Rebirth of the Capital Legend

"If the main funds in the market converge on the weighted main-line stocks again, I'm afraid that not only the 'oversold rebound' line will face huge selling pressure, but even the 'big infrastructure' line will be siphoned off by the weighted main-line stocks, resulting in even greater divergence in trends, right?" Jia Yongxiang pondered for a while during Song Shaopu's analysis and continued, "Moreover, there are indeed a lot of short-term profit-taking orders on the 'big infrastructure' line. This position... has seen drastic divergences, and it is likely to enter an adjustment phase.

I was thinking... Mr. Song, since we are judging the market trends for tomorrow and even the next few days.

The main line of 'big infrastructure' and the main line of 'oversold rebound' are likely to see intensified divergences, and the main line of weight is also likely to rise again.

So, is it necessary for us to adjust our positions a little bit in the direction of the weighted main line?

This can avoid the drastic divergence of the main line of "big infrastructure" and the relative retracement of profits during the trend correction stage. At the same time, it can also hedge the temporary position profit retracement caused by the adjustment of the main line of "big infrastructure" by taking part of the positions on the weighted main line. "

"It's not impossible." Song Shaopu thought for a moment and said, "Let's see how the market trends tomorrow. If it's the same as we expected, the divergence in the direction of small and medium-sized stocks and micro-cap stocks will intensify, and the selling pressure of profit-taking and previous historical locked-in stocks will gradually increase, and there will be problems with buying.

Then, we can safely and boldly sell some of the core stock positions in the "big infrastructure" main line first.

Taking advantage of the fact that the market's investment risk appetite is falling again, buy some chips of individual stocks in the weighted main line to hedge the retracement and holding losses caused by the "big infrastructure" main line and the correction trend of the market's small and medium-sized and micro-cap related main line sectors.

However, the extent of this adjustment should not be too large.

From the medium to long term perspective.

The underlying logic and future expectations of the "big infrastructure" line have not changed at the current stage, and the stock price has risen to this level without meeting these expectations.

With the arrival of the third quarter, many stocks with a reversal in fundamentals began to show explosive performance.

I think that after the adjustment of the 'big infrastructure' line, after cleaning out some of the profit-taking and the capital group that was trapped in it in the early stage and is now eager to exit, will most likely choose to continue to break through upward and continue to follow the upward trend.

Whether it is looking at the retail investors in the market, their sentiment towards the main line of "big infrastructure".

It still depends on the investment views and attitudes of many institutions in the industry towards the main line of "big infrastructure".

Overall, everyone is still relatively optimistic about this line.

Moreover, as the biggest bull in the market that led this round of market trends, Huayi Capital, an institution with a large stake in the market, has not heard of any movement to reduce positions and take profits or related news.

Since most of the main capital groups holding positions in the market still have sufficient confidence.

Then the expectation that the entire main line will continue to rise still exists.

In this way, this subsequent line will most likely remain the core focus in the development of the market.

Since the logic is like this, while we adjust our positions to avoid the risks of recent market adjustments, we must still maintain our main positions and continue to focus on the "big infrastructure" line.

After all, at this position, once we make major adjustments and reduce the positions of the core theme of "big infrastructure",

If we make a wrong judgment.

If the 'big infrastructure' line continues to adjust strongly and accelerates its upward trend.

Then it will be difficult to buy back the positions and chips we have lost, which is not worth the loss.

Therefore, under the position adjustment strategy you mentioned, we still have to prevent this situation from happening. We can only adjust small positions, and large positions cannot be moved. "

"Okay, Mr. Song." Jia Yongxiang nodded. "In terms of mid- to long-term investment strategy, we will firmly focus on the core theme of 'big infrastructure'. This will definitely not change."

The two discussed the market's post-market sentiment and possible changes in subsequent market trends.

As time goes on...

At seven o'clock in the evening, favorable news and policies regarding "online education" and "development of emerging industries" also came.

And these news are positive.

It also caused many investor groups in the market to have huge differences in their views on the main line of 'oversold rebound' that showed up in the closing stage today. The main line of stocks in the 'emerging industries' sector, which are a gathering of small and medium-sized and micro-cap stocks such as film and television media, Internet software, Internet applications, and electronic information, gradually leaned towards the bullish direction in terms of long and short views.

