Rebirth of the Capital Legend

"It's not the case at the beginning." Liang Jiucheng said, "It can only be said that in the previous market trends, most people's attention was focused on the main line of 'big infrastructure' and the main line of market weight. Emotions have not fermented in the main field of 'emerging industrial chain' where small and medium-sized stocks and micro-cap stocks are located. Now this kind of emotion has entered a state of full fermentation. But generally speaking... after the emotion fully ferments, the market begins to enter the second half."

"It still depends on the situation of off-site funds entering the market, right?" Zhao Zhiyuan said, "If the traces of off-site funds entering the market are more obvious, and the market turnover in the market increases, and the weighted main line and the 'big infrastructure' main line can maintain stable sideways fluctuations, then the hype sentiment of the 'emerging industrial chain' line should increase further, and the hype space will also be further opened, right?"

"It is probably still difficult for OTC incremental funds to enter the market on a large scale." Zhang Wei said, "The real estate market is obviously more popular than the stock market. Most of my friends around me pay attention to the stock market, but fewer and fewer people are entering the real estate market to speculate in real estate. This shows that the active liquidity group in the market, except for those institutional groups that must maintain a certain position in the stock market, other active funds... The first choice should still be to invest in the real estate market.

What's more, the amount of funds that the real estate market can carry is much larger than that of the stock market.

I think if we want to attract a large amount of off-market funds to invest in the market, it will only be possible if there is some movement at the central bank level and various banking institutions can further relax monetary policy to make the liquidity in the market more abundant, or to achieve a spillover effect from the real estate market.

Without these conditions and factors...

It is highly likely that the current market will maintain a stock game pattern for a long time.

However, under the investment structure of stock game, it seems quite difficult to attract more funds to continue to speculate on the "emerging industrial chain" line, or to attract institutional main funds to enter the layout and lock positions in the absence of underlying logic and strong industry fundamentals.

I think the current market trend is still mostly a rotation pattern.

Moreover, looking at the performance of volume, today's increase in the main area of ​​'emerging industrial chain' is mainly siphoned from the main line of 'big infrastructure' and the main line of weight.

This so-called incremental buying...

Once the adjustment of the main line of "big infrastructure" or the main line of market weight is completed, funds will be gathered again.

I am afraid that the main line of the "emerging industrial chain", which is currently rising well and has hot sentiment, will soon appear again in the previous situation of insufficient buying and unable to withstand the continued selling pressure on the market.

Therefore, we must not have too high expectations for the investment and trading expectations here.

I think it is safest to trade and make the market based on the logic of the next day's ultra-short-term. After all, without the driving force of the underlying logic, it is basically unlikely that these popular stocks in the main field of "emerging industrial chain" will develop a strong trend like "Oriental Yuhong".

This can also be seen from the two main lines and the nature of the funds involved.

Although the stock price of 'Huawen Online' has reached the daily limit for four consecutive days, according to the trading data of its Dragon and Tiger List, the main institutions have not bought much, and most of those who participate in the game are the main hot money in the market. "

"What Lao Zhang said makes sense." Liang Jiucheng nodded in response, "The 'big infrastructure' line and the 'emerging industrial chain' line have obvious differences in underlying logic and trend nature. The trend expectations of the two main lines cannot be directly compared, nor can they be used in comparison to make trading decisions."

"From the perspective of ultra-short-term trading, the 'Huawen Online' check, as well as the related hot stocks in the core sectors of 'Film and Television Media', 'Internet Software', and 'Internet Applications', are also good buying points today, rather than selling points, right?" Zhao Zhiyuan said, "Compared with yesterday's market sentiment, today's situation is clearly a divergence to a consensus, which can be regarded as a turning point in sentiment. According to the development trend of sentiment, the current sentiment performance will definitely continue to explode in the subsequent market trend."

"The ultra-short-term buying point is correct." Liang Jiucheng said, "But this is only limited to the core popular leading stocks with high market recognition. For other follow-up stocks, it is risky to chase high prices. In fact... although the market sentiment is very good, potential differences still exist.

And, in terms of sustainability...

Yesterday, the two lines of the consumer electronics and new energy industry chains were unable to generate money-making effects or create room for speculation.

In fact, there are still some concerns for many potential buying funds that want to take over.

Now, driven by the check from "Huawen Online", the trends of the film and television media, Internet software, and Internet application sector indexes are indeed very strong.

The overall investment style of the main line rotation can be analyzed.

Under such strong emotions, the trading volume of these lines has not exploded significantly, and the trends of many industry-leading stocks are still rather confusing.

