Rebirth of the Capital Legend

Liao Guoxiang thought for a moment, paused, and continued, "That depends on your own profit expectations for this transaction. In my opinion, profit expectations determine the choice of trading model and the logic of trading thinking. As far as the current market trend is concerned...

I think it is not wrong to choose the "big infrastructure" line, continue to buy on dips, and continue to increase holdings of core leading stocks with excellent fundamentals and strong expectations for explosive performance in the future, as well as industry-weighted leading stocks.

At the same time, follow the market's hot short-term speculation sentiment and the net inflow direction of active capital flows.

There is nothing wrong with hyping up the core leading stocks in the film and television media, Internet software, and Internet application sectors that are still in the midst of an emotional outburst, or other small and medium-sized and micro-cap growth stocks that have corresponding concept heat and emotional heat.

It’s just that the two options follow different trading logic.

In my opinion, there is no right or wrong in trading logic.

The essence of our trading is to verify our trading logic and views on market trends through one transaction after another.

As long as you trade according to your own trading logic, I think there will be no problem.

There are always a lot of market opportunities at any time. As long as you can make money from the market, it is right to follow any trading logic. "

He is a person who never rejects any trading model.

Because he believes that there is not only one way to trade in the market. There are tens of millions of ways to successful trading. As a trader, all he needs to do is find the one that suits him best.

Of course, in terms of his own trading choices.

As for the 'Huawen Online' check, he will definitely not take over the baton since he has missed the buying point in the early trading session. However, for the 'Oriental Yuhong' check, the underlying logic is still solid, and the expectations for future performance explosion are still increasing. At the same time, the performance of the offline real estate market in various places seems to be adding fuel to the fire.

If there is a low point in the check market, there will be times when bad sentiment appears.

Regardless of whether the funds go along the "Fuxing Road" that everyone expects, he will decisively increase his positions and go long.

In fact, from the perspective of medium- and long-term investment logic, for the "big infrastructure" line, he hopes that the funds along the "Fuxing Road" route, or the main institution "Huayi Capital", can reduce some positions appropriately, and create a more ideal deep pit for increasing positions at this position.

However, this was just a thought that occasionally flashed through his mind.

Judging from a rational point of view, he knows that whether it is the funds of "Fuxing Road" or the institution of "Huayi Capital", it is unlikely that they will reduce their positions and exit the market to lock in profits before the logic of the core theme of "big infrastructure" is fully fulfilled, or the expectation of explosive performance has not been fulfilled, and the rise in housing prices in the offline real estate market has not slowed down.

In other words, judging from a rational point of view...

The sharp correction in the main line of "big infrastructure" that he expects is unlikely to happen.

"Brother Liao is right." Chen Guiyun responded, "There is no right or wrong in trading logic, it just depends on how you weigh the market trading opportunities. Anyway, I think that at this time, instead of chasing high-profile hot stocks with high recognition in the fields of 'film and television media', 'Internet software', and 'Internet applications', it is better to buy low in the main field of 'big infrastructure', which still has the core underlying logic support, has a high market recognition, and has some industry leading stocks and popular leading stocks with strong future expectations.

In fact, in a market environment of stock game, it is difficult for the market to continue to exert its strength in one main direction.

This is the case with the 'big infrastructure' line, as well as the main weight lines such as liquor, white goods, medicine, consumption, electricity, and finance. It is also the case with the main lines of 'emerging industrial chains' in the small and medium-sized and micro-cap fields such as film and television media, Internet software, Internet applications, consumer electronics, and new energy industry chains.

Even if it seems that the market is continuing to move along the same main line.

In fact, it is constantly rotating within the main line and the market trend is constantly changing.

Just like before, when major groups of major funds held together the main line of market weight, for a period of time, liquor and white appliances led the rise, for a period of time, medicine and electricity led the rise, and for another period of time, finance led the rise.

There was also a period of time ago when the main line of "big infrastructure" continued to explode.

At the beginning, steel, coal and nonferrous metals took the leading role, following the idea of ​​"supply-side structural reform". Later, as the property market boom intensified, the three major sectors of real estate, building decoration and building materials led the market. Later, driven by the main line of "new energy industry chain", the nonferrous metals sector once again became the leading sector.

The recent trend in the main area of ​​'emerging industrial chains' is also the same.

