Rebirth of the Capital Legend

"There's nothing we can do about it." Lao Zhang said, "There are so many investors who follow the trend and take over the stocks discovered by Brother Su, so there's no way to avoid such a high premium. But I think... this isn't a bad thing, right? After all, the overall market conditions are still not very good. The stocks discovered by Brother Su can form a continuous breakthrough trend and a continuous daily limit trend, which can still boost the performance of the entire market and greatly promote the recovery of the bullish sentiment of the entire market."

"It's not very friendly to investors who don't have the first move." Old Wu said, "Except for the heavyweight leading stocks that Brother Su has invested in, basically, other small and medium-cap stocks that have been involved can only be bought at a high premium the moment the position is exposed."

"But for stocks controlled by the Su brothers, it is actually very difficult to lose money even if you buy them at a premium," Xu Qiao said. "Whether it is Gemdale Group or Oriental Yuhong, basically after the Su brothers' Fuxing Road position was exposed, even if you bought them at the daily limit the next day, or even if you chased the high on the third day, you can still make money."

"That's right." Old Wu said, "Otherwise there wouldn't be so many short-term investors in the market. After Brother Su's seat at Fuxing Road was exposed, they bought the stock without thinking and bought at the daily limit the next day."

"In fact... is it possible that, in addition to the seat premium of the Su brothers themselves, these stocks that are heavily held by the Su brothers can eventually come out and become the core leaders of the market, because the fundamental logic of these stocks is strong enough and the expectations are sufficient?" Brother Chen said, "For example, 'Oriental Yuhong', 'Golden Land Group', 'Huaxin Building Materials'... these 'big infrastructure' main line core leader stocks, in fact, even if there is no seat intervention by the Su brothers, there is a high probability that as the market of the 'big infrastructure' main line develops in depth, they will also be able to come out, and they will also be recognized by other major market capital groups and play a continuous money-making effect.

in my opinion……

The Su brothers' dominance over individual stocks is merely a catalyst for emotions and does not really change the medium- and long-term expectations for these stocks.

We cannot ignore this underlying logic and lose sight of the big picture by chasing the hype of seat premium.

In other words, if the Su brothers' seats in "Fuxing Road" are currently heavily invested in stocks on the "oversold rebound" line, such as "Maruda Film and Television", "LeTV", "Storm Technology", "Quantong Education" and the like, then even with the extremely high premium of Su brothers' "Fuxing Road", I am afraid that after the short-term decline in premium sentiment, these stocks will still be difficult to come out and continue to be recognized by various major capital groups in the market due to their own fundamentals and future expectations.

In other words, it is likely that its continued volatile downward trend will be difficult to change.

In fact, the seat premium of the Su brothers is just going with the trend. Only by following the general trend can they play a decisive role.

Only in this way can the bullish enthusiasm of the entire market be stimulated, allowing emotions and market trends to develop in depth.

Fundamentally speaking, when the Su brothers choose a stock as their main focus, their primary consideration is also the mid- to long-term fundamentals, rather than the structure of the chips. "

"According to what you said, Brother Chen..." Lao Zhang said, "Analyzing the market trend from the perspective of the chip structure is actually inferior. Is this a side path in trading?"

Brother Chen said: "That can't be said, but we have to look at the structure of the chips and the medium and long-term expectations."

"I think Brother Chen's analysis makes sense." Xu Qiao pondered for a moment and said, "The fundamental logic that drives stock prices up is the mid- to long-term expectations and the expectations of fundamental changes. If this underlying logic is lost, no matter how good the chip structure is, without the expected logic, it will be difficult for major funds to intervene and it will be difficult to attract continuous buying funds.

As of now...

It is obvious that these problems exist in the main sectors such as film and television media, Internet software, Internet applications, and electronic information.

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

It is because of the strong mid- and long-term logical expectations that the stock price trend is very strong. Once funds dare to push the market down, it will stimulate more buying orders. "

"That's right." Old Wu responded, "So, as far as the current buying point is concerned, it is definitely still the main line of 'big infrastructure', which is obviously stronger than the line of 'oversold rebound'."