As Lao Zhang said just now, these lines are not proactive enough.

Since there is not enough initiative, there is a high possibility that there will be variables.

There is still a long time before the closing. If the sentiment cannot be further improved, I am afraid that the trend in the afternoon will not be too optimistic. "

"It should be OK to maintain today's market trend, right?" Zhao Zhiyuan said. "It seems that other main-line areas of the entire market are not able to siphon the attention of the active buying funds in the market and disperse the funds flowing into the main-line areas of 'emerging industrial chains'."

“Yes.” Zhang Wei replied, “I feel that a lot of funds are paying attention to this line after it was reorganized today. It seems like a hidden main line in the current market.”

"There has always been money invested in restructuring," Liang Jiucheng said. "Although IPOs have not stopped, the number and scale of issuances have been greatly reduced compared to before, so the underlying logic of restructuring and backdoor listings is actually reasonable."

"For the restructuring and backdoor listing, the stocks related to the concept are very small," said Zhao Zhiyuan. "It should not interfere too much with the hype of the 'emerging industrial chain' line, nor will it be able to siphon off active funds in the market as much as the previous 'big infrastructure' and weighted main lines did. I think the impact will not be significant."

"The restructuring line is not a small one," said Zhang Wei. "The restructuring of state-owned enterprises and central enterprises is actually the highlight of this potential main line of restructuring. However, the concept of 'restructuring of state-owned enterprises and central enterprises', relatively speaking, still needs to be coordinated with other main lines, or in other words, with the fundamentals of performance, in order to burst into vitality."

"The concept of restructuring of state-owned enterprises and central enterprises?" Zhao Zhiyuan laughed when he heard this and said, "At present, the big funds in the market should not be too interested in this concept and main line, right? After all, in the last bull market, the trend of Huaguo Zhongche, the leader of the 'New Era Maritime Silk Road' and the core leader of the concept of restructuring of central enterprises and state-owned enterprises, was already quite tragic.

To put it bluntly, this line is more dependent on favorable news and policies.

In the absence of these two factors.

I don’t think the line of ‘restructuring’ can be hyped up as the main line of ‘the concept of restructuring of state-owned enterprises and central enterprises’ and gain unanimous recognition from the vast number of investors who follow suit in the market.”

"Not necessarily." Zhang Wei said, "At present, the overall market is still in the main line rotation trend. As long as there is a slight change in the news, active funds will flock to this line for concentrated speculation. I think it is possible. Of course, in terms of the current market attention, this line is definitely not as good as the 'emerging industrial chain' main line, the 'big infrastructure' main line related sectors, and their corresponding hot stocks."

"Compared to the early trading hours in the morning, we no longer have the first-mover advantage," Liang Jiucheng said. "At the same time, the market volume has begun to stabilize, and the volatility of the market trend has gradually narrowed. It is estimated that there will be no major changes in the market trend this morning. Let's take a look at the mood and news in the afternoon, and then make a clearer analysis of the subsequent trend."

"Okay." Zhao Zhiyuan nodded, and then turned his attention back to the two market charts.

And as his eyes focused again.

At this moment, the trading hours of the two markets have entered after 11 o'clock.

On the market, the film and television media, Internet software, and Internet application sectors related to the main line of the "emerging industrial chain" still maintained their leading trend, and the real estate, construction, building materials, nonferrous metals, steel, and coal sectors related to the main line of the "big infrastructure", as well as the white wine, white appliances, medicine, consumption, electricity, and financial sectors in the weighted main line, also maintained a sideways and shrinking trend. In terms of the intraday volume of the two markets, after a slight increase in volume in the first half hour of the session.

It has maintained a balanced trend of slight shrinkage.

From the perspective of volume, the signs of incremental funds entering the OTC market are still not obvious.

Then, as the market trading time progressed, until 11:30 am, the two markets ushered in the midday closing time, and there were no further abnormal changes in the trends of the major main lines on the market.

However, although the index's increase and the gains of major popular main and branch sectors did not expand further, the ChiNext Index, the CSI 500 Index and the CSI 1000 Index all rose by more than 2% in half a day, and with more than 2000 stocks in the two markets rising, the countless retail investors gathered on major stock investment exchange platforms across the Internet were still extremely excited and relatively excited.

"The Shanghai Composite Index rose by 0.5%, but more than 2000 stocks in the two markets were in the green. This market trend is really the opposite of the previous one!"

Among the large groups of retail investors gathered on major stock investment exchange platforms, someone sighed.

"Big ticket sellers build the stage, small ticket sellers perform. That's how it should be."

