Rebirth of the Capital Legend

"Indeed, the call auction trend of the 'big infrastructure' line has obviously exceeded expectations." Zhang Wei also responded at this time, "'Oriental Yuhong', 'Capital Group', 'Golden Land Group', 'Huaxin Cement', 'Huaxin Building Materials'... these stocks, in the last minute of the call auction, basically pulled up at least 2 points. The last minute of capital rush was quite serious. I originally wanted to wait for the 'big infrastructure' line to open significantly lower due to yesterday's bad trend, and then buy the bottom, but I didn't expect it...

It seems that many funds in the market have relatively consistent expectations on the trend of the "big infrastructure" line.

Everyone was thinking about buying at the bottom after the market opened sharply lower, but there was no sharp lower opening as expected.

As for the 'oversold rebound' line, although it opened high, the trend of the entire call auction was obviously lower than expected. For example, yesterday's leading stock 'Quantong Education' did not have any high premium today. Other 'oversold rebound' stocks were basically on a downward trend throughout the entire call auction process.

Look at the different call auction trends of these two main lines.

It is estimated that after the market officially opens, the active buying funds in the market will most likely continue to trade around the "big infrastructure" line.

As for whether the "oversold rebound" line can be sustained, it is still questionable. "

"I just reduced my holdings of a lot of stocks in the 'big infrastructure' theme yesterday." Zhao Zhiyuan sighed and said, "Now it seems that I reduced my holdings in the wrong way. I feel like I sold them at a high price. Should I buy them back while they are slightly lower? If I buy them back now, they are still lower than the cost price of yesterday's selling."

"My suggestion is to take it back." Liang Jiucheng said, "The buying power in the call auction is very strong, which means that this main trend is unlikely to continue to adjust downward. As for the 'oversold rebound' line, based on the current trend... it is still difficult to achieve sustainability.

I have said it long ago that the "big infrastructure" line is more like the core theme of the market.

When the losing effect of the core main line does not continue to expand and there is a situation of crazy burying people the next day, we still have to focus on the main line to do better when we do the trading.

The 'oversold rebound' line has not yet been sustained.

Without the recognition of more on-site buying funds, it is still too difficult to make money from positions in this main line area. "

"Okay." Zhao Zhiyuan said, "Then after the market opens, I'll take a look at the 'big infrastructure' line and the market conditions of several core leading stocks. If the market conditions are strong and the stocks really can't fall, then I'll buy them back. Sigh... It's really a waste of time. Moreover, the 'oversold rebound' line, film and television media, Internet software, Internet applications, electronic information... these major main sectors are really toxic. Every time they rebound, they are extremely strong during the trading session. Many stocks are capped at the daily limit in batches, but they can't continue to rise the next day."

"This is the difference between the underlying logic support of fundamental changes and the underlying logic support of no fundamental changes." Zhang Wei said, "The fundamental reason is that too many major institutional funds have intervened in the 'big infrastructure' line in the early stage, and this part of the fund group, under the expectation of the underlying logic of the fundamental change, is willing to lock in positions for a long time and maintain the market to maintain the profit effect of the market.

And the line of 'oversold rebound'...

Whether it is Internet software, film and television media, electronic information, or Internet applications.

Basically, we are still in the stage of digesting the bubble after the last bull market has receded, and we are still far from the stage where the fundamentals have changed and expectations have been raised again.

Therefore, basically, there is no major institutional capital group locking up positions in it for a long time.

Not only are there no major institutional funds locked up, but the major funds that were trapped in the previous bull market are constantly taking advantage of the rebound to cut losses and exit the market.

As for the short-term speculative funds involved, it is even more like the case of cutting off the first move and cutting the second move.

Faced with the heavy pressure of trapped positions from above, everyone starts to reap the profits as soon as they have a little profit. How can they achieve sustainability?
Anyway, I am not optimistic about the 'oversold rebound' line.

Relatively speaking, it is not as good as the A50 weighted main line. "

"It should be basically confirmed that the weighted main line has entered a period of adjustment and volatility, right?" Zhao Zhiyuan asked.

"Well, I think so." Zhang Wei paused and continued, "Looking at today's call auction, the 'big infrastructure' line was able to gradually evolve from a deep-water state of large low opening to a slightly low opening under the effect of bargain-hunting funds. There was a huge amount of buying at a low level. The A50 weighted main line, liquor, white appliances, medicine, consumption, finance and other weighted stocks, and the corresponding leading stocks, were still relatively weak in the call auction trend. It can be seen that some of the main funds in these main lines are gradually taking profits and realizing their expectations."

