Rebirth of the Capital Legend

"Haha, Brother Chen is still a man of vision." After listening to Brother Chen's analysis, Lao Zhang laughed and responded, "Since everyone is still confident in 'Oriental Yuhong', the current core leading stock in the two markets, and according to the buying and selling seats on its Dragon and Tiger list, Mr. Su's 'Fuxing Road' is indeed still in a locked position, then I will also follow everyone to continue to lock the chips of this stock and see.

As for the market's 'oversold rebound' line.

After hearing what Brother Chen said, I also feel that it is difficult to get out of this line. Tomorrow morning, if I am in a good mood, I will look for an opportunity to take profit.

If it opens significantly lower, you can continue to watch.

As for the weight line, although everyone analyzes that this line may rise again as the market's main rotation sector when the main line of "big infrastructure" and the main line of "oversold rebound" are adjusted, it will form the main capital group in the market, and there are also many safe-haven capital groups that continue to hold together.

However, the main line of weight is really not within my operating mode.

Moreover, even if this line rebounds, it is estimated that at this position, it is unlikely to launch another sharp and sustained offensive, right?
After all, although many of the current weighted stocks cannot be said to be overvalued, compared with their positions in the previous six months, especially at the beginning of the year, they do not have much investment value.

From a long-term perspective...

The weight line, at its current position, wants to continue to create space upward.

I'm afraid it will take the stimulus from relevant performance in the second half of the year, but at present the third quarter reports of many heavyweight stocks are not expected to come out, so the certainty is actually not that high.

That is to say, at this position and at this valuation.

I think there are significant differences among many major capital groups in the market regarding this line.

Moreover, everyone lacks the motivation and desire to continue increasing their holdings in the weighted line, otherwise in recent days... this line would not have continued to underperform the market, and there would have been a situation where internal chips loosened.

Of course, the entire weighted main line sector is the core heavy holding area of ​​the 'national team'.

At the current macro level, the attitude of regulators towards the stock market is still mainly protective, which means that... at least for now, the "national team" has no intention of reducing its holdings and exiting.

As long as there is a "national team" in it to continuously lock positions and maintain the market.

The weight line won’t fall too much.

Overall...in the current market, there is a high degree of certainty and considerable flexibility, and there are expected to be sufficient main line sectors. After much thought, I feel that there is only the "big infrastructure" line.

Of course, the "big infrastructure" line has been continuously hyped by various funding groups over the past month.

The short-term position is indeed a bit high.

Moreover, after the continuous exchange of internal chips, at this point in time, the short-term profit-taking of the entire main line is relatively sufficient, and the selling pressure from the profit-taking is relatively large.

Therefore, short-term adjustments are likely to occur.

But as long as this line dares to adjust, it is still a relatively certain buying point."

"Lao Zhang, your analysis is correct." Xu Qiao responded, "Looking at the entire market, it seems that only the main line of 'big infrastructure' has the strongest certainty at present, and the line of 'oversold rebound', that is, the entire small and medium-sized stocks, small and micro-cap stocks, will definitely have to go through some violent fluctuations if they want to really come out. They must digest the previous historical locked-in stocks, just like the previous trend of the main line of 'big infrastructure'...

At the beginning, the main line of "big infrastructure" was led by "Huayi Capital" headed by General Manager Su.

When the first strong continuous rebound was launched.

It was only after a wave of rapid short squeezes and continuous adjustments that an upward trend was truly formed. "

"The line of 'oversold rebound' of small and medium-sized stocks, small and micro-sized stocks, whether in terms of underlying logic or fundamental logic, cannot be compared with the line of 'large infrastructure'." Old Wu responded, "The two cannot be generalized in terms of trends. I still think... there is no logic for the line of small and medium-sized stocks, small and micro-sized stocks to come out at present. It is simply an oversold rebound led by market speculative funds, and its sustainability is completely questionable."

"But the current follow-up effect of this line is still very strong." Xu Qiao said, "In the development process of any main line market, it is initially regarded as a rebound, and any reversal trend also starts from a rebound. It cannot be said that the small and medium-sized and micro-cap stocks will not be able to get out of this line at all, right?
After all, the market has been experiencing a continuous decline for more than half a year and three rounds of stock market crashes.

There are many high-quality small-cap and micro-cap growth stocks in the market.

