Rebirth of the Capital Legend

"I didn't expect that the 'big infrastructure' line would break upward in the closing period under such a trend." Seeing the final closing situation of the two markets, Zhao Zhiyuan, who was the main speculator of the 'Qilu Gang' and had previously preferred the 'emerging industrial chain' line and was optimistic about the trend of small and medium-sized and micro-cap stocks at relatively low levels in the market, stared at the already determined closing results of the two markets with a look of obvious astonishment. "The 'emerging industrial chain' line had clearly shown a good rebound in the morning and had accumulated a bullish sentiment. Why did it suddenly collapse again in the afternoon? Alas... I really didn't expect the trend at the end of today's trading."

"Old Zhao, you miscalculated, didn't you?" Zhang Wei chuckled and took over the conversation, "Respect the inertia of market feedback and trend development. The principle of 'the strong will always be strong' is still very effective in financial market transactions. Although the stock prices of a number of core hot concept stocks related to the 'emerging industrial chain' are relatively low and have obvious oversold patterns, the fundamentals and underlying logic are still poor. Moreover, I think whether a stock is cheap or not cannot be judged by the high or low stock price, but by combining its fundamentals and future performance expectations. Only by starting from these two points can we judge whether a stock is cheap or not.

It does not mean that a stock should rebound if it has fallen 70 or 80 percent from its high point.

It also doesn't mean that if a stock has risen by 70 or 80 percent from the bottom, it should adjust and fall.

We must understand that the fundamental core supporting stocks is actually the performance ability of its business and the expectations that will affect the fundamentals in the future.

From a fundamental perspective...

The so-called core leading stocks of the "emerging industrial chains" such as 'LeTV', 'Baofeng Technology', 'Wanda Film and Television', 'Netspeed Technology', etc., even if their share prices have fallen by 70 to 80 percent from their highs, their company's fundamentals and performance capabilities over the subsequent period of time can still be seen.

The valuations of these so-called core leading stocks are still significantly higher than those of the core leading stocks in the "big infrastructure" main line and the weight main line.

Since its valuation is currently higher than that of the other two core leading stocks in the market.

Plus there is the problem of its chip structure.

That doesn't make sense, the trend is stronger than the core leading stocks of the other two main lines.

You know, after the last round of bull market boom, both the so-called mobile Internet and the "big entertainment" industry are currently in the ebb of the market cycle.

The liquor, white goods, medicine, and real estate industry chains are related to the main line of "big infrastructure".

However, it happens to be in the prosperous period of the industry cycle, that is, the upward stage of the macro-environmental fundamentals.

It can be said that, analyzing from the perspective of future expectations, the industry development of several core sectors in the main area of ​​'emerging industrial chains' will further deteriorate, while the industry development of the main line of large infrastructure, as well as the main lines of liquor, white appliances, and medicines will become more optimistic.

One fundamental situation is becoming increasingly pessimistic, while the other is becoming increasingly optimistic.

This is reflected in the corresponding core leading stocks in the industry.

That is, one performance is likely to continue to grow, and the other performance is likely to continue to decline.

Since there is no expectation of a turnaround in its performance, it is naturally difficult for its stock price to have a real turnaround. After all, stock prices ultimately change with the feedback of expectations. "

"Although what Lao Zhang analyzed is true, I think..." Liang Jiucheng thought for a moment and took over the conversation, "At the end of today's trading session, the reason why the main line of 'emerging industrial chain' and the main line of 'big infrastructure' once again showed a clear differentiation situation, one continued to break through upwards, and the other adjusted downwards, is still the difficulty of capital relay caused by the chip structure.

Although the 'big infrastructure' line is relatively higher than the 'emerging industrial chain' line.

However, the depth of involvement of major funds in the main field of "big infrastructure" and the degree of locking of internal chips are obviously better.

However, in the main field of 'emerging industrial chains', the main capital groups are not involved much.

Moreover, the historical trapped positions on this line are too heavy. If funds push up a little, the selling pressure from the historical trapped positions will emerge in an endless stream.

In other words, although the two differ in their positions.

However, the selling pressure and the strength of upward resistance are still very obvious.

Looking at today's trend...

