Rebirth of the Capital Legend

"Yes, whether the market continues to favor the development of 'big infrastructure' or focuses on the development of 'emerging industrial chains' in the subsequent development, it is beneficial to the overall trend of the market." Liang Jiucheng took over and continued, "As long as the big trend is fine, the tolerance rate for small trend-level fluctuations will not be very low. In this way, even if you make a mistake in trading, you can stop the loss in time or change the trading strategy in time, and you will not lose too much. Moreover, when the market's money-making effect continues to rise, even if you make a mistake in the main line or make a wrong judgment, you can still make a profit with a high probability. It's just a matter of outperforming or underperforming the market index."

"But isn't the purpose of our short-term trading to grab excess market returns?" Zhao Zhiyuan said, "If we want certainty, it is obvious that the main line of weight should be safer."

"The purpose of short-term trading is to capture excess returns in the market," Zhang Wei said. "But the logic of trading itself, whether in short-term, medium-term or long-term mode, is the same, that is, the profit and loss ratio. When the overall market environment is good, the tolerance rate increases, and the profit and loss ratio naturally becomes relatively better. So... I think it is still very important to follow the market's large cycle trend to trade."

"The current market cycle is definitely in a continuous rebound cycle." Zhao Zhiyuan agreed with this point. After a pause, he said, "It's just that there are big differences in the main line."

"If you ask me, since the current rebound trend of the index shows no signs of ending, and the overall bullish sentiment of the market and investment confidence are still in a process of continuous rise and recovery." Zhang Wei thought for a while and continued, "You should pay less attention to the index and the main line, and focus on individual stocks."

"I originally talked about this strategy," Liang Jiucheng said. "When the market is good, the core leaders will have the opportunity to create space beyond expectations, and our trading logic at this stage should also be to focus on the core leading stocks that are currently more recognizable in the market.

Among the core leading stocks in the current market, it is obvious that Oriental Yuhong is the strongest in terms of certainty and the strength of capital following the trend.

At least, that's what the market feedback is today.

In this case, what reason is there not to follow the signals given by the market and continue to increase holdings of "Oriental Yuhong"?
Look at this check, the funds for "Qingchun Road" that were involved a few days ago.

I remember that this fund had previously taken profit on most of its positions amid market divergence, but now it has recovered all of its positions and invested heavily again.

I think we should learn the trading ideas and style of the "Qingchun Road" fund.

According to the past transactions of this fund, this fund has a good way to take over the core leading stocks. It dares to take over the high-level leading stocks in the recovery stage of the market cycle, and has the courage and boldness to continue to lock the position at a high level. Even if it makes a mistake, it dares to correct the mistake in time under the verification of the subsequent market trend. "

"Qingchun Road is indeed a fund worthy of attention," said Zhang Wei. "Among the well-known hot money seats that are still active in the market, Qingchun Road is indeed a large one, and there are many investors who follow this fund. After the fund made a large profit on Oriental Yuhong, it decisively recovered its position, which is enough to show that the fund is optimistic about the subsequent trend of Oriental Yuhong. And looking at the intraday trend of Oriental Yuhong today, it is obvious that Qingchun Road made the right decision."

Liang Jiucheng nodded slightly, paused, and then said: "I think that in a rebound cycle, the core leading stocks and their market trends will basically resonate with the rebound cycle trends of the market, and basically such leading stocks will have market trends that can run through the entire rebound cycle.

Look at the bull market conditions in the year before last and last year.

The 'Internet finance' sector is the absolute core theme of the entire bull market cycle.

Are the market trends of stocks like 'Tonghuashun', 'Eastern Fortune', 'Great Wisdom', 'Yinzhijie', and 'Jinzheng Shares' highly resonant with the market trends of the entire bull market index?
Generally speaking, as long as the index's market cycle has not ended, the leading stocks will serve as the core engine of the market.

There is still room for the market to continue.

From the current perspective, no matter whether this round of market conditions is a rebound or a reversal.

At least since the beginning of the market, the core main sector that led the market to break through and get out of the previous bottom of the shock was the "big infrastructure" line.

