Rebirth of the Capital Legend

"The market's volume is still not going up!" At 10:10 a.m., Xu Qiao, a member of the main speculators of the 'Magic City Ultra-short Gang', stared at the changes in the two markets and said, "After the initial explosion of the 'emerging industrial chain' line, it now feels a bit weak. On the contrary, the 'consumer electronics' sector, which had not performed well in the past few days and had been lacking in popularity, continued to come out and attracted the attention of many main capital groups."

"The core main capital group of the market, that is, the main institutional capital group, is mostly concentrated in the main line of 'big infrastructure', as well as the main weighted areas such as liquor, white appliances, medicine, consumption, electricity, petrochemicals, and finance." Old Wu continued, "Today, the two main trends are both sideways and shrinking. Whether it is the internal holding capital group or the off-market capital group, the trading desire is not very high. The trading desire of both the long and short sides is not high, so naturally there is no volume.

Since the main line of "big infrastructure" and various weighted main lines cannot be expanded for the time being.

If we only rely on these small, medium and micro-cap concept stocks in the main field of "emerging industrial chains", even if hot money pushes them up to the sky, they will not be able to release much energy.

After all, it is the main line of the entire 'emerging industrial chain'.

Film and television media, Internet software, Internet applications, electronic information, semiconductors...these are industry sectors that tend towards emerging technologies.

Currently, there are not many major capital groups holding positions.

Many of the large number of retail investors who intervened in the early stage have already been trapped at high levels. When the corresponding stock prices are not close to the cost range, these groups will not have much desire to trade.

In other words, due to the chip structure of the entire "emerging industrial chain" main line, it is currently far away from its historical chip structure concentration range, that is, it is relatively in an oversold state. No matter how it rebounds, this position will not release too much volume.

I think the strengthening of the main line of "emerging industrial chain" today can be seen as a compensatory rise.

It's the 'Consumer Electronics' line...

Due to the expected support of Apple's new product launch in September and the increased expectations for the smartphone replacement wave, looking at the volume feedback of this line on the market and the market trends of the corresponding hot core stocks, it seems that the main institutional funds have increased their holdings a lot.

Compared with the main line of 'emerging industrial chain' dominated by hot money.

This sub-sector of 'consumer electronics' seems to be more easily recognized by the main institutional capital groups.

Moreover, in terms of fundamentals, future expectations, actual valuation levels, and recent risk-to-earnings ratios, the consumer electronics sector seems to be much stronger than the three major sectors of film and television media, Internet software, and Internet applications.”

"Well, the strength of the trend of the 'Consumer Electronics' branch sector today is indeed somewhat beyond expectations." Xu Qiao nodded and said, "In fact, although the 'Consumer Electronics' line belongs to the main line of the 'Emerging Industrial Chain', it seems that its trend is more closely related to the main trend of 'Massive Consumption' in the past historical trends. It should not be simply regarded as the 'Electronic Information' industry sector."

"Whether it's the core sectors of the 'emerging industry chain', such as film and television media, Internet software, and Internet applications, or the branch line of 'consumer electronics'..." Lao Zhang thought for a moment and continued, "I feel that the market trend today is expanding horizontally, but not developing in depth. This should be a change in the market trend, and it is also something that deserves our attention."

"Well, the market trend is indeed gradually developing horizontally, and no longer developing in depth." Hearing what Lao Zhang said, Brother Chen, who had been silent, nodded and responded, "The market has begun to develop horizontally, and the number of rotating main lines has begun to increase. This means that the main line of the 'big infrastructure' that was previously the main force on the market has begun to encounter resistance at its current position. However, this horizontal development and the increase in the number of rotating main lines are not a bad thing.

The overall market volume will not increase, and the huge core sectors such as the "big infrastructure" main line and the weight main line will not be able to continue to create space beyond expectations as the upper resistance gradually increases.

In order to truly attract the funds waiting on the sidelines to enter the market, we must gradually eliminate the doubts of these funds.

