Rebirth of the Capital Legend

"Looking at the trend of the 'big infrastructure' line, the market situation yesterday afternoon should not happen again, right?" Seeing the afternoon market, after the emotions brewed, the main line of 'big infrastructure' continued to advance by leaps and bounds, breaking through rapidly all the way upward. At this moment, among the main hot money group of the 'Fushan system', Li Jinshi continued to increase his position while saying, "With such strong buying, and the sharp decline in selling, there is no reason for the market to go back to the situation of yesterday."

"Well, I also feel that the 'big infrastructure' line has actually broken through." Chen Guiyun also responded at this time, "It is indeed strong. With the trend yesterday, I thought that this line would most likely adjust at the top of this oscillating platform for a period of time and continue to consolidate the support level of this platform before breaking through. I didn't expect that... the adjustment at the end of yesterday's trading was actually the last adjustment before the complete breakthrough. Today's strong and rapid breakthrough is indeed a bit surprising.

However, this strong and fierce attack, especially after washing out a large amount of previous profit-taking, has formed a breakthrough pattern with rapid shrinkage.

It is indeed the strongest trend pattern, which is conducive to faster consolidation of the market's bullish sentiment and confidence.

It will also help the "big infrastructure" line to reach higher heights in the future."

"In the morning's market trend, the 'big infrastructure' line was able to quickly pull up and turn red and rise after opening low, and quickly condensed the long effect of concentrated funds, and did not continue to increase the volume to amplify the differences, which means that there is a high probability that it will accelerate upward breakthrough in the afternoon." Liao Guoxiang also said at this time, "The strong will always be strong. I originally thought that after the 'big infrastructure' line took on the main task of the market's upward movement, the upward decline would be revealed due to the large number of profit-taking orders. I didn't expect that the final market's joint force direction would still choose this core main line as the breakthrough point."

"Hey, Lao Liao, Lao Chen, have you two noticed that the siphoning effect of the 'big infrastructure' line on the active buying of other main lines in the entire market today is not as serious as yesterday." Li Jinshi smiled and said, "It feels like after yesterday's violent shock, the 'big infrastructure' line continued to break upward today. Under the strong momentum of the counter-attack, the volume is shrinking, the consistency of the internal chips is higher, and more funds are willing to lock in chips."

"Well, I see." Chen Guiyun said, "This is understandable. After all, after yesterday's massive profit-taking, the new large group of funds did not have enough chips to take advantage of cost. Now... facing the overall rapid upward breakthrough of the main line of 'big infrastructure', before the bullish sentiment is obviously weakened, and at the same time, the corresponding stock prices have not quickly left their cost area.

These newly entered groups of large amounts of capital do not have a strong desire to sell.

And those main capital groups that intervened before.

There was no selling even in the situation like yesterday, which shows that this part of the funds has enough patience and determination, and is more optimistic about the subsequent market trend of the main line of "big infrastructure".

There is also the current main line of "big infrastructure", which has generally reversed yesterday's trend.

However, from the perspective of these funds, their profits have not increased much compared to yesterday's intraday high, so their desire to sell will not be very strong.

When both the new group of funds and the group of funds that have locked up the funds before have little desire to sell.

The locking of its internal chips naturally appears to be more consistent than yesterday.

This also makes today's "big infrastructure" main line's selling pressure much smaller than yesterday, while the volume has not increased, the selling pressure is decreasing, and the consistency of long positions is increasing.

Then, naturally, the buying siphoning effect of the "big infrastructure" line on the entire market main line is lower than yesterday."

"If the 'big infrastructure' line can maintain its trend this afternoon and continue to make money, and if the volume does not continue to increase significantly..." Li Jinshi pondered for a moment and continued, "Does it mean that other main lines in the market also have opportunities?"

"You mean the 'oversold rebound' line?" Liao Guoxiang responded with a smile.

