Rebirth of the Capital Legend

When the two markets started to fluctuate again.

The main field of 'emerging industrial chain', which was greatly affected by the investment sentiment at noon, especially the film and television media, Internet software, and Internet application sector indexes that were the focus of the majority of investors in the market, and their corresponding hot concept stocks, all rose rapidly at the moment of opening, attracting the attention of a wave of active buying funds and a large number of retail investors following suit.

However, this rapid rise caused purely by emotions ultimately lacks certain underlying logical support.

After the initial wave of volume explosion, as the intraday volume fell again, a number of concept stocks in the film and television media, Internet software, and Internet applications sectors that had risen rapidly also fell again and returned to their positions at the beginning of the afternoon trading.

"This pulse trend is obviously a bit weak." Seeing that the popular industry sector indexes and their corresponding concept leading stocks showed a pulse fluctuation trend within just a few minutes after the afternoon opening, Zhang, one of the main speculators of the "Magic City Ultra Short Gang", stared at the market with his eyes, frowned slightly, and said, "During the lunch break, the hype sentiment related to the main line of 'emerging industrial chain' was actually in the stage of continuing to rise and ferment. However, the actual trend after the opening was obviously weaker than the emotional performance, which shows that the trend of the 'emerging industrial chain' line is indeed deviating from the emotional performance."

"Indeed, many hot concept stocks have experienced a phenomenon of high volume and stagnation." Xu Qiao took over the conversation and said, "Generally speaking, when sentiment and trend diverge, basically, the hype is about to end. I feel that the line of 'emerging industrial chain' has reached its current position, and I am afraid it has reached the end of the market, right?"

"Small and medium-sized stocks and micro-cap stocks have indeed been rising for several days." Old Wu continued, "And many stocks have indeed begun to touch the historical locked-in accumulation range. From the market, we can see that the main line of 'emerging industrial chain' has a greater selling pressure today than yesterday. It's just that the intraday trend of 'Huawen Online', 'Huawen Media'... these stocks are still strong, showing an unexpected side, which has covered up the long and short divergence on other concept stocks."

"It seems that if the volume continues to fail to increase..." Lao Zhang said, "the 'emerging industrial chain' line will inevitably be divided."

"It is most likely that the funds that took over at today's high level will find it difficult to make a profit." Xu Qiao continued, "The group of funds waiting outside the market has not been successfully attracted, and the short-term speculative funds in the market have basically followed. The subsequent 'emerging industrial chain' line is likely to be problematic."

"Indeed." Old Wu nodded and said, "It's mainly because the main institutional funds have not made large-scale adjustments in this direction."

"Well, the main sectors of liquor, white goods, medicine, consumption, electricity, and finance on the main board, as well as the real estate, building decoration, building materials, nonferrous metals, steel, coal and other sectors in the main field of 'big infrastructure', have not released volume. The main institutional funds grouping on these main lines seem unwilling to leave the market at this point." Xu Qiao said, "If the main funds do not come out of these main sectors, then the funds group on the sidelines cannot enter the market on a large scale and cannot be attracted in. After the short-term speculation sentiment ferments to a relatively sufficient level, it will be difficult for the 'emerging industrial chain' line to obtain more incremental funds, and naturally it will be difficult for the market to continue to rise."

"Mainly in the main field of 'emerging industrial chains', the fundamentals of the major industry sectors such as film and television media, Internet software, and Internet applications are still in a downward channel and have not yet ushered in a predictable reversal cycle, which means that they are always lacking underlying logical support." Lao Wu said, "In the absence of underlying logical support, institutional capital groups are naturally reluctant to take over from hot money and retail investors."

"However, although there are some problems with the performance of the volume, as long as the two checks of 'Chinese Online' and 'Chinese Media' are stable, the trend of the 'Emerging Industrial Chain' line should not be a big problem during the day, right?" Lao Zhang said, "The risk... I think it should be when the market opens tomorrow."

"Judging from the current market performance..." Old Wu said, "It's hard to say. I think there is a high probability that a lot of profit-taking funds will rush to sell at the end of the trading day."

"If the 'emerging industrial chain' line is suppressed by a large number of profit-taking orders and enters the adjustment phase again..." Xu Qiao pondered for a moment and continued, "Which direction do you think the market will continue to switch to? It seems that the major main lines have basically rotated recently, and there is no longer any sector that needs to be supplemented."

