Rebirth of the Capital Legend

"Looking at the market situation, the 'oversold rebound' line has emerged, and it has formed a substantial rotation trend with the 'big infrastructure' line. At the same time, the buying liquidity released by the adjustments of the various weighted main lines and various weighted stocks in the market is also constantly gathering towards the 'oversold rebound' line." At this moment, among the main speculators of the 'Qilu Gang', Zhao Zhiyuan stared at the market and pondered for a while, and said, "Lao Liang, Lao Zhang, it seems that the investment trend of the market is indeed changing. This time... I feel that the direction of small and medium-sized stocks and small and micro-cap concept stocks can be sustainable."

"At present, the trend of small and medium-sized stocks and micro-cap stocks in the market is indeed stronger than that of medium and large-cap stocks, heavyweight stocks, and blue-chip stocks." Zhang Wei also stared at the trend of the two markets and continued, "But in terms of sustainability... it seems that we can't see it yet, right?"

"Indeed, I think it is too early to say that the market investment trend has changed." Liang Jiucheng also responded at this time, "The first day of the 'oversold rebound' is a situation of generally shrinking volume. Without the assistance of volume, it is difficult to see the sustainability. We have to wait until the opening of tomorrow morning and the volume is released to see the sustainability.

In the previous trend of small and medium-sized stocks, small and micro-cap stocks...

This kind of rapid and violent oversold rebound has happened before, and it has happened several times.

But which one of the previous times has created a climate? Which one of the previous times has produced a continuous profit effect on the market? None, right?

In my opinion, although the 'big infrastructure' line showed a typical high opening and low closing trend in today's market trend, and the market fluctuated greatly, in terms of market continuation, the selling pressure was large and the continuation was also strong.

As long as the "big infrastructure" line is not dead.

Then, the liquidity of other main lines of the market will inevitably continue to flow into this core main line. In this way, sectors such as film and television media, Internet software, electronic information, etc. that do not have sufficient expectations and underlying logic support will find it difficult to attract the attention of the main buying capital groups.

In other words, it is difficult to further expand the buying volume to pry open the heavy trapped shares above.

If we cannot pry open the heavy trapped stocks above, it will be difficult to achieve sustainability.”

"The previous oversold rebound of small and medium-sized stocks is different from this time, right?" Zhao Zhiyuan disagreed with Zhang Wei and Liang Jiucheng's statement. After a pause, he continued, "When these small-cap stocks rebounded violently before, the A50 index and a number of heavyweight stocks in the market did not have such abnormal movements as today during the same period.

Look at the unusual movements of these heavyweight stocks on the market today.

It is obvious that the main institutional funds that have been grouped in these stocks have begun to withdraw with profits, and part of the withdrawn funds have indeed been used to take over the corresponding weighted stocks of the main line of "big infrastructure" and hot stocks, but the other part has clearly flowed into a number of small, medium and micro-cap stocks.

The chips of heavyweight stocks are loosening. If this isn’t a market style switch, what is it?
If the market direction has not changed, then why would these major institutional capital groups sell off the chips of these heavyweight leading stocks in the A50 index?

Moreover, there are individual stocks in the weighty main sectors such as liquor, white appliances, medicine, consumption, electricity, and finance.

As major funds from all parties have been grouped together for more than half a year, the share prices of individual stocks have indeed been driven up, and the corresponding valuations also reflect future expectations. "

"Although the core stocks of the main weighted sectors such as liquor, white goods, medicine, consumption, electricity, and finance have fulfilled some expectations and restored a certain degree of valuation after the continuous speculation of institutions in the past half year, overall, these stocks are not overvalued, nor have they overdrawn future performance expectations, right?" Zhang Wei said, "On the other hand, the market rebounded strongly today, and the small and micro-cap stocks that basically showed a general rebound, whether it is the fundamentals or the future performance expectations... are not very optimistic, and in the short and medium term, there is also a lack of substantial news to drive the positive.

In my opinion, if we want to develop a sustainable market trend and create a sustainable money-making effect, we must

Therefore, the underlying logic, that is, the fundamental logic, is absolutely indispensable.

If the underlying logic is missing and it is only driven by emotions, after the chip structure is eased, it will face heavy trapped chips from above.

Then there will be no more active large-scale buying funds to continue to chase high prices to take over. I still agree with Lao Liang's statement...

According to the actual market trading situation in the first hour of today's opening, although the chip structure of the leading stocks in the previous core main sectors such as liquor, white appliances, medicine, consumption, finance, etc. is loosening, and many previous profit-taking orders are fleeing, the follow-up performance is relatively strong.

The "big infrastructure" line is more likely to have sustainability and sustained upward momentum in the future.

Regarding the general rebound of small and medium-sized and micro-cap stocks today, I think it is better to look at an oversold rebound, if we have too high expectations at this time.

In the end, the market will not be able to get out of this situation, and those who have taken positions will suffer heavy losses.”

"Old Zhang is right." Liang Jiucheng nodded and continued, "The main trend of the market has a high inertia when the underlying logic and future expectations exist and there are no major changes. We cannot simply judge that the investment style of the market has changed. We should wait and see the subsequent market trends, at least the market acceptance in the afternoon, and whether the rebound sentiment of small and medium-sized stocks and micro-cap stocks will further ferment, and whether they can continue to attract more main funds in the market, or the many retail investors who follow suit will continue to chase."

"Okay." Seeing that both of them had relatively conservative views, Zhao Zhiyuan also reserved his own opinion.

His gaze shifted and returned to the two market charts.

During the time when the three people were talking, significant changes had already taken place in the market trends of the two markets.

The general rebound of small and medium-sized cap and micro-cap stocks is still continuing, and the Shenzhen Index, ChiNext Index, CSI 500 Index and CSI 1000 Index are also still rising.

However, it can be clearly perceived that the funds chasing these small, medium and micro-cap stocks are declining.

On the contrary, the main line of "big infrastructure", which had huge differences and extremely violent market fluctuations in the first half hour of the morning trading, began to show strong resilience at this moment.

The share price of 'Oriental Yuhong' has returned to 5%.

The three leading concept stocks of the "big infrastructure" main line, 'Shouchuang Group', 'Huaxin Cement' and 'Beijiang Communications Construction', began to try to return to the daily limit.

At the same time, real estate, building decoration, and building materials are the three core sectors.

Its market increase once again exceeded 2%, returning to the level when it opened in the morning.

As for the main weight sectors such as liquor, white appliances, medicine, consumption, electricity, finance, etc. which performed poorly in the previous hour of trading, the volatile downward trend has slowed down at this moment. At the low level, other main capital groups have gradually begun to take the initiative to take over the selling.

Of course, although the trend has slowed down.

However, its various sectors and core leading stocks are still in the red.

However, the Shanghai Stock Index returned to above 2950 points, driven by the rebound of the main line of "big infrastructure", and basically recovered the intraday plunge and returned to a strong and volatile state. (End of this chapter)