Rebirth of the Capital Legend

"In yesterday's trend, the intraday strength of the 'Huawen Online' check was still good." Zhang Xinlei, who was in the 'Gusu system' main hot money group, took over and said, "In yesterday's intraday trend, although this check broke the board, it closed quite firmly, and even left no trace on the time-sharing line. Looking at the Dragon and Tiger List data of this check after yesterday's market, it can also be seen that it was the active main hot money in the market, and the scale of taking over more than 3000 million in a single day.

In other words, the intraday crash of 'Huawen Online' yesterday actually achieved a good turnover, cleared out a lot of profit-taking from those who were not firm in holding shares, and relatively reduced the upward pressure on funds to take over the long positions in the future, and the new group of funds that entered yesterday.

Since there is no profit for new investors, naturally there is not much desire to sell under the good sentiment at the opening of today's market.

The selling force on the spot decreased, and the overall bullish sentiment of the market was more cooperative.

It is understandable that this check has become what it is now under the guidance of funds. In addition, at the end of yesterday's trading session, the core weights of the ChiNext Index, such as Baofeng Technology, Quantong Education, and LeTV, all fell sharply. There was no obvious negative feedback in today's call auction, which naturally gave Huawen Online the confidence to open strongly. "

"I also think that the call auction trend of the 'Chinese Online' check today is understandable and logically reasonable." Lao Qian in the group thought about it for a while and responded, "But the call auction trend of the 'big infrastructure' line is so weak, which is a bit unexpected. Seeing that the market sentiment is biased... it seems to have returned to the 'emerging industrial chain' line."

"Yes!" He nodded in response, "Among the call auction trends of many core leading stocks in the market, 'Huawen Online' is the strongest, followed by 'Huaxin Media'. On the contrary, 'Capital Group', 'Huaxin Cement', 'Oriental Yuhong'... these 'big infrastructure' main line leading concept stocks that everyone thought would open significantly higher or even open at the daily limit before the market opened, have performed weaker than expected."

"It seems that the overall investment structure of the market is still in a main line rotation trend." Zhang Xinlei thought for a while and said, "As long as one of the three main lines of 'big infrastructure', 'emerging industrial chain' and market weight main line has obvious upward resistance, funds will instantly switch to other main lines with less resistance."

"I feel the same way," Zheng Jinming said. "Moreover, the more optimistic the main trend is before the market opens, the harder it is to develop during the market. The more unpopular the main trend is before the market opens, the more unexpected the market is during the market. Also,... it is easy to get slapped in the face when chasing highs recently. On the contrary, buying low will bring good returns."

"With market sentiment relatively stable, the reason why the major main lines rotate so quickly is, I think..." Lao Qian pondered for a moment and said, "Is it still a problem of market liquidity?"

"Yes, it's a liquidity issue." Zhang Xinlei responded hastily, "Because the incremental funds entering the market are not enough, the core main line of the market often encounters strong resistance upward, and it is easy to go out of the trend of rising and falling, and it is easy to form a rapid rotation and switching market."

"So, this kind of rapid rotation is normal?" Zheng Jinming said, "I feel that the long funds in the market lack confidence in continuing to go long, so they are hesitant in the main attack, which leads to a strong wait-and-see sentiment in the market, which makes it easy for many stocks to go out of the trend of rising and falling."

"Lack of confidence? I don't think so." He Zhong said, "After the Shanghai Composite Index broke through 3000 points, the overall market sentiment is clearly picking up. Since sentiment is picking up, the enthusiasm and confidence of funds to go long must be increasing.

The reason why the main line of the market is rotating so quickly at present is that it is difficult for both individual stocks and the main line to be sustained.

I think the main underlying reason is still the liquidity issue.

First of all, several rounds of stock market crashes last year and at the beginning of this year trapped too much capital. In addition, the continued hot off-market real estate market and the rapid rise in housing prices in various regions have indeed siphoned off a lot of liquidity in the market, causing much of the funds previously used for stock speculation to be used to buy and speculate in real estate.

Moreover, it just so happens that during this period, the central bank did not have many cards in its hand and could not continue to lower interest rates to increase market liquidity.

Therefore, under the influence of various factors, although the current market sentiment continues to improve, the influx of incremental funds has not seen any significant improvement.

