Rebirth of the Capital Legend

"Why do I feel that the market trend is gradually deviating from the previous main line area? The weighted main lines of the market, such as liquor, white appliances, medicine, consumption, electricity, and finance, as well as the "big infrastructure" cyclical sectors such as building decoration, building materials, local, nonferrous metals, coal, and petrochemicals, have all fallen into a trend of shrinking adjustment." Noticing that the market trends of the two cities seemed to have turned, and the hot spots were also changing significantly, Zheng Jinming, who was among the main hot money groups of the "Suzhou system", frowned and said, "And the three major sectors of film and television media, Internet software, and Internet applications, which were once very strong in the early trading, are now a little weak. On the contrary, consumer electronics, semiconductors, and 5G communications in the field of "electronic information" have begun to show a trend of full-scale outbreak."

"Well, it does feel like the market's hot spots and core areas of speculation are shifting." After hearing Zheng Jinming's words, Lao Qian in the group pondered for a moment and nodded in response, "It seems that the main line sectors that were previously stagnant at a low level, as well as related industry sectors, have generally begun to make up for the losses, while the previous core main lines that led the gains, including the three major sectors of the 'emerging industrial chain' main line of film and television media, Internet software, and Internet applications, are a bit lacking in offensive power and are gradually turning into a sideways fluctuation to continue digesting profit-taking and the selling pressure from above."

"There is no sharp increase in the overall liquidity of the current market. Under the premise that the market liquidity remains stable, the weighted main lines, large infrastructure main lines, and emerging industrial chain main lines that led the market in the early stage gradually touch the heavy locked-in plate gathering area above. The upward pressure is getting greater and greater. When it is necessary to increase the volume to break through..." Zhang Xinlei paused and continued, "Under the constraints of volume, the market hot spots develop horizontally, and various speculative capital groups gradually begin to switch between high and low, flowing to some main lines or industry sectors that are still at a relatively low level. The logic of making up for the rise seems to be no problem, right? Moreover, I always feel that letting the market's speculative hot spots spread more widely, allowing all the main line sectors and all industry sectors in the market to rotate, and improving the overall valuation level of the market will be beneficial to the development of subsequent market conditions.

After all, the retail investors gathered in the "big infrastructure" main line and the weight main line area only account for a small part of the vast retail investor group in the market.

In order to truly reverse the market trend and restore investor confidence.

Change everyone's consensus expectations for subsequent market trends.

And truly and continuously improve the market's money-making effect, thereby attracting the entry of off-market investors and off-market major capital groups.

That still requires that all the investors gathered in the venue can see some hope.

The main market lines continue to rotate and rise.

It allows investors gathered in major main areas to enjoy the growth of account net value brought about by the rising market conditions and the dividends brought about by the rising market conditions.

Then, enjoying this benefit will naturally increase everyone's confidence in holding shares and increasing holdings.

And we have the confidence to hold shares and increase holdings.

The potential selling pressure in the market will decrease, and the potential buying power will gradually increase.

As long as this trend pattern can continue and the forces of bulls and bears reverse, the index will naturally continue to break upward and open up new space.

If the index continues to break upward, it will continue to reverse the general market expectations.

Transform the rebound into a reversal pattern.

When the index can continue to move upward, the market will see an increase in bullish power and a general improvement in investor confidence, and more off-market fund groups will follow suit and enter the market.

Then, the volume will naturally undergo fundamental changes.

When the market's volume and energy really change, the weighted main line that requires explosive volume to break through, as well as the major infrastructure main line, will naturally continue to rise and continue to break upward, further improving the market's valuation.

In this way, the market will usher in a virtuous cycle of sentiment and funds, thus getting rid of the shadow of the bear market."

"Your logic is correct, but this expected development path is still a bit too idealistic." After hearing Zhang Xinlei's analysis, Lao Qian pondered for a while and responded, "Let's not talk about whether this local money-making effect can really attract the group of funds waiting outside the market. After the market develops horizontally, the rotation speed between the main lines will begin to accelerate, and the sustainability will decrease, resulting in increased operational difficulties, which will also reduce the trading desire of follow-up funds. The reduced trading desire of follow-up funds will naturally lead to a decrease in the trading desire of many hot money in the market that guides the concept speculation, and ultimately the speculation sentiment of the entire market will fall.

