Rebirth of the Capital Legend

The trend of small and medium-sized stocks and micro-cap stocks, that is, the market's 'oversold rebound' line, has once again become the strongest hotspot for the market rebound. 'Quantong Education', 'Guangguang Media', 'Huawen Media', 'Ciwen Media'... and other media stocks have hit the daily limit, and in the Internet software field, a number of historical monster stocks in the last bull market have also moved abnormally.

Among them, these stocks rebounded rapidly.

It also led to a rapid rise in the ChiNext Index, CSI 500 Index and CSI 1000 Index, causing the intraday gains of these three major indexes to approach 2%.

In contrast, there are also weighted indices such as the A50 Index and the Shanghai Composite Index and the CSI 300 Index.

At this moment, the market is affected by the volatile decline of a number of core component weighted stocks and related core component stocks in the main line of "big infrastructure".

Not only did it not follow the rise of the ChiNext Index, the CSI 500 Index, and the CSI 1000 Index.

Instead, it showed a continuous diving trend, and the market gains gradually narrowed.

At the same time, especially the "big infrastructure" main line that absorbed many major buying funds during the day but still failed to form a consistent upward pattern. At this moment, the selling pressure on the market has completely suppressed the buying power. The corresponding core hot stocks, especially "Oriental Yuhong", "Huaxin Building Materials", "Huaxin Cement", "Gemdale Group" and other early hot leading stocks, have dived by more than 5 points in just a few minutes.

Even the check from "Oriental Yuhong", the recognized leader in the main line of "big infrastructure".

It even jumped directly from a position where the price rose by nearly 5 points to a flat position.

Among them, popular concept leading stocks such as "Shouchuang Group", "Beijiang Communications Construction", "Tianshan Cement", etc., which were originally expected to hit the daily limit, were also brought down by the trend of the leading stock "Oriental Yuhong", showing a trend of bursting the limit again.

There are also a number of core leading stocks with heavyweights in the "big infrastructure" main line, such as Anhui Conch Cement, Poly Real Estate, Kewan Real Estate, China Construction, Shenhua Coal, China Baosteel..., which also began to dive at this moment, and the market gains narrowed rapidly.

At the same time, the industry sector index related to the entire "big infrastructure" main line.

Industry sectors such as real estate, construction decoration, building materials, nonferrous metals, steel, and coal all showed a rapid dive.

The entire "big infrastructure" main line failed to form a consensus among the bullish forces.

It almost fell in the form of a flash crash.

"Damn it, I worked so hard for most of the day, but I didn't expect it to collapse at the end of the trading day." Seeing the 'big infrastructure' line retreating across the board, many core stocks, leading hot stocks, and concept hot stocks all plunged. At this moment, among the main speculators of the 'Fushan system', Li Jinshi frowned and said, "If I had known earlier, I should have sold the corresponding chips at the beginning of the afternoon trading. I originally thought that the market's 'oversold rebound' line would not come out, and there was insufficient active buying and follow-up. Unexpectedly... along with the plunge of the 'big infrastructure' main line and the plunge of the weighted main line, it actually attracted a lot of liquidity in the end, supporting the market trend."

"How could I have known so much in advance?" Chen Guiyun said with a smile, "For the 'big infrastructure' line, at this position, it is expected that it will fluctuate violently. There is no need to panic. Since it has broken through the previous high position of the previous oscillation platform, it is unlikely to continue to fall back. It is basically a high-probability trend to adjust and step back, and finally release the large amount of profit-taking at this position to reduce the upward pressure for further breakthroughs.

As for the market's 'oversold rebound' line...

Although today's adjustment of the main line of "big infrastructure" and the main line of weight has attracted a lot of buying funds from the market, I think the sustainability is still questionable.

This line has created such a money-making effect today, but the current market pressure is relatively light and the chip structure is faulted, so the rebound is more violent.

If we really talk about the pressure of trapped shares in the range, these are the oversold main sectors.

I’m afraid it will be more important than the main line of ‘big infrastructure’ and the main line of weight.”

"The mid- to long-term market investment style has definitely not changed." Liao Guoxiang also said at this time, "But the short-term market focus shift has actually occurred. The sustainability of the 'oversold rebound' line is currently unknown, but if the market continues for a day or two, there should be no problem."

"It's just that the market is rising so much right now that it's hard to get involved." Li Jinshi sighed and said, "I can only take profits on a few core leading stocks in the 'big infrastructure' main line."

"The plunge in the share price of 'Oriental Yuhong' at the end of today's trading session was really exaggerated," said Chen Guiyun.

Liao Guoxiang responded: "That's because the short-term increase in this check was relatively large in the early stage, and the profit-taking was the heaviest. The actual logic should still be fine."

"Today, many funds that have chased the core theme of 'big infrastructure' will most likely have to cut losses tomorrow morning." Li Jinshi said, "The rapid rise in the early afternoon trading was really a bit deceptive. Many people must have been lured in by that wave, right? After all, the strength of the rise at that time was more like a substantial accelerated breakthrough trend."

"How is it similar?" Liao Guoxiang said, "The rapid rise at that time did not release much energy at all. In addition, the share price of 'Oriental Yuhong', the core leading stock of the entire 'big infrastructure' theme, did not actively close the price after it hit the daily limit. It is clear that this rise and breakthrough is problematic."

"Yes, yes." Chen Guiyun continued, "The entire market trend basically began to rapidly rotate from that moment on."

"The check for 'Quantong Education' was well received today." Li Jinshi said, "When I saw the check rising sharply, I wanted to buy some shares, but I thought about the historical trend and hesitated. Now I think... I should have bought some shares at that time."

"The Quantong Education check should be the leading stock in this round of oversold rebound in the market." Liao Guoxiang said, "But the space is limited. I estimate that the increase will be three boards at most. If you don't intervene in the first board today, there will be no need to intervene in the game if it opens sharply higher tomorrow."

"Yes." Chen Guiyun said, "The more people buy the 'oversold rebound' line at the end of today's market, the less buying opportunities there will be tomorrow. The expected space for the 'oversold rebound' line is relatively limited. On the contrary, today's weighted main sector and the 'big infrastructure' main sector have released concentrated profit-taking selling pressure. If there is a continuous downward adjustment tomorrow or the day after tomorrow, it will be a good buying opportunity."

"So, the market will continue to develop around the main theme of 'big infrastructure'?" Li Jinshi asked.

Liao Guoxiang nodded and said, "This is highly probable and relatively certain. After all, the market mainline with strong underlying logic support and medium- and long-term expectations has a different trend sustainability from the mainline without underlying logic support and only with chip structure advantages. The core mainline of 'big infrastructure' cannot be the top at this position. The most likely position is a short-term relay adjustment platform. This position happens to be the top high point of the previous shock platform when the last round of 'big infrastructure' mainline market broke out."

"My idea is the same as Lao Liao's." Chen Guiyun said, "But in terms of trading ideas, it is not wrong to reduce the position of some core stocks corresponding to the 'big infrastructure' main line at the end of today's trading, and wait for the core main line to be suppressed by stop-loss orders and sell-off orders tomorrow or the day after tomorrow, and then buy back the chips at a low price." (End of this chapter)