Rebirth of the Capital Legend

"Have even the agriculture and animal husbandry sectors started to make up for the increase and rotate?" Noticing the sudden surge in the agriculture and animal husbandry sectors in the market, at this moment in Shanghai, in the trading room of the main fund product "Sino Future No. 1" inside Sino Private Equity Fund Company, Men Xingtao, the product manager of this main fund, frowned and said, "If so... it seems that all the main sectors in the market have already completed the rotation. When all the main sectors in the market have completed the rotation and have completed the compensatory increase, the subsequent upward momentum and expectations will probably be difficult to sustain."

"Could the unusual movement of the agriculture and animal husbandry sectors be caused by some news?" Huang Qingyun, the trading team leader of the main fund product "Xino Future No. 1", responded, "If this is a rotation to make up for the rise, the hot spots of the entire market today are obviously biased towards the main line of the 'emerging industrial chain' in the field of small and medium-sized stocks and micro-cap stocks, which is far from the agriculture and animal husbandry sectors. Logically speaking, the main line of the 'emerging industrial chain' in the field of small and medium-sized stocks and micro-cap stocks has not experienced a decline in sentiment, and the active funds that are long have not yet concentrated on taking profits and withdrawing in large quantities.

That is, when the overall bullish sentiment of the market and the concentration of active capital flows are still converging towards the main line of "emerging industrial chain".

According to the normal speculation logic of funds...

Even if it is a rotation to make up for the rise, it should be spread to other low-level branch sectors related to the main line of the "emerging industrial chain" for speculation. There is no reason to rush into the agriculture and animal husbandry sectors which are not related at all and have no logical connection for concentrated speculation.

So, I think there is this unusual movement in the agriculture and animal husbandry sectors at this moment.

The most likely driving force of the market still comes from market news.

Did the topics of "agricultural revitalization" and "new rural construction" come up in the high-level meeting this afternoon? I think it should be a positive stimulus from the policy direction, right? "

"That's possible." Meng Xingtao pondered for a while and said, "There is indeed an important high-level meeting today. The topics of 'agricultural revitalization' and 'new rural construction' have been mentioned before, but it seems that there has not been much effect so far. I feel that if it is driven by news, this line may not be sustainable."

"Yes, I think so too." Huang Qingyun nodded and said, "Agriculture and animal husbandry have rarely been the core hot spots of the market. Basically, their trends are passively following the fluctuations of the market. Moreover, from the macro perspective of industry development, these two industries do not have much development prospects. The main capital groups that dare to make long-term layouts in these two fields are originally very rare. Therefore, we don't need to pay too much attention to this sudden change. I think the core hot spots and core lines of the current market are still the 'emerging industrial chain' line and the 'big infrastructure' line. The main active capital groups in the market are basically concentrated on these two lines."

"In the past two days, the 'emerging industrial chain' line has obviously been stronger." Men Xingtao said, "Do you think the overall investment trend of the market will change here? I see that on the communication platform where many investors gather in the market, there are more and more discussions on investment topics related to the hot stocks of the 'emerging industrial chain' line. On the contrary, the 'big infrastructure' main line, which has been hot before, has declined in popularity. In addition, many stocks related to the 'big infrastructure' main line have indeed risen a lot, which seems to be a bit of an expectation being fulfilled. The trend in recent days has been a bit weak, and it can be clearly seen that some funds are withdrawing."

"I think the 'big infrastructure' line is probably not completed yet." Huang Qingyun said, "Whether a core main line is completed or not is actually quite obvious from the core leading stocks. From the current trend and K-line patterns, 'Oriental Yuhong', 'Conch Cement', 'Poly Real Estate', 'China Construction'... these core leading stocks have not shown obvious top features, and have not seen a large increase in volume at high stock prices. This shows that the internal chip structure of these core leading stocks is still very stable, and a large number of major capital groups that have intervened before are not in a hurry to cash out or make large-scale adjustments at this position.

Although the ChiNext Index and the SME Board Index have been very strong recently.

The main areas of the 'emerging industrial chain' related to its index, including film and television media, Internet software, Internet applications, etc., are also sought after by a large number of active capital groups and many follow-up retail investors.

However, judging from the recent trading data of a number of leading popular stocks disclosed on the Dragon and Tiger List.