Previously, the three major sectors of "film and television media", "Internet software" and "Internet applications" were the first to come out. At that time, it should be said that the consensus was that it was an "oversold rebound". Then a series of related sectors such as consumer electronics, new energy industry chain, restructuring and backdoor listing, 5G communications, mobile games, online education... and their related concept sectors took turns leading the rise. At this time, everyone began to think about the logic behind the change in market investment direction.

Now, after a round of rotation, the heat has returned to the three major sectors of film and television media, Internet software, and Internet applications.

I think that as long as the overall environment of market stock game does not change.

Before there is a large-scale entry of a large number of off-site incremental funds.

The changes in the market trends in the market, no matter which core main line is temporarily dominant, will be presented as a constantly rotating market trend.

In other words, there will always be a local money-making effect in the market.

And since the local rotation market trend cannot be changed, then focusing on a core main line with underlying logic and strong expectations for the future and trading it repeatedly, I think it will have a significantly higher tolerance rate and be easier to grasp than chasing hot spots and constantly rotating according to market sentiment.

If you continue to chase hot spots, it is possible that after chasing them today, the hot spots will shift to somewhere else tomorrow.

Just like yesterday's main sectors of the consumer electronics and new energy industry chain.

Yesterday, some short-term active capital groups chased the main lines of the consumer electronics and new energy industry chains. Although these two main sectors did not produce serious negative feedback and loss effects today, it is difficult for them to make profits. Generally speaking, the sustainability of their hot spots is still relatively low.

Judging from the previous rotation of hot spots...it is actually difficult to say how sustainable today's film and television media, Internet software, and Internet application sectors will be tomorrow.

It is possible that tomorrow the film and television media, Internet software, and Internet application sectors will also become the main lines of today's consumer electronics and new energy industry chains.

On the other hand, the main line of "big infrastructure" is related to the real estate, building decoration, building materials, nonferrous metals, steel, and coal sectors.

Because of the strong underlying logic support and future expected effects, it can be determined that the downward adjustment space is limited, and these sectors happen to be in a sideways adjustment state, so if you buy in and take over at a low level, the feedback you can get will most likely be better. "

"If it is confirmed that the main line of 'big infrastructure' needs to be adjusted, then judging from the capital situation and the pressure of profit-taking on the market, the current adjustment range of the 'big infrastructure' line is far from enough in terms of space and time, right?" Li Jinshi said, "With the support of strong underlying logic and strong expectations in the future, the logic of increasing positions at low levels is correct, and the transaction point is also correct, but the current timing... I don't think it's time yet, right?
On the other hand, let’s look at the line of small and medium-sized stocks and small and micro-cap stocks.

Sentiments have just risen, and judging from the K-line trend of the ChiNext Index, a bullish trend has just been formed.

Regardless of sentiment orientation, K-line pattern orientation, or recent news and policy orientation, the market should have a rotation switch between large-cap and small- and medium-cap stocks, and there should also be a "high-low switch" in the venue.

I think we should follow the real feedback from the market and the guidance of funds.

After completing the market trends in the direction of small and medium-sized stocks and micro-cap stocks, we will turn back to the market trend of the main line of "big infrastructure". The two are not contradictory, and they seem to be consistent in time and space.

At this time, continue to increase holdings in the core leading stocks of the "big infrastructure" main line.

It feels like a bit of a waste of position and time.

As for market transactions, I think one should do the right thing at the right time. It is enough to be one step ahead of the market. There is no need to be two steps ahead of the market.

If you make a judgment too early, enter the market early.

Then, it is very likely that they will not be able to endure the loneliness of subsequent adjustments and miss more market opportunities. "

"If you really think that the opportunities in both directions are good, then wouldn't it be enough to split the positions 50% each?" Liao Guoxiang paused and continued, "This way you can control the risk and balance your own psychological judgment. In fact, when we trade... sometimes it is worth giving up some opportunities for certainty."

"Haha, Brother Liao is still good at talking." Li Jinshi laughed, "Indeed, since it feels like there will be opportunities in both directions, then we should just make some arrangements for both."

Along with the continuous discussion among the three core main speculators in the "Fushan Group" main speculator group.

Market time continues to move forward rapidly.

