Rebirth of the Capital Legend

In the early trading session, the main weight sectors such as liquor, white appliances, medicine, consumption, finance and their corresponding stocks performed relatively weakly.

At this moment, the trend has stabilized, showing a trend of shrinking volume and sideways movement.

The performance of major market indices.

Driven by the rebound of the "big infrastructure" main line, the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index all maintained a positive trend, while the A50 Index fluctuated within a decline of 0.5% to 0.3%. Among them, the Shanghai Composite Index and ChiNext Index, which originally had a growth gap of more than 1 point, have now narrowed the growth gap to within 0.5%.

"Funds from all walks of life in the market have once again focused on the core theme of 'big infrastructure'." Seeing that the market trend has basically become clear and stable after the overall volume has shrunk, Jia Yongxiang, the trading team leader of the 'Hua Rui Performance Growth No. 1' main fund product trading room inside the 'Hua Rui Fund Management Company' in Shanghai, said, "Compared with the trends of the film and television media, Internet software, electronic information, new energy industry chain... these previous oversold main line sectors, the trend of the 'big infrastructure' line is indeed much more stable, and the sustainability and the market-carrying effect are significantly stronger. I feel that although the 'oversold rebound' line this morning was strong, there is always something missing in the market."

"Poor volume, right?" Song Shaopu, the main fund product manager of 'Hua Rui Excellent Growth No. 1', said, "Today, the film and television media, Internet software, electronic information, new energy industry chain... these previous oversold main line sectors did not attract much main buying funds. Basically, all the hot stocks showed a fast-moving rebound trend with reduced volume before 10:30.

When the market starts, there is no accumulation of volume.

Once a strong market consensus on long positions is not formed in one go, it will be difficult to maintain sustainability.

As expected, after 10:30, the market divergence on the 'oversold rebound' line became increasingly greater, and the selling pressure on the market became increasingly heavier.

Let’s look at the ‘big infrastructure’ line.

Although there were great differences in the market when the market opened in the morning, the main weighted sectors such as liquor, white appliances, medicine, consumption, electricity, finance, etc. did not siphon market funds today, and the overall market bullish sentiment rebounded and the market's investment risk preference increased.

Instead, some of the liquidity that was previously concentrated in these weighted main sectors was released.

This prevented the buying pressure on the "big infrastructure" line from collapsing.

As a result, the market briefly fell back due to the concentrated profit-taking. After a brief dive, when the market stabilized slightly, the floating chips of the profit-taking in the previous few days had been almost sold out.

It quickly recovered its lost ground and set a new high in the rebound.”

"Well, not only that..." Jia Yongxiang paused, and then said, "It seems that the 'big infrastructure' line has actually broken through the pressure at the top of the previous shock platform. Mr. Song, here... according to the trend and volume, it should be a relatively clear right buying point, right?"

"It is indeed a good right-side buying point." Song Shaopu nodded slightly and said, "It's just that the holding weight of our fund products in the 'big infrastructure' line is not low at present. After breaking through this position... I feel that there is a high probability of another wave of retracement. After all, today, core leading stocks such as 'Oriental Yuhong', 'Golden Land Group', 'Huaxin Building Materials'... these early leading stocks have also set new highs, but in fact, in the process of increasing volume, the active buying situation is still a bit exhausted compared to the profit-taking.

If these leading stocks take a break and pullback in the future, then the "big infrastructure" line will determine the overall market trend.

There will inevitably be a callback.

In other words, even if this position still has the momentum to continue to break through in the next one or two days, or in the next few days, it will definitely have to pull back to confirm whether it is a real breakthrough.

By that time, the buying point should be clearer than it is now.

The liquidity we currently have left is not much compared to our positions.

If you want to increase your position for the last bit, you must add it at a buying point with greater certainty, so as to avoid risk points.

In fact, at this position, with our current position, even if we do not increase our position, we will maintain our current position.

You can also fully enjoy the increase in net value and position profit that can be brought about by the breakthrough of the "big infrastructure" line, without having to be too anxious and aggressive in making some strategic operations. "

"Okay." Jia Yongxiang nodded and said, "Then we will continue to maintain our current positions and wait and see how the market changes. However, as the trend of the 'big infrastructure' line picks up and other oversold rebound main lines continue to be weak, I estimate that after the midday close, after the mood has brewed in the afternoon, the buying funds flowing into the 'big infrastructure' main line will further increase in the entire market in the afternoon. The various industry sector indexes related to the 'big infrastructure' line, as well as the related hot stock trends, are likely to further strengthen."

