Rebirth of the Capital Legend

"This market sentiment feedback is really hot." Noting the bullish sentiment feedback of the entire market during the lunch break, Yu Xiaolu, the trading team leader of the 'Jufeng Future Growth' main fund product trading room inside Jufeng Asset Management Company in Shanghai, said with emotion, "When the time comes, heaven and earth are on the same side. Now that the market sentiment has risen, the market's investment confidence has gradually recovered. It seems that the pressure of 3000 points may really be completely resolved by this wave of sentiment and the long effect, so that the index can truly stand firm at 3000 points."

"The bullish sentiment in the market is indeed hot, but the newly added funds entering the market from outside the market still have some problems in terms of volume." Lu Xiangxiang, product manager of the 'Jufeng Future Growth' fund, said, "The market trend in the morning was very good, but I always feel that the bulls' strength was overdrawn a little too early. If the market in the afternoon... the intraday volume cannot be further expanded, in the future, facing the heavy selling pressure above 3000 points, the market index and many core concept leading stocks that have risen significantly recently are still likely to continue to fall, forming a phenomenon of killing the late market."

"The plunge in the early trading session must have cleared out a lot of profit-taking chips in the market, right?" Yu Xiaolu said, "I think the trend in the afternoon should be stronger after the mood brewed in the afternoon. The phenomenon of killing the last trading session is unlikely to occur today. We should be careful tomorrow, right?"

"It's hard to tell until the market comes out of this," Lu Xiangxiang responded. "After rising for several days in a row, it is now facing strong selling pressure at 3000 points. Once the buying funds that actively undertake the purchase are slightly hesitant or interrupted, the market will quickly dive."

"Okay." Yu Xiaolu responded, and then said, "But as long as the overall trend is upward, the time point after the plunge is not a selling point, but a good low-buy selling point, right?"

Lu Xiangxiang nodded slightly and said with a smile: "That's right. Looking at the overall situation, not only the core market theme of 'big infrastructure' has shown an upward breakthrough trend, but also sectors such as petrochemicals, consumer electronics, etc. have formed an upward trend. Judging from the staged trend, if the market falls sharply and then pulls back, there will be strong support."

"Yes, I think so too." Yu Xiaolu said, "So at this point, I don't think there is anything to worry about. Moreover, our fund's current holdings are basically on the core main line of the market, and the floating profit of the holdings is not small. It has considerable cost advantages, so we are not afraid of the expected adjustment trend in the market.

Of course, if the market trend and the Shanghai Composite Index can remain at this position, they can increase their volume and create some room for growth.

Then, if it pulls back and steps back to 3000 points to confirm support, it will definitely be better.”

"What you said is the ideal perfect trend." Lu Xiangxiang said, "Let's first look at the feedback from the trend this afternoon. If the market is about to enter a period of adjustment, the core main line and the hot speculation main line will give feedback. We can follow the feedback from the market trend and increase or decrease positions in a small range."

Since the market's medium- and long-term upward trend structure has emerged.

At the same time, the main sector of "big infrastructure" in which they have heavy holdings has not yet fully reflected future expectations and has not ushered in the final structure of shrinking volume and rising prices.

Therefore, their main warehouse structure, which has already made a lot of profits, will not be easily changed.

After all, overall, the risk at this position is not high. Once you are afraid of a possible pullback and make large-scale adjustments to your positions... if you lose your chips, it will be difficult to get them back.

This is also part of the deal...

There are some reasons why we have to choose to give up opportunities that we know and can see when necessary.

Because in the financial market, fluctuations occur all the time, and before the market actually comes out, no matter how strong the expectations are or how good the logic is, it may be wrong.

Therefore, while making subjective judgments, we must also objectively respect market trends and choices.

The lunch break passed in a flash as the two discussed the current market trends and the outlook for future trends.

Soon, at 1 p.m., the two markets once again entered the formal continuous bidding trading period.

After the emotions had been brewing in the afternoon, the market just opened and the stagnant two markets just started to jump again. Amid the outbreak of bullish sentiment, fierce buying began to scramble for shares.

Almost in an instant, several core main-line concept leading stocks that have attracted much attention from the market's vast investor base, such as "Oriental Yuhong", "Gemdale Group", "LeTV", "China Fortune Land Development", "Financial Street" and other stocks, all soared sharply in an instant, and some even rose straight to the daily limit at the moment of opening.

And driven by these core main line concept leading stocks.