Soon, amid the heated discussions among countless investors both inside and outside the venue, the one and a half hour lunch break passed in a flash, and at 1 p.m., the two markets once again ushered in formal continuous bidding transactions.

The clock hands just passed 1pm.

With the help of the midday sentiment, individual stocks in the film and television media, Internet software, and Internet application sectors, which were concentratedly speculated by a large number of active funds in the morning, were rushed to buy by many buying funds at the moment of opening in the afternoon, causing their stock prices to rise sharply.

At 1:01 p.m., the growth rates of the 'Film and Television Media' and 'Online Education' sector indices both broke through to more than 3.75%.

At 1:02, the number of stocks that hit the daily limit in the two major sectors reached 12.

At 1:03, LeTV's stock price hit the daily limit, and the intraday transaction volume reached 10 billion, setting a new record in recent trading volume.

At 1:04, the growth rate of the ChiNext Index broke through 2.23%. At the same time, the Shanghai Composite Index and the Shenzhen Composite Index were also driven up, with the increase approaching 1%.

At 1:05, concept sectors related to "network security", "domestic software", "film and television production", "animation and games" and so on all showed unusual movements, and the corresponding concept stocks also attracted the attention of a large number of active buying funds. In the entire small and medium-sized cap and micro-cap sectors, the CSI 500 Index and the ZSE 1000 Index also climbed to a 2.20% increase, and more than 2400 stocks in the two markets closed in the green.

At 1:06, after a large amount of buying orders concentrated at the beginning of the trading session, the intraday trading volume began to stabilize again.

At 1:07, after LeTV exploded, it quickly recovered and its intraday trading volume reached 12 billion, ranking tenth in the trading volume rankings of the two markets.

At 1:08, the intraday increase of 'Netspeed Technology' reached 8%.

At 1:09, the stock '3' rose sharply and hit the upper limit. The intraday gains of the two major concept sectors 'cybersecurity' and 'domestic software' also exceeded %.

At 1:10, the "consumer electronics" sector, which was once sought after by funds yesterday, also moved unusually.

At 1:11, Changying Precision, whose intraday amplitude reached 12%, once again hit the daily limit, achieving a continuous rising trend.

At 1:12, the short-term speculation sentiment of the entire market rose again. The 'reorganization and shell acquisition' concept sector moved abnormally, and the 'ST sector' representing the oversold main line also moved abnormally and rose. A number of so-called small and micro-cap junk stocks attracted the attention of a large number of speculative funds. Correspondingly, when these small and micro-cap stocks exploded one after another, some core component stocks in the A50 index and some weight leading stocks in the 'big infrastructure' main line began to show an accelerated outflow of large funds. Even the 'Guizhou Moutai' check, which was rare in the red market and the vast majority of stocks in the market maintained a red market and rose, fell by 1.32%.

At 1:13, the stock price of 'Oriental Yuhong' also showed a downward adjustment trend, and the market trend turned green again.

At 1:14, a number of core "big infrastructure" heavyweight leading stocks such as "Anhui Conch Cement", "Huaxin Building Materials", "China Construction", "Poly Real Estate", etc., were also gradually declining, and the main funds on the market showed an outflow trend. In the entire market, more and more liquid funds were siphoned into the small and medium-sized and micro-cap stocks dominated by film and television media, Internet software, and Internet applications.

At 1:15, the ChiNext Index was still fluctuating upward, but the Shanghai Composite Index began to lose strength again and began to gradually turn downward.

At 1:16, the two markets began to form an obvious " differentiation" trend. The small and medium-cap and micro-cap stock sectors, especially some highly recognizable small-ticket concept leaders in the market, completely became the target of concentrated speculation by many active short-term capital groups in the market.

"It feels like the market sentiment and the direction of active capital flows are all concentrated in the small and medium-sized stocks and micro-cap stocks. At the same time, the main funds in the main line of 'big infrastructure' and the main line of market weight have begun to show a net outflow trend." Facing the changes in the market trend, at this moment in Shanghai, inside the 'Jufeng Asset Management Company', in the main fund product trading room of 'Jufeng Future Growth', Yu Xiaolu, as the trading team leader of this fund product, noticed the general change in the market direction and couldn't help saying, "Mr. Lu, it feels like... Is this a clear change in the market investment direction? Has the 'big infrastructure' line... fulfilled its expectations?" (End of this chapter)