Rebirth of the Capital Legend

"Hey, the intraday volume of the market seems to be gradually increasing. It looks like the incremental funds from the OTC market can't help but enter the market to take over the long positions under the continuous positive money-making effect in the market." Noting that the intraday volume of the market has improved significantly in the late trading period, and at the same time, the corresponding core leading stocks of the major hot main lines have also shown a trend of increasing intraday volume step by step, Zhao Zhiyuan, who is among the main hot money group of the "Qilu Gang", said in surprise, "Originally, I thought that at this position, once it falls into a volatile situation, the upward resistance should become greater and greater. Now it seems... it seems that the market still has a lot of potential and momentum for growth!"

"The 'big infrastructure' line, as well as the main weighted sectors in the main board areas such as liquor, white appliances, medicine, consumption, electricity, and finance, have been able to hold their ground under continued selling pressure, and the short-term fund groups that are active in the market, as well as the speculative fund groups that follow the trend have been able to flow out of these sectors in large quantities and into the 'emerging industrial chain' main line area, showing a strong human shape. In fact, this shows that the current market momentum for decline is insufficient." Hearing Zhao Zhiyuan's surprise, Zhang Wei, who had been staring at the changes in the two markets, also took over the conversation at this time and responded, "In addition to the 'emerging industrial chain' main line area, there are also the current K-line trends of the GEM and SME boards, as well as the performance of market sentiment, which basically shows that the direction of least resistance in the market at this moment is still upward.

Since the trend is still upward, there is not too much negative feedback on the market.

It is easier to understand why a large number of funds waiting on the sidelines began to enter the market in the late trading stage to grab shares in order to seize tomorrow's market opportunities, or take the lead in future market changes.

In fact, we should not be bearish at this position rashly.

First, the motherboard direction...

Although the weighty sectors such as liquor, white goods, medicine, consumption, electricity, and finance, as well as the "big infrastructure" main line of real estate, building decoration, building materials, nonferrous metals, steel, coal and other sectors have completed their initial gains and fulfilled many future expectations and previous bullish sentiment.

Moreover, although there are some positive news in the market, there are also some shortcomings.

However, the analysis starts from the fundamentals of each industry sector in these two main directions.

In fact, the current valuations of a number of leading stocks in these industry sectors, as well as some growth stocks that have benefited from improved fundamentals, are still at relatively undervalued and reasonable valuation levels. There is no bubble that is far higher than the market average valuation, nor is there any overdraft of future expectations.

That is to say, the leading stocks in these core sectors.

The current resistance to the rise does not come from the fundamentals or the future expectations of recession, which are the underlying logical changes that can determine the change in stock price trends, but mainly from the suppression of the profit-making funds that have intervened in the corresponding core leading stocks of these main sectors in the early stage.

In other words, the underlying logic for these individual stocks is still sufficient.

It's just that there are some problems with the chip structure.

However, the problem of chip structure does not actually pose any obstacle as long as the entire market can continue to attract off-market wait-and-see funds to enter, that is, when the market can move from the game of existing funds to the situation of incremental funds.

As for the 'emerging industrial chain' line, sentiment in the market is currently hot.

This is an area that is being focused on and speculated upon by various active capital groups and follow-up capital groups, so there is naturally no need to worry about the short-term trend.

It seems that whether it is the main board or the ChiNext, the short-term downward bearish momentum is insufficient.

In this case, the correct approach for us is naturally to continue to go long.

I feel that this wave of rebound trend driven by the main line of "big infrastructure" still has the hope of turning into a reversal trend across the board.

At the same time, the Shanghai Composite Index can actually try to reach 3150 points in this wave.

However, the Shanghai Composite Index continues to fluctuate upward in the remaining range.

It is estimated that the main institutional funds in the early stage, such as liquor, white goods, medicine, consumption, electricity, finance, real estate, building decoration, building materials, nonferrous metals, steel, coal, petrochemicals, etc., have been grouped together and have also risen a lot, and the valuations of many sectors have been repaired in advance.

I'm afraid there isn't much room for a rebound.

It is highly likely that the current volatile trend will be maintained, or it will fluctuate in sync with the broader market trend.

Look at the main market trends of funds at present, the trend patterns of major indexes, subsequent market hotspots, and the space for rebound.

It is highly likely that it will continue along the line of the 'emerging industrial chain'.

Compared with the main line of "big infrastructure", there are also the weighted main lines of white goods, pharmaceuticals, consumption, electricity, and finance.

