Rebirth of the Capital Legend

Chapter 480: The stage of focusing less on the index and more on individual stocks!
As the index rose strongly at the end of trading for two consecutive days, individual stocks generally showed a strong rebound trend, especially the industry sector index of the "big infrastructure" main line and related core stocks, all of which broke through the highs of the previous shock platform and set recent highs.

There are major stock investment discussion platforms on the entire Internet, as well as a large number of internal groups for hot money.

Everyone's emotions continued to run high.

Moreover, people are becoming more and more optimistic about the outlook for the future market, the expectations for this round of rebound, and the core theme of "big infrastructure".

“Although the Shanghai Composite Index still closed below 2950 points, this trend should be considered a substantial breakthrough, right?”

Some retail investors gathered on major stock investment discussion platforms across the Internet said.

"Whether it is a real breakthrough or not, at least the trend of many stocks today shows that they can no longer fall from this position, right? Many stocks really can't fall any further."

"Indeed, not only is the 'big infrastructure' line strong, but other market main lines have also reached the limit of adjustment."

"From the technical perspective of the K-line, the ChiNext Index is also seriously oversold and is ready to rebound strongly at any time."

"From the trend of the late trading, most of the small and medium-sized stocks will rebound tomorrow."

“Does this mean that the subsequent market investment style will need to change?”

"Not really, right? Looking at the current market situation, aren't the strongest still the blue chip stocks and blue chip stocks? The stocks with the best growth momentum are still the popular stocks in the core mainline areas."

"Indeed, the 'big infrastructure' line is really awesome."

"Well, in the last half hour of today's closing, the main capital group of the entire 'big infrastructure' main line had a net inflow of at least 10 billion."

"The check from 'Oriental Yuhong' is really strong. There is really no adjustment at all."

"At the end of the trading day, who was the one who provided the funds for the Oriental Yuhong check? Did the Qingchun Road of yesterday leave today?"

"I guess 'Qingchun Road' didn't leave? In the morning and before 2pm, I didn't see any large orders of shares crashing the market."

"Could it be that Mr. Su's Fuxing Road is continuing to increase its holdings?"

"Most likely not. The amount of funds that ignited the buying of Oriental Yuhong's stock in the last trading session was not very large. It eventually formed a buying spree and directly produced a money-making effect, stimulating the entire 'big infrastructure' theme and the market's late trading rebound. In essence, it still stems from the Oriental Yuhong check, which has a strong trend and can easily form a long-term force on the market."

"Of course I am kidding. Now, this check of 'Dongfang Yuhong' is the only real dragon in the two cities, right?"

"I think you can say that."

"The leader never cheats people. As long as the 'Oriental Yuhong' check continues to set new highs, it will always be a good time to buy."

"Among all the popular stocks in the core theme of 'big infrastructure', I think the trend of 'Oriental Yuhong' is the best, right?"

"Well, it can be said that the check from 'Oriental Yuhong' is already a substantial breakthrough trend."

"It feels like this check will go up again tomorrow."

"Is there any doubt about this? The check will definitely increase tomorrow."

"And today, the price of Oriental Yuhong is basically rising with shrinking volume, which shows that the internal chips have been basically locked up, and it is obvious that there will be new highs in the future."

"Oh, what a pity. There was such a good opportunity during the trading session, but I kept looking at it... but didn't dare to buy it."

“It is very difficult to buy the leading stocks because there is no opportunity to adjust and buy, so you can only chase highs.”

"I also watched it for most of the day but didn't dare to buy it. But at the end of the trading day, I saw the price of 'Oriental Yuhong' rise sharply. I bought a full position in the last ten minutes. I don't know whether it was right or wrong?"

"It must be right. Let's take a look at the Dragon and Tiger List later. I think the two major hot money stocks, 'Qingchun Road' and Mr. Su's 'Fuxing Road', are definitely in a locked position."

"The 'big infrastructure' line has basically been fully broken through, but the other main market lines are still a little short of maturity."

"The 'big infrastructure' line is now a leading indicator of market trends. As long as the 'big infrastructure' line achieves a substantial breakthrough, the market will definitely form a comprehensive breakthrough trend next."

"I hope so. I also hope that the U.S. stock market will perform better tonight."

"There is a high probability that the US stock market will reverse tonight, right?"

"I don't know about that. At least for now...there has been no reaction from the major stock index futures in the U.S.."