Accompanied by discussions among several core major speculators in the group about the market trends.

At this moment in the market, the trading time has entered 10 o'clock in the morning.

After half an hour of fierce trading in the market, the market trend has become clearer and clearer. The main trend of "big infrastructure" is getting stronger and stronger, while the line of "oversold rebound" is getting weaker and weaker.

And faced with the completely different trends of the two main market lines, many groups of followers in the market also began to make different trading strategies under the completely different expectations of these two main lines.

This also leads to the extension of subsequent trading time.

The 'oversold rebound' line is getting weaker and weaker, while the 'big infrastructure' line shows an increasingly strong trend of active buying on the market.

"It's incredible. Yesterday, the 'big infrastructure' line showed an obvious trend of adjustment, but today it has completely reversed." Seeing that the direction of the two markets is becoming clearer and clearer, and the core line of 'big infrastructure' has once again become the primary target of the main funds of all parties in the market, and a large number of follow-up funds have been chasing and increasing their positions. At this moment, in the trading room of the main fund product of 'Nuoan Capital', Li Shangfeng, the trading team leader of 'Nuoan Blue Chip Mixed Selection', said with some surprise, "Is this line really not going to adjust at this position, but to continue to break through? Can this trend of continued strong breakthrough really last? It feels that there are still great differences in the market, and the selling pressure on the market is still not small."

Hearing Li Shangfeng's sigh, Wang Shujie, the main fund product manager of 'Noan Blue Chip Mixed Selection', responded: "The 'big infrastructure' line is indeed much stronger than expected. I thought that yesterday's 'Oriental Yuhong', 'Capital Group', 'Huaxin Cement'... these popular leading stocks have shown obvious short-term correction trend characteristics. I didn't expect that today these stocks can actually form a rebound trend after yesterday's bad trend."

"Mr. Wang, look at this situation..." Li Shangfeng said, "Is the 'big infrastructure' line about to enter a major rise phase with more consistent expectations?"

Wang Shujie pondered for a moment and responded: "It seems that the market divergence is still quite large, and in the past two days, the market's main weighted sectors, liquor, white goods, medicine, consumption, electricity, finance... have all been relatively weak. It seems that there are still huge differences among the funds in the entire market on the direction of the main line breakthrough. I think that before this difference is further eliminated, whether it is the 'big infrastructure' line or other main lines of the market, it is unlikely to follow the expected accelerated breakthrough trend."

"How do we understand the current trend?" Li Shangfeng asked.

Wang Shujie thought for a while and said, "It should still be in the breakthrough trend of the upper edge of the previous oscillation platform. In fact, the current 'big infrastructure' line, at this position, is definitely a little short of a definite buying point." "Yeah, I think so too." Li Shangfeng said, "As for the previous trend, it feels that the 'big infrastructure' line is still very closely related to the trends of weighted sectors such as liquor, white appliances, medicine, consumption, electricity, and finance. At present, these weighted main line sectors are still in a state of adjustment, and the actual breakthrough trend of the index is still uncertain. Therefore, the certainty of the buying point of the 'big infrastructure' line is indeed insufficient. However, the 'oversold rebound' line is now basically useless. I'm thinking... If the 'oversold rebound' line cannot be achieved, then does it mean that the general reversal of small and medium-sized and micro-cap stocks will not be achieved?

Does this mean that the overall investment style of the market is still biased towards weight?

If the overall investment style of the market remains the same as before.

So, I think the logic of the "big infrastructure" line is that it will become stronger and stronger, continue to siphon market liquidity, and eventually form a trend of comprehensive breakthrough. "

"Looking at the current market trend, there is definitely no hope for the 'oversold rebound' line." Wang Shujie said, "But as for the buying point of increasing positions, we still have to wait and see the 'big infrastructure' line. It won't be too late to take action when there is enough certainty."

"That's right." Li Shangfeng nodded and said, "After all, our current holdings in the 'big infrastructure' line are already quite high. If we continue to increase our holdings, we really need sufficient certainty."

Accompanied by a brief discussion between the two about the market trends.

As market sentiment continues to ferment, the main trend of "big infrastructure" continues to strengthen.

