Rebirth of the Capital Legend

"Looking at the trends of the major market indices, it is obvious that with the overall market investment sentiment and long-term confidence generally improving and investment risk appetite gradually rising, the rebound strength and elasticity of the ChiNext Index are obviously much stronger than those of the Shanghai and Shenzhen Composite Indexes." Zheng Jinming said, "Based on the logic of elasticity, the constituent stocks of the ChiNext Index must be given priority. In fact... yesterday and today, at the end of the trading session, among the most violent "oversold rebound" main line stocks, the constituent stocks of the ChiNext Index did rebound the most strongly."

"Well, I agree with Lao Zheng's point of view." Lao Qian, who was seated at 'Yuhang Wenhua Road', said, "Looking at the trend, the check from 'Huawen Online' seems to be a leader."

"Whether it will become a leader depends on its sustainability tomorrow." Zhang Xinlei said, "However, the trend of this stock today is very beautiful, and logically, the concept of 'online education' has not been hyped for a long time. If the stock of 'Quantong Education' continues to hit three consecutive boards tomorrow and forms a relatively good trend of shrinking volume and daily limit,

Well, I feel that the concept of "online education" will easily come out and get concentrated speculation from a group of short-term main capital groups in the market.

And if the short-term capital group in the market mainly focuses on this concept for speculation.

Well, today's straight rise to the daily limit has already made the "Huawen Online" recognizable, and there is a high probability that it will continue to strengthen.

Whether it is from the chip structure, the size of the circulating market, or today's market performance...

Judging from various characteristics, if you want to make the market's 'oversold rebound' line and choose elastic stocks, this check has a high cost-effectiveness in terms of profit and loss. "

"'Ren Zixing' is also a good stock." He Zhong looked at the stocks that hit the daily limit today and said, "In addition to the 'Film and Television Media' sector, the trends of the two industry sector indexes, 'Internet Software' and 'Internet Applications', were also quite strong at the end of today's trading. Correspondingly, among the stocks with relatively good trends at the end of the trading, the 'Ren Zixing' stock also closed the daily limit beautifully. Moreover, this stock is relatively smaller than 'Netspeed Technology' and has a better chip structure. I feel that... this stock also has the potential to become a monster."

"This check from 'Ren Zixing' should be following the trend of 'Netspeed Technology', right?" Zheng Jinming said.

He Zhong compared the intraday trends of the two stocks and responded: "The strength of this check in the afternoon was indeed driven by the check of 'Netspeed Technology'. However, since the plate of the check of 'Netspeed Technology' is relatively large and the internal chip composition is relatively complex, when it was found that it was difficult to pull the check of 'Netspeed Technology' and close the board, other short-term speculative funds in the market turned around and pulled the check of 'Ren Zixing'.

Look at the two stocks, the final closing time and timing.

It is obvious that Ren Zixing closed the board in front of the check of 'Netspeed Technology', and finally the bullish sentiment of the two sectors of Internet software and Internet applications broke out comprehensively. Even in the last fifteen minutes, the corresponding small and micro-cap component stocks within the two sectors had a limit-up effect, which was also driven by this check.

In other words, judging from the market trend, Ren Zixing has taken a position above Netspeed Technology and should be given a higher regard. "

"The trend of Ren Zixing's check today seems to be somewhat similar to that of Huawen Online's check!" Old Qian pondered for a moment and said, "Both of them were the core leaders that made money in the early stage. After the emotions gathered, these two stocks that were originally following the trend quickly went straight to work and became recognizable."

"It seems to be true." Zhang Xinlei heard what Lao Qian said, compared the trends of Ren Zixing and Huawen Online with those of Netspeed Technology and Quantong Education, and said, "The logic of the two stocks is basically the same, both of them follow the logic of 'oversold rebound'. As for how they will develop in the future... that depends on the divergence and deepening of the main line."