When the hype sentiment begins to subside, everyone feels that the market is unlikely to be sustainable and that chasing hot spots can easily lead to being slapped in the face.

Naturally, everyone's trading frequency will decrease, which will inevitably lead to a further decline in market volume.

When the volume decreases, the market will not be able to be sustained and the risk of a sharp correction will come.

I feel that the three core themes of 'weighted main line', 'big infrastructure', and 'emerging industrial chain', which have been recognized by many investors and many main capital groups in the market, have not yet clearly created sufficient profit margins, and have not yet shown a clear reversal trend.

The market conditions began to be constrained by the volume and were unable to continue to expand upward.

When we can only expand the hot spots horizontally and exert our strength in the so-called compensatory growth areas with less logic and lower positions, it is actually a manifestation of the weakening of the market trend. "

"I agree with Lao Qian's point of view." Zheng Jinming said, "According to normal logic, the 'big infrastructure' line should not stop at this position, and the 'emerging industrial chain' line has just hit the popularity and emotions in the early trading stage, and then the funds turned to speculate on lower-positioned industry sectors and other hot spots, which means that the long-term funds in the market are not willing to continue to attack upward after making a small profit. At the same time, it can also indirectly show that the potential selling pressure faced by continuing to attack upward is continuing to increase, which makes many long-term funds in the market have concerns.

In any market cycle, when the low-level main line that was not in the core hot spot before the rotation begins to make up for the rise.

Basically, it is the end of the market.

I feel that today's market trend, although there are many stocks that have hit the daily limit in the small and medium-sized cap and micro-cap stock fields, and the overall market sentiment is also okay, but compared with the previous few days, it is obviously weaker.

Anyway, today's explosion of 'consumer electronics', '5G communications' and other related sectors are hot spots.

I won't chase it, nor will I adjust my positions or increase my holdings.

Since the core theme of "big infrastructure" has begun to show stagflation, it is time to take profits and wait for the next good opportunity to appear.

The previous "big infrastructure" main line is supported by extremely strong fundamental changes and underlying logic.

It has been leading the market strongly for such a long time.

None of them have been able to truly attract a large number of on-site wait-and-see funds to enter.

I don't believe that when the market has rebounded to a relatively high level and the momentum for further upward attack has clearly been insufficient, a large number of wait-and-see funds off-site will rush in to take over at this time.

The Shanghai Composite Index is at 3000 points...

What we really want is to transform the previous major resistance level into a strong support level in the future.

I feel that it will take time and space to accumulate. At this point in time, the market is actually not ready for a bear-bull transition. After all, from the perspective of the chip structure, time and space.

Now is still too close to the previous rounds of stock market crashes. The capital groups that were trapped by the rounds of stock market crashes, especially the chips in the hands of a large number of retail investors, have not been truly leveraged, and have not been benignly digested by the market. In other words, the market's adjustment time in the big cycle is still completely insufficient.

Since the time for the bear-bull transition has obviously not yet arrived.

The characteristics of this wave of market conditions can only be regarded as a rebound.

Since it is a rebound trend, the market has begun to rotate to low levels to make up for the rise... I think it is the beginning of the final stage of the rebound. "

"Jin Ming, do you mean... are you going to reduce your holdings at this position and exit the market with profit?" He Zhong, who had been listening to the three people's argument, asked, "But judging from the volume, generally speaking, the end of the market will not end with a reduction in volume, and judging from the K-line pattern, it seems that the 'big infrastructure' line and the 'emerging industrial chain' main line, which has just bottomed out and formed an upward trend, don't make sense to rebound so little and then go down again. Moreover... in terms of macro expectations, there are still many positive news in the second half of the year.

In my opinion, I think what Lao Zhang just said was a bit too optimistic.

But it is not advisable to be bearish at this position.

The Shanghai Composite Index has only risen 2700% from 10 points to its current position. Among them, the ChiNext Index lags behind the Shanghai Composite Index even with today's surge.

Whether it is an index or the leading stocks of several core lines.

