Rebirth of the Capital Legend

Moreover, when the Shanghai Composite Index fully recovered its lost ground, other core market indices such as the Shenzhen Composite Index, ChiNext Index, CSI 500 Index, and CSI 1000 Index also broke away from the situation of weak fluctuations in deep water, showing a trend of fluctuating recovery and strong bullish resistance.

At the same time, the main sector of the 'emerging industrial chain' was severely suppressed by the profit-taking and historical trapped positions.

Related film and television media, Internet software, Internet applications, electronic information... and other industry sectors, as well as related core concept leading stocks, once again ushered in active buying near midday, and the share prices of corresponding individual stocks showed a significant rebound.

Although the individual stocks in this main line area are obviously weaker than the "big infrastructure" main line in terms of performance.

However, the fact that the market was able to gradually fluctuate higher from deep water after a sharp drop can be regarded as a relatively good expectation for the market trend in the afternoon.

"It seems...at the 3000-point position of the Shanghai Composite Index, as the long-short divergence continues, the chip structure has re-condensed, and there are signs that the previous pressure level has become a support level!" After the midday close, the obvious change in market sentiment was noticed. As the midday close approached, various fund groups continued to strongly undertake long positions. At this moment, among the main hot money groups of the 'Fushan system', Li Jinshi, who had already reduced a lot of positions in the morning trend and made a profit-taking operation, pondered for a moment and suddenly felt that his profit-taking operation in the morning seemed a bit too eager. He couldn't help but say, "Will the afternoon trend be the opposite of yesterday's trend? Looking at the market pattern trend before the midday close, it feels that after the further brewing of the midday sentiment, the afternoon market, especially the 'emerging industrial chain' line, has been pulled up from the deep water and formed a breakthrough trend again!"

"As the market neared midday, there was indeed a lot of money in the market buying up stocks related to the 'emerging industrial chain' line on dips, actively taking over the market and going long." After hearing what Li Jinshi said, Chen Guiyun in the group thought for a moment and responded, "But I feel... these funds buying up stocks related to the 'emerging industrial chain' line on dips are not actively buying, but seeing that the weighted main line and the 'big infrastructure' main line continue to rebound.

Especially after seeing that the main line of "big infrastructure" quickly set a new high in this round of rebound after a strong intraday adjustment.

We expected that market sentiment would not fall back, so we started to re-enter positions.

As long as market sentiment can be stabilized, the current position of the 'emerging industrial chain' line, as well as the room for rebound and even the driving force, are actually stronger than the 'big infrastructure' line. "

"Is the rebound momentum and rebound space stronger than the 'big infrastructure' line? This shouldn't be the case, right?" Li Jinshi said, "Obviously, from the overall trend of the market's major main lines, the 'big infrastructure' line is the strongest, the upward breakthrough pattern is also the most obvious, and the main funds are the most involved.

On the contrary, the overall trend of the 'emerging industrial chain' line has not yet broken through the previous oscillation range platform.

Even the ChiNext Index, the CSI 500 Index, and the CSI 1000 Index have not even formed a clear bottom pattern, and the K-line pattern is obviously suppressed within the 20-day line. Under this pattern performance... it is obviously not the right time to talk about strength. "

"I'm not talking about the mid- to long-term trend," Chen Guiyun explained. "I'm talking about the short-term perspective."

"From the perspective of short-term speculation, I also feel that the line of 'big infrastructure' is stronger than the line of 'emerging industrial chain', and has higher certainty." Li Jinshi did not quite agree with Chen Guiyun's point of view. After a pause, he said, "I still believe in the principle that the strong will always be strong and the weak will always be weak."

In recent days, he has arranged positions in the main directions of "emerging industrial chains" and "large-scale infrastructure".

As a result, the positions on the main line of "big infrastructure" continued to reach new highs, and although the positions on the main line of "emerging industrial chains" did not lose money, the profits were not much.

There are also positions on the "emerging industrial chain" line, where the amplitude of profit and loss fluctuations is extremely large.

The trend has a huge amplitude and the volume shows a trend of continuous expansion, which means that the differences are becoming increasingly larger.

Since the 'emerging industrial chain' line has begun to show obvious huge amplitude after the rapid rebound with shrinking volume in the previous few trading days, and the volume has been gradually increasing, he believes that the internal chip structure of the 'emerging industrial chain' line is already loosening rapidly.

