Rebirth of the Capital Legend

"Yeah, I think so too." Yu Xiaolu nodded and said, "The key is to see tomorrow's market trend. If the 'big infrastructure' line can indeed maintain strong fluctuations, then it is completely possible to look at it higher. As for the 'oversold rebound' line, I feel that it is highly unlikely to break out."

"It's hard to say." Lu Xiangxiang said, "Let's see how the sentiment develops after the market closes today."

"The adjustment of the 'big infrastructure' theme and the weighted main sectors such as liquor, white appliances, medicine, consumption, electricity, and finance has excited the retail investors in the small-cap and micro-cap stocks." Yu Xiaolu smiled and said, "Looking at the comments of retail investors on major stock investment exchange forums across the Internet, almost all of them say that the market investment style has changed."

"The perception of retail investors is often contrary to the actual market trend," said Lu Xiangxiang. "If everyone thinks this way, then the market is destined not to move in this direction. After all, overly consistent expectations mean that the subsequent buying funds will most likely not be the ones to take advantage of the situation."

"But a short rebound of two or three trading days should not be very difficult." Yu Xiaolu said, "Among the small and medium-sized stocks, many stocks are indeed seriously oversold, and the chip structure is seriously broken. As long as they do not touch the core locked-in area above, there is actually not much pressure for a short-term oversold rebound."

"For investors with larger funds, the rebound cycle of two or three trading days is not worth participating in." Lu Xiangxiang said, "And because of this, the 'oversold rebound' line is inherently difficult to attract large-scale participation from the core main fund groups in the market."

Along with the two people's discussion on the closing trends of the two markets, as well as the outlook for subsequent market trends...

At this moment, in the "Yuhang Group of Major Hot Money", Zhao Qiang stared at the frozen market of the two cities, pondered for a moment, and said, "Brother Sun, you should reduce your position in the "Oriental Yuhong" check today, right?"

Hearing Zhao Qiang's question, Sun Chengyu replied, "About 50% of the positions have been sold."

"You said before... weren't you planning to make a mid-term investment on this check?" Zhao Qiang asked, "Why did you decisively reduce your position and sell it now to take profit?"

"Selling to take profit does not mean that I am not optimistic about the subsequent market of this check." Sun Chengyu said, "I saw that the selling pressure on the market of this check today was really large. It rushed up several times but failed to stabilize, so I reduced my position to take profit first. If the market sells at a loss in the next two days and the stock price can find a good position in deep water, I will most likely buy it back."

"The check for 'Oriental Yuhong' does show some signs of weak buying today." Lao Qian in the group paused and said, "This afternoon, the main line of 'Big Infrastructure' had a second collapse and plunge, and it was this core leader that led the way. The wave of stocks that were smashed on the daily limit just after the opening in the afternoon really hurt my mood. I don't know who smashed the stock on the daily limit? It can't be... you, Xiao Sun?"

"No, it's not me." Sun Chengyu said, "I have never had the habit of dumping stocks at the daily limit. Most of my positions in the Oriental Yuhong check were reduced when the market opened in the morning. The sharp opening in the morning was a bit excessive. Today's adjustment of the Big Infrastructure line was basically within my expectations."

"Indeed, it shouldn't have opened so high in the morning." Lao Qian said, "If the 'big infrastructure' line generally opens flat or slightly higher in the morning, it can allow the profit-taking orders that intervened in the market yesterday and the previous few days to exit at a relatively low position during the day, leaving a certain profit margin for the subsequent takeover funds. Then today's 'big infrastructure' line will most likely be able to hold up. In fact... even if the 'big infrastructure' line has a very volatile trend today, with two relatively large rapid dives during the session, the overall support is still very strong.

On the other hand, let’s look at the ‘oversold rebound’ line.

Although today's previously oversold main sectors such as Internet software, film and television media, electronic information, and new energy industry chain have achieved a strong profit-making effect, they have also attracted a lot of market sentiment and discussion heat.

But in terms of volume, especially the large funds that actively buy, it is still lacking in some degree.”

