Rebirth of the Capital Legend

In particular, the two stocks of "Shouchuang Group" and "Beijiang Communications Construction" showed a sentiment of opening at the daily limit.

Facing the situation that the initial call auctions of the two markets generally opened significantly higher, at the moment, in the trading room of the main fund product of Jufeng Future Growth of Jufeng Asset Management Company in Shanghai, the trading team leader Yu Xiaolu was obviously surprised and said, "This opening scene is a bit beyond expectations, especially the "big infrastructure" line. Basically, there are no stocks that opened lower. The sentiment of long positions is much stronger than expected before the market opened."

"It's just the initial call auction." Hearing Yu Xiaolu's sigh, Lu Xiangxiang smiled, but her expression didn't change much. She responded, "Wait until 9:20, when the two markets enter the real call auction stage where orders cannot be withdrawn, and then we can really see the strength of the market call auction. At this time, most of the active buy orders are very likely to be false orders to lure the market to open sharply higher and for retail investors to follow suit."

"It seems that among the most popular stocks, the active buy orders for 'Capital Group' and 'North Frontier Communications Construction' do not seem to be false orders." Yu Xiaolu said, "It is indeed somewhat unexpected that these two stocks opened with a daily limit. However, the initial performance of 'Oriental Yuhong' was slightly lower than expected. It seems that this stock led the market too much in the early stage, which indeed affected the willingness of funds to continue to go long."

"In my opinion, the 'big infrastructure' line can only be said to be in line with expectations." Lu Xiangxiang said, "If we really want to see the short-term sentiment of the market and the follow-up effect of retail investors, we still have to focus on the CSI 500 Index and the CSI 1000 Index."

"That's true." Yu Xiaolu nodded and said, "Only when small and medium-sized stocks break out of the general rebound pattern can the market have enough money-making effect. However, it is obvious that... the current market investment style still seems to be dominated by blue-chip weights and white horse performance stocks. The willingness of major funds to intervene in small and micro-cap stocks is not strong. And from the current market situation, except for small and medium-sized stocks in the field of 'big infrastructure', small and medium-sized stocks in other main market areas do not seem to show strong market trends in the initial call auction stage."

"The A50 index, which represents the performance of blue-chip stocks, is not showing strong performance at the moment," said Lu Xiangxiang. "Overall, the core focus of the market and the major high-opening stocks and strong stocks are basically concentrated on the 'big infrastructure' line.

If you look at it this way...

I feel that there are still some problems with the internal structure of the market.

If only the "big infrastructure" line is strong, and other market main lines cannot form an effective market rotation, then the hot mood at the opening may not be able to last too long, and the market is still prone to the phenomenon of opening high and closing low. "

"Not necessarily?" Yu Xiaolu said, "The 'big infrastructure' line has been strongly squeezed out, and it should still have a driving effect on other main lines of the market.

Moreover, other main sectors in the market are at low levels and oversold.

Such as individual stocks in the main sectors such as film and television media, Internet software, electronic information, new energy industry chain, etc.

Although the trend in the initial stage of the call auction is not as strong as the stocks related to the main line of "big infrastructure", it also shows obvious signs of stopping the decline. For many related stocks, there are very few selling orders on the market, and only a small amount of funds is needed to achieve the profit effect. "

Following a brief conversation between the two...

The market trading time at this moment has entered 9:20, and the two markets have entered the call auction stage where orders cannot be withdrawn.

After many false orders were cancelled, the main line of the two markets remained strong and showed signs of getting stronger, while the weighted component stocks related to the A50 index became weaker. Instead, more and more stocks related to the Internet software, film and television media, electronic information, new energy industry chain... these oversold main line sectors of the market were in the red.

"It seems... the strength of the 'big infrastructure' line is real." Noticing that after the market entered the real call auction stage where orders could not be withdrawn, the industry sector index related to the 'big infrastructure' main line, as well as the buying orders of related popular core stocks and weighted leading stocks, were all gradually increasing. Yu Xiaolu smiled and said, "Moreover, small-cap and micro-cap stocks, under the influence of the extremely strong call auction of the 'big infrastructure' main line, seem to have generally begun to rebound. More and more stocks opened high in the red. I said... In today's market, many small-cap and micro-cap stocks have been severely oversold, and the chip structure is faulted. At this position, they are bound to rebound."