This is something that takes time to develop and cannot be completed in a short period of time.

Moreover, during this period when emotions and market investment confidence are gradually fermenting and brewing, the market cannot show overly extreme negative feedback trends.

In other words, the market cannot adjust too drastically.

However, the weight main line, which is at a recent high, and the "big infrastructure" main line, have been unable to open up space due to the pressure of upper resistance.

In this way, if the entire market wants to stabilize...

Therefore, the main direction of funds, that is, the focus of long positions, cannot be concentrated on these two main lines.

Because if we continue to focus on these two main lines, we will be consumed by the resistance and short-selling forces above and will not be able to create the expected space at all.

But it can't create the expected space.

Market investment sentiment, whether it is short-term speculation sentiment or long-term capital investment confidence, will be affected.

When emotions come into play, especially when emotions continue to fall under negative feedback from the market, the confidence of funds in going long and the confidence of shareholders in holding shares will gradually weaken, which in turn will strengthen the selling pressure resistance in the market.

By then, the forces of bulls and bears will be completely unbalanced.

It would be difficult for the market to avoid extreme adjustments.

On the contrary, as it is now, the market trend has gradually changed from vertical development to horizontal development when hot money is gathering to speculate on the main line of "emerging industrial chain".

Speed ​​up the rotation speed and continue to maintain the local profit-making effect on the market.

This has allowed many main sectors of the market that was previously experiencing severe stagflation, as well as many low-priced high-quality stocks with excellent fundamentals and support from expectations of future performance explosions, to gradually emerge, continuously attracting rotation and switching of trading by active capital groups in the market, as well as the market's enthusiasm for making money and emotional heat.

So, with good market feedback and emotional feedback.

The confidence of the group of investors holding positions in the market will not weaken quickly, and the desire of the group of funds outside the market that are still on the sidelines to enter the market will gradually increase.

In this way, the main line of "big infrastructure" and the main line of weight. Even if the two main lines are no longer hyped by the active capital groups in the market and fall into a short adjustment cycle, their adjustment trend will be relatively mild.

Therefore, I think the current trend and development status are still relatively good.

Overall, its trend is in line with everyone's expectations and is a relatively ideal state in the trend development."

"Brother Chen, according to what you said, the short-term market trend of the two core themes, namely the weighted main line and the 'big infrastructure', is hopeless?" Lao Zhang asked. "According to your analysis, the recent market trend will accelerate, and the main performance of the market will most likely still revolve around the oversold small and medium-sized stocks and micro-cap stocks!"

Brother Chen nodded and said, "I think so."

"There's nothing wrong with this." Old Wu took over and said, "After the Shanghai Composite Index broke through 3000 points, if we were eager to continue to break through without the volume fully catching up, we would quickly overdraw the market's long position, which is indeed not good. Now... let the market develop horizontally, let the oversold stocks that have seriously underperformed the market before, and other main-line sector stocks that are at low levels catch up, and raise the overall market valuation level and everyone's confidence in holding shares, as well as expectations for subsequent market development, so that the 3000-point position that has just been broken through will truly become a huge effective support level in the subsequent market rise from the previous huge resistance position."

"Old Wu said it well!" Xu Qiao smiled and said, "Indeed, the 3000-point position is very important. Since the Shanghai Composite Index has completed a breakthrough here, it must temporarily stop and consolidate the fruits of victory so that the 3000-point resistance can be completely transformed into support. Only in this way can this round of rebound market be transformed into a reversal market, and it can also better enhance everyone's investment confidence and attract the group of funds waiting on the sidelines to enter the market."

"But as far as short-term trading is concerned..." Lao Zhang thought for a moment and said, "The short-term main line rotation is accelerating, and it is hard to say whether it will be sustainable, and it is even harder to grasp!"

"Although the speed of the main line rotation may accelerate, the core of the funds going long should remain the same." Xu Qiao said, "Brother Chen just said that when the main line of large infrastructure and the main line of weight are not supported by volume and cannot continue to break through the larger resistance range, the main direction of the market's active funds will inevitably switch between high and low to make up for the market's rally.