There is also the line of 'emerging industrial chain'...

In his opinion, there is indeed a lack of underlying logic and medium- and long-term logic.

If there is a lack of underlying logic and medium- and long-term logic, there will be a lack of lock-up of the main capital groups, and naturally the chip structure will be difficult to continue to consolidate.

When the chip structure cannot continue to consolidate, it will be very difficult to develop a sustained market trend.

Therefore, Li Jinshi is relatively pessimistic about the trend of the "emerging industrial chain".

"I also think that the 'emerging industrial chain' line is still far from a trend reversal and a sustained market." Liao Guoxiang pondered for a while and said, "First of all, from the perspective of K-line shape and volume, the 'emerging industrial chain' line is still much worse than the 'big infrastructure' line.

Similarly, the market index...

It is obvious that the trends of the Shanghai Composite Index and the A50 Index are also better.

Looking at the K-line patterns alone, the Shenzhen Composite Index, the ChiNext Index, the CSI 500 Index and the CSI 1000 Index have not yet broken out of the previous range of fluctuations. In fact, the ChiNext Index, the CSI 500 Index and the CSI 1000 Index have not yet found a clear bottom position.

Based on the analysis of their morphological structure, these major indices can only be regarded as oversold rebounds at present.

Judging from the nature of the funds involved and the expectations of many of the participating funds, everyone's expectations for this line are also based on an oversold rebound.

If we look at the trend of the 'big infrastructure' line.

If I conduct comparative transactions on the line of "emerging industrial chain", I feel that I will fall into a misconception and a trap.

After all, the two are completely different in terms of underlying logic and expectations.

The nature of their core participating funds is also completely different.

The reason why the 'big infrastructure' line is so strong is that there has been basically no long-term adjustment or huge pullback since the market started. The main reason is that the real estate market has been too hot across the country in the past six months, which has raised expectations for the entire 'real estate industry chain'.

And the line of 'emerging industrial chain'.

Its expected changes are exactly the opposite of the "big infrastructure" line.

Based on the expected changes in the future, the expectations for the "big infrastructure" line are continuously increasing. Therefore, the higher the stock price rises, the higher the certainty appears, and the more funds actively participate in the long position. There is also a continuous group of institutional main funds that dare to lock up large positions on this core main line.

As for the 'emerging industrial chain' line, it was driven by macroeconomic policies during the bull market last year and the year before.

The industry's huge explosive growth phase has passed.

Moreover, due to the excessive speculation last year and the year before, future expectations and valuations have been seriously overdrawn. This has caused the entire main line of the "emerging industrial chain", whether it is valuation expectations or future industry development expectations, to continue to decline compared with the previous two years.

Expected gradual decline, and in a long-term state.

If the stock price wants to improve and develop a sustained upward trend, the market sentiment itself must be good, liquidity must be sufficient, and the entire market must be able to turn from bear to bull and enter a bull market stage.

But is it possible for the bear market to turn into a bull market at this moment?
This is completely impossible at present as the central bank's liquidity cannot be further released.

The current 'emerging industrial chain' main sector is a bit like the weighted main sector of the past two years, with sluggish expectations, chaotic internal chip structure, and huge amounts of locked-in shares.

The main trend of weight in the past two years was when small and micro-cap stocks were flying all over the market.

I believe everyone has a rough idea of ​​what the market performance is.

In other words, even if the overall investment sentiment in the market can continue to improve, there will be no obvious improvement in the fundamental logic and no major changes in future expectations.

I think the 'big infrastructure' line and the main weight line where institutional main funds are heavily concentrated.

The stability and certainty of its trend, as well as its height space and trend strength, are significantly greater than those of the 'emerging industrial chain' line.

Without any improvement in its fundamental logic.

The so-called favorable news are all traps to lure in more investors.

According to the operating philosophy that the strong will always be strong, at this time... starting from certainty, even if you want to increase your holdings, you should give priority to stocks related to the main area of ​​'big infrastructure'.