"From what you said, Lao Qian, you are not optimistic about the sustainability of the 'oversold rebound' line?" Zhao Qiang asked, "I think this trend is pretty good. The bottom has risen sharply, and in the case of a chip gap, the volume will not increase. What's more, as long as a wave of money-making effects is achieved, a strong bullish follow-up effect will be formed, then the selling will gradually decrease, because many people in the market, whether they are trapped or profitable, will lock their positions accordingly at this time."

"I am indeed not optimistic about the 'oversold rebound' line." Lao Qian said, "The underlying logic of this line is inherently insufficient, and the stocks that have risen sharply today are basically the early bull stocks that performed relatively well in the last bull market. In the last bull market, these early bull stocks were accompanied by several subsequent stock market crashes, and their stock prices were cut in half one after another, and there were endless locked-in shares in the market.

These were the main groups of funds that had initially gathered on these stocks.

I have already cut my losses and left the market.

In addition, in the past six months or so, the market's investment trends have been centered around heavyweight stocks and blue-chip stocks. These small and micro-cap stocks themselves lack the attention of big funds.

At the same time, the fundamental problem still lies in these sectors that have been hyped up and their related stocks.

There is no corresponding strong expectation for the future to drive it forward.

There is neither the guidance of a strong group of main funds nor favorable factors and future expectations. The market is relying solely on the speculation of a few hot money to create a temporary money-making effect and bullish sentiment. Can it last?

I don't believe it anyway.

As for the Internet software, film and television media, and electronic information sectors at this location, I think they are probably only halfway up the mountain.”

"Lao Qian's judgment is still reasonable." Sun Chengyu said, "The 'oversold rebound' line does have problems in terms of hard logic, but today, there are actually quite a few short-term funds that intervene in the 'oversold rebound' line for speculation. These funds should still induce market sentiment and create a wave of pulse market on the 'oversold rebound' line. However, there was no preemptive intervention today, and there is basically no buying point in the future, so... this line, in the absence of a bottom position, there is not much need to continue to pay attention to it."

"Haha, Xiao Sun is still a clear thinker." Old Qian laughed and said, "In short... in a word, it is more stable and safer to focus on the 'big infrastructure' line."

"That's not what you said before." Zhao Qiang said, "Old Qian, didn't you think highly of the 'big infrastructure' project before? Why do you think so differently now?"

"Cognition evolves gradually." Old Qian laughed.

"Okay." Zhao Qiang didn't delve too much into it. He paused and said, "No matter how the main lines rotate and develop, at least one thing is certain, that is, the upward breakthrough trend of the market index is basically becoming clearer and clearer, and this also means that the overall market profit effect and the main line sectors of various industries and the corresponding core stocks have no risk of a sharp and continuous decline. I feel that it is appropriate to increase the position aggressively in the near future."

"Hehe..." Lao Qian said, "I didn't find a very good buying point today. It would be great if there is a chance to buy low tomorrow when the market opens low." "I guess there will be." Sun Chengyu said, "Based on the trend of the market today, I don't believe it will open high tomorrow."

"That's hard to say. Several 'oversold rebound' stocks performed very well today." Zhao Qiang said, "For example, the 'Quantong Education' check has been very popular after the market, and the stock price is relatively low. I feel that this check will most likely continue to hit the daily limit tomorrow."

"The junk stock of Quantong Education has been on a continuous downward trend. Every time it rebounds from an oversold situation, it has never been sustained." Lao Qian seemed to have a deep complaint about this check. "I also participated in the speculation of this check before, and I lost about 15% before I sold all my shares. Now this check... I have blocked it anyway. Even if it rises to the sky, I will not buy a single share."

“Haha…” Zhao Qiang laughed, “It seems that Lao Qian was deeply hurt by this check.”

Lao Qian responded: "That's right. I get fooled every time. Dangdang is different. Before the underlying logic changes, I will not touch the two sectors of film and television media and Internet software."

When the three of them still had slight differences in their opinions on the subsequent market trends.

At this moment, among the main speculators of the "Magic City Super Short Gang", Lao Zhang, after a brief review, also raised a lot of hope for the "oversold rebound" hype line that performed very well today, and said: "Xiao Xu, Lao Wu, Brother Chen, today's "oversold rebound" line...what do you think?"

"What can we say?" Xu Qiao said, "It's still doubtful whether it will last long. We'll have to observe it tomorrow."