It can be said that the price-performance ratio has fallen out of control and it has a certain investment value, becoming a hot topic in the current market.

Moreover, from a long-term perspective, the direction of the emerging industrial chain is actually correct. Internet software, Internet applications, film and television media, electronic information... these industries will still have a relatively large room for development in the future. How do you say that? Technology is the primary productive force.

As long as technology continues to advance, there will definitely be people who continue to hype up emerging industrial chains.

Furthermore, there are actually quite a few institutional funds paying attention to the direction of these emerging industrial chains. However, due to the impact of the previous tragic stock market crash and the complete shift in market investment style over the past six months, the leading stocks related to these industry sectors have a lack of liquidity, declining valuations, extremely heavy historical locked-in shares, and a dispersed chip structure, making it difficult to form a real financial synergy.

Just like the previous "big infrastructure" main line-related industry sectors and major leading stocks.

The time goes back one year or even half a year.

Don’t you all think that these core leading stocks of “big infrastructure” are sunset industries with no future? But what about now? With the nationwide surge in housing prices and the gradual deepening of the macroeconomic policy of supply-side structural reform, aren’t these sunset industries now becoming the hot cakes pursued by various capital groups in the current market?
I think everything is cyclical.

There is no need for us to be pessimistic about the entire industry trend.

The reason why the main capital groups in the market do not have strong investment intentions and layouts for many growth stocks in the small, medium and micro-cap sectors that already have investment value is that

I think the most important factor is...

It is still due to the lack of liquidity of small and medium-sized and micro-cap stocks caused by the previous rounds of stock market crashes, as well as the psychological shadow caused by the liquidity crisis during the previous rounds of stock market crashes.

Of course, it will take time for valuations to be digested and for the industry to transform.

In the direction of small and medium-sized stocks and micro-cap stocks, many high-quality small-cap growth stocks will definitely need new market catalysts if they want to truly come out.

It's just that now, many high-quality small-cap stocks have fallen to historical lows.

It would certainly be unwise to continue to be bearish.

What's more, once the Shanghai Composite Index truly stabilizes at 3000 points, the market's overall investment sentiment and hype sentiment will certainly continue to heat up in the future.

By then, many groups of funds that have been waiting on the sidelines will begin to actively invest in the market.

Then, liquidity is relatively abundant.

The market is in a fast rotation, and the phenomenon that the main lines are difficult to synchronize and resonate will not be so obvious. In short, I am relatively optimistic about the market trend in the future, and I think that the 3000-point position is unlikely to be the end of this round of rebound. "

"From a big logic point of view, what Xiao Xu said is indeed correct." Old Wu responded, "But when it comes to current transactions, we must still focus on the strongest main line of the market and find the market opportunities with the highest certainty to participate in. As for the line of small and medium-sized stocks and micro-cap stocks... it has not yet fully emerged, and the certainty is questionable. In this case, let's wait and see. It won't be too late to participate after this line has truly emerged with certainty!"

"Old Wu is right." Brother Chen also responded at this time, "For short-term trading, cost advantage is not that important. What is important is the certainty of the transaction. As long as the certainty is high, then it is reasonable to bear some cost risks. At present... it is indeed the 'big infrastructure' line. The internal chip structure is better, the speculation sentiment is more stable, and the main capital group follows the trend more strongly."

Along with the continued discussion of several core hot money investors in the group...

At major stock investment exchange forums in the market.

Among countless groups of retail investors, although their views tend to be positive and bullish during communication, differences still exist.

However, that evening, after the U.S. stock market opened.

Especially when the U.S. stock market continues to open high and close high, setting new historical highs.

The investment sentiment trend of the entire network began to shift increasingly towards the bullish direction, and after a night of bullish sentiment brewing, when the next day, Friday, August 8, arrived, there was not much emotional expression before the market opened, and people basically began to focus on the bullish market.

And there was a consistent bullish sentiment before the market opened.

This also led to the situation where all markets opened higher when the two markets entered the initial call auction at 9:15.

"Haha...all stocks opened higher. After yesterday's sharp fluctuations, Quantong Education opened at the daily limit today. It's really amazing. It seems that all the funds from yesterday's sales have been washed away."

As soon as the initial call auction situation of the two markets came out, some of the countless retail investors gathered in major stock investment exchange forums across the Internet laughed and cheered.