"Yes, I think so too." Song Shaopu nodded and said, "In any case, with the further development of market trends, the certainty of the 'big infrastructure' line is further improving. The funds that are still active in the market are all smart funds, and everyone will not fail to realize this."

As the two discussed the market and examined the current trading strategies.

The market's trading hours have reached the midday closing time.

After half a day of intense trading, the Shanghai Composite Index was fixed at a gain of 0.56%, while the Shenzhen Composite Index and the ChiNext Index maintained a gain of around 0.8%. More than 1800 stocks in the two cities were in the green. The main sectors of liquor, white appliances, medicine, consumption, electricity, and finance had a slight correction, and the heavyweight main stocks also adjusted against the trend.

Overall, the market was trading fiercely in the morning, but there were still significant differences on the market.

However, it still basically maintained the results of a high opening in the morning, and the overall profitability of the market was also good. Although the gains of many small and medium-sized stocks and micro-cap stocks had fallen a lot compared with the early morning trading hours, and the profitability effect of the market had narrowed, it still maintained the trend of a red market. Moreover, the gains of many small and medium-sized stocks and micro-cap stocks were stronger than the major core indexes of the market.

At the same time, the CSI 500 Index and the ZTE 1000 Index rose.

It also ranks ahead of the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index.

This illustrates the active liquidity of the market. Although a lot of it has been siphoned off by the "big infrastructure" main line, there are still a lot of short-term speculative funds, as well as hot money and large short-term fund groups in the market, which have flowed into the oversold main line sectors such as film and television media, Internet software, electronic information, and new energy industry chains, and speculated on the individual stocks with higher recognition.

Faced with the midday closing situation of the two cities...

Among the major stock investment communication platforms on the entire network, there are many retail investor groups. Although many people who chased high prices in the early trading session complained a lot, retail investors who continued to be bullish and optimistic about the afternoon and even subsequent market trends still accounted for the majority.

“It feels like the market will continue to surge in the afternoon.”

"Of course. For now, the entire market has stabilized. 'Big infrastructure' is still the core theme of the market. Film and television media, Internet software, electronic information, new energy industry chain... these oversold main line sectors are the second hot spots in the market, second only to the 'big infrastructure' theme. If you follow up and buy stocks in these two fields, you should not lose money today."

"Haha, that's not necessarily true. Even the leading stock of 'Quantong Education', which is the main line of 'oversold rebound', has collapsed. Can you still say that you can't lose money?"

"If I bought the 'QuanTong Education' check at the opening price, I shouldn't have lost money at noon, right? As for chasing the daily limit... I can't say."

"Today's market is bullish, which is actually fine. As long as the sentiment is maintained, there is a high probability that the Quantong Education stock will return to the daily limit in the afternoon. After all, in the main field of 'big infrastructure', the stocks of 'Capital Group', 'Tianshan Cement', 'Huaxin Cement', and 'North Xinjiang Communications Construction' had such great selling pressure at the beginning of the trading session, but didn't they still return to the daily limit in the end? Anyway, I am optimistic that the Quantong Education stock will return to the daily limit in the afternoon."

"It seems difficult to recover from this kind of daily limit-up with such large volume, right?"

“This is the first board, not the second board. The daily limit is broken and the volume is large... It looks like a market shakeout, right?” “Yes, if there is no concentrated release of selling pressure, how can it go far?”

"At least today's 'QuanTong Education' check is the rebound pioneer and core leading stock of the entire market's 'oversold rebound' main line, and it must be recognizable and return to the daily limit."

"Where's the check for 'Dongfang Yuhong'? I feel like I had a hard time walking this morning."

"Looking at today's market trend, it is indeed somewhat blocked by the check of 'Capital Group'. However, this check is more like a trend. It cannot be said that if it cannot reach the daily limit, the market will be doomed, right?"

"The stock price of Oriental Yuhong has been rising for many days in a row. I think it is normal for it to fall back at this position, right? After all, no matter how strong a stock is, it is impossible for it to rise forever. Moreover, the market value of Oriental Yuhong is over 200 billion. Under the current market liquidity, stocks with a market value of over 200 billion, especially those with medium and large market value that have not been heavily held by various institutions and have a relatively dispersed internal chip structure, can rise for so many days in a row and achieve a growth space of over 30% in one go. This is already quite amazing."