A number of other concept stocks related to the main line of "big infrastructure", a number of industry sector indexes, real estate, building decoration, building materials, nonferrous metals, steel, coal sectors, and a number of industry sectors related to "oversold rebound", such as Internet software, Internet applications, film and television media, electronic information... and other industry sector indexes, all rose straight up in an instant, setting a new intraday high again.

At the same time, it also benefited from the overall outbreak of these stocks.

The ChiNext Index, Shenzhen Index, and even the Shanghai Index were instantly driven up.

At 1:02 p.m., the ChiNext Index's intraday increase reached 2.56%, and the Shanghai Composite Index rose by more than 1.68%, crossing the 3010 point level, once again setting a new intraday high.

At 1:03, the number of stocks that hit the daily limit in the two markets reached 89.

At 1:05, after oscillating on the daily limit for two or three minutes, Oriental Yuhong hit the daily limit again, with the half-day turnover reaching 13 billion.

At 1:07, "Golden Land Group" rose more than 7% on the day, showing a trend of hitting the daily limit.

At 1:09, the real estate development industry sector index rose by more than 3.5%, and the corresponding core hot stocks and industry leading stocks within the sector continued to rise sharply.

At 1:12, the film, television and media industry sector index rose by 4%, with more than 8 stocks within the sector hitting their daily limit.

At 1:14, the 'online education' concept sector index rose by 4.5%, and the concept stocks within the entire sector set off a daily limit surge.

At 1:16, 'Guangguang Media' rose by more than 7%.

At 1:17 am, the Shanghai Composite Index broke through 3022 points, setting a new intraday high.

At 1:18, after the Shanghai Composite Index hit a high of 3026.48 points, the index began to fluctuate and fall. After the entire market digested the sentiment in the afternoon and consumed this wave of aggressive long power, the intraday volume began to decline again, and the major core themes and hot stocks began to gradually fluctuate and fall.

At 1:20, the Shanghai Composite Index fell below 3020 points, while the ChiNext Index's intraday gains fell back below 2.5%.

At 1:25, the film and television media industry index fell back to about 3.5%, while the industry indexes related to the "big infrastructure" theme, as well as a number of related hot stocks, fluctuated and fell significantly. The real estate development industry index has fallen back to about 2.5% during the day. At 1:30, the Shanghai Composite Index fell back to around 3015 points. The core theme of "big infrastructure" was once again suppressed by a large amount of profit-taking.

At 1:35, the Shanghai Composite Index, which had fallen back to around 3012 points, rebounded again.

At 1:37, the A50 index began to gain momentum and the rebound of heavyweight stocks accelerated.

At 1:40, as the rebound of heavyweight stocks accelerated and the A50 index rose, a number of industry sector indices in the main areas of "big infrastructure" and "oversold rebound", as well as related hot stocks, were indirectly affected by the follow-up buying, and the speed of decline became faster.

At 1:43, 'Oriental Yuhong' hit the daily limit and the trading volume increased.

At 1:44, due to the explosive growth of Oriental Yuhong, the core leader of the two markets, all the popular stocks related to the main line of "big infrastructure" began to fluctuate downward with explosive volume.

At 1:46, the growth rate of the real estate development industry sector index fell back to around 2%.

At 1:47, the intraday gains of a number of stocks including LETV, Netspeed Technology, Baofeng Technology, Maruda Films, and Enlight Media, have mostly fallen back to around 5%.

At 1:50, the Shanghai Composite Index returned to 3020 points, but at this time, the intraday gains of the Shenzhen Composite Index and the ChiNext Index fell below 2%.

At 1:52, the Shanghai Composite Index once again encountered strong resistance near 3020 points.

At 1:55, the ChiNext Index, which had fallen back to a 1.85% increase, as well as the CSI 500 Index and the CSI 1000 Index, all briefly gained support. Follow-up buying began to increase again, and many stocks that had been fluctuating and diving received support from buying and began to fluctuate higher once again.

At 2 pm, the ChiNext Index returned to a 2.2% increase, while the Shanghai Composite Index continued to fluctuate in a narrow range of 3020 to 3012 points.

At 2:05, 'Oriental Yuhong' tried to close the board again after the explosive volume.

At 2:06, "Oriental Yuhong" once again hit the daily limit. The "big infrastructure" main line of the entire market, as well as the major industry sectors of film and television media, Internet software, and Internet applications related to "oversold rebound", also once again turned from large-scale divergence to an overall volatile upward situation dominated by bulls.

At 2:10, the ChiNext Index returned to a 2.5% increase.

At 2:12, after the pulse, the A50 Index entered a shrinking oscillation pattern, while the Shanghai Composite Index continued to oscillate steadily around the 3020 point level.