"However, in terms of the overall market investment style..." Liang Jiucheng also continued at this time, "It feels that mid- and large-cap stocks are generally stronger than small- and micro-cap stocks."

"Isn't that right?" Zhao Zhiyuan said, "Hasn't the market style obviously changed?"

"It's only the main line that has changed, right?" Zhang Wei said. "The core of the current market has gradually changed from the previous liquor, white appliances, medicine, consumption, and finance to the 'big infrastructure' main line. It should be said that... this change is quite obvious. It is obviously wrong to say that the market of large and small caps has switched. Look at the majority of investors in the market who chased small and micro-cap stocks yesterday. Do they have any premium space when the market opens today? How many of them can make money?"

"That's true." Zhao Zhiyuan pondered for a moment and said, "Even the check for 'Quantong Education' didn't have a premium effect. It's really outrageous."

"Therefore, the 'oversold rebound' line can only temporarily bear the market rotation at most, and cannot bear the unanimous long-term upward expectations of the main capital group." Zhang Wei said, "If the market wants to achieve a comprehensive breakthrough as a whole, to hit 3000 points, and return to the shock center above 3000 points, then it still depends on the development of the 'big infrastructure' line and the final combined force of various funds on this line."

"In a word," Liang Jiucheng also said, "as long as the main line of 'big infrastructure' has not yet shown a large and sustained loss effect, then just focus on this line and continue to work on it. At present, other main lines in the market are not as high as the 'big infrastructure' line in terms of certainty and expectations."

"Yes." Zhang Wei nodded and said, "At least from the current market situation, Lao Liang, you are absolutely right to insist on trading around the line of 'big infrastructure'."

As the three people discussed the call auction trends of the two markets, there was also discussion and outlook on the subsequent trends.

The short 5-minute trading suspension was fleeting.

Soon, 9:30 arrived and the two markets officially ushered in continuous bidding transactions.

Under the watchful eyes of the crowd, the clock hands had just passed 9:30 when the two stock markets began to fluctuate violently.

Among them, the main sector of "big infrastructure", related hot stocks and core leading stocks, due to the unexpected performance during the call auction, began to be snapped up by the main capital groups in the market without waiting for the reaction of most investors in the market, causing the three core sectors of real estate, building decoration, and building materials, as well as leading stocks such as "Oriental Yuhong", "Huaxin Building Materials", "Gemdale Group", and "Capital Group"..., to be pushed up from a small low opening to a red market state in an instant.

On the other hand, the 'oversold rebound' line was generally favored by everyone before the market opened.

The major sector indices of film and television media, Internet software, Internet applications, and electronic information fell rapidly at the beginning of the trading session. At the same time, the stock price of the corresponding core leader, Quantong Education, turned from red to green in less than half a minute after opening slightly higher. Stocks such as Ciwen Media, Huace Film & TV, LeTV, and Light Media also turned green in an instant after basically opening slightly higher.

As for the main weight line...

"Yingjia Gongjiu", which saw a large-scale institutional exit yesterday, opened sharply lower today and continued to plummet right after the opening. The stock price almost hit the lower limit at the beginning of the session.

The stock price weakened rapidly and even hit the daily limit for two consecutive days.

This also caused the liquor and consumer main-line sectors, which were not strong in the call auction stage, to weaken.

Therefore, at the beginning of the two markets, when the main line of "big infrastructure" became stronger and other main lines weakened, the main line of "big infrastructure" began to siphon the buying liquidity of other main lines.

"What the hell is going on? The main line of 'big infrastructure' that was so popular at the end of yesterday's trading session has been quickly pulled up from the deep water and is rising strongly again. On the contrary, the 'oversold rebound' line that was so popular at the end of yesterday's trading session has quickly fallen at the opening today, with no profit effect at all!"

Faced with the changes in market trends in the early trading of the two markets, especially the rapid rebound of the "big infrastructure" main line.

At major stock investment exchange forums in the market, many of the gathered retail investors showed surprised and unexpected expressions. "Haha... What did I say? If you hold a leader, you need a certain amount of faith."

"'Oriental Yuhong' is really strong. With yesterday's trend and huge volume fluctuations, it can still close in the green today, giving the funds that were trapped yesterday a chance to exit safely."