"I think there is a high probability that the funds will flow back to the main line of 'big infrastructure', right?" Old Wu said, "In the early trading today, especially during the call auction, when the core leading stock of 'Huawen Online', the 'emerging industrial chain', showed a divergence in the bidding, some active funds in the market had actually already cut into the 'big infrastructure' line. However, after the market officially opened, the divergence of 'Huawen Online' quickly turned into a consensus, which drew the attention of the majority of investors in the market back to the main line of 'emerging industrial chain'. At the same time, it also refocused the short-term active funds in the market on the main line of 'emerging industrial chain'. If there had not been a rapid conversion of divergence to consensus of 'Huawen Online', there would have been no driving effect of this check on the main line of 'emerging industrial chain'.

Then, today's opening trend should be a rapid sell-off adjustment of the main line of the 'emerging industrial chain'.

At the same time, the main line of "big infrastructure" ended its adjustment and took the lead in the upward attack, pulling the overall market trend back to the main board Shanghai Composite Index and the A50 Index direction.

In fact, according to Brother Chen’s previous analysis...

Originally, the core direction of the market and the investment trend have always revolved around the weight main line and the "big infrastructure" main line.

This round of outbreak of the main line of "emerging industrial chain" is essentially a rebound from oversold.

In this way, once the 'emerging industrial chain' line is adjusted and a large number of profit-taking investors withdraw, these active capital groups that have fled will inevitably gather again in the main board weight line, which has relatively high certainty and strong future expectations and has strong underlying logical support, as well as the 'big infrastructure' main line area.

So I think……

At this time, we can actually plan ahead and buy some popular core leading stocks in the main line of "big infrastructure" to lurk. "

"But the overall retracement of Oriental Yuhong is less than 10% from its high point, and it is still a long way from the relatively strong support average line, that is, the 20-day average line." Lao Zhang said, "At this position, it is really difficult to start. I think... let's wait and see." "From the trend of the call auction in the morning trading today, I feel that Huaxin Cement is very active and the adjustment range is sufficient. It is a relatively good gambling stock." Xu Qiao glanced at the market and saw Huaxin Cement, which is still in the deep water adjustment stage. The check for 'New Cement' paused and continued, "If the subsequent market is to turn back to the main line of 'big infrastructure', I feel that this check will most likely become the target of concentrated speculation by the smart short-term funds in the market. After all, the current market attention to this check is really not low, and due to the continuous plunge and correction in the past few days, the internal chip structure has been relatively clean in the early stage of profit-taking, and there will be continued increase in positions by several major institutions to lock in chips. From the perspective of the difficulty of speculation, this check is extremely easy to speculate at its current position."

"Well, after hearing what Xiao Xu said, I also think that the check from Huaxin Cement is good." After hearing what Xu Qiao said, Lao Zhang couldn't help but stare at the check from Huaxin Cement. He laughed and said, "Compared with the check from Oriental Yuhong, the risk-reward ratio of the check from Huaxin Cement is indeed much higher."

"I am still optimistic about the Oriental Yuhong check." Old Wu said, "The strong will always be strong. As far as the 'big infrastructure' line is concerned, the trend of the Oriental Yuhong check should be the most certain. As long as the market trend develops in this direction again, the funds for speculation in the market will not be able to avoid this check."

"The Oriental Yuhong check has some certainty, but the price-performance ratio at this position is not very high. Even if it hits a new high in the short term, the expected profit margin is only 10%." Xu Qiao said, "Relatively speaking, the profit margin of the Huaxin Cement check is much larger. Of course, this is from the perspective of short-term trading logic. If the timeline is extended, the Oriental Yuhong check is definitely more likely to be stronger. After all, although the recent Dragon and Tiger List shows that there are indeed major institutional funds involved in increasing positions for the Huaxin Cement check, there is still insufficient certainty about its future performance and explosive power. Unlike the Oriental Yuhong check, the landing point of the performance explosion can be estimated with a high probability through the orders and contracts in hand."

"To be safe, you can hide some positions in both sectors." Lao Zhang said, "However, there is no sign of this hot spot switching in the market at present. All these inferences are just our imagination. It is also possible that in the main line of 'emerging industrial chain', a lot of profit-taking and the corresponding hot sector stocks will pull back. The market focus will not shift to the main line of 'big infrastructure', but continue to concentrate on other marginal main line sectors where the market heat is relatively not so high. It is also entirely possible."