Li Jinshi nodded and said, "Yes, I was thinking, since the trend of the 'big infrastructure' line has formed a strong consistency, the selling pressure on the market is decreasing sharply, and the long-term capital group, with the help of good emotions, is continuing to surge. Then, the active capital group in the entire market, especially the short-term speculative capital group, must overflow from the 'big infrastructure' line.

And in which direction will the overflowing short-term funds flow?
There will definitely not be any loosening of the chip structure, as large institutions will make profits in the heavyweight main sectors such as liquor, white appliances, medicine, consumption, electricity, and finance, right?

If it does not gather towards the weighted main sector, then it can only gather towards the 'oversold rebound' line.

After all, although the main lines of the 'oversold rebound' sector, such as film and television media, Internet software, Internet applications, electronic information, new energy industry chain, consumer electronics... do not have as strong underlying logic and future expectations as the 'big infrastructure' line.

The key to victory lies in a low enough position and a break in the chip structure.

Especially after the concentrated trapped orders above are clearly separated from the current position, the selling pressure on the market is still very light.

Furthermore, thinking from another perspective, the entire 'oversold rebound' main line, after the early morning trading, after the violent market fluctuations in the morning, especially the deep-water shock adjustments, a large number of short-term locked-in orders and corresponding profit-taking orders that followed up yesterday, have already been sold out due to the weak performance in the morning.

In this case, it means that it is above the 'oversold rebound' line.

In fact, at present, the trading of many related concept stocks is quite light.

If the overall sentiment of the market continues to improve, and the core theme of "big infrastructure" no longer siphons liquidity from other main themes in the market, and can continue to produce a money-making effect.

Then, its effect on the market is not the siphon effect of a seesaw.

Instead, it has an obvious driving effect.

I believe that after the index is in the red and the "big infrastructure" line has made enough money, there will definitely be funds to do the "oversold rebound" line in the afternoon market trend. I think... in this direction, you can eat some chips underwater and lurk for a while. Even if the final judgment is wrong, there will be no funds to do this line in the afternoon market trend.

Well, as the market as a whole recovers, sentiment gradually improves, and these highly recognizable oversold stocks have already been baptized by sufficient selling pressure in the morning and have fallen underwater for adjustment, if you exit to stop loss tomorrow, you will not lose a few points. Even under the worst expectations, it is entirely possible and highly likely that you will exit without loss tomorrow, or even with a small profit.

In general, with the overall market recovery...

Currently, stocks that are involved in the "oversold rebound" line, have sufficient turnover rates, are fully adjusted in the market, and have a certain degree of recognition, their cost-effectiveness is still quite high. "

"I think Lao Li's logical analysis makes sense." After listening to Li Jinshi's analysis, Chen Guiyun quickly pondered and found that it seemed to be true. He paused and said, "I feel that the 'oversold rebound' line can indeed be used to increase positions at this time and lurk for a while."

After saying that, he didn't wait for the other two to respond and turned his attention to the 'oversold rebound' line.

He started to buy several stocks of "Quantong Education", "Huawen Media", "LeTV" and "Netspeed Technology" at the same time, and paid attention to the abnormal changes in the market trends of these oversold stocks.

"The logic is correct," Liao Guoxiang said. "But the timing can wait until the trend of 'big infrastructure' is more stable."

As the three people talked, the trading hours of the two markets continued to advance.

We can see that the industry sectors related to the main line of "big infrastructure", including construction decoration, building materials, nonferrous metals, steel, coal, real estate development and other sector indexes, are still continuing to strengthen, and the corresponding popular concept stocks and weight leading stocks are also continuing to move upward.

At 1:15 am, after 15 minutes of fierce trading in the afternoon, the index increases of the real estate development sector, building decoration, and building materials sector all broke through the 4% mark, and within the three major sectors, a total of more than 25 stocks hit the daily limit.

Even heavyweight stocks like China Construction, Conch Cement, Poly Real Estate, China Railway Construction...

At this moment, the increase has reached 5%, and continued to set a new rebound high, heading towards the annual high.