"If the price of big tickets can't go up anymore, then naturally the price of small tickets will go up."

"In the main weighted sector, many core leading stocks have recovered from the losses in the previous rounds of stock market crashes, and many stocks are almost filling the huge gap left by the stock market crashes, rising to the peak of last year's bull market. How can I put it... it's time for small stocks to rise in rotation. Anyway, I am optimistic about this round of small stock market. I feel that the ChiNext Index's market has just begun."

"I remember that when the Shanghai Composite Index was at 3000 points, the ChiNext Index was around 2000 points. Now the ChiNext Index still has nearly 2000% room to go before it reaches 20 points. In other words, the ChiNext Index must rise by at least 20% to match the current level of the Shanghai Composite Index, right?"

"I don't ask for a 20% rebound, I'll be happy if the ChiNext Index can rebound by 10%."

"How much the ChiNext Index can make up for this round of gains depends on the height of the check from 'Huawen Online'."

"Yes, I feel like the check from 'Chinese Online' has completely become a monster."

"Needless to say, the 'Chinese Online' stock will definitely be a big monster stock in September. Anyway, I am firmly optimistic about this stock."

"I am still optimistic, but unfortunately the price rose too fast today and I didn't have time to increase my position."

"I am also optimistic that the future growth of 'Huawen Online' will exceed that of 'Oriental Yuhong'. In terms of short-term trends, there is no doubt that 'Huawen Online' is the real core leader."

“It seems a bit difficult to surpass Oriental Yuhong in terms of growth in the short term, right? Unless Oriental Yuhong undergoes a major adjustment in the next few days.”

"It's not impossible. I feel like these two checks are a bit like a seesaw."

"I don't think Oriental Yuhong will fall sharply. It seems unlikely that the stock will fall sharply before Mr. Su leaves Fuxing Road."

"I am still more optimistic about the Oriental Yuhong stock. If it dares to fall, I will increase my holdings."

"Why should we look at them separately? I think both stocks are good. They are both the absolute core leading stocks in the current market. No matter which of them has a larger loss effect, it will greatly affect the market sentiment. I think... it will be better for everyone to move forward together."

"Yes, yes, if we all move forward together and grow together, it will be easier for everyone to make money."

"Today's 'big infrastructure' theme is still a bit weak."

"It doesn't matter. As long as the main line of weight does not fall, and the main line of small and medium-sized stocks and micro-cap stocks in the market can continue to rise, that's enough."

"Indeed, now it doesn't matter whether the Shanghai Stock Exchange Index rises or not."

"Everyone should have outperformed the index today, right? Although the main trend is in the film and television media, Internet software, and Internet application sectors, other small and medium-sized stocks and micro-cap stocks have also attracted a lot of attention from active funds in the market, resulting in a partial general rise."

"Finally, a situation has been reached where only the A50 index-related constituent stocks are hurt."

"Haha, the situation where the index rose and individual stocks plummeted is finally over. As expected, things change. Fortunately, I didn't sell the small stocks I had before to chase the large stocks."

"Indeed, it is very rare for small-ticket stocks to experience a rebound in prices."

"It seems that the market style has indeed changed significantly."

"It's time to change direction. Banks, electricity, liquor, white goods... these sector leaders can't rise to the sky, right?"

"When a whale falls, everything comes to life. This feels good. In the main-line areas of weight, the disintegration of the group of institutions will release more liquidity."

"Yes, if the institutional group collapses, short-term sentiment will improve and the market will be better."

"It seems too early to think that the institutional group will collapse. There are indeed some signs of loosening in the chip structure of some core leading stocks in the main line of weight, but it feels that there is no overall loosening. Maybe... this group market will fluctuate again."

"No matter what, at least the ChiNext Index should have bottomed out, right?"

“Looking back now, the two consecutive days of sharp declines were indeed the bottom, which was a golden buying point!”

"Alas, what a pity, I didn't dare to buy at the bottom at that time."

After the midday break, there were heated discussions among countless retail investor groups on major stock investment exchange platforms across the Internet. It was clearly felt that the short-term speculation sentiment in the entire market and the follow-up sentiment of retail investors were still fermenting further, stimulated by the money-making effect created by the comprehensive rebound of small and micro-cap stocks in the market.

And in the midst of this emotional ferment...

Many retail investors have begun to firmly believe that the investment trend of the market is changing, and firmly believe that the large capital groups in the market are beginning to focus on low-priced small and medium-sized stocks, small and micro-cap growth stocks, or some concept stocks with imagination space to make large adjustments. (End of this chapter)