"That's true," said Zheng Jinming. "From a big logic point of view, the stocks with small and medium-sized stocks and micro-cap stocks that exploded at the end of today's trading basically all followed the logic of 'oversold rebound'. As for the specific focus in the future under this big theme, will it be on the Internet software and Internet application sectors, or on the film and television media and electronic information sectors? It depends on how these short-term capital groups in the market guide them and in which direction they will work together. From the logic of short-term speculation, I think at this moment, the impact of the news should play a stimulating and leading role. It depends on what good news will happen today and tomorrow."

"If we talk about good news, it should be the 'big infrastructure' line, which is the most clear, right?" Zhang Xinlei said, "Driven by the logic of good news, it feels that the main line of 'big infrastructure' is more certain, the trend is more stable, and the trend is stronger."

"Everyone knows that the trend of the 'big infrastructure' line is highly certain, so this line is likely to not go smoothly." Lao Qian pondered for a while and said, "The 'big infrastructure' line is good in every way. The underlying logic is strong, the fundamental drive is strong, and the bullish sentiment and the willingness of major funds to follow up are also strong. But the only bad thing is that compared with other main sectors of the market, this line has risen too much in the past month, the position is relatively high, and there are still many short-term profit-taking orders inside.

In other words, the current internal upward pressure on the "big infrastructure" line should still be much greater than that on the main line of "oversold rebound" where the chip structure has obvious faults, and on these small and micro-cap stocks.

Since the overall bullish sentiment in the market and investment confidence have clearly rebounded, and the index has also formed a relatively certain upward breakthrough trend.

Considering the elasticity space, we should definitely give priority to stocks with high elasticity.

As for the so-called long-term logic...

I think that when the market has not really changed its long-term trend and has not reversed the bear market pattern, it is better to talk less about long-term logic and make less long-term investments. "

"Haha... On this point, my thoughts are quite consistent with Lao Qian's." He Zhong laughed and said, "Right, in a bear market, what long-term logic can we talk about? Even if the underlying logic of the 'big infrastructure' line is good and the macro fundamentals are constantly improving, as long as the bear market pattern of the market does not change, can this line break away from the valuation level of the entire market and develop an independent market trend of valuation repair? I think it's difficult!

Therefore, at the current stage, it is more appropriate to look at it from the perspective of chip structure and stock game.

Furthermore, after such a long period of emotional fermentation and bombardment of positive news, with the continuous popularization of science by major institutional groups in the industry, the logic of this core theme has basically been studied clearly by the majority of investors. That is, the corresponding future expectations have actually been reflected in the deepening of emotions and have indeed been reflected in stock prices.

In other words, the current market trend of the "big infrastructure" line.

Basically, it's time for various expectations to be fulfilled.

Once we enter this stage, unless there are continuous and unexpected positive news in the market and industry fundamentals to continue to push up expectations.

Otherwise, the expectation gap of the entire "big infrastructure" main line will only get smaller and smaller.

The smaller the expectation gap is, the more the stock price's continued upward momentum is gradually weakening. When the continued upward momentum enters the exhaustion stage, it will be difficult to obtain any excess returns by continuing to follow this main line.

On the other hand, the line of 'oversold rebound'...

Since this line has pitted many investors in the early stage, and also buried many investors who continued to buy at the bottom, even if the investment sentiment and investment confidence of the entire market have fully recovered, there is not much long money flowing into the "oversold rebound" line in the early stage.

However, everyone's relative pessimism has created the opportunity for a huge expectation gap in this main line.

At the same time, we should look to the future and analyze from a long-term perspective.

In the future, there will still be huge opportunities in the Internet industry and my country's film and television industry, and there will be a need for continued expansion in scale. In other words, the fundamentals of these major industries will still have the opportunity to improve rapidly or even explode again over time.

Therefore, in fact, the long-term underlying logic of these emerging industries such as film and television media, Internet software, Internet applications, electronic information, etc. is actually not bad.

The key is emotion.

In addition, these emerging industry main lines were affected by the excessive speculation and overvaluation in the last round of bull market.

But from the three consecutive stock market crashes last year to now, the market has been falling for more than a year. Many stocks have been halved and continued to be halved. Basically, their prices are only one-fourth or even one-fifth of their high point.