Currently, the SME Board and ChiNext, which mainly consist of small and medium-sized and micro-cap "emerging industrial chain" main-line stocks, are in a significantly better shape.

Moreover, the market has already reached 3000 points and has maintained this support level.

The market also needs the rebound of small, medium and micro-cap stocks to fill this support.

Therefore, it is highly likely that the incremental funds that follow suit from the off-site market, as well as the short-term funds that continue to gamble, will continue to gather in these areas to gamble, continuing to push up the market's short-term money-making effect and short-term speculation space. "

"Yeah, I agree." After hearing Zhang Wei's analysis, Liang Jiucheng nodded and responded, "The market is now somewhat in a positive feedback situation, and after the promotion of the check from 'Huawen Online', the short-term speculation space in the market has also been created. We can continue to be bullish."

"Haha, I think so too." Zhao Zhiyuan said, "I originally thought that the market volume might not be able to keep up, but now it seems that... since the group of investors on the sidelines can't help but enter the market and do more, we can continue to be bullish. The check for 'Chinese Online' will most likely accelerate tomorrow."

"Well, as the core leader of this round of 'emerging industrial chain' main line rebound, the 'Huawen Online' check must have room to rise." Zhang Wei said, "However, the current expectations for this check are a bit too consistent, and when the expectations are too consistent, it is difficult to generate expectation differences. I feel that this check will not be easy to participate in in the future."

"You can try to be the leader in following the trend and making up for the rise in this check." Liang Jiuchen said.

"Huawen Media, Yue Media, Quantong Education... these stocks?" Zhao Zhiyuan said, "I think it's better to buy the leading stock 'Huawen Online'."

"If we talk about certainty, I think the check from 'Eastern Fortune' is good," said Zhang Wei.

"GEM weighting?" Liang Jiucheng instantly understood what Zhang Wei meant. "If the index is benchmarked, this stock is not bad, but the logic of this stock is completely different from "Huawen Online", "Quantong Education", "Huawen Media", "Yue Media"... these stocks."

"With sufficient certainty and ample liquidity, there should be no problem in outperforming the market," Zhang Wei said. "As a medium- and long-term target, it is definitely suitable."

After saying that, he returned his gaze to the board...

I saw that the check for 'Oriental Fortune', one of the core weights of the ChiNext Index, was snapped up by a large amount of funds in the late trading stage.

The stock price rose in just ten minutes.

The increase has also risen from more than 2 points to nearly 5 points. At the same time, due to the rise of the heavyweight stock "Eastern Fortune", related concepts or linked stocks such as "Tonghuashun", "Dazhihui", "Yinzhijie", "Jinzheng Shares", etc., have also begun to rise rapidly, and even the entire "Internet Finance" sector has also formed a rapid explosive trend in the last fifteen minutes of the closing.

Finally, when 3 o'clock in the afternoon arrived, the two markets reached their final closing time.

The Shanghai Composite Index was fixed at a position close to 3050 points, with an intraday increase of 0.73%, while the ChiNext Index was fixed at an increase of 2.11%, significantly outperforming the Shanghai Composite Index and becoming the index with the largest increase among the major core indices in the market.

In addition to the major hot sectors and hot main lines other than the index...

The main area of ​​'emerging industrial chains' still maintains a high popularity and is sought after by a large number of active capital groups and follow-up capital groups. Related sectors such as film and television media, Internet software, Internet applications, semiconductors, and electronic information are all at the top of the two cities' industry sector index growth list.

Among them, the concept sector.

Online education, film and television production, domestic software, Internet finance, and restructuring and shell companies are at the top of the list of major concept sectors.

Especially in the concept sector of "online education", driven by the core leading stock "Huawen Online", a total of 6 stocks within the relevant sector hit the daily limit, and the entire concept sector index rose by 4.98%.

In addition to the performance of these popular concepts and hot sectors...

The main line of "big infrastructure" where the main institutional capital groups gather, as well as the main weighted sectors such as liquor, white appliances, medicine, electricity, consumption, and finance, whether they are leading stocks in various industries, or core growth leaders such as "Oriental Yuhong", as well as sentiment leading stocks.

Most of them maintained a trend of shrinking volume and fluctuations, which basically coincided with the trend of the Shanghai Composite Index.

In addition to the performance of individual stocks, the intraday trading volume of the two markets continued to increase by nearly 100 billion compared with yesterday.

This shows that as market sentiment continues to rise and the money-making effect within the entire market continues to improve, there is indeed a certain group of off-market wait-and-see funds that are actively entering the market.

