I'm afraid there will be more than one limit down. If the price of Oriental Yuhong continues to fall this afternoon, even if it doesn't close at the limit down, it will still open much lower tomorrow."

“Is the ‘big infrastructure’ line also finished?”

"It seems that the big funds in the market, as well as some active short-term funds, have all gone to the liquor, white appliances, pharmaceutical, consumer, and financial sectors to seek risk aversion. Some of the more active core leading stocks in the main line of 'big infrastructure' have no buying funds willing to take over."

“How can we take over if there is no money-making effect?”

"They are all people without a vision. The check for 'Oriental Yuhong' was so good in the early trading today. The market sentiment was also very good at that time. It was obvious that the stock could reach the daily limit if the hot money continued to push it up, but it was ruined."

"The main force behind the 'Oriental Yuhong' check seems to be the 'Qilu Gang', right? This fund has no structure to begin with."

"The check from 'Oriental Yuhong' is OK, but the check from 'Golden Land Group' is a bummer today."

"Indeed, he single-handedly brought down the entire real estate sector."

"I don't understand. The 'big infrastructure' line has all the sentiment and good news today, and the external market trend was also good last night. How did it turn out like this?"

“Isn’t it normal to ship goods when the market is favorable?”

"The key is that there isn't much profit here, so what can we sell?"

"In the early stage, many stocks in the core theme of 'big infrastructure' have risen by almost 50% to 60%. How can you say that there is no profit capital?"

"The decline of the 'big infrastructure' sector can be said to be due to profit taking. What about the film and television media, Internet software, electronic information, new energy industry chain, etc., which are already oversold main sectors and their corresponding core stocks? Why do they continue to fall?"

"Indeed, the stock price has been cut in half and cut in half again, and it's still falling."

"There is no big money paying attention, so the more you kill, the more you lose."

"There is no main force in these oversold main-line sectors anymore. It is purely retail investors dumping stocks against each other."

"Alas, the market has been too difficult to trade recently. Even if the index goes up, you still lose money. Even if it goes down, you still lose money."

"It was only during the short period of time when the main line of 'big infrastructure' was forced to rise for two consecutive weeks that it was a little easier to do. It was very difficult to do it at other times of the year."

“Indeed, I lose money every day.”

"The key is that the index is now completely out of sync with individual stocks. It feels like the Shanghai Composite Index is completely distorted."

"The Shanghai Composite Index has been kidnapped by the A50 Index. Basically, when the Shanghai Composite Index rises, other stocks fall even more sharply."

"You know what, it's true. The Shanghai Composite Index is already at 2850 points, but the stocks I'm holding are still at 2500 points. Oh... No, it should be said that it is about 2500% lower than the original 20-point level of the Shanghai Composite Index."

"They say that in a bear market, people drink alcohol and take medicine. Now, apart from buying stocks in the pharmaceutical and liquor sectors, where else can you make money safely?"

"But the stocks of liquor and pharmaceutical sectors, how much have they increased? I can't bring myself to buy them!"

"I couldn't bring myself to do it, so I lost money every day on small-cap stocks."

"We can only hope that the 'big infrastructure' line will bring out the money-making effect, and we can only hope that Mr. Su will continue to increase his holdings and give the market some confidence."

"Alas, indeed, without President Su's seat, the market feels like it has lost its backbone."

"I think it's going to be tough. Today's core theme of 'big infrastructure' is going to bury a lot of people."

With the heated discussions among countless retail investors on the online stock investment exchange platform, the lunch break soon passed in a flash.

Then, under the attention of many people, at 1 o'clock in the afternoon, the two markets once again ushered in continuous bidding transactions.

I saw that the stock markets in both cities were fluctuating violently again.

After the emotions brewed in the afternoon, the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index all fell rapidly at the moment of opening. At the same time, the industry sector indices and concept sector indices related to the "big infrastructure" main line, as well as other non-popular main line sector indices, and a number of popular stocks that performed relatively well in the morning, all plunged lower.

Moreover, due to the extreme influence of emotions.

Defensive sectors such as pharmaceuticals, liquor, white goods, consumption, and finance, which were held by a large number of funds for risk aversion, also experienced a sharp decline at this moment.

The bullish sentiment in both markets can be described as a flash crash.

In just one minute, the two popular stocks of the "big infrastructure" theme, "Golden Land Group" and "Oriental Yuhong", which attracted much attention, plummeted to a drop of nearly 5%, burying all the active long funds that took over these two stocks today. (End of this chapter)