"Anyway, I think at this point in time, the price-performance ratio of buying Oriental Yuhong is not as good as that of Beijing Capital Group."

"The underlying logic of the two stocks is different, and the nature of the main funds that control the market is also different. Naturally, the trends cannot be compared in this way. As for the subsequent sustainable outlook... I think the Oriental Yuhong stock is obviously stronger. After all... we have to trust Mr. Su's vision for stock selection."

"'Oriental Yuhong', 'Gemdale Group' and 'Huaxin Building Materials', the three 'big infrastructure' stocks that led the rise a few days ago, all had big divergences today, and the volume was also a bit high. At this position... it is reasonable for the stocks to pull back and confirm the decline in the past few days. It is time to pay attention."

"The weakening of the leading stocks means that the 'big infrastructure' line is also at the end of its rope, right?"

"How is this possible? Looking at today's market, the 'big infrastructure' line is clearly showing a trend of internal leaders rotating and switching with each other."

“Yes, I feel the same way.”

"Generally speaking, if such a trend can be achieved, it just shows that the market of 'big infrastructure' is still fermenting deeply."

"The current position of the 'big infrastructure' line is just at the top of the previous shock platform. It would be abnormal if there is no volume and no disagreement. I think this trend is good. Only when the internal leaders keep switching and rising can the main line market have stronger vitality and market cycle, and there is still room for growth."

"Anyway, no matter how you look at it, the main heavyweight sectors such as liquor, white goods, medicine, consumption, electricity, and finance are all doomed today. The market trend is basically all active selling. It seems that... the institutional funds that previously gathered in these main sectors are indeed withdrawing, and the internal chip structure is indeed loosening."

"No matter how these heavyweight sector stocks go, I won't buy them anyway."

"I won't buy it either. I hate bank stocks the most."

"Look at the trend of US stocks. Technology stocks are leading the rise and continue to lead the rise. What about us? The leading stocks are liquor and banks."

"Each has its own cycle. I think this is normal, right?"

"The 'big infrastructure' line has broken through the previous shock platform, which is indeed a bit decent, and the Shanghai Composite Index is about to hit 3000 points."

"Back then, 3000 points was a strong support for the Shanghai Composite Index. I didn't expect that... it has now become a strong pressure point."

"That's not so bad. Look at where the Shanghai Composite Index bottomed out in 08."

"Last year and the beginning of this year, there were three rounds of tragic stock market crashes, which is not bad at all."

"The Shanghai Stock Index has been rising for several days in a row, right? It feels like it's going to pull back. Today's market trend... no matter how I look at it, it feels like a spent force."

"You're scared after it's gone up for a few days. Is there any hope for you?"

"Yes, this is just a small increase. It has been falling for a year. The index has been cut in half. It should rebound a little, right?"

"It's time for a rebound anyway. I'm optimistic that the Shanghai Composite Index will hit 3000 points this week."

"It must break through 3000 points. Only by breaking through 3000 points can the market's potential be truly opened up. Anyway, at this point, I don't think it's time to be bearish."

"The entire market situation is mainly supported by the line of 'big infrastructure', right?"

"Well, you could say that."

"So it's always right to focus on the main line and rely on the line of 'big infrastructure'. Even if the market continues to break upwards, there are certain variables. The line of 'big infrastructure' should not fall. In the early trading today, there was such a huge selling pressure on the market, didn't it still take it?"

"That's the truth. It's safer to follow Mr. Su and buy the market leading stocks."

“No matter how volatile Oriental Yuhong’s stock price is, it’s best to hold on to this stock.”

"Haha, I have the same mentality."

Amidst the heated discussions among countless retail investors...

The lunch break passed quickly.

Soon, the one and a half hour lunch break passed, and at 1 p.m., the two markets once again ushered in the formal continuous bidding trading time.

The clock hands just passed 1 o'clock.

After a period of sufficient emotional brewing in the afternoon, the market once again experienced drastic fluctuations.

Almost in an instant, with the changes in expectations and emotions among many investors, the corresponding popular stocks of the "big infrastructure" main line were further snapped up by the active buying funds group, and the corresponding core industry sector indexes and popular stocks all rose sharply.

At the same time, film and television media, Internet software, and electronic information have rebounded from oversold levels.

There are also weighty main sectors such as liquor, white goods, medicine, consumption, electricity, and finance.

As the trend in the morning was not as expected, at the beginning of the afternoon trading, it continued to be sold by many internal holding funds, and the market quickly fell under pressure, forming a diving trend. (End of this chapter)