Rebirth of the Capital Legend

"It really follows the 5-day line and never looks back." Amid Zhao Zhiyuan's sigh, Zhang Wei also said, "Fortunately, I have not moved my position on this check. Looking at the market trend, as long as the 'Oriental Yuhong' check does not collapse, the overall bullish sentiment of the 'Big Infrastructure' line will not collapse. And if the 'Big Infrastructure' line maintains a continuous upward trend, the index trend will naturally not be too bad."

"Yes, I agree." Liang Jiucheng nodded and said, "After the big dive at the beginning of the trading session, the Shanghai Stock Index was able to recover the intraday plunge and return to the opening level. It also repaired the 3000-point mark and continued to attack upwards. This shows that the index is currently at this node and cannot fall any further for the time being."

"With the support of the main line of weight, the index will definitely not fall today." Zhao Zhiyuan said, "But the main line of the entire emerging industrial chain, as well as the small and medium-sized stocks and micro-cap stocks in the entire market are in deep water adjustment. The Shenzhen Index and the ChiNext Index have shown a sharp drop in the day, which seems to have a great impact on market sentiment. Even if the Shanghai Index cannot fall today and may still maintain a positive trend, the overall profit effect of the market is unlikely to be good.

Although the rebound of the main weight line is beneficial to the index trend, it is difficult to stimulate the enthusiasm of the vast number of retail investors in the market and there is still a lot of short-term hot money to go long.

Looking at the current situation...

Although the index closed in the green, it regained 3000 points.

However, in the entire market, individual stocks that are in a falling state still occupy the majority of the market. Many popular stocks that performed strongly in the past two days also suffered serious losses on the market.

It feels like the trend of large and small caps will continue to differentiate and rotate.

It will still hit the capital groups waiting on the sidelines, as well as the capital groups taking profits in the market, and reduce their enthusiasm and confidence to continue adjusting their positions and going long!
However, as the profit-making effect on the market fades, these wait-and-see and hesitant funds have no motivation to continue entering the market to go long.

Then, the market will fall into a state of stock game again.

Since it is a game of existing stock, it is difficult to say with too high certainty that the Shanghai Composite Index is at 3000 points. In short... if this position wants to continue to perform well and continue to break upward, it must increase its volume and have the cooperation of volume.

At present, long funds are moving from the field of small and medium-sized stocks with obvious loss effects, that is, from the main line of "emerging industrial chain", to the main line of "big infrastructure" and the main line of weight. It seems that... the market has not yet gotten rid of the trend pattern of main line rotation and has not stepped out of the overall general rise trend. "

"There is nothing wrong with the main line rotation trend." Zhang Wei said, "The fermentation of emotions and the building of confidence require a long period of continuous accumulation before a qualitative change will eventually occur. It is still unlikely that the market volume will continue to leap forward and undergo a qualitative change.

The main line rotation trend occurs when market liquidity is not particularly abundant.

On the contrary, it is most suitable for the current market development.

It is also most conducive to gradually building market investment confidence.

If the volume cannot keep up and the attack continues blindly, it will only quickly overdraw the long power of the entire market, making it lack of follow-up power. The trend of the entire market will once again be suppressed by historical trapped shares and short-term profit-taking, and fall into a state of continuous adjustment again.

In this rotation trend, the divergence between bulls and bears continues to exist.

It is conducive to the continued consolidation of the internal chip structure and the gradual deepening of the bullish forces.

I think it is much better and more stable for the Shanghai Composite Index to pass 3000 points in this way than to attack it by force.

Furthermore, the trend of the main line rotation is not completely without benefits for the active market volume and the enthusiasm of investors to do more. "

"What Lao Zhang said makes sense." Liang Jiucheng nodded in response, "It's like a critically ill patient. If you want to save the patient, you can't use strong medicine at the beginning. You have to use mild medicine first, so that the root will work. If you use strong medicine at the beginning, it will lead to the patient's weakness and cannot be supplemented, which will be worse.

This is the current A-share market...

Let’s take a look at the chip structure above the Shanghai Composite Index 3000 points.

That was all last year, and there were also three consecutive stock market crashes at the beginning of the year, which accumulated a huge amount of historical trapped shares.

If these historical trapped chips are pushed upwards with a continuous fierce attack, how much funds will be needed to release them and clear the upward pressure from above?