Under such severe oversold conditions, there is still a high probability that the situation will improve in the future.

There is a huge gap in expectations.

Therefore, on the whole, I still think that at this time, the profit and loss cost-effectiveness of intervening in the 'oversold rebound' line is far better than intervening in the 'big infrastructure' main line.

In addition, yesterday and today, the trends of the market's weighted main sectors were indeed weak.

This does not rule out the possibility of a major shift in market investment style and direction.

If there is a change in the investment trend in the market next, and a large number of previously active fund groups and major institutional fund groups begin to withdraw from the weighted main-line sectors in a concentrated manner, then these funds... will also continue to flow into the 'oversold small and micro-cap' main-line sectors with good cost-effectiveness.

That is to say, consider the potential subsequent buying.

In fact, in the current 'oversold rebound' line, Internet software, Internet applications, film and television media, electronic information, new energy industry chain... these main line sectors are not inferior to the 'big infrastructure' main line. "

"Lao He's analysis is indeed reasonable, but I think..." Zhang Xinlei thought for a while and said, "My idea is still to be conservative. I think it is safer to take one step at a time and see how the subsequent market trends and capital investment tend to be. If the subsequent market trends continue to favor small and medium-sized stocks, then it is completely in time to change the trading strategy in a timely manner.

Now, I think that the layout and involvement of various funds in the main lines of emerging industries such as film and television media, Internet software, Internet applications, electronic information, and new energy industry chains... are not deep enough, and the heavy locked-in shares above these main sectors are also an invisible pressure.

If we analyze the chip structure from the perspective of the medium and long term, we feel that the chip structure of these oversold main lines.

It is still much worse than the main line of "Big Infrastructure".

Of course, in terms of short-term trend elasticity, the current 'oversold rebound' line is definitely better than the core theme of 'big infrastructure'.

"Yes, yes... We don't need to think so far ahead at the moment." Old Qian also responded at this time, "Don't even mention the market trends of a few months, half a year, or a year. In fact, no matter how you analyze it, the market trends of a month or half a month are very uncertain. It is safer to take one step at a time and see what happens. We just need to follow the changes in the market. If the buying continues to be strong, then we should decisively go long. If the buying gradually weakens and there is great selling pressure from above, then we should decisively reduce our positions and take profits. Anyway, as long as the market has not escaped from the bear market pattern, it will never be wrong to sell at a rebound, take profits, reduce our positions, and then wait for the market to adjust to a low level before buying again."

"Let's take a look at the Dragon and Tiger List first." Zheng Jinming said, "Although the 'oversold rebound' line exploded at the end of today, and all major indexes closed with large positive lines, but overall, the market did not increase in volume today, and there was not much off-site incremental funds involved. The reason why the general rise was finally formed, I think... is because the 'big infrastructure' line's market trend today obviously exceeded expectations, and the chips were well locked, without excessive volume to siphon the buying funds of other main lines in the market. This is why other main lines followed suit in the afternoon's market trend. In fact... the absolute core of the market still feels that it is on the 'big infrastructure' line."

"Yes, yes, let's take a look at today's Dragon and Tiger Ranking data first."

Although Zhang Xinlei partially agreed with He Zhong's point of view, he also thought that He Zhong's point of view was a bit too radical under the current situation. He couldn't help but respond, and then his eyes turned to the interface of the two cities' Dragon and Tiger List.

I saw several people in the group having a heated discussion.

The market time has now moved to 5 o'clock in the afternoon, and the much-anticipated Dragon and Tiger Lists of the two cities have also been refreshed on time.

According to the latest disclosed data from the Dragon and Tiger List of the two cities.

It can be seen that many popular stocks that have received much attention from the market's retail investors, such as 'Oriental Yuhong', 'Capital Group', 'Quantong Education', 'Ren Zixing', etc., are basically on the list.

And these popular stocks at work are among the disclosed buying and selling seats.

It can be seen at a glance that the main hot money and the capital groups of institutional seats basically showed a uniform net buying trend, while the seats where retail investors concentrated had a lot of net selling. (End of this chapter)