In fact, among the funds involved in these individual stock markets, those that belong to institutional investors are still very few.

In other words, the large amount of funds currently supporting the stock prices of these individual stocks come from the short-term speculative funds in the market. These funds are driven by emotions and only focus on stock price fluctuations. They have no understanding of the so-called underlying fundamental logic, cannot see that far ahead, and do not have the patience to hold long-term positions.

I think that the market trend dominated by these fund groups is unlikely to form a long-term upward reversal trend like the previous "big infrastructure" main line, as well as strong weight main lines such as liquor, white appliances, medicine, electricity, and finance, although these stocks have a strong short-term outbreak.

But there is no underlying logical support, and no long-term funds to help lock the positions.

Eventually, as emotions gradually recede and some profitable funds immediately take profits and exit the market, it is likely that things will return to where they came from.

The main holdings of our fund products are still on the main line of "big infrastructure".

I think the underlying logic of the core theme of "big infrastructure" has not been shaken, and future expectations have not diminished.

We cannot rashly adjust our positions, nor can we rashly chase the rise and intervene in the "emerging industrial chain" line.

Secondly, look at the K-line trends of the major market lines.

Even if the market undergoes a long-term trend shift between large and small caps, the market investment direction has changed under the guidance of the current group of active funds.

Then, there will definitely be more suitable right-side opportunities to intervene in the future.

Just like our previous positions in the main line of "big infrastructure".

Therefore, at this stage, we cannot panic and rush to lay out these current hot spots in the market."

"Well, what you said makes sense." Men Xingtao pondered it carefully and felt that the main lines of the current market were still unclear, and there were still not many definite opportunities. Moreover, although the trend of the 'big infrastructure' line, which their fund holds heavily, has been somewhat weak in recent days and slightly underperformed the market index, there is indeed no sign of a collapse of the chip structure. Many core leading stocks have not risen much and are in a shrinking and sideways trend, and there has been no serious loss of money. Therefore, he thinks it is better to continue to observe patiently and keep a static position. Therefore, he paused and continued, "Since the overall signal of the market's investment trend change is still unclear, and there is no sign of logical collapse or change or deterioration in the fundamental trend of the 'big infrastructure' line, then let's continue to watch."

After saying this, he turned his attention back to the two markets where trading was intense.

And following a brief conversation between the two.

The market trading time at this moment is gradually approaching around 2 o'clock in the afternoon.

At this moment, due to the sudden rise of the two major sectors of agriculture and animal husbandry, part of the active capital flow originally concentrated in the main line of the "emerging industrial chain" was diverted from the two markets.

This directly led to the dispersion of hot spots in the venue.

It also caused the intraday gains of the three core sectors, namely film and television media, Internet software, and Internet applications, which had always been strong, to decline to some extent.

However, when market trading hours further pass 2 p.m.

After a brief dive in the market, due to the still positive sentiment, the corresponding hot stocks in the market began to recover their intraday losses in the late trading session after 2 o'clock, and once again launched an attack on the intraday highs and new intraday highs.

"I said it, the market's bullish sentiment will continue to rise, and all intraday diving points will be new buying points." Seeing that in the late trading stage, the market trend continued to rise strongly, among the countless retail investors gathered on major stock investment exchange platforms across the Internet, everyone's emotions were still high, and investors who were actively bullish and actively going long continued to emerge in an endless stream, and many of them expressed optimism.

"I will definitely continue to go long. Is there any doubt about that?"

"As long as the core leading stocks such as 'Huawen Online' are as stable as a rock, then the trend of the entire market will most likely be fine."

"The 'Film and Television Media' line has really set off a surge in daily price today!"

"It's all thanks to the good performance of 'Huawen Online', but the 'Film and Television Media' sector should also make up for the loss on a large scale. It really fell too much in the past year."

"Today, 'Tong Hua Shun' and 'Eastern Fortune' also saw quite a lot of unusual movements."

"I feel like the 'Internet finance' line also needs to be moved?"

"Didn't the price of the 'Silver Master' check reach the daily limit? Isn't this considered an abnormal movement? But this check... should still be a rebound from an oversold price, right?"

"The check from 'Eastern Fortune' is still a safe bet. I think the future market value of this check will most likely exceed that of 'LeTV'."

"It's unlikely. LeTV's future development prospects are still very good."