"This is not called a chance to exit safely, but a strong opportunity to take over."

"Who said yesterday that the buying order for the Oriental Yuhong check had dried up?"

"The leader has two lives. I feel that as long as Mr. Su's 'Fuxing Road' continues to lock positions, this check will still have room to move upward."

"Definitely."

"Who was the one who gave birth to the new dragon and the old dragon died yesterday? You also said that the check of 'Dongfang Yuhong' was blocked by 'Quantong Education'. You got slapped in the face today, right?"

"Haha, indeed, I really like seeing people getting slapped in the face."

"The trend of the 'big infrastructure' line is too strong. I thought it would continue to adjust significantly, but I didn't expect it to only adjust yesterday."

"The strong core main lines basically complete the adjustment trend within the day."

"Yes, it is true. The strong will always be strong!"

"If the 'Quantong Education' check fails to come out, I feel that the 'oversold rebound' line basically has no chance, right?"

"Based on the current market trend, there is no chance at all. The entire 'oversold rebound' theme has already caused a lot of losses."

"The 'big infrastructure' line is still the most reliable!"

"Indeed, holding Oriental Yuhong is reassuring. The core leading stocks will outperform the market index no matter how they go."

"Alas, I was fooled by the leading stock 'Quantong Education'. I bought it at the bottom yesterday and now I have lost 2 points. Do you want to sell it?"

"Sell the hammer, it was a daily limit yesterday, how low can it fall?"

"That's not certain. What if there's a new low?"

"Fuck, the stock hit the daily limit yesterday, and I was still excited after the market closed, thinking that I would probably win without doing anything today, but I didn't expect to lose money."

"That's right. If I had known earlier, I wouldn't have touched the check from 'Oriental Yuhong'."

"Isn't the most powerful one the check from 'Capital Group'? Judging from the situation, the check from 'Capital Group' is likely to reach the daily limit."

"Limited limit? Not really?"

"It's already increased by 5 points. It looks like buying is still pushing up the stock price of this check."

"Fuck, this trend is really amazing, I feel like it's going to reverse."

"It will definitely reverse. I said yesterday's trend was definitely not the top."

"The trend of the 'big infrastructure' line should indicate a substantial breakthrough of the previous shock platform, right? Today's strong rebound repaired yesterday's late-day sell-off trend, which basically means that yesterday was a wash."

"I have said before that the top position of the previous shock platform will definitely fluctuate violently, but it will definitely not be the top position of the main rising stage of this round of 'big infrastructure' main line market."

"Fuck, this trend is really strong."

"'Quantong Education' has fallen by 3 points. Alas, the entire film and television media, Internet software, Internet application, and electronic information sector indexes have fallen into a trend of no volume and shrinking volume. Where is the money that entered yesterday? There were so many buy orders yesterday. Why don't these funds maintain the stocks and the market today?"

"The main buying funds in the entire market have been attracted by the line of 'big infrastructure'. There is obviously no consensus on the long expectations of the line of 'oversold rebound'. Where can the funds be used to buy?"

"This trend is really a bummer!"

"Fuck, this check from Capital Group, I sold it at the lowest point at the end of yesterday's trading, and it's really rebounded."

"Awesome, what a strong counterattack."

"I just said that we should embrace the core theme of the market. Sigh... Next time, I must focus on the core theme. I can't be greedy. I feel that the more frequently I chase hot spots, the less money I can make."

"Isn't that what it is?"

"It's better to stick to the 'Oriental Yuhong' check, which is safe. We should keep doing T on this core leading stock. As long as Mr. Su's 'Fuxing Road' doesn't come out, we will do T to death."

"It's easier said than done. With the trend of Oriental Yuhong yesterday, who can hold on to it?"

"That's true. If the intraday fluctuation exceeds 10 points, no one can hold on, unless they don't watch the market."

"Have you noticed that sometimes not looking at the market is better?"

"What a pity I couldn't help it!"

"So, we have to learn from President Su's determination and vision. Look at President Su. He invested hundreds of millions of dollars in the market, and no matter how large the intraday fluctuations were, he didn't move a single bit."

"Indeed, if you frequently switch stocks, you will be harvested everywhere. It is better to focus on one or two stocks."

Amid the heated discussions and debates among countless retail investors...

The market's trading hours are still moving forward, and as the trading hours continue to move forward, the performance and trends of the main lines on the market are becoming clearer and clearer. (End of this chapter)