Rebirth of the Capital Legend

"Why do I feel that the trend of the small and medium-sized stocks and micro-cap stocks in the market is not so stable?" After the market performance gradually stabilized, at this moment, the retail investors gathered in various online stock investment exchange forums, especially those who chased the market's 'oversold rebound' line and chased up a number of small and medium-sized stocks and micro-cap stocks before 10 o'clock in the morning, their excitement has obviously subsided. "On the contrary, the 'big infrastructure' main line, which was extremely volatile at the beginning of the trading and showed considerable selling pressure, is getting better and better."

"Isn't this normal? The main theme of 'big infrastructure' is the core theme of the market."

"Fuck, this is real... I've been fooled again. I know that the 'oversold rebound' driven by the oversold mainline sectors such as 'Internet software', 'film and television media', and 'electronic information' seem strong, but in fact, there are some problems with sustainability. But why do I get fooled every time?"

"Me too. I bought the stock of 'QuanTong Education' this morning and I bought it at the bottom. I feel like dying now."

"I originally thought that the market's 'oversold rebound' line would last at least one trading day. At least the stocks that were strong today should have profit-taking opportunities in the early trading tomorrow. I didn't expect that... the market trend couldn't even hold up for half a day."

"Alas, the 'QuanTong Education' check was blown up too quickly, which has spoiled the market sentiment."

"It's not that the check exploded too quickly, it's that the market's 'oversold rebound' line simply couldn't attract too much main force to take over the funds."

"The vast majority of funds know that the 'oversold rebound' line has little sustainability, so who would buy at a high price?"

"This isn't considered a high, is it? The price has dropped so much that there is no volume left, how can it be considered a high?"

“Why doesn’t the intraday high count?”

"In the early trading session, the main funds that had taken profits from the main heavyweight sectors such as liquor, white goods, medicine, consumption, electricity, finance, etc. were obviously involved in the oversold main heavyweight sectors such as film and television media, Internet software, and electronic information. However, for some reason, after 10:30, this part of the funds was attracted to the "big infrastructure" line, causing the "oversold rebound" line, which had performed strongly in the early trading session, to instantly lose its selling volume."

"The 'big infrastructure' line has strong support, so naturally the funds' active attack will be strong."

"But the leading stocks of the 'big infrastructure' theme, 'Oriental Yuhong', as well as 'Golden Land Group', 'Huaxin Building Materials', 'Huaxin Cement', 'Capital Group', 'North Frontier Communications Construction'... these core leading stocks have clearly shown great pressure in the early trading stage due to the explosive volume, and the selling pressure is really heavy. But I didn't expect that these stocks... actually stabilized under the continuous buying follow-up."

"This is the charm of the core main line. I said it long ago. If you want to do it, you have to look at the individual stocks in the core main line sector."

"I really don't dare to accept this check from 'Dongfang Yuhong'."

"But the more you dare not go up, the higher it goes!"

"That's right, the 'big infrastructure' line is really ridiculously strong."

"Ah, this slap in the face came so quickly. In the early trading stage, I was still saying that the investment style of the market had changed. I didn't expect... it was still moving around the line of 'big infrastructure'."

"The power of trends is not so easy to change!"

"I give up. I really shouldn't have chased the Internet software sector. Damn... I still have a heavy position in it."

"I've already told you to stay away from places where the market's money-losing effect is severe."

"It is true that Oriental Yuhong, the leading stock selected by Mr. Su, has a stable trend and basically does not fall. After the violent fluctuations every day, it can basically set a new high."

"But it is also true that the heavyweight stocks are weak today, right?"

"Where is the weakness? Didn't these heavyweight stocks, such as Qianzhou Moutai, Huaguo Electric Power, and Yangtze Power, only fall by one or two points?"

“It seems like the blue chip stocks can’t fall either!”

"Oh, this market is so confusing. It feels like the market conditions of the sectors change too quickly. Basically, they change every half a day. The sectors that are strong in the morning may be weak in the afternoon, and the sectors that are weak in the morning may be strong in the afternoon."

"Isn't this normal? Only by rotating in this way can the market go further, right?"

"The key is that this rotation is too fast, I can't keep up."