Even if we think from the perspective of short-term speculation, the 'emerging industrial chain' line has now exhausted all the positive factors, with profit-taking being sold off across the board and the chip structure being further dispersed. Under this trend, even if there is a rebound, this line will inevitably be weaker than the overall market. "

"According to what you said, Lao Liao, the overall investment trend of the market and the direction of capital speculation will still be concentrated on the 'weighted main line' and the 'large infrastructure' main line?" Chen Guiyun asked after listening to Liao Guoxiang's analysis, "But it seems that the weighted main line and the 'large infrastructure' main line have risen to their current positions. Compared with the valuations of other main line-related stocks in the entire market, they are no longer very cost-effective. In fact, the valuations of many core stocks have already become significantly higher. Can they continue to hold together?"

Liao Guoxiang took over and continued, "The power of trends is very strong. Under the certainty of expectations, trends will reinforce themselves, just like last year and the year before last when everyone focused on hyping the 'emerging industrial chain'. Aren't the valuations of many so-called growth stocks obviously too high at that time? But will it eventually affect these stocks with obviously high valuations, and continue to double, or even triple, quintuple, or tenfold in the bull market?"

"That's true." Li Jinshi nodded slightly. "At that time, many people realized that the valuations of many so-called growth stocks in the market were obviously too high. However, most people, seeing that the trend was still strengthening and the money-making effect of the market was still strengthening, were unwilling to leave the market until... the stock market crash came."

"So, it is difficult to guess the top and bottom," Liao Guoxiang said. "We don't need to guess the top and bottom of the market, nor do we need to gamble on profits on the main line of the market that lacks certainty. It is far better to buy certainty than to buy uncertain and cheap stocks."

"I understand. When buying stocks, you have to buy certainty." Li Jinshi suddenly realized.

Chen Guiyun continued to ponder for a while, and said: "What Lao Liao said is not unreasonable, but I still stick to my view. The overall market trend is upward, and the overall investment sentiment and investment confidence are gradually warming up. There are also the two main lines of weight and 'big infrastructure'.

After more than half a year and one or two months of continuous rise, a lot of profit has accumulated.

Especially the weight line and the internal chip structure are indeed gradually loosening.

Moreover, once market sentiment and confidence improve, the market's investment risk appetite is bound to pick up as well.

As the market's investment risk appetite gradually increases, more and more capital groups in the market will tend to prefer elastic stocks rather than weighted stocks with high certainty but insufficient market trend elasticity.

That is to say, when the upward trend of the market becomes more and more obvious.

Then, the active buying of individual stocks with market elasticity will become more and more sufficient, and the opportunities for small, medium and micro-cap stocks will become greater and greater.

I believe that the current market is at the right time for this layout.

In addition, in the entire market, after a long period of continuous decline, many small and medium-sized and micro-cap stocks with good fundamentals that are already at historical lows have indeed fallen to near the extreme valuation. Even under the most pessimistic expectations, there will be no more room for decline.

In other words, the decline is limited, but once the future expected space for growth is opened, it is unlimited.

Isn’t the cost-effectiveness of this kind of investment much higher than the current main line of ‘big infrastructure’ and the main line of weighted investment? "

"If you think from this perspective, there's nothing wrong with it." Liao Guoxiang thought for a moment and said, "Disagreements are a good thing. Before the market really comes out, any trend is possible. We are operating based on our own understanding and making money based on our own understanding. As for the market in the future... how it will go, we'll have to wait for the market to verify itself after the market opens in the afternoon."

After saying that, he began to turn his attention to the major stock investment exchange forums across the Internet where discussions were still intense.

This can be seen on all major stock exchange platforms at this time.

Although the overall sentiment has leaned towards the bullish direction, there are still great differences in the discussion on the main weight line, the main line of large infrastructure, the main line of emerging industrial chains, and the sustainable market trends.

Many people feel that the short-term growth of the "big infrastructure" line is too sharp, and it is not easy to continue to increase holdings.

Therefore, many people have turned their attention to the main areas of the emerging industrial chain that are still hovering at a low level.

As for the weighted main line area, although there has been discussion, retail investors' enthusiasm for participation is still not high. From the current perspective... this line is still the private domain of institutional main capital groups.

While the overall sentiment tends to be bullish, there are still heated discussions on the specific main lines.

Soon, the one and a half hour lunch break passed in a flash.

As everyone's eyes converged, the clock passed 1 p.m. again. After a one-and-a-half-hour suspension, the two markets once again entered the official continuous auction trading period. (End of this chapter)