"It still depends on the movement of Mr. Su's 'Fuxing Road' seats. I think as long as Mr. Su continues to lock in his positions, the future market conditions will definitely be optimistic."

"There should be no doubt that 'Fuxing Road' is locked."

"Isn't anyone paying attention to the trends of the main sectors such as liquor, white goods, medicine, consumption, and finance? I feel that the trends of these main sectors...are a bit weak today."

"It's normal to be weak, right? The overall market risk appetite has increased, so shouldn't these defensive themes be cooled down?"

"Well, I think so too."

"Hey, if these sectors don't rise, it's good for the market."

"Yes, the market kept falling before, and the reason why many small and medium-sized stocks had lower and lower trading volumes and eventually lost liquidity was because they were siphoned away by defensive mainline sectors such as liquor, white appliances, medicine, consumption, and finance."

"It seems that the subsequent market investment style is indeed going to change." "It should change, right? The positions of the main sector indices such as liquor, white goods, finance, and electricity have all reached the Shanghai Composite Index of 5000 points. Compared with other main sector indices that are still at the Shanghai Composite Index of 2000 points, the cost-effectiveness is simply too high. I said that even if institutions gather together to speculate, it is impossible to drive the stock price to the sky."

"That's right. It seems that the subsequent market trend should be rotated to small and medium-cap concept stocks."

"It still feels difficult, right? For two consecutive days of abnormal movements at the end of trading, small and medium-cap stocks have not shown enough profit effects, and there is not enough major buying funds to pay attention to them."

"The market is recovering step by step. Once the stock price starts to rise, attention and major buying will naturally follow."

“In fact, I think there shouldn’t be any preference gap between large and small caps in the market.”

"Logically, yes."

"I really don't understand. Aren't small-cap concept stocks smaller in circulation and easier to control? Why do major funds now like to speculate on large-cap stocks?"

"Because the liquidity of large-cap stocks is good, once they encounter extreme negative news, large funds can withdraw decisively."

"Surely there's more to it than just this reason?"

"In addition, the trend of the overall market stocks is relatively stable and is not prone to sudden rises or falls."

"Look at 'Golden Land Group', 'Huaxin Building Materials', 'Huaguo Zhongye', 'Kewan Real Estate'... these leading stocks in the market, where is the stability of the stock price trend? The market fluctuates greatly."

"Relatively speaking, it must be safer, right? At least this check won't be delisted, and it won't suddenly go ST, right?"

"That's true, indeed."

"Let's take a look at the Dragon and Tiger List first. Although the 'Big Infrastructure' line has once again produced a good profit effect at the end of today's trading session and has formed a substantial breakthrough trend, and the 'Oriental Yuhong' check has also hit a new high and produced a very strong profit effect, there is still uncertainty about the subsequent trend."

As many retail investor groups discuss…

Before I knew it, the market time had already passed to around 5 o'clock in the afternoon.

Under the watchful eyes of countless investors in the two cities, the Dragon and Tiger Lists of the two cities were refreshed on time.

Among them, on the refreshed Dragon and Tiger list, 'Oriental Yuhong', the core leading stock in the two markets, and many popular stocks on the 'big infrastructure' main line such as 'Beijiang Communications Construction', 'Capital Group', and 'Pingmei Energy' are all on the list.

The Dragon and Tiger List buying and selling data of the check "Oriental Yuhong" attracted the attention of almost all investors in the market.

"As expected, the funds of Qingchun Road and Fuxing Road have both locked their positions." Noting the Dragon and Tiger List trading data disclosed by the popular leading stock Oriental Yuhong, Zheng Jinming, who is among the main speculators of the Suzhou system, said with emotion, "And it's not just Qingchun Road and Fuxing Road that continue to lock their positions. The Fushan system has actually intervened in a lot of positions today. Haha... Now the Oriental Yuhong check is getting more and more lively."

"The 'Fushan Group' position is not large, so it has little impact." Hearing Zheng Jinming's sigh, Zhang Xinlei continued, "In fact, today's 'Oriental Yuhong' list data can better show that... the market synergy of this check is really strong. Buying one with more than 1700 million funds has fully brought out the profit effect of the market."

"Old Zhang is right." Old Qian laughed and said, "With the support of Fuxing Road and the massive involvement of Qingchun Road, the circulating chips of Oriental Yuhong are actually decreasing significantly. That's why the long position is so strong. Basically... a large buy order of 10,000 lots can ignite the long position."