"The check from 'Huawen Online' is even stronger. Looking at the bidding pattern, it's actually a large order with a daily limit."

"Internet speed technology also opened higher by more than 5%. Internet software, Internet applications, film and television media, electronic information, consumer electronics, online education... basically all of them opened higher!"

"It will definitely open higher. Is there any doubt about that? With the positive news last night and the positive external market trends, there is no reason why it won't rise today."

"Alas, what a pity. I reduced my position by a lot yesterday."

"That's right, I feel like I've been washed away."

"The check for 'Oriental Yuhong' is not very strong. It actually opened flat, and there is still a lot of selling pressure on the market. It feels like it will open lower!"

"The initial call auction situation for the stocks related to the entire 'big infrastructure' theme was not very good."

"Yes, Oriental Yuhong is considered strong among the popular stocks related to the main line of 'big infrastructure'. Look at the check of Capital Group, it opened at a very low level."

"Is this line of 'big infrastructure' going to end today?"

"This line has risen a lot recently, and there is a lot of profit taking. Is it reasonable for it to adjust today?"

“If the ‘big infrastructure’ line is adjusted, then the ‘oversold rebound’ line, the entire market trend of small and micro-cap stocks… can it hold up?”

"With so many positive news yesterday, I think it should be able to hold up."

"It will definitely hold up. Why are you still doubting it? Looking at the opening signs on the market, it is obvious that the buying funds of other main lines have been siphoned off by the 'oversold rebound' line."

"Yes, in the current market, only stocks related to emerging industrial chains are strong."

"With so many follow-up buying orders, I am optimistic that the Quantong Education stock will rebound and continue to rise to the daily limit today."

"The 'online education' concept sector will definitely be the leader in today's trading."

"Yeah, I feel the same way. And judging from the situation... with Chinese Online hitting the daily limit, it is very likely that the entire sector will reach a climax at the opening, with a collective daily limit."

"It seems that the check from 'Huawen Online' is indeed stronger than the check from 'Quantong Education'. Could it be that this check has really become the new market leader?"

“No matter if they are new leaders or not, we will go after whoever is stronger.”

"Yes, buy the strongest dragon head."

"Well, looking at this situation, should I sell 'Oriental Yuhong' and chase 'Huawen Online' when it hits the daily limit?"

"I guess I can't buy into 'Huawen Online' when it opens, right?"

"The main line of 'big infrastructure' has been adjusted, and no one is paying attention to the main line of weight. It feels that the market trend is indeed going back to the style of focusing on small and medium-sized stocks and micro-cap stocks as the main line of speculation."

"Wasn't this style shift confirmed two days ago?"

"We are now in the stage of strengthening the style. This round will definitely involve continuous short squeezes. Those who are still holding on to the heavyweight stocks must have a problem with their brains."

“But it’s hard to catch up after it’s gone up so much!”

"As the saying goes, good things are not cheap, and cheap things are not good."

"A truly strong leader will not provide a good buying point. Take Oriental Yuhong as an example. Do you think there is a good buying opportunity at a lower price in front of this leader? A true leader will not trap people even if they chase high prices. Anyway, the opening sentiment and market support of the entire online education sector are so strong today, so we must get on board first."

"Yes, let's get in the car first..."

Amid the heated discussions among many retail investor groups, market time is also moving forward rapidly.

Soon, at 9:20, the two markets began to enter the real call auction stage where orders could not be withdrawn.

而当时间进入到9点20分以后，特别是在很多虚假挂单于9点19分到9点20分之中快速撤单后，真实呈现出来的两市集合竞价局面，对比9点16分时刻呈现出来的局面，明显的有了不同变化。

"Fuck, so many people canceled their orders." At 9:20, it was noticed that the trend of a number of popular core concept leading stocks in the main line sectors of the emerging industrial chain, such as film and television media, Internet software, Internet applications, electronic information, etc., fell compared with the call auction trend before 9:20, and the active buying orders on the market dropped sharply. At this moment, among the main hot money group of the "Fushan system", Li Jinshi exclaimed, obviously a little surprised, "It seems that no one is stupid. The real buying orders after the good news landed, except for a large number of retail investors who were swept up by the hot bullish sentiment, there should not be many other main funds, right? This pattern trend... There is a high probability that the good news will be realized!" (End of this chapter)