"Today's 'oversold rebound' line should be the rotation of the 'big infrastructure' main line during the adjustment." Old Wu pondered for a moment and said, "As long as the subsequent 'big infrastructure' main line continues to pick up, the 'oversold rebound' line will soon return to its previous state."

"What about Brother Chen?" Seeing that both of them were pessimistic about the 'oversold rebound' line, Lao Zhang couldn't help but continue to ask, "Brother Chen also thinks that the 'oversold rebound' line has no sustainability?"

Brother Chen thought for a moment and responded, "It's really hard to say. Today's market trend is actually quite chaotic. It seems that... the main funds in the market, especially the active short-term speculative funds, have quite different opinions on which main market trend to follow.

From the market trends in the morning, we can see that there are still quite a large number of capital groups.

We want to continue to work around the line of 'big infrastructure'.

However, the accumulated profits on the "big infrastructure" line in recent days are really too heavy, which ultimately led to the failure to form a synergistic force of funds.

As for the 'oversold rebound' line, the market expectations are not strong.

But the advantage is that the position is low enough. In the short term, there is a break in the chip structure, and it is not difficult to pull up a lot of speculative funds. At the same time, these historical monster stocks in the last bull market also have a relatively good market sentiment basis.

No matter what the fundamentals are, as long as there is capital willing to push the market up quickly, as long as there is capital, there will be a quick money-making effect.

Then, retail investors who want to follow the trend can still gather quickly.

In other words, the 'oversold rebound' line still has a mass base.

In addition, the overall market index has now passed the risk period and is in a clear mid-term rebound trend, with no risk of a stampede or crash.

Therefore, the overall bullish sentiment in the market is still relatively good.

It is reasonable to focus on the 'oversold rebound' line where the selling pressure is relatively small at present.

After all, no matter what time, the market trend will always move in the direction of least resistance on the market.

Therefore, as long as you don’t have high expectations, it is not impossible to do it at this time point. "

"Well, Brother Chen's analysis is reasonable." Old Zhang nodded slightly and said, "Let's take a look at the Dragon and Tiger List after the market closes. If there are many active major hot money in the market among the funds involved in the 'oversold rebound' line today... then tomorrow's market and the market trend of the past two days can still be taken seriously, and there is a high probability that it will be profitable. If there are still a group of small and medium-sized investors messing around, then there is basically no need to pay attention to it."

"Yes, the market is quite chaotic today, and there are big divergences in the main lines." Xu Qiao also responded at this time, "In this case, to judge the market trend tomorrow, we must pay close attention to the trading of the main lines in the market today."

"Is there at least one thing that is clear?" Lao Zhang paused and continued, "With such a huge selling pressure today on Dongfang Yuhong's check, it is basically unlikely that there will be no adjustment tomorrow."

"The two stocks of 'Oriental Yuhong' and 'Quantong Education' must be the focus today and tomorrow." Old Wu also nodded and said, "But I feel that the main capital group within the 'Oriental Yuhong' stock, including President Su and several institutional funds that intervened in the early stage, has most likely not left, and is most likely still in a locked position. According to my mental estimation, the ones who left today should be the short-term speculators who intervened yesterday and the day before yesterday. As for the 'Oriental Yuhong' stock, although the trend was quite volatile today, it actually did not fall below the trend line, and it cannot be said that it must be adjusted. Tomorrow this stock will return to the 5-day line, and there is still the possibility of continuing to attack and break through."

"It is true that such a trend cannot be ruled out." Lao Zhang said, "But if we really want to follow this idea, there must be a relatively strong positive stimulus from the after-market news. If we analyze it from the current market sentiment, it is basically impossible. After all... I have taken a look. On the major stock investment exchange platforms in the market, the emotional feedback of many retail investor groups on these two checks is still very different. In my opinion... the 'big infrastructure' line may be better if it is adjusted here and then moves up. How does that sentence go..."

"More haste, less speed." Brother Chen continued, "The current position of the 'big infrastructure' line happens to be the high point of the previous shock platform. No matter how it goes, the logic makes sense. We can't judge the strength of this main line based on whether it continues to break through or adjust downward. I think... to see the strength of this line, we still have to start with the positive news and fundamentals outside the market." (End of this chapter)