In this case, let’s follow the logic I mentioned earlier.

The 'big infrastructure' line should form a strong resonance relationship with the overall market trend in this round of rebound, and this is indeed the case at present.

According to this logic, as the absolute leading stock in the main line of "big infrastructure", the market trend of "Oriental Yuhong" is far from the end when the entire market rebound cycle has not yet completed. When the market trend of "Oriental Yuhong" ends, I estimate that the entire market, this round of rebound cycle, will also end. "

"Mr. Liang, do you mean to firmly believe in the main line of 'big infrastructure' or the stock of 'Oriental Yuhong'?" Zhao Zhiyuan said, "I don't deny the recent market popularity of 'Oriental Yuhong' and its strong trend, but... I still think that the line of 'big infrastructure' needs to step back and re-consolidate the structure of chips to have the opportunity to continue to rise sharply, while the main line of 'emerging industrial chain' does not need to do so. The market trend of the line of 'emerging industrial chain' itself lags behind the main line of 'big infrastructure'. As for the Shanghai Stock Index, it should also usher in the demand for a compensatory rise when the market recovers across the board and investment sentiment and investment confidence rise simultaneously."

"Okay." Liang Jiucheng saw that Zhao Zhiyuan was still firm in his opinion after so much analysis, and said with a smile, "Then we will wait for further verification of the market trend tomorrow or even in the next few days."

"I'm afraid we have to wait until next Monday to verify it." Zhang Wei said with a smile, "Today is already Friday."

After he reminded them, the two finally reacted and laughed out loud.

As the three of them conduct in-depth analysis of the market and look forward to the future market trend...

At this moment, in the stock investment exchange forum across the entire network, as well as in the comment sections of a number of financial media websites, many retail investor groups are discussing their views on subsequent market trends and the subsequent development expectations of the major main lines. As time goes by, differences continue to arise.

"The post-market sentiment is a bit unexpected!" Amid the fierce arguments and divergent opinions among many investors on the Internet, Lu Xiangxiang, the product manager of the main fund "Jufeng Future Growth" in the trading room of Jufeng Asset Management Co., Ltd., said with a smile after observing the opinions and voices of major platforms on the Internet, "I originally thought that after the rapid rise at the end of today's trading session reversed the trend of the whole day, the post-market sentiment would quickly turn from intraday divergence to consensus. I didn't expect... the divergence is still so big."

Hearing Lu Xiangxiang's sigh, Yu Xiaolu, the trading team leader of the main fund product "Jufeng Future Growth", thought for a moment and responded, "This is easy to understand. After all, although the market recovered at the end of today and the Shanghai Composite Index hit a recent rebound high today, the two violent intraday shocks and sell-offs are indeed a bit scary. Moreover, looking at the post-market Dragon and Tiger List data, many short-term hot money have indeed stopped profit.

Not to mention the hot money that intervened in the early stage and had the first-mover advantage, there were also quite a few institutional main funds that sold off during today's trading session. In fact, if the buying pressure had not been stronger than expected, the wave of sell-offs this afternoon would most likely not have recovered.

In other words, in this position.

Although on the surface, there are more bullish than bearish voices from retail investors.

However, from the perspective of funds holding shares in the market, at this point, the funds that want to sell chips to take profits are definitely much larger than the funds that continue to lock in positions. In other words, the apparent comparison of long and short forces is biased towards the long side, but in fact, in terms of the internal strength of long and short funds in the market, that is, the potential selling and buying, the selling is slightly more than the buying.

There are also many groups of investors who lost their chips today and are thinking of getting them back at a low price.

At this moment, some people will deliberately sing bearish tune to affect market sentiment.

Therefore, from the perspective of various factors and logical analysis, it is normal that there are big differences in market sentiment feedback at the moment. I don’t think we should make a fuss about it.

On the contrary, I feel that, in this situation, emotional divergence is better than emotional agreement.

Only through emotional divergence can we digest the subsequent large amount of potential selling power at this position to the maximum extent, thereby reducing the upward selling pressure on the subsequent market trend.