"If you ask me, whether it's the main line of blue-chip stocks, the main line of 'big infrastructure', or the main line of 'oversold rebound', just stick to one main line sector and keep doing it. There will always be rotation. If you keep chasing hot spots and hot stocks, you will get slapped in the face."

"Yes, that's true. The market has risen a lot recently, but I frequently change stocks in my account and still lose money."

"I'm still losing money. I'm speechless. The market is so strong recently, but I'm still losing money."

"I'm still losing money if I keep holding on to it. Even though the QuanTong Education stock is trending strongly today, the trend a few days ago was terrible. I've been holding a large amount of this stock for only five or six trading days, and I've already lost 20%."

"I feel like it's better to stay away from junk stocks as soon as possible."

"What are junk stocks? Stocks that are not junk don't rise in price. Aren't Tianqi Lithium and Ganfeng Lithium considered junk stocks? Their recent trends are also quite weak."

"It is better to stay away from the hot stocks in the main sectors that have been hyped before."

"It depends on the situation. High prices may not necessarily fall, and low prices may not necessarily rise."

"That's true. We still have to hold on to the dragon head tightly and not let go."

"The key is that we don't know which ticket is the leader."

"Isn't it obvious? 'Oriental Yuhong', 'Capital Group', 'Huaxin Building Materials'... these checks should all be leading stocks, right?"

"In fact, it's not that easy to pick a leader. Just focus on the core stocks that Mr. Su has bought. Don't look at the price. Just buy with your eyes closed." "Haha... are you talking about me? I did buy with my eyes closed, because if I really analyzed it, I couldn't make up my mind."

"Indeed, many so-called logics are actually used by institutions to lure retail investors to buy. The most fundamental reason why stock prices can rise is that there is sufficient buying."

"With a 7% increase this morning, can I make money by following the Oriental Yuhong check at the close today?"

“This may not be clear, but it feels like it should be possible, right?”

"The trend of the Oriental Yuhong stock is definitely not over. Be patient. Even if the stock cannot reach its intraday high today, it will definitely reach a new high if it holds for one or two more trading days."

"I hope so. I got excited this morning and chased high prices."

"With the entire market opening sharply higher this morning, there seem to be few people who are not too excited, right?"

"The 'big infrastructure' line has strong support. Even if the market trend fluctuates violently, it is estimated that it will not fall further."

"I originally thought that the main capital groups that withdrew from the main weighted sectors such as liquor, white goods, medicine, consumption, electricity, and finance were conducting a 'high-low switch' and were flowing into the 'oversold rebound' line. Now it seems that the first choice of these main capital groups that have left the main weighted sectors is still the 'big infrastructure' main line sector!"

"As I said before, the main theme of the market in the second half of the year will definitely be 'big infrastructure'."

"Oh my god... 'Capital Group' really hit the daily limit."

"Although the price of the 'Capital Group' check has hit the daily limit at the moment, the volume has increased a lot. It is estimated that this daily limit will hardly have a premium tomorrow."

“Even if there isn’t much of a premium, you won’t lose money, right?”

“It’s hard to say. The fact that the stock price has been able to reach the daily limit indicates that it has turned from weak to strong today.”

"I also think this is a case of weakness turning into strength, and it's worth looking at it in a higher light."

“If the market can remain closed until the afternoon close without any more crashes, it can be considered a transition from weakness to strength. Now… it’s hard to tell.”

"There are 15 orders, and the ones at the front are basically large orders. I don't think there will be any problem, right?"

"We also need the assistance of leading stocks such as Huaxin Cement, Tianshan Cement, Beijiang Communications Construction, and Oriental Yuhong."

"I think it's OK. Since the trend of 'big infrastructure' has stabilized in the morning, it will definitely be stronger in the afternoon. After all, the selling pressure has been taken up, so there is no reason for it to weaken further."

“What about the ‘oversold rebound’ line? Is it really gone?”

"Most likely, judging from the buying on the market, whether it's LeTV, Netspeed Technology, Quantong Education, Maruda Films, Ciwen Media, Flush, or Oriental Fortune... the active buying on these stocks is showing a trend of continuous decline."

"Luckily I held back this morning, otherwise I would have definitely lost money today if I had chased after it."

"That's right. Fortunately, I didn't make any moves. I stayed on the line of 'big infrastructure' and it was safe. 'Oriental Yuhong', this leading stock, really lived up to my expectations."