The current K-line pattern and the bullish and bearish feedback on the market have not yet reached the point of short selling.

Although at this stage, the forces of bulls and bears in the market are a bit tense and differences still exist, the trend pattern is still more inclined to the bullish direction.

I feel that at present it is more like a volatile pullback after the Shanghai Composite Index broke through 3000 points.

In fact, at this position and time point, there is nothing wrong with shrinking volume and fluctuations. On the contrary, continued increase in volume... may quickly exhaust the market's last long-term strength and end this round of rebound early.

The 'consumer electronics' sector and the '5G communications' sector led the market today.

In fact, it is still in the main area of ​​'emerging industrial chain', and the overall direction of the market, when the weight main line and the large infrastructure main line are adjusted, is also generally concentrated in the small and medium-sized and micro-cap fields. If you ask me... the core main line of the market has not deviated.

And as for the previous line of "emerging industrial chains", isn't the original logic of the rebound an oversold rebound or a compensatory rise?
In fact, the hype logic of these main sectors and related industry sectors is essentially the same.

There is also the 'consumer electronics' line, which was also shown before the Shanghai Composite Index broke through 3000 points, that is, when it broke through the previous oscillation platform.

The hype logic of this line is still smooth.

The rise of this hot spot cannot be said to be a reflection of a weakening market.

I think that although it is not advisable to chase high prices or hot spots at the moment, we should still maintain a certain degree of patience and continue to hold positions to see the subsequent market trends.

In the game of the existing market, shrinking volume is not necessarily a bad thing.

Large volume is not necessarily a good thing. "

"Then let's continue to wait and see the subsequent market trends." Old Qian also felt that Zhang Xinlei and Zheng Jinming's views were one conservative and the other optimistic. He smiled and said, "From the K-line trend of the index, this breakthrough is still relatively effective. The Shanghai Composite Index should not fall below 3000 points again in a short period of time. As long as the index remains above 3000 points, the market sentiment will not collapse easily. Even if the market gradually weakens, it will give us all enough opportunities to take profits and exit. So... there is really no need to be too anxious or panic at the moment. Continuing to hold static positions and wait and see the subsequent market trends is relatively more in line with the current market trends."

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

The market trading time at this time, according to the discussion among several people in the group, has entered the time close to the midday closing.

And the market entered after 11:15.

The changes in related hot spots in the two markets have not changed much compared to before.

The weighted main line and the large infrastructure main line, as well as the two main lines-related industry sector indexes such as liquor, white goods, medicine, consumption, electricity, petrochemicals, finance, real estate, construction decoration, building materials, nonferrous metals, steel, coal, and their related hot core stocks and industry leading stocks, still maintain a pattern of shrinking volume and narrow fluctuations.

Even the check of 'Oriental Yuhong' continues to attract the attention of a large number of investors in the market.

This morning's market trend also saw a serious decline in volume. The entire morning's trading volume was basically only about 65% of yesterday's. Even industry-leading stocks such as 'Anhui Conch Cement', 'China Construction', and 'Poly Real Estate' saw an even more serious decline in volume. Of course, the amplitude of their intraday fluctuations was also smaller.

And in the main line of 'emerging industrial chain'.

Several core leading stocks that were heavily hyped up by hot money in the early trading session and concentratedly bought up, such as 'Huawen Media', 'Huawen Online', 'Huayi Brothers', 'Huaqingbao'... and other stocks, are still firmly capped at the daily limit, and there is no situation of large-volume explosion.

There are other main-line concept stocks whose market recognition is not as high.

They also maintain a relatively good disk volatility trend.

As for the 'consumer electronics' and '5G communications' sectors that have attracted the attention of long funds, they are obviously at a relatively low level in the market and are in the 'catch-up' logic area that is the main target of funds. Although the intraday volume has gradually weakened at this moment, the trend is still gradually upward and is still very strong. Moreover, the market popularity and discussion heat of related stocks are still continuing to increase.

When 11:30 am arrives, the market enters the midday closing period.

All the major market indices continued to close in the green, and the leading ChiNext Index, China Securities 500 Index, and All Securities 1000 Index all closed with an increase of more than 1.6%, basically maintaining the highest closing position during the session. (End of this chapter)