"From the overall buying and selling situation of the Dragon and Tiger List of the two cities, there is no doubt that at this stage, the main institutional funds and the medium and large individual investors in the market are still continuing to increase their positions." He Zhong stared at the disclosed Dragon and Tiger List data of the two cities and pondered for a while, and said, "Since the main buying funds are still large funds, and the large number of retail investors who sold at the bottom or were washed out in recent days have not covered their positions, it means... the market trend has definitely not been completed at this position."

"I think so too," said Zheng Jinming. "But the Shanghai Composite Index did not close above 2950 points. This may be a potential risk."

"The K-line pattern has already formed a substantial breakthrough," Zhang Xinlei said. "Under this circumstance, whether the Shanghai Composite Index actually stands above 2950 points or not should not have any impact, right? As long as the external market trend is not too weak tonight, and it opens slightly higher tomorrow morning, the Shanghai Composite Index will directly cross 2950 points."

Old Qian nodded slightly and continued, "In fact, compared with the trend of the entire market, the trend of the Shanghai Stock Exchange Index is somewhat distorted. It is more intuitive to look at the Shenzhen Stock Exchange Index, the ChiNext Index, the China Securities 500 Index, and the All-China Securities 1000 Index. Whether it is the Shenzhen Stock Exchange Index, the ChiNext Index, or the China Securities 500 Index... they are basically in the process of forming a preliminary rebound after repeatedly exploring the support bottom. In other words, as long as the internal and external sentiments support it and there is no particularly major negative impact, and the market sentiment is allowed to ferment naturally, then the market's next trend will have a 90% probability of continuing to rebound.

Compare the trends of Shenzhen Index, ChiNext Index, CSI 500 Index...

On the contrary, I think the Shanghai Composite Index is not that optimistic.

After all, the biggest influence on the Shanghai Composite Index's performance is not the core theme of "big infrastructure", but a number of weighted component stocks in the A50 index field.

These weighted component stocks have been continuously hyped up by institutional major funds in the past six months.

It has clearly overdrawn a lot of expectations for the future.

Coupled with the rapid rise in market investment and speculative sentiment, the market's overall investment risk appetite has increased, which is bearish to a certain extent for these defensive main-line sectors.

This is in addition to the need for institutions to realize profits and adjust their portfolios.

I feel that in the next period of time, the Shanghai Composite Index will most likely not outperform the Shenzhen Composite Index and the ChiNext Index. "

"Old Qian, do you mean to say that... the main capital groups in the market have been focusing on the core stocks with heavyweights and speculating together, and the trend is changing?" He Zhong understood what Old Qian meant, paused, and asked, "But even in the line of 'big infrastructure', it is obvious that the trend of the core large-cap stocks and industry leading stocks is still obviously stronger than the small and medium-cap concept stocks in this main line. I feel that... the current market investment trend is not yet time to change. Of course... from the perspective of underlying logic and valuation, the current leading stocks and heavyweight stocks in the defensive main line sectors such as liquor, white appliances, medicine, consumption, finance, and electricity are indeed not cost-effective and have no long-term investment value."

"I don't feel the market investment trend has changed." Zheng Jinming said, "I think it is better to respect the market trend. At present, it is obvious that the main capital groups in the market still prefer large-cap stocks and prefer to speculate on blue-chip stocks with good performance."

"Let's look at the overall market trend first, then the main trend, and then talk about the investment direction." Zhang Xinlei pondered for a while and said, "Since the current risk factor of the index is not high, I think it's time to focus on individual stocks instead of the index. Judging from the current market trend and the direction of capital attack... no matter whether the market is speculating on large-cap stocks or small-cap concept stocks, no matter how you look at it, you can't avoid the core theme of 'big infrastructure' and 'Oriental Yuhong', the core leading stock in the two markets.

In this case, why not just keep an eye on the Oriental Yuhong check and engage in emotional gaming and premium arbitrage on it?

After so much analysis, the risk of investing in other stocks has not been reduced at all, and it is of no real use. "

"Haha... Old Zhang's words are still concise and clear." Old Qian laughed and praised, "Indeed, since the index risk system is not high, it is better to focus on individual stocks instead of the index. No matter how the market changes, the stocks that Fuxing Road has invested heavily in will always be the core of the market speculation and the sentiment vane. We just need to focus on these stocks and make a profit."

(End of this chapter)