"The leading stocks discovered by President Su have shown incredible performance."

"The growth rates of the core sector indices of real estate, building decoration, and building materials have returned to their highs at the beginning of the trading session. Looking at this situation, it is highly likely that Oriental Yuhong will continue to set new highs today."

"Of course, how could he be the only real dragon in the two cities?"

Amid the ongoing discussions among countless retail investor groups...

Although the trend of small and medium-sized stocks and micro-cap stocks has formed a slightly volatile decline, causing many complaints from retail investors who are chasing this main line, with the stable recovery of the "big infrastructure" main line and the core sector indexes of real estate, building decoration, and building materials all recovering from the initial plunge and setting new intraday highs, the market's overall money-making effect and emotional heat are still continuing to ferment deeply.

"It seems that film and television media, Internet software, electronic information... this 'oversold rebound' theme has fooled the market again." Noticing the money-making effect and popularity of the market, which was once again replaced by the 'big infrastructure' theme, Li Jinshi, one of the main investors of the 'Fushan system', laughed and said, "The weak will always be weak, and the strong will always be strong. No matter how long it takes, these retail investors in the market still can't learn it!"

"Everyone has evolved and learned this, so it's not easy to make money in this market." Chen Guiyun said with a smile, "You should be grateful to the majority of investors in the market for not learning this truth."

"That's right." Li Jinshi nodded with a smile and said, "If the market's expectations become more consistent, then the money-making effect will no longer exist."

"No matter how the market trends change in the near future, or how violent the fluctuations are, they are basically still centered around the main theme of 'big infrastructure'." Liao Guoxiang heard the two people's discussion and responded at this time, "This is the normal trend. The previous trend was too uncertain."

"The trend of the 'big infrastructure' line is indeed becoming more and more stable." Chen Guiyun said, "And looking at today's market volume, the entire market is obviously more active than in the past few days. Not only are the internal chip structures of the main weight line loosening, but the internal chip structure of small-cap stocks and micro-cap stocks also seems to be re-condensing and forming a new structure."

"Today's 'oversold rebound' main line should be a test of the main funds, right?" Li Jinshi paused and continued, "In fact, there is still some buying funds pouring into the 'oversold rebound' line, but the logic of this line is not as strong as the 'big infrastructure' line, and the capital synergy for this line is not as strong, so the sustainability is not achieved, forming a pulse-like trend."

"You can say that," Liao Guoxiang responded. "Generally speaking, V-shaped reversals in the market are extremely rare. The main sectors of Internet software, electronic information, and film and television media have serious short-term chip structure faults and have the potential for oversold rebounds. However, the sustainability of this oversold rebound is generally only to loosen up the internal locked-in shares, not a signal of a reversal in the market trend. Of course... from the perspective of the chip structure, these major main sectors are indeed temporarily unable to fall, and no internal holdings are willing to sell at this position. Therefore, investors who took over these sector stocks at relatively high levels during today's trading will not lose much even if the market is not sustainable."

"Well, Lao Liao's analysis makes sense." Chen Guiyun nodded and continued, "But when it comes to the certainty of the market and the money-making effect, the core theme of 'big infrastructure' is definitely the first choice. In fact... this theme's underlying logic and the expected logic of fundamental changes are increasingly recognized by the main market funds, and the trend is becoming clearer and clearer. The continuous buying of related hot stocks is also getting stronger and stronger."

"Today, the 'big infrastructure' line fluctuated so violently at the beginning of the trading session. It should be because a lot of profits were taken out in the early stage, right?" Li Jinshi said, "But it is indeed obvious that the selling pressure of the entire main line has been taken up. This feeling was basically clear after 10:30, so the subsequent market buying funds will follow up so quickly. The related 'big infrastructure' main line hot sector index and the corresponding core leading stocks will quickly recover the diving losses at the beginning of the trading session. Haha... It is indeed safer to hold the core chips of the 'big infrastructure' line. It feels that the market of this line has truly completed the breakthrough of the previous shock platform today."

"That's right." Chen Guiyun responded, "In the true sense, in the current market, the only main sector that has fully completed the breakthrough trend of the previous shock platform is the 'big infrastructure' line." (End of this chapter)