"I was thinking that the 'online education' concept sector has been so strong in the past two days, there must be potential positive stimulus, and it turned out to be true!" After seeing the positive news released by the market, Xu Qiao, one of the main speculators of the 'Magic City Ultra Short Gang', sighed and said, "Alas, it seems that the policy news has been leaked in advance again. It has been hyped for two or three trading days, and the core leaders have basically hit two to three daily limit highs. The positive news at this time... I feel that it may have a negative impact on tomorrow's market trend!"

"Yes, I agree." Old Wu also responded at this time, "There was no such news originally. Tomorrow's 'oversold rebound' line, after the deep water opens low, the profit-taking will be cleaned out. There are still many unsteady chips inside. It is possible that it will continue to rise and repair under the leadership of subsequent speculative funds.

Now that this good news has come out...

Tomorrow, the 'oversold rebound' line, especially the film and television media, Internet software, Internet applications, electronic information and other major industry sectors that are active today, and their related hot concept stocks, will most likely open higher.

However, this kind of positive news is basically not sustainable.

The time point with the strongest expectations is before the good news is announced.

After the good news is announced, it is easy to form a situation where the good news is implemented and turns into bad news, especially in the hype of the past two days. It feels that stocks such as "Quantong Education", "Huawen Online", "Huawen Media", "Yue Media", "Ciwen Media", "Netspeed Technology", "Baofeng Technology"... have already reflected the good news expectations in advance. "

"No doubt about it. With this kind of positive stimulus from the news, tomorrow's opening will be the peak of sentiment. We definitely can't take it." Lao Zhang also said at this time, "It is highly likely that tomorrow the market will rebound from oversold prices. For the stocks related to the so-called 'emerging industrial chain', basically there will only be selling points, but no buying points."

"In tomorrow's morning trading, there will be buying points in the main direction of the weighted market." Brother Chen thought for a while and suddenly said.

"Eh... Why is Brother Chen optimistic about the direction of the weighted main line?" Xu Qiao was quite surprised when he heard what Brother Chen said, and said, "Looking at the trend of the weighted main line in the past few days, the internal chip structure has obviously loosened, and the overall market sentiment is currently rising. The market's investment risk preference is constantly rising, and many funds have begun to give up certainty and choose flexibility.

In this situation, as a weighted main line sector with high certainty but huge market cap and naturally weak elasticity, there are also a number of weighted main line core leading stocks.

There is a high probability that there will be a lack of active buying funds to take over, and it will be difficult to attract other short-term speculative funds groups inside and outside the market that seek elastic space.

Logically speaking, even if it is the main direction of "emerging industrial chain" tomorrow.

Because of the good news, sentiment opened high and ended low, resulting in more drastic divergent trends.

The active capital groups in the market should also converge towards the 'big infrastructure' main line with better money-making effect and stronger flexibility, rather than converging towards the weight main line!
So... Brother Chen, what is the logic behind your optimistic view on the weighted main line? "

Xu Qiao was not the only one who was puzzled by Brother Chen's opinion. Lao Zhang also felt puzzled after thinking about it. He continued, "In recent days, the market investment trend and speculation direction have obviously focused on small and medium-sized stocks, small and micro-cap stocks, right? The main weight line looks at the trend and sentiment feedback... I feel that there is a high probability that it will be adjusted. Moreover, after the chips in this line gradually loosened, the funds sold in the past few days were still relatively decisive. I feel that the profit-taking selling pressure of this line has not been released. It should be difficult to launch a new wave of offensive in the near future, right?"

"I think the possibility that Brother Chen mentioned is still completely possible." Old Wu thought carefully for a moment and responded, "Look... you are all not optimistic about the trend of the main line of weight. It is conceivable that in the current market, among the majority of retail investors, hot money, and even institutional investors, many people are not optimistic about the trend of the main line of weight.

In other words, at this moment, most investors should not pay too much attention to the weight line.

And basically, everyone believes that the market investment trend is changing.

It is believed that under the stimulation of the favorable news, small and medium-sized and micro-cap stocks related to emerging industrial chains, which have already shown a corresponding profit-making effect and boosted market sentiment, will continue to rebound and expand space.

However, in the stock game, the market will never let most people make money.