"These are all stocks that were hyped up by funds in the last bull market. I think it is unlikely that these stocks will rise again in the future. After all, the market always likes new things and dislikes old things. Just look at the core leading stocks that have emerged during the outbreaks of the film and television media, Internet software, and Internet applications sectors, such as "Huawen Media", "Huawen Online", "2345", and "Ren Zixing"... Which of these stocks was hyped up by funds in the last bull market? Basically, they are all newly discovered in this round of market conditions, so I think it is difficult for the old leading stocks in the past to continue to strengthen and go far. It is better to pay attention to the new leading stocks."

"Yes, yes, only new leaders have new expectations. The old leaders in the past have countless locked-in shares. I guess in the current market situation, there is not enough funds to fully release these locked-in shares, right? If the locked-in shares accumulated in the early stage cannot be released, naturally there will be no room for unexpected growth."

"I don't agree. Does this mean that there are no trapped orders above these new leaders?"

"Sometimes, but not as serious as the locked-in positions of LeTV, Oriental Fortune, Flush, and Netspeed Technology. The pressure to rise is also smaller. In fact, it is not only the 'film and television media', 'Internet software', and 'Internet applications' sectors, nor is it only the core main line of 'emerging industrial chains'. Look at the 'big infrastructure' line, which is essentially the same. In this round of market, the best performers on the 'big infrastructure' line are not the old leading stocks. This shows that the market capital's thinking of 'loving the new and disliking the old' is not wrong."

"In fact, you don't need to analyze so much, just follow the market. For example, in the recent market trend, the strongest stocks are 'Huawen Online' and 'Oriental Yuhong', so just focus on these two stocks and buy them. For the rest, you don't need to think too much."

"The current positions of these two checks are not low!"

“For true core leaders, there will not be a very good buying position, because such core leaders often have low certainty when they are at a low level. Only when they come out and rise high and are unanimously recognized by funds, will there be sufficient certainty. When the certainty is sufficient, the stock price position will naturally not be too comfortable. It all depends on how much premium you can give to the core leader and how much premium you can give to certainty.”

"The check from 'Huawen Online' is still okay, but the check from 'Dongfang Yuhong' is a bit slow to increase, right?"

"The trend logic of the two checks is different. I feel that there is still room for the Oriental Yuhong check. Of course... risks do exist."

"These two core leading stocks have already shown a clear seesaw effect."

"Well, it is true. At present, there is a seesaw effect between the main line of 'big infrastructure' and the main line of 'emerging industrial chain'. I think this is still a problem of insufficient liquidity of funds in the market, right?"

"Yes, it's because of insufficient liquidity, so we can only focus on one main direction."

"The current main direction of funds is obviously the GEM and SME boards. I think the main line sectors that tend to be in the direction of the Shanghai Composite Index and the Shenzhen Composite Index, as well as related stocks, can be put aside for now. I feel that the recent main line of 'big infrastructure' and the main line of the main board weight will not have a very good market."

"Yes, I think so too. The short-term trend of the market has obviously changed."

"The ChiNext Index must reach at least 1800 points to correspond to the current position of the Shanghai Composite Index, right?"

"If it is 1800 points, there is still at least 15% room to go. If the index rises by 15%, the general rebound height of individual stocks should be 25% to 30%."

"Yes, and has anyone noticed that the recent volume feedback in the market shows some signs of continuous increase?"

"What does this mean?"

"This shows that as the money-making effect within the market increases, there are still a large number of off-market wait-and-see funds that are gradually entering the market."

"Haha, if there is really additional capital coming in, that's great!"

"This amount of increase is actually not very useful. I think we need to let the capital from the real estate market come in."

“It may not be that easy to attract funds to the property market.”

This is accompanied by heated discussions among countless retail investor groups and collisions of various bullish and bearish views on major stock investment exchange platforms across the Internet.

The market's trading hours continue to move forward.

As the market trading hours continued to advance, the two markets benefited from the continued rebound of the ChiNext Index and the Small and Medium Enterprises Index, as well as the continued rise in the market's bullish sentiment. The Shenzhen Index and the Shanghai Index, which had originally shown a sideways trend, or a small red market fluctuation, were gradually driven up again at this time, forming an upward momentum. At the same time, the market's intraday volume also began to gradually increase again at this time. (End of this chapter)