The main capital groups in the market, as well as the large number of retail capital groups that followed suit, finally chose the line of "big infrastructure" as the main breakthrough line of the market, and concentrated their funds and positions in this field. However, the line of "emerging industrial chain" failed to complete a substantial rebound trend today. I am afraid that the subsequent trend will be repeated, and the trend is estimated to be not too coherent. "

"Yes." Zhang Wei nodded and replied, "Originally, among the three main lines in the market, the K-line pattern of 'big infrastructure' is indeed the best. The weighted main lines related to liquor, white appliances, medicine, electricity, consumption, finance and other sectors have now formed an obvious high-level platform shock pattern after fulfilling most of their expectations. As for the 'emerging industrial chain' line, the chip structure has not been fully settled, the new chip structure has not been formed, and the entire K-line pattern has not yet gone out of the bottom reversal trend.

Relatively speaking, in terms of certainty.

The main line of 'big infrastructure' is better, with the second highest weight, while the certainty of 'emerging industrial chain' is the worst.

Of course, with the support of the index, there is also the money-making effect created by the continued upward movement of the "big infrastructure" main line and the support of the overall bullish sentiment in the market.

Regarding the line of 'emerging industrial chain', even though the chip structure has not yet been completely locked.

With the help of positive bullish sentiment, the market will not fall too much.

I estimate that even if this line cannot be broken out for the time being, it will remain in this range, and the trend will mostly be sideways adjustment.”

"In fact, if it weren't for the sudden crash of 'Storm Technology' this afternoon, the entire 'Emerging Industrial Chain' main line would still be able to stabilize and further open up some space." Zhao Zhiyuan thought about it. Although he began to become cautious about the expectations of the relevant stocks of the core main line of 'Emerging Industrial Chain', he did not completely change his views on the major trends of the market. After a pause, he continued, "And the trend of 'Huawen Online' is still very strong. Although it exploded during the session, it was finally closed back in seconds.

I think we can’t say for sure that we can’t get out of this line yet.

Its strength can only be confirmed after tomorrow's opening.

As long as the volume of 'Chinese Online' can continue to shrink and accelerate tomorrow, the hype sentiment and height space in the main field of 'emerging industrial chain' will continue to increase, and will continue to attract more short-term capital groups to intervene.

Moreover, judging from the overall trend, I think the market has not yet escaped the situation of main line rotation.

Although the underlying logic of the "big infrastructure" line is stronger, the current stock price position basically reflects expectations. If the stock price wants to perform better in the future, I think it still needs stimulation from fundamentals and news. And this line... I feel that the current market trend is a bit too consistent.

In the financial market, when various fund groups begin to be generally optimistic, it means that the long sedan chair in the market has become relatively heavy.

When there are too many people riding in a sedan chair and it is too heavy, the people carrying it would probably not be willing to do so.

There is also this core theme. The overall market value is really too large. As long as the market liquidity is not effectively alleviated, with the current market liquidity, if this line continues to move upwards, there will not be so many new long-term fund groups in the market to continue to take over.

Just like the current main line of weight.

Could it be that the fundamentals facing the liquor, white goods, medicine, electricity and other industry sectors are not good? However, recently, the stocks in these main areas have been difficult to continue to rise, and can only maintain a sideways trend at best.

I feel the corresponding core leading stocks in the "big infrastructure" line.

There is also a trend of stocks moving towards a convergence with the leading stocks in core industries in the weighted main line areas.

On the other hand, although the underlying logic and future expectations of the "emerging industrial chain" line are somewhat poor, the market cap is small and the stock price is low enough, and many are at historical lows.

Moreover, due to the various capital groups in the market, their expectations for this main line are already low.

On the contrary, when emotions come out, it can easily lead to a gap in expectations.

In general...I think the three main lines that market investors are currently focusing on have their own advantages and disadvantages in terms of trends, logic, and expectations.

And the market has not escaped the bear market pattern.

The vast majority of investors in the market also view this round of market conditions as a rebound.

Then, if we are unable to attract too many off-market capital groups to intervene, the market liquidity problem cannot be fundamentally changed.

That is, it is always in a situation of stock game.