The lack of liquidity will naturally limit the market's height space.

Coupled with the historical trapped positions and the recent selling pressure from profit-taking, it becomes extremely difficult to achieve sustainability.

Since the height cannot be expanded temporarily due to the problem of overall market liquidity, the overall sentiment remains relatively good.

Various short-term speculation fund groups can only follow other speculation hotspots in the market.

Give up the development of height space and choose depth and width. "

"I think what Lao He said makes sense." Lao Qian responded, "The current market liquidity is indeed problematic. The rebound has been so great, and it feels like the market has never gotten rid of the pattern of stock game."

"With the real estate market booming, there is only so much money that can enter the stock market. There is nothing we can do about it," said Zhang Xinlei. "Moreover, the 'national team' in the market is already heavily invested. Although they will not sell for the time being, they will not rashly increase their holdings. After all, their goal is to prevent systemic financial risks. As long as there is no liquidity crisis in the market, the 'national team' will not continue to invest real money."

"Isn't it because the money-making effect of the market is not strong enough that it can't attract off-site capital groups to enter the market?" Zheng Jinming said, "I think the hot real estate market will divert some of the funds that originally flowed into the stock market, but not much. The core line of the market is not sustainable now. The fundamental reason is that the money-making effect in the market is not strong enough. I believe that as long as the money-making effect in the market continues to ferment and form a good positive feedback, many off-site capital groups will naturally enter the market without being urged. After all, there is no need to publicize money-making things, and everyone will naturally flock to it."

"According to you, when will the market's profit-making effect be considered strong enough?" Zhang Xinlei did not quite agree with Zheng Jinming's statement. After a pause, he continued, "In the past month or so, the 'big infrastructure' line has generally rebounded by more than 50% from its historical bottom. At the same time, the Shanghai Composite Index has safely broken through 3000 points and returned to the center of market valuation, not to mention the main weight line. At present, the liquor, white goods, pharmaceuticals, electricity, and financial sectors in the main weight line field are basically recovering the losses caused by the previous rounds of stock market crashes. With this market trend...isn't it considered a strong profit-making effect?"

Zheng Jinming quickly replied: "The money-making effect I mentioned mainly refers to the money-making effect of small and medium-sized stocks and micro-cap stocks associated with the Shenzhen Stock Exchange Index, the ChiNext Index, the China Securities 500 Index, and the All-China Securities 1000 Index. In fact, the industry sectors and concept sectors associated with these indexes have not shown much room for rebound and sustainability this round, right?
The weighted main line, and the recent 'big infrastructure' main line.

It can indeed drive the market and the index to break through.

However, for the vast majority of retail investors in the market, these two main lines that are completely held and controlled by institutional funds do not mean much even if they are all pulled back to last year's bull market highs, because the positions held by the vast majority of retail investors in the market are not in these two main areas.

It is truly related to the interests of the retail investor group and can arouse their emotions.

It is still the main line area of ​​small and medium-sized stocks and micro-cap stocks.

I think only the main line area of ​​small and medium-sized stocks and micro-cap stocks has created a sustained high level of space and has a strong continuous profit-making effect.

Only then can we truly reverse the overall bullish sentiment in the market and investment confidence.

Only after this main line area has truly walked out of the right reversal signal and technical traces, with the help of continued bullish sentiment, will market liquidity have a significant change. "

"But the current market's small and medium-sized stocks, especially the main line of 'emerging industrial chains' that were hyped up in the last bull market and overdrawn expectations for many years to come, actually lack the support of fundamentals and future expected logic." Zhang Xinlei said, "A main line that lacks the support of fundamentals and future expected logic cannot arouse the unanimous long-term resonance of the core main capital groups in the market. Since it cannot arouse the resonance of the main capital groups in the market to go long.

How can we create a money-making effect and sustainable space, thereby strengthening the emotional aspect and attracting a large number of off-site capital groups to enter the market? "

"Then according to what you mean..." Zheng Jinming said, "Old Zhang, do you think the market can't get out of it?"