At 1:21, as the main line of "big infrastructure" counterattacked strongly and formed a substantial breakthrough, the overall market sentiment and effect of going long continued to improve. At the same time, the Shanghai Composite Index and the Shenzhen Composite Index were driven by the trend of the main line of "big infrastructure" and also rose by 1%. Among them, the Shanghai Composite Index broke through 2980 points, setting a recent high, and is getting closer and closer to the 3000-point mark above.

At 1:25, driven by the good money-making effect of the 'big infrastructure' main line, other main line sectors of the market also began to move and counterattack.

At 1:27, the A50 index gradually fluctuated upward and began to fully recover from the morning's volatile decline.

At 1:30, the film and television media, Internet software, Internet applications, electronic information, new energy industry chain and other related industry sector indexes related to the main line of "oversold rebound" also began to rebound higher. Among them, "Quantong Education", a stock that was collectively pessimistic by everyone in the morning market trend, suddenly, a large number of concentrated buying orders emerged, and its stock price instantly jumped from a deep water drop of negative six points to a state close to the red market.

At 1:35, the entire 'oversold rebound' main line took advantage and quickly rose and attacked upward. Almost all small and medium-sized stocks and micro-cap stocks showed obvious abnormal movements. Correspondingly, active buying followed up quickly on the market.

At 1:37, the share price of Quantong Education rose sharply to a 2% increase.

At 1:38, 'Quantong Education' once again topped the two markets' real-time gain list, attracting the attention of a large number of active short-term investors in the market.

At 1:39, with its popularity soaring rapidly and attention surging, active short-term investors, especially a large number of retail investors, quickly followed up, and a large number of concentrated buying orders broke out again on the market, quickly pushing up its stock price to around 5%.

At 1:41, the share price of QuanTong Education reached a daily increase of 7%.

"Fuck, so fierce? Will it hit the daily limit or even the ceiling?" Seeing the stock of 'Quantong Education' once again driving the 'oversold rebound' line to rise strongly and rush upward rapidly, Zhao Zhiyuan, one of the main speculators of the 'Qilu Gang', showed obvious surprise on his face, "I thought this line was over, but I didn't expect... it would rise again in this way."

"It doesn't make sense. Didn't the 'Big Infrastructure' line remain unchanged? How come the 'Oversold Rebound' line has such a strong upward momentum?" Zhang Wei, who also noticed the unusual movement of the market, frowned slightly and said in obvious surprise, "Weren't the trends of the 'Oversold Rebound' and 'Big Infrastructure' lines in opposition before? How come they have risen and broken through simultaneously now? If you say it's due to the recovery of market liquidity, but currently...there is no sign of any increase in market liquidity and transaction volume compared to yesterday!"

"Liquidity is only one aspect." Liang Jiucheng was not surprised by the current market trend. He laughed and said, "What really affects the market trend, especially the main trend, is the sentiment and chip structure. Didn't you notice that today's 'big infrastructure' line, although it broke through fiercely and the upward trend was extremely smooth, the volume performance was in a state of shrinking compared to yesterday?"

After Liang Jiuchen’s reminder.

Zhang Wei and Zhao Zhiyuan were stunned for a moment and noticed this situation in an instant.

"Under the situation where the 'big infrastructure' shrinks and breaks upward in unison, even if the current market liquidity does not further increase, it will not have too much buying siphon effect on other main lines of the market." Liang Jiucheng paused and continued, "On the contrary, its consistent long position and unexpected profit effect will further stimulate the recovery of other main lines of the market, as well as the high and low cutting of other funds in the market that missed out on opportunities."

"I see." After hearing Liang Jiucheng's analysis, Zhang Wei came back to his senses, smiled, and said, "Old Liang, you are still clear-sighted. This is indeed the logic. According to this logic, the 'oversold rebound' line has formed a substantial breakthrough trend in the 'big infrastructure' main line, laying the foundation for the overall market profit effect. After improving the overall market investment risk preference, it quickly came out and played an exaggerated profit effect. It is understandable. It seems that... the market is indeed going to choose an upward breakthrough trend at this position." (End of this chapter)