"A relatively marginal mainline sector?" Xu Qiao smiled and said, "Are you talking about the agriculture and animal husbandry sectors? These two sectors do have favorable policies recently, and their positions are low enough, but the overall size of the sectors is small, and it is difficult to tell any new stories!"

"The two main lines of 'new energy industry chain' and 'smartphone industry chain' are also possible." Lao Zhang said, "After all, whether the 'new energy vehicle subsidy' will be truly cancelled at the end of the year, or how it will change, is still unknown. With the general direction of development in the future being relatively clear, this expectation is actually worth speculating on. In addition, there is Apple's new product launch in mid-September. I feel that this is a relatively certain expectation, and the funds in the market will definitely speculate on the market before the launch."

"Well, these two lines are indeed possible." Old Wu nodded and said, "Let's wait and see how the market trend changes in the future. Speculations are speculations, and the final transaction point still depends on the actual market trend. At this stage, I feel that trading on the left is not as appropriate as trading on the right."

"I agree." Xu Qiao responded, and said, "Let's see how the 'emerging industrial chain' line will differentiate in the future."

After saying this, he turned his attention back to the two market charts.

During the brief discussion among several people, the market trading time had already entered around 1:25 pm.

After the pulse fluctuations in the early afternoon trading of several popular core sectors such as film and television media, Internet software, and Internet applications, the index gains at this moment are slowly falling due to the limitation of intraday volume.

And due to the decline of the sector index...

The corresponding concept stocks within the company were also affected and fell synchronously.

Of course, while several popular sector indices fell, other industry sector indices in the market, as well as a number of main-line sectors in the main direction, including the Shanghai Composite Index, Shenzhen Composite Index, ChiNext Index, SME Index and other core market indices, were also limited by volume and experienced a corresponding small dive.

"It seems that the volume can't go up." When the market trading time approached 1:30 pm, it was noticed that all the major hot sectors in the market began to show signs of weakness in rising, selling gradually increased, and buying power gradually weakened. The corresponding stocks, as well as the corresponding sector indexes, including the market index, all began to dive. At this moment, among the main hot money group of the "Qilu Gang", Zhao Zhiyuan sighed and said, "It feels that the situation is not good. The hot situation of the main line of the 'emerging industrial chain' may not last until the closing."

"Alas, there are too many short-term profit-taking orders, and the potential selling pressure is too great." Hearing Zhao Zhiyuan's sigh, Zhang Wei couldn't help but sigh at this time, "Without the concentrated participation of the main institutional funds, the chip structure on the 'emerging industrial chain' line cannot be quickly stabilized and settled. Now... the active buying orders on the market can't keep up, the sentiment has fallen, and the selling pressure of profit-taking orders has naturally begun to accelerate."

"Yes!" Zhao Zhiyuan responded, "It seems that the time has come to stop profiting in the 'emerging industrial chain' line."

"I hope that the two current hot leaders, 'Huawen Online' and 'Huawen Media', can stabilize. As long as these two stocks do not explode, the 'emerging industrial chain' line should not have too much negative feedback within the day." Zhang Wei said, "There is still more than an hour before the closing, and I feel that there is a high probability that it will be able to stabilize."

"I'm afraid it's difficult." Liang Jiucheng, who had been thinking about the market trend for a while while the two were talking, said, "Once the market divergence begins to expand, it will turn from strong to weak very quickly. What's more, the 'emerging industrial chain' line has not been able to attract a large number of wait-and-see funds from the outside market to participate, and has not been able to attract the main institutional funds of other weighted main lines to take over. The active short-term follow-up buying of retail investors and active hot money seats in the market have basically participated. In other words, this main line, under the current situation... can still attract on-site buying, compared with the potential profit-taking pressure, it is no longer at the same level.

This imbalance between potential follow-up buying and potential profit-taking selling.

Once funds start to rush in, everything will be affected.

Therefore, with the market's bullish sentiment rapidly declining, it is unlikely that the two stocks, "Huawen Online" and "Huawen Media", will continue to close at the upper limit until the close. At the end of today's trading, the trend will inevitably fluctuate violently." (End of this chapter)