Zhang Xinlei smiled and continued, "I think the market wants to make a bear-bull transition in the overall pattern. Under the current macro liquidity conditions, economic cycle conditions, and investment confidence and other factors, the probability is still very small. However, even if the market cannot get out of the bear-bull transition, the fundamentals of many industries are gradually improving, and the future profitability will also improve significantly, and the valuation will continue to rise with the growth of performance.

At the same time, the market's previous historical locked-in positions are gradually being resolved over time.

I think it is highly likely that the investment confidence in the market will gradually recover, the local profit-making effect will always be maintained, and the market pattern of main line rotation will remain.

Anyway, the overall market situation at present.

It should be said that compared with the first half of the year and last year's stock market crash, there has definitely been a significant improvement.

Our trading strategy should also gradually shift from a defensive state to an aggressive state, but at this position, due to various constraints, we should not be too aggressive.

At the same time, during the market rotation trend, we should also avoid chasing high prices.

Since the overall investment trend and market trend are rotating, chasing hot spots and chasing high prices will easily lead to being slapped in the face.”

"I think what Lao Zhang said is right." Lao Qian nodded slightly. "It's not the time to be completely optimistic yet. And judging from the recent market trend feedback, the overall market trend is indeed in a trend of continuous rotation and switching of the main line."

"Even if we think from the perspective of the main line rotation..." Zheng Jinming said, "then the popular stocks in the main line of 'emerging industrial chain', which are currently at an absolute low in the market and whose trend patterns are gradually improving, have obvious opportunities and speculative cost-effectiveness, right?"

"The position is indeed low enough." He nodded, "It's just that the certainty is still a little short. Let's wait and see... see if the market will make a high-low cut next."

After saying this, he turned his attention back to the trading screens of the two markets.

As several people in the group were having a heated discussion, the market trading time had entered the last minute of the call auction.

And when the time reached 9:24.

In the two markets, the performance of many popular concept stocks that have attracted much attention from many investor groups has become more obvious.

at this time……

The high opening rate of "Oriental Yuhong" has fallen back to around 1.5%.

Similarly, affected by the downward trend in the call auction of 'Oriental Yuhong', many popular core stocks of the 'big infrastructure' main line, such as 'Capital Group', 'Huaxin Cement', 'North Frontier Communications Construction', which originally opened higher by more than 5%, are now rapidly narrowing their opening ranges.

Even the stock price of Huaxin Cement has fallen back to the same level at this moment.

There is a tendency to open lower.

On the other hand, a large number of popular core concept stocks in the main line areas of 'emerging industrial chains', such as 'Huawen Online', 'Huaxin Media', 'LeTV', 'Enlight Media', 'Netspeed Technology', 'Quantong Education', 'Baofeng Technology', etc., are basically rising steadily due to the influence of 'Huawen Online''s strong daily limit and the positive feedback shown by 'Baofeng Technology' and 'LeTV'. Many active short-term capital groups in the market are pouring into these stocks to buy shares.

In addition to individual stocks, the two cities' industry sectors.

The real estate, building decoration, building materials, nonferrous metals, steel, coal and other sectors related to the "big infrastructure" main line, as well as the medicine, consumption, electricity, liquor, white goods, finance and other sectors in the weighted main line areas, are also continuing to advance during the call auction and have withdrawn from the market's leading position.

At this time, it ranks at the top of the list of industry sectors with the highest growth in the two cities.

The film and television media, electronic information, Internet software and Internet application sectors have been formed.

Finally, under everyone's attention, when 9:25 arrived, the call auctions in the two markets ended.

The Shanghai Composite Index was set at a decline of 0.11%. Due to its weight and the weak opening performance of the "big infrastructure" main line, it unexpectedly opened slightly lower. The Shenzhen Composite Index, ChiNext Index, CSI 500 Index, CSI 1000 Index and other market indices except the A50 Index all benefited from the generally high opening trend of small and medium-sized stocks and micro-caps, and successfully opened higher in the red.

Judging from the performance of the two market indices, there are also a number of popular stocks and the opening performance of a number of industry sector indices.

It is obvious that...

The active capital groups in the market, as well as the main long-term forces, seemed to have shifted from yesterday's heavyweight, mid-cap and large-cap stocks, as well as white horse and blue chip stocks, to small-cap and micro-cap stocks dominated by concept stocks in an instant. (End of this chapter)