If the sentiment is consistent, no one will sell and everyone is firmly optimistic.

Allow the profits in the market to continue to accumulate.

Then, once the subsequent sentiment suddenly reverses, these locked-in profit-taking positions will be concentrated and added to the historical trapped positions in the market.

With the current market liquidity, there is still not enough new long funds entering the OTC market.

It is simply unacceptable.

I think if the market and the index still have room to develop upward, then the divergent oscillating upward trend and the original aggressive upward wave rebound trend are much better, and are more conducive to the fermentation of emotions and market conditions, and conducive to the expansion of the height space of the core main line of the market. "

"According to what you mean..." Lu Xiangxiang said, "We should just hold on to our positions and not worry too much, okay?"

Yu Xiaolu nodded and said, "I think so. Besides, isn't today's market trend back to the two main lines of weight and large infrastructure? What are we worried about?"

Lu Xiangxiang pondered for a moment and said, “The 3000-point level cannot be said to be stable yet. I feel that the uncertainty is still very large. The divergence of volume at this level may not necessarily be a relay adjustment during the rise, but may also be a sign of exhaustion of long-term strength.

If the market is really strong, like this important pressure point.

You should have gone ahead decisively instead of hesitating like that.

Moreover, the current position of the "big infrastructure" line has a high short-term increase. If it continues to rise, in addition to further intensification of expectations, it also requires further development of sentiment. Otherwise, there will not be enough funds to dare to chase high prices. "

"I think the 'big infrastructure' line is not a big problem," Yu Xiaolu said. "On the contrary, the 'emerging industrial chain' line is more uncertain."

"The market sentiment for the 'emerging industrial chain' line is not low, and with the support of favorable policies, although this line did not perform well today, it cannot be said that the market trend has ended." Lu Xiangxiang said, "The reason why this line is very weak today is mainly because the weight line and the 'big infrastructure' line have siphoned too much funds, resulting in insufficient buying of the 'emerging industrial chain' line, and it has not been able to move forward under favorable conditions."

"Isn't it the suppression of short-term profit-taking and the lack of major institutional funds to help lock positions?" Yu Xiaolu said, "Anyway, I think the current 'emerging industrial chain' line, in terms of chip structure, overall logic, expectations... and other factors, is not as good as the 'big infrastructure' line, as well as the heavyweight lines such as liquor, white appliances, medicine, consumption, electricity, and finance."

"That's not the case." Lu Xiangxiang said, "I think it's more like the main market rotation in the shock stage. Whether it's strong or not, we can't just look at the market trend of one day, but also the market trend of the previous two days, and even the next two days, for example, the weight line you just mentioned.

Before this line was drawn today.

Wasn't the general voice in the market in the past two days that this line was not working, and that the market's investment direction and style had generally shifted towards small and medium-sized and micro-cap stocks?

There is also the 'big infrastructure' line, which saw a rapid sell-off at the end of yesterday's trading.

With the market opening lower today, the market is generally pessimistic, right? It can't be said to be strong, right?
That’s why I said that this stage does not look like the stage of sustained breakthrough and main upward trend.

Instead, it seems like a phase of market rotation with continuous fluctuations.

Generally speaking, during this market rotation phase, the forces of bulls and bears are tense, and the bulls are not as strong as before, showing signs of exhaustion.

The possibility of the index continuing to rise here cannot be ruled out.

But I think that at this position, it is entirely possible for the index to continue to fluctuate, further consolidate the chip structure, and fall back to the high point of the previous oscillation platform, which is the 2950 to 2980 point line.

We still cannot raise our expectations too high, nor can we analyze the market too rigidly.

Otherwise, once the market trend is not as expected, it will not be easy for us to react immediately and adjust the trading strategy immediately. "

After listening to Lu Xiangxiang's words, Yu Xiaolu suddenly felt that what she said was not unreasonable. She thought about it carefully and said, "Then Mr. Lu... let's not set a rigid trading strategy for now. Let's first see the external trend tonight, the market sentiment over the weekend, and the good and bad news." (End of this chapter)