The rotation of major market lines and the switching back and forth of local profit-making effects are the most likely trends.

As for the trend of funds continuing to hold together and break through the main line dominated by "big infrastructure", although it also exists, I think the probability is not high under the current market liquidity.

The 'big infrastructure' line has been so strong recently.

The main reason is that the core leading stock 'Oriental Yuhong', with the support of the 'Fuxing Road' seat, has amplified the follow-up effect of many retail investors in the market.

Once the check from 'Oriental Yuhong' is issued, stagflation will begin.

I am afraid that the entire main line of 'big infrastructure' will fall into a state of adjustment again."

"I think no one can predict the future trend." Zhang Wei responded, "But if we focus on the present, we should still respect the feedback from the market. We should focus our main positions on the areas where the strongest and most sustainable ones are. If the subsequent 'emerging industrial chain' line really comes out and becomes sustainable, then we can find a suitable buying point on the right side. I think it is better than intervening now and trading on the left side."

"Yeah, I think so too." Liang Jiucheng said, "Comparing the high and low positions, in financial market transactions, certainty is actually more important."

"I don't object to the importance of certainty," Zhao Zhiyuan said. "I just want to say that in the current market trend, without a clear improvement in liquidity, the sustainability and smoothness of the trend are actually not very good. Each main line, under the stimulation of emotional fluctuations and news, also has the opportunity to lead the market for a short time. In this situation... I think it is safer to be more patient and stick to one main line than to switch back and forth.

From the current perspective, the line of 'emerging industrial chain'.

Although today's market performance was somewhat below expectations, overall, its trend and pattern of gradually rebounding from the bottom has not changed.

Moreover, within the main field, the hype levels of a number of popular stocks are relatively well maintained.

As long as the trend does not change, the overall K-line pattern structure is not damaged.

Then I think we can be more patient and wait a little longer to see how the market develops.

If there is indeed no way out in the future, it is indeed because the follow-up funds and speculative funds that have intervened in this main line are continuing to weaken.

When the situation changes, it will still be time to reduce your position.

After all, as Lao Zhang just said, the overall bullish sentiment in the market is still relatively good.

Except for those that are suddenly hit by negative news, individual stocks in the market can basically maintain their trend under the stimulation of emotions.

Even if it fails to reverse upward, it won’t fall too far.

That is to say, I cannot say how much profit I will make, but the probability of a large loss is still relatively small.”

"Well, Lao Zhao's last analysis is quite rational." Liang Jiucheng pondered for a moment and replied with a smile, "Indeed, although the trend of the 'emerging industrial chain' line today is somewhat lower than expected, judging from the market trend feedback, its trend strength is not as strong as the 'big infrastructure' main line and the market weight main line, but from the K-line pattern, with the overall market sentiment gradually improving, the K-line pattern of this line is indeed obviously improving, and there is a trend of bottoming out. Otherwise... in recent days, under the slight stimulation of the news, there would not be so many short-term speculative funds to continue to hype this line and try to increase the hype height and enthusiasm for this line."

"That's it." Zhao Zhiyuan said, "As the overall market trend is relatively good, it won't be too bad. Let's take a look at the 'Storm Technology' check tonight to see if there is any clear negative news. If not... I feel that if the 'big infrastructure' main line is suppressed tomorrow due to profit-taking and market liquidity issues, it is very likely that the 'emerging industrial chain' line will strengthen again and become the core hot spot of the market. I didn't sell at the end of today, so I will certainly not sell now. After all, if I adjust my position according to market sentiment expectations at this time, I will most likely be slapped in the face by the market."

"You can take a look at the Dragon and Tiger List data of 'Huawen Online' today." Liang Jiucheng paused and continued, "If the 'Emerging Industrial Chain' line wants to continue to turn from weak to strong tomorrow, its breakthrough point should still be the stock of 'Huawen Online'."

After saying that, Liang Jiuchen shifted his gaze back to the Dragon and Tiger List interface of the two cities.

As several people discussed fiercely in the group and analyzed the market trend, the market time had unknowingly moved to 5 pm. The Dragon and Tiger List of the two cities was updated as scheduled under the attention of the public. (End of this chapter)