At 2:15, the market's bullish trend once again concentrated on small and medium-sized and micro-cap stocks.

At 2:17, the number of stocks that hit the daily limit in the two markets exceeded 100. At the same time, the intraday increase of the ChiNext Index approached 3%. The CSI 500 Index and the ZTE 1000 Index had already exceeded the 3% increase, showing a leading trend.

At 2:20, more than 2000 stocks in the entire market rose in the green, and oversold small and medium-sized stocks and micro-cap stocks showed a collective surge. The market continued to usher in a trend of explosive rebound.

"Today's market trend has seen two consecutive sharp dives, and two consecutive divergences have turned into a consistent upward trend." Noting the market trend, after the violent shock and explosion, it continued to rise and break through, forming a trend of a large positive line. At this moment, among the main speculators of the 'Qilu Gang', Zhao Zhiyuan stared at the changes in the market, glanced at the time, and said, "It's almost half an hour before the closing, there shouldn't be any more changes, right? With this trend today... it's almost time to declare that the index has stabilized at 3000 points, right?"

"Today's closing, the Shanghai Composite Index closed above 3000 points, so it should be impossible to check it." Zhang Wei took over the conversation and responded, "But looking at the intraday trend, the volume is so large, the divergence is still quite serious. The subsequent trend... I'm afraid there will be some fluctuations. The historical locked-in positions at the 3000-point position and the recent profit-taking positions may have to be repeatedly cleaned up before the 3000-point position can once again become a strong support position for the index."

"From today's intraday trend, there is indeed a big divergence." Liang Jiucheng also said at this time, "Originally, after the big plunge in the morning, the market trend turned to a bullish consensus, and coupled with the mood brewing in the afternoon, I thought that the market would accelerate upward in the afternoon, but I didn't expect such a big plunge.

This shows that at the 3000 point level, the selling pressure is much greater than we imagined.

At the same time, in this wave of rebound trend, the main line of "big infrastructure" continued to rise, and too many profit-taking orders have accumulated in the short term. These profit-taking selling pressures, coupled with the historical trapped selling pressure at the 3000-point position, are still quite stressful for the market to stabilize at 3000 points.

But there is also a bright side...

Judging from the trend of volume, the entry of off-market funds today is still relatively positive.

Moreover, after each wave of big dive, the active capital groups in the market are also very strong in taking over.

This shows that at least in terms of sentiment, on- and off-market funds are no longer afraid of the highest level. For many high-level leading stocks that have achieved consecutive gains and created room for growth, funds are also much more active in taking over.

In other words, at this position, there is pressure, but also support.

It is not advisable to raise your expectations too high, but it is not advisable to be pessimistic either.

There is a high probability that the Shanghai Composite Index will fluctuate around 3000 points for a while, but in the end... it should be able to come out and form a rebound trend with a higher space. "

"Yes, that's my opinion as well." Zhao Zhiyuan nodded, paused, and continued, "In fact, if we only look at the Shanghai Composite Index, the expected space is still not large, but if we combine the Shenzhen Composite Index, the ChiNext Index, the CSI 500 Index, and the CSI 1000 Index, I think there is still room for flexibility.

At least compared with the current position of the Shanghai Composite Index, the Shenzhen Composite Index and the ChiNext Index clearly have the need to make up for the losses.

Although the Shanghai Composite Index has returned to 3000 points, the overall position of many small and medium-sized stocks and micro-cap stocks that have generally rebounded in the past two days is still at 2500 points. "

"So... the weight line can't go up any further," Zhang Wei said. "Once the weight increases sharply and quickly pulls up the index, the market will easily collapse. If the current situation of big-ticket stocks setting the stage and small-cap stocks playing the show continues, with the main investment style of the market and the trend of various industry sectors constantly rotating, then as the sentiment deepens, the market's money-making effect will definitely continue for a while."

"The oversold rebound trend of small and medium-sized stocks and micro-cap stocks has reached a climax this afternoon." Liang Jiucheng continued to observe for a moment and said, "It is estimated that this line and the main line of 'big infrastructure' will most likely diverge tomorrow. Whether this wave of rebound can be reversed depends on the slight decline in sentiment of the major hot main lines tomorrow. After the trend diverges, the situation of taking over under the continuous selling pressure of historical locked-in plates and profit-taking plates. If it can still take over during the differentiation stage, then there is hope for this round of rebound to transition to a reversal. Now... I think it is better to treat it as an oversold rebound." (End of this chapter)