However, from the perspective of volume and energy, the scale of incremental funds entering the market is still not large.

And based on the trends of major main lines and the performance of individual stocks.

It can be seen that the main inflow areas of these new fund groups entering from the OTC market are still concentrated in the main field of "emerging industrial chains", and there is a high probability that they have flowed into the small and medium-sized cap and micro-cap concept stocks that are currently more actively traded. After all, in terms of volume, the weighted main line and the "big infrastructure" main line are both shrinking. Only the SME Board and GEM, two major indexes that are closely related to the market's small and medium-sized cap and micro-cap stocks, have shown a clear trend of increasing volume and absorbed the incremental OTC market.

Of course, the main increase comes from the small and medium-sized and micro-cap stocks in the market.

However, it also indirectly shows that due to the influence of market sentiment, some funds cannot help but enter the market to take over.

The nature of most funds is still speculative.

This also shows that the medium and long-term capital groups have not yet increased their holdings in the market in large numbers.

After all, in the current market environment, many institutions tend to be cautious about growth stocks related to the main line of the "emerging industrial chain" that have just emerged from the bottom of the reversal and whose fundamentals have not yet fully improved. Most of them feel that this round of small and medium-sized and micro-cap stocks cannot continue to move out of the trend and truly achieve valuation improvement.

"I didn't expect that in the late trading, the small and medium-sized stocks and micro-cap stocks actually accelerated." Seeing the final closing situation of the two markets, Zhang, one of the main speculators of the 'Magic City Ultra Short Gang', laughed and said in surprise, "Moreover, the main increase in intraday trading volume actually came from the film and television media, Internet software, Internet applications, and electronic information in the 'emerging industrial chain'. It really feels like we are back to the time when the bull market broke out last year. It feels like history is repeating itself.

Brother Chen, you said before that the investment trend of the market has not really changed.

The market is still led by 'big infrastructure' and the core themes of liquor, white goods, medicine, consumption, electricity, and finance.

Now it seems that this view should be reconsidered, right?
Perhaps here, the line of the 'emerging industrial chain' takes advantage of the 'high and low switching' of active capital groups in the market, with the continuous intervention of new funds off-market.

It can really produce a beautiful reversal trend and increase the overall market valuation.

And forms a beautiful style transformation.

Moreover, judging from the trend of sentiment and the direction of news, in the afternoon market, industry institutions that began to be optimistic about the main direction of the "emerging industrial chain" gradually became more vocal.

In my opinion, among these domestic institutions, there are only very few true value investors.

Most institutions still invest more in trends.

Fundamental analysis, performance expectations, etc.... are not as direct as the sense of trend.

If the next 'big infrastructure' line, as well as liquor, white appliances, medicine, consumption, electricity, and finance, which are the core lines that major institutions have previously held together, are suppressed by the internal chip structure and continue to go sideways without rising due to the continuous profit-taking, then there is a high probability that more institutions will flee from these main lines, right?

At that time, when these institutions flee from these core main lines.

At present, it seems that the main line area of ​​'emerging industrial chain', which is purely conceptual speculation, will attract more major capital groups to go long.

At that time, the rebound will most likely turn into a reversal.

I think we still need to be prepared for this market turn, and we can’t focus all our positions on the main line of ‘big infrastructure’.”

"Old Zhang, your analysis makes sense." Old Wu pondered for a moment and said, "But I think... if the 'emerging industrial chain' line wants to go from rebound to reversal, and truly usher in industrial funds, or the increase in core main institutional capital groups, and form a new stable chip structure, it is still not that simple. After all, this line is the main line area where various capital groups gathered and speculated the most in the last round of bull market. The amount of historical locked-in shares accumulated on this line is probably far beyond everyone's psychological expectations at the moment.

Moreover, the off-market property market continues to be hot.

At the same time, in the cycle of the Federal Reserve gradually raising interest rates, our central bank does not have many cards of abundant liquidity to play.

Under this macro situation, how much incremental funds can flow into the stock market at this critical juncture?

I think we can put a huge question mark.

Without a huge amount of off-market funds entering the market on a large scale, I feel it is basically impossible to liberate the huge amount of trillions of locked-in funds above and form a new chip structure by relying solely on this short-term speculative funds that follow the trend. What's more, the fundamentals of major industries in this core main line area have not reversed, and there is no sufficient future expectation to promote and stimulate the upward trend of stock prices, as well as the driving force for various funds to continue buying. "(End of this chapter)