Since it is a rotation of the trend of the compensatory rally and the market switching.

Then can't we just focus on the market's oversold main line?

There are many low-level oversold branch sectors that have not yet skyrocketed. It is better to choose a few core stocks and make a latent layout than to follow the intraday hot spots and chase highs.

Since the rotation speed of the market is accelerating, let's follow the hot spots...

It is very likely that it is catching up with the switching rotation point.

For example, looking at the market trend today, in the entire main field of the 'emerging industrial chain', it seems that the 'Chinese Media' check has brought up quite a few stocks.

But except for a few core leading stocks that quickly hit the daily limit early in the morning.

The vast majority of other stocks in the entire 'Film and Television Media', 'Internet Software' and 'Internet Applications' industry sectors.

After buying at a high price, there may not be much premium tomorrow, and it may be difficult to make money and leave the market.

Today, under the cover of the explosion of the entire 'emerging industrial chain', the rise of 'consumer electronics' is obviously more powerful. "

"The core leading stocks of the low-lying oversold branch sectors?" After hearing what Xu Qiao said, Lao Zhang pondered for a moment and said with a smile, "Xiao Xu, your idea is quite good. According to the development path of the entire market, when the weighted main line and the major infrastructure main line have almost reached their peak and started to fluctuate sideways to build a new platform, it is indeed along the line of 'oversold' that various industry sectors and branches are rotating.

However, the rotation has not yet taken place in the market and the market is still in an oversold state.

I feel that there is still room for development in the 'new energy industry chain' branch sector.

From the perspective of fundamentals and future expected development, this line is actually not bad. From a macro perspective, the path of "new energy" development in the future is inevitable.

Its related industry sectors include automobile, energy storage, lithium battery, photovoltaic, etc.

After a short period of continuous adjustments, it has almost reflected all the negative news that have been uploaded on the industry direction. "

"Well, I also feel that the 'new energy industry chain' line can be lurking for a while." Old Wu pondered for a moment and nodded in response, "The negative impact of this line has indeed been almost reflected, and there is enough time and space for adjustment. Not to mention another wave of market trends in the future, at least the short-term rebound trend can be clearly seen when the Shanghai Composite Index firmly stands at 3000 points and the overall market investment sentiment continues to pick up, and it is worth betting on."

"I don't know if Brother Su's 'Hua Yi Capital' has really sold out its holdings in the 'new energy industry chain' line?" Xu Qiao thought for a while and said, "I feel that Brother Su is likely to have a bottom position in this line. After all, from the perspective of future macroeconomic development, this line still has great potential!"

"No one knows for sure." Brother Chen said, "You can try the 'new energy industry chain' line. Among the many core lines in the market, this line is the only one that has not been hyped up and has not seen a rebound."

"Okay." Lao Zhang smiled and said, "It seems that my vision is quite accurate. Then according to everyone's opinion, I will first take profits on some of the main positions of 'big infrastructure' and lurk a little bit in 'Apocalypse Lithium', 'Ganfeng Lithium', 'Do-Fluoride'... these core leading stocks that were hyped up in the last round, to see if this trend will come."

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

After several people's continuous discussion, the market trading time had already entered after 10:30 in the morning.

As market trading hours go by...

On the market, the rise of 'consumer electronics' continuously diverted the long funds from the film and television media, Internet software, and Internet application industry sectors that performed strongly at the beginning of the session, as well as various follow-up funds, resulting in the core industry sectors of these three main areas of 'emerging industrial chains' that performed strongly at the beginning of the session, and their gains have all declined.

At the same time, the trends of these major industry sector indices and their corresponding concept stocks have slightly declined.

The 'consumer electronics' sector, which has gradually shown clear logical expectations, is getting stronger and stronger, and is driving related concept sectors such as semiconductors and 5G communications to rise simultaneously.

As it approached 11 o'clock in the morning, this trend became even more obvious. (End of this chapter)