I’m afraid that trillions of long funds are not enough?
After all, trillions of funds from the "national team" have been deposited in it, but it has not really driven up the market and resolved the suppression of these historical locked-in shares.

And the trillions of incremental funds are under the current overall macro liquidity.

Under the premise that the booming offline real estate market continues to siphon the market's macro liquidity.

is impossible.

In other words, at the current stage, it is impossible for such a huge amount of incremental funds to flow into the stock market on a large scale under the influence of emotions.

Since there is an incremental group of funds in the OTC market, there is no significant improvement in the overall macro liquidity.

The funds available for entry are very limited.

Then, with a fierce attack and a comprehensive rise, it will be difficult to create space upwards to compete with the huge amount of historical trapped shares in the sedimentation field.

However, a fierce attack cannot create space and will instead quickly overdraw the bullish power.

When the long position is seriously overdrawn, the newly entered longs will naturally be unable to continue to lock in their positions because they cannot make money and are not profitable.

These bullish forces will instantly turn into bearish forces, and from taking over the buying orders, they will become the main funds that dump the market.

Therefore, if the market wants to maintain a healthy trend, it cannot go this way. It can only rely on the steady influx of funds from the off-site market, plus the existing gaming funds in the market, to gradually fluctuate and look back step by step to slowly resolve the huge amount of historical trapped positions in the market.

At this stage, there has been no significant improvement in macro liquidity.

So, in the long-term market trend, we can only slowly exchange time for space.

Under relatively stable market trading volume, it will take a long time for the historical locked-in orders to be released. Therefore, at this stage, it is unlikely that the index will continue to surge.

However, due to the improvement in the fundamentals of many industries and the reduction in the valuations of many individual stocks, the core stocks in many main areas of the market have shown considerable investment value and cost-effectiveness.

Therefore, even if there is suppression from the huge amount of trapped orders from above.

The market index will not fall much for the time being.

Since the index can neither fall nor rise too much, then the combined force of funds can only form this kind of main line rotation, divergence to consensus, and consensus to divergence, with an oscillating upward trend, right? "

"Old Liang's analysis is still thorough." Zhang Wei took over and continued, "That's true. With limited market liquidity, a sustained general rise is indeed unrealistic. In fact, I think the current main line rotation trend is more conducive to the further fermentation of bulls and it is easier to find trading opportunities."

"What do you mean?" Zhao Zhiyuan asked.

Zhang Wei responded: "Because of the rotation trend of the main lines, the strength and weakness of the main lines in the market are very obvious, and everyone's attention is also concentrated. There are only a few recognizable leading stocks in the market. With the concentration of attention, the game will naturally be relatively simple.

On the contrary, in a situation of general price increases, it is not easy to grasp the market trends of more than one hundred stocks that hit the daily limit every day.

Of course, this is also my personal opinion.

As far as the majority of retail investors in the market are concerned, it is definitely easier to grasp the situation of general rise, because retail investors naturally have defects and weaknesses in stock selection, information channels, and analytical capabilities. Most people can only rely on holding stocks and relying on the rise of the index to obtain investment profits. "

"Under the market rotation situation of stock speculation, the short-term capital groups in the market should indeed focus more." Zhao Zhiyuan nodded to what Zhang Wei said and had to agree, "But this has a prerequisite, that is, the overall bullish sentiment of the market cannot be too bad, and there cannot be too serious loss effects overall, so that the capital groups of various short-term speculations will have the enthusiasm to participate."

"Yes." Zhang Wei nodded. "That is to say, there must be a core theme that can continuously create space, accumulate emotions, and keep the overall bullish sentiment of the entire market in a relatively hot state. And at present...isn't the market in this state?"

Zhao Zhiyuan pondered for a moment, then nodded with a smile and said, "Old Zhang, I understand what you said. It seems that... the line of 'big infrastructure' is indeed the core of the entire market. As long as this line can continue to develop, there will not be a serious continuous loss effect.

So, even if there are some main sectors in the market, the trend is not very good.

Even if the market shows a relatively obvious rotation trend.

The enthusiasm of many short-term capital groups and a large number of retail investors in the market to follow suit and go long will not decrease quickly, and there are still local trends that can be exploited in the market."