At 10:17 am, the share price of 'Oriental Yuhong', the absolute core leading stock of the 'big infrastructure' main line, once again reached a 7% increase, continuing to show a trend of reversing yesterday's trend. Among them, 'Beijiang Communications Construction', 'Huaxin Cement' and 'Capital Group' have all achieved a reverse limit.

At 10:21, the intraday decline of Quantong Education's stock price reached 5%. The 'oversold rebound' line, together with the major main sectors of Internet software, Internet applications, film and television media, and electronic information, all showed a trend of continued volatility and weakening. The long funds that intervened in this core main line yesterday were particularly fiercely sold off today.

At 10:25, the core industry sector indices of the three "big infrastructure" main lines, namely real estate, building decoration, and building materials, all rose by more than 2% during the day, continuing to lead the two markets.

At 10:31, "Anhui Conch Cement" rose by more than 3.5%, setting a new high in the market and a recent high.

At 10:36, driven by the main theme of "big infrastructure", the Shanghai Composite Index once again reached a 0.5% increase. On the contrary, the ChiNext Index, the CSI 500 Index and the CSI 1000 Index remained in the green and were underwater.

At 10:42, Oriental Yuhong's share price reached an increase of 8%.

At 10:45, 'Golden Land Group' and 'Huaxin Building Materials', two core hot stocks in the 'big infrastructure' main line that were previously reduced by 'Fuxing Road', rose by more than 5% at this moment, basically forming a reversal trend for yesterday's trend, and are once again thinking of hitting a new high in the near future.

At 10:51, within the main area of ​​'big infrastructure', the main internal capital flows of a number of related sectors such as real estate, building decoration, building materials, nonferrous metals, steel, and coal began to change from a net outflow at the beginning of the trading session to the current net inflow of more than 10 billion.

At 10:56, the ChiNext Index was trading sideways with a drop of 0.5% to 0.7%, and almost all small and medium-sized stocks and micro-cap stocks that had performed well in the market yesterday showed obvious intraday losses, while the 'big infrastructure' main line was siphoning funds from other main lines of the market more and more.

At 11:02, Oriental Yuhong's share price hit the daily limit, completely reversing yesterday's trend, and the share price began to hit a six-month high.

At 11:07, the share price of QuanTong Education hit a 6% drop in the day.

At 11:09, the three main industry sector indices of "oversold rebound" - film and television media, Internet software, and Internet applications - all fell by about 1.5% during the day, leading the decline in the two markets.

At 11:15, the main weight sectors such as liquor, white appliances, medicine, consumption, electricity, and finance, which had been in a sideways fluctuation pattern from the beginning of the trading session to now, began to see a clear recovery in the buying of major funds, and the corresponding core weight stocks, their share prices began to stabilize and rebound.

At 11:19, the three core leaders of the real estate sector, Poly Real Estate, Kewan Real Estate and China Merchants Shekou, all saw their intraday gains exceed 3%, significantly outperforming the index and showing a strong momentum.

At 11:21, Oriental Yuhong hit the daily limit for the second time.

At 11:23, after hovering near the upper limit for two minutes, the share price of Oriental Yuhong was finally capped by hundreds of thousands of buy orders.

At 11:24, driven by the successful daily limit of 'Oriental Yuhong'.

All the stocks related to the entire "big infrastructure" main line were suddenly attacked by the main capital groups in the market, and a number of related stocks rose rapidly.

At 11:26, the 'Real Estate' sector index had a daily gain of 3%.

At 11:27, the Shanghai Composite Index once again broke through the 2970 points under the influence of the "big infrastructure" main line. At the same time, due to the strong driving force of the "big infrastructure" main line, the declines of the Shenzhen Composite Index and the ChiNext Index also narrowed a bit. The A50 Index also turned from green to red at this moment.

Finally, when 11:30 arrived, the two cities closed at noon.

The Shanghai Composite Index was set at 2972.23, with a daily increase of 0.72%. At the same time, the daily increase of major industry sector indexes related to the main line of "big infrastructure" reached more than 1.5% at the midday close, showing a comprehensive trend of leading the two markets. (End of this chapter)