"Well, the A50 index-related component weighted stocks are getting weaker and weaker." Lu Xiangxiang also observed the situation mentioned by Yu Xiaolu and responded, "From this perspective... many major capital groups should gradually sell off relatively high-priced mainline stocks such as liquor, white appliances, medicine, consumption, electricity, and finance, and continue to enter the core leading stocks of the 'big infrastructure' mainline.

It also shows that at this stage, the market trend of the "big infrastructure" line is becoming increasingly clear.

Its substantial breakthrough trend is increasingly recognized by various market funds.

Of course, this also shows that our portfolio adjustment strategy is correct. Compared with the core leading stocks in the defensive main line sectors such as consumption, medicine, white goods, liquor, electricity, and finance, the core leading stocks in the main line of "big infrastructure" are indeed undervalued and have room to continue to rise. "

"Yeah, I think so too." Yu Xiaolu nodded and said with a smile, "And if the 'big infrastructure' line can siphon the main capital groups of liquor, white appliances, medicine, consumption, electricity, finance... these main line sectors continue to flow in, it can rotate and switch the main trend of the market.

In fact, it is a good thing for the medium- and long-term development of the entire market.

In addition, the small-cap and micro-cap stock sectors in the market are indeed unable to attract any liquidity and buying funds.

If the market can make a temporary style switch at this stage at this position, the severely oversold small-cap and micro-cap stocks will have a chance to catch their breath and recover.

At the same time, the main capital group in the market tends to focus on the "big infrastructure" main line.

At least in the short to medium term, we can continue to be optimistic about the market trend.”

"The change in market trend does seem to be optimistic at the moment." Lu Xiangxiang nodded and added, "But whether it can develop according to our current expectations still depends on how the main stocks and related core leading stocks will develop after the market officially opens."

Yu Xiaolu continued to nod and turned her gaze back to the two market charts.

At this time, the market's call auction time had reached 9:24.

Immediately afterwards, under the gaze of countless investors in the market, 9:25 arrived and the call auctions in the two markets ended.

After about ten minutes of call auction.

In the current market trend of the two markets, the real estate, building decoration, building materials, nonferrous metals, steel, and coal sectors related to the main line of "big infrastructure" are leading the two markets across the board, and the indexes of various industry sectors are at the top of the list of industry sector growth in the two markets.

Among them, the three core sectors of the "big infrastructure" main line are real estate, building decoration, and building materials.

The sector indices all rose by more than 2% at the opening.

In terms of the performance of individual stocks, Oriental Yuhong opened sharply higher by 5.11%, while Gemdale Group and Huaxin Building Materials opened about 3.5% higher. As for Beijiang Communications Construction and Capital Group, which exploded yesterday and received the attention of many investors after the market, and were hotly discussed in the market, they opened at the daily limit. The entire call auction transaction of more than 2000 million yuan was all traded at the daily limit price.

In addition to the main line of "big infrastructure"...

In the market performance, the second strongest main line is mainly from the oversold rebound line. Related related sectors, such as film and television media, Internet software, electronic information, new energy industry chain and other main line sectors that were severely oversold before, have ushered in a breather at this moment. The indexes of various industry sectors have shown a trend of opening high in the red market. Among them, related stocks with a certain degree of recognition, such as "Maruda Film and Television", "Storm Technology", "LeTV", "Netspeed Technology", "Tianci Materials", "Tianqi Lithium Industry", "Tonghuashun", "Ciwen Media", "Yue Media", "Ren Zixing"... and other small and micro-cap stocks have also shown a clear trend of opening high in the red market and stopping the decline.

Instead, it was accompanied by a general rebound and higher opening of small and medium-sized stocks in the two markets.

The core component stocks of the A50 index, which was originally known for its stability, such as Shanghai Automotive Group, Yangtze Power, Huadian Group, Huashang Bank, Huajian Bank, Huanong Bank, Huaguo Bank, Huaguo Insurance, Ping An Insurance..., etc., showed a relatively weak opening trend of slightly lower.

And it was affected by the slightly lower opening of these stocks.

The A50 index has also become the only index that opened lower among all the core indices in the market at this moment.

Except for the A50 index which performed relatively below expectations.