"That's the truth." Zhang Wei said, "So I said that the rotation trend of local market is actually easier to make money and easier to grasp, because there are only a few core leading stocks. It is enough to pay attention to these core leading stocks and find relatively certain buying points."

"Haha..." Zhao Zhiyuan laughed and said, "I understand."

After saying that, he turned his attention back to the two markets and began looking for the relatively certain buying point that Zhang Wei mentioned.

And when his gaze returned to the board.

At this time, the market trading time has entered after 10:30 in the morning.

After the three people's discussion and the past ten minutes of trading, the differentiation of the major trends of the two cities and the index trends has become more obvious.

The Shanghai Composite Index still maintained a positive trend, fluctuating around 3010 points.

The main weight line and the A50 index continued to rise. Banks, liquor, white goods, pharmaceuticals, and electricity continued to fluctuate and strengthen, becoming the main line of the market's long funds.

The main line of 'big infrastructure' is led by 'Oriental Yuhong', the core leader of the two cities.

The real estate, building decoration, building materials, nonferrous metals, steel, coal and other related industry sector indexes also counterattacked and returned to the red market. Although the intensity of the counterattack today was not as strong as yesterday, they all returned to the high points of the recent rebound and fluctuated, gradually digesting the recent profit-taking and re-accumulating the offensive.

However, before the market opened today, investors had strong expectations and gave sufficient expectations and confidence to the main sector of the 'emerging industrial chain'.

The related industry sector indices such as film and television media, Internet software, Internet applications, electronic information, semiconductors, etc., have shown a trend of falling further and lower, with a very obvious loss effect, as the positive news has been realized and under the continued short-term profit-taking selling pressure, forming a sharp contrast with the market's main weight line and major infrastructure main line.

The entire small and medium-sized cap, small and micro-cap stocks, as well as the main line of the emerging industrial chain are weak.

It has indeed relatively hindered the index's ability to further expand upward space, and has also relatively affected the market's overall bullish sentiment and the bullish confidence of the group of funds that follow the trend.

This results in the market only being able to maintain this volatile trend for a short period of time.

However, although there are huge differences in the power between bulls and bears, the bears are unable to dominate for a while.

However, the huge divergence in market trends, the serious differentiation among the major trends, the emotional expressions in the minds of retail investors in the market, and the impact on the changes in the long and short views of the majority of retail investors are still relatively large.

At this time, on the stock investor exchange forum across the entire network.

The views of the majority of retail investors on market trends have changed from a unanimous bullish situation at the beginning of the morning session and before the market opened to a situation of serious disagreement, and the arguments have become quite intense.

"The market sentiment has changed. It looks like... the index won't have much room to move today. It will most likely just maintain this kind of volatile divergence." Noting the changes in sentiment and opinions of retail investors on major stock investment exchange forums across the Internet, as well as the serious differentiation between the market's main line of major infrastructure, the main line of weight, and the main line of emerging industrial chains, Zhao Qiang, who is in the main hot money group of the 'Yuhang Group', pondered for a moment and said, "At the 3000 point level, the divergence between longs and shorts is really big, and the selling pressure is really heavy. It seems that whether the market index can actually break through this pressure, at present... there is still a high degree of uncertainty!"

"Although the current market is seriously divided between long and short positions, and the divergence between the trends of various core main lines is also quite serious, but..." Sun Chengyu took over and said, "The Shanghai Composite Index can maintain fluctuations above 3000 points, and the 'big infrastructure' main line can continue to create space and maintain strong fluctuations at high levels. The buying siphoning of the weighted main line has not caused a sustained selling panic effect on the weak adjustment of the emerging industrial chain main line. The entire emerging industrial chain main line seems to have an obvious loss effect, but there are only two or three stocks that have actually hit the limit... This shows that, in fact, the bullish force in the market is still slightly dominant, and the market still has the possibility of continuing to attack after adjustment."

"Yes, Mr. Sun is right." Lao Qian in the group also nodded in response, "The Shanghai Composite Index can stabilize and fluctuate above 3000 points in this divergent situation. It is a relatively strong performance in a weak situation. Looking at the sentiment of retail investors across the Internet, although everyone is arguing seriously and the differences are huge, no one is panicking and selling chips. It also shows that the overall investment confidence in the market has changed significantly compared with before." (End of this chapter)