Concentrated and collective optimism is, on the contrary, worthy of vigilance.

Furthermore, based on the current chip structure, there are also potential buying and selling directions for analysis.

I think that the weight line has seriously underperformed the market in recent days and has completed the cleanup of some internal profit-taking. At this moment, the upward pressure on the market is obviously much smaller than that of the so-called emerging industrial chain-related main sector stocks that have accumulated a large amount of short-term profit-taking and touched the previous historical locked-in area.

Let’s talk about the line of ‘big infrastructure’…

This line is the core main line that drives the market upward to 3000 points in this round. It is also the main line sector that creates the market's money-making effect and builds the market's confidence in going long.

But this line is also included in this round of rebound.

Currently, it has the highest rebound potential and the most accumulated short-term profit-taking main line.

Furthermore, after the Shanghai Composite Index broke through the 3000-point barrier today, the historical mission of the "big infrastructure" line in the short term has been basically completed.

This line, at the current node, at the current chip structure.

If it continues to force its way up without correction and continues to explode in volume... the probability of this happening is actually very low.

Regardless of the current chip structure, sentiment feedback, or the analysis of potential buying and selling volumes, the "big infrastructure" line is likely to be adjusted at this position.

Both the 'big infrastructure' main line and the 'oversold rebound' line show potential selling power, which is significantly greater than the current potential buying power.

That is to say, if the market opens high and closes low tomorrow, there will be a more obvious loss-making effect.

Then, when sentiment recedes, the market's risk aversion is bound to rise.

As risk aversion grows, certainty becomes very important.

In addition, the weighted mainline sectors have been adjusted sufficiently in the past few days. If funds gather together again for risk aversion, the market will easily go against the trend. "

"So... it seems to make some sense." After listening to Old Wu's analysis, Xu Qiao thought carefully and said, "No matter whether the weight line that Brother Chen just mentioned can go against the trend, anyway, the 'oversold rebound' line should be a definite selling point tomorrow morning. Originally... I wanted to reduce my position at the end of today's trading, but I missed it because of hesitation. It just so happens that... with the good news tonight, I will decisively reduce my position to take profit in small and medium-sized stocks and micro-cap stocks if there is a chance of a high opening tomorrow morning."

"What about the check from 'Oriental Yuhong'? Will it be reduced?" asked Lao Zhang.

Xu Qiao replied with a smile: "To be honest, the trend of this check is a bit weird. Looking at the intraday trend, this check has been continuously broken today, and it is likely to open deep water tomorrow. If the market as a whole begins to lose money, this check will also be dragged down. But looking at the trend of this check in the past two days, and with the blessing of Mr. Su's 'Fuxing Road' seat, the vast retail investor group has a huge follow-up effect on this check. I think this check is likely to survive."

"I think we can take another look at the check for 'Oriental Yuhong'." Brother Chen paused and said, "The chips inside this check, under today's violent fluctuations, in fact, looking at the Dragon and Tiger List buying and selling data, not only have they not been further dispersed, but they are still continuing to concentrate.

Let’s look at the K-line trend accumulated from the previous trend of this check.

Basically, according to the previous trend, this check will rebound quickly once it touches the 10-day line.

Moreover, in this wave of rebound trend, the price has been moving strongly along the 5-day line, and has not fallen below this trend at present.

This stock is different from stocks like 'Quantong Education', 'Baofeng Technology', 'Huawen Online', 'Shouchuang Group', 'Beijiang Communications Construction', etc. I feel that this stock cannot be judged based on the strength of one day's trend. We still need to take more looks and observations before we can make a judgment.

Moreover, this ticket includes Brother Su’s seat at ‘Fuxing Road’, which has been locked in it.

As long as Brother Su doesn't come out.

There will always be other groups of follow-up funds that continue to try to take over.

In other words, even if it is difficult for this check to continue to open up space, and the selling pressure from profit-taking begins to completely suppress the buying power, then when the upward momentum is exhausted, this check will most likely hit a secondary high, giving keen funds ample opportunities to exit.

In short, this check is currently in this form.

I will continue to lock in my position and wait and see. If the leader really has two lives, then... the check from 'Oriental Yuhong' is definitely the last safe haven for all the short-term capital groups in the market." (End of this chapter)