The Shanghai Composite Index opened higher at a gain of 0.62%, directly surpassing the 2950 points that was the focus of intense debate yesterday, forming a small gap. The Shenzhen Composite Index, ChiNext Index, CSI 500 Index and CSI 1000 Index all opened higher at a gain of nearly 1%.

Overall...

Compared with the pre-market sentiment, the market's high opening trend slightly exceeded the expectations of most investors.

Such a strong opening, especially the Shanghai Composite Index directly opened with a gap, surpassing the previous high pressure level which was a solid oscillation platform in the early stage, forming a substantial platform breakthrough trend, directly aiming at 3000 points, which surprised and excited many investors in the market.

"Haha... the Shanghai Composite Index jumped up and opened above the resistance level. I feel like there will definitely be a big positive line breakthrough today!"

During the brief five-minute trading halt from 9:25 to 9:30, countless retail investors on major stock investment exchange platforms across the Internet were already excited.

"We must aim for 3000 points today. The Shanghai Composite Index must have another -point rise."

"The 'big infrastructure' line is also very strong. There are almost no stocks that opened lower in the entire main line. Even the two stocks 'Capital Group' and 'North Frontier Communications Construction' showed a trend of rising to the daily limit. Sigh... It's a pity. I saw the 'Capital Group' stock rise straight to the daily limit yesterday, and I was ready to intervene when it hit the daily limit. In the end, I was still scared. I really shouldn't have done that."

"It feels like the check from 'Capital Group' is going to be the leader."

"The buying is really strong. I wanted to continue to increase my holdings of the core leading stocks in the 'big infrastructure' theme, but... there is no chance to buy at all."

"You can still buy the core leader if you want to, right? Isn't the check for 'Oriental Yuhong' sealed?"

“The Oriental Yuhong stock price only opened 5 points higher. Can it be considered as exceeding expectations?”

“It can’t be considered as exceeding expectations, at most it can be considered as meeting expectations, right?”

"I think it's beyond expectations. Originally, the price of Oriental Yuhong didn't reach the upper limit yesterday. It's great that it has such a high premium today."

"Alas, I just sold the check for 'Northern Frontier Communications Construction' at a loss two days ago. It's really painful."

"Me too. This wave of main force cleansing was really ruthless. Most people sold their stocks at a loss. As a result, the main force took advantage of the 'big infrastructure' momentum and quickly pulled up two daily limit boards. And today's daily limit board is still the same. Sigh..."

"I've said it before, you absolutely cannot cut meat at this location."

"In addition to the core stocks in the 'big infrastructure' sector, other small-cap and micro-cap stocks also performed very strongly. Among them, the 'Quantong Education' check rose 9 points in 24 seconds from 40:9:25 to 20:6 when the call auction ended. It was really exaggerated."

"Small and medium-sized stocks and micro-cap stocks should generally rebound today, right?"

"I also feel that the market trend has begun to shift from large-cap stocks to small- and medium-cap stocks and micro-cap stocks."

"That's right. It's rare to see the A50 index open low when all the market indices open high. Haha... Seeing the A50 index open low, especially the weakness of the banking sector, makes me happier than if I lost money. Are the institutions that have been banding together... finally starting to disintegrate themselves?"

“It’s hard to say whether it will collapse on its own, but it’s highly likely that the A50 index will start to adjust.”

"Banks, insurance, electricity, consumption, medicine, liquor, white goods... these sectors have been rising against the trend for more than half a year, and it's time for them to adjust."

"Yes, the current core theme of the market has obviously shifted to the line of 'big infrastructure'."

"Indeed, the 'big infrastructure' line is still ridiculously strong."

"Sure enough, during the market adjustment phase, the main line sectors that are relatively resistant to declines and have less obvious loss effects are the core main lines that can truly emerge when the market rebounds generally."

"Hahaha... With this rebound, the index will definitely reach 3000 points."

"There is no doubt that we should continue to increase our positions and go long today."

As everyone was getting more and more excited and optimistic about the discussion, the short five-minute trading suspension time soon passed.

Under the attention of countless people, 9:30 arrived and the two markets once again ushered in the formal continuous bidding trading period.

As everyone watched, the clock just passed 9:30, and the stagnant markets in the two cities began to change rapidly. Among them, the industry sectors and related hot stocks of the "big infrastructure" main line that attracted much attention were snapped up by various buying funds in an instant, and the related stocks rose violently and rapidly at the moment of opening. (End of this chapter)