Rebirth of the Capital Legend

At the same time, in Shanghai, the main hot money group of Shanghai's ultra-short gang was in action.

Xu Qiao stared at the real-time changes in the two markets, and saw that the buying of core stocks related to real estate, steel, coal, nonferrous metals and other sectors seemed to be waning, but he did something completely opposite to the "Fushan Group". He began to further increase his holdings, actively invested funds, and took over the market in the form of the main buyer.

"Has the main line of the market diverged so quickly?" At the same time, Lao Zhang couldn't help but say in surprise.

"Not surprising," Old Wu responded. "After experiencing the continuous decline of the market in the past six months and the lessons learned from various one-day trips, a large number of retail investors in the market are now like frightened birds. As soon as the market weakens a little, all kinds of profit-taking will emerge in an endless stream."

"It seems that it is not easy for the market to form a sustained round of market conditions." Lao Zhang said, "Judging from the current market trend, it is very likely that the real estate, steel, coal, and nonferrous metals sectors will see a high-level dive and fall this afternoon. After all, the market turnover is still in a state of decline. Without a large influx of new external funds, it is difficult to support the continuation of the market!"

"These major core sectors are likely to take a dive this afternoon," said Old Wu.

"Diving is good." Xu Qiao, who continued to buy during the trading session, smiled and said, "This position divergence is actually conducive to the continued fermentation of the subsequent market. I think that since Brother Su's seat has come in, and since the 'Hua Yi Expedition No. 1' fund product he manages has indeed increased its position and gone long in the market, then... I judge that these major main line trends led by Brother Su will definitely not be limited to one day.

Since Brother Su’s goal is long-term.

Moreover, the capital size and seat influence of the "Hua Yi Expedition No. 1" fund product managed by the Su brothers are sufficient to guide the market trend.

Then, this divergence point between funds and sentiment is definitely a buying point, not a selling point.”

"Brother Xu, what you said makes sense." Brother Chen said with a smile, "Brother Xu's thinking logic and the pattern of making the market are correct.

I thought about it carefully...

It can be preliminarily judged that the purpose of the Su brothers entering the market to go long is definitely not to grab profits from the short-term rebound in the market in the past two or three days.

Instead, he is aiming for the fundamental reversal of several core industries and the long-term profits that will double or even several times in the future. Otherwise, he would not have built up positions and bought shares in both the A-share and Hong Kong stock markets at the same time.

Since the expected logic of these core themes is long-term.

This means that these core themes can withstand continuous and repeated hype.

In this case, the current bottom divergence point is obviously a buying point, not a selling point.

The chips at this position are valuable in the long run. Even from the perspective of short-term speculation, this divergence point is more conducive to the further development of the main market trend. "

"Brother Chen means... we can go further long?" Lao Zhang asked.

Brother Chen responded: "I think there is no problem in continuing to go long at this position. If you buy chips within the day and hold them for two more days, you will definitely be able to make money and leave the market."

"But there's no need to take over now." Old Wu continued, "I think the best time to buy is in the afternoon when the market diverges and the core stocks dive."

"I agree." Xu Qiao laughed.

As everyone discussed, the differences in the main lines of the market have become increasingly larger.

The main concept theme stocks that had hit the daily limit early in the morning began to fall under the pressure of profit-taking. Since the early trading, the main funds of various institutions have been following suit and scrambling to buy shares, continuously pushing up the share prices of a number of core stocks in the real estate, steel, coal, and nonferrous metals sectors, such as "Poly Real Estate", "Kewan Real Estate", "Huaguo Baosteel", "Conch Cement", "Shenhua Coal Industry"... and other stocks. The intraday trading volume also suddenly increased rapidly, and the profit-taking pressure became heavier, causing the institutions that took the initiative to take over to hesitate for a moment.

"What's going on? Why is the selling pressure so great?"

Seeing that all the core weighted stocks began to rise and then fall, and the selling pressure on the market became heavier, the Shanghai Huarui Fund Management Company, which had already changed its trading strategy and had significantly increased its long positions in the real estate, steel, coal, and nonferrous metal sectors, and in the 'Hua Rui Performance Growth No. 1' fund product trading room, the trading team leader Jia Yongxiang had an obvious look of confusion on his face.

"Are there other major institutional investors who have been lurking in these core stocks in the early stage, taking the opportunity to dump stocks and reduce their holdings?" Fund manager Song Shaopu asked, "Or do you feel there are other unusual movements?"

Jia Yongxiang thought for a moment and said, "I don't know. I just feel that the active buying on the market is falling off a cliff. The bullish sentiment of the entire market, as well as the sentiment of retail investors following the trend, are rapidly receding. Logically speaking... this shouldn't happen. How could such a strong offensive and sentiment in the early trading session develop into this so quickly?"

"Active buying has dropped precipitously, while active selling has increased rapidly..." Song Shaopu pondered for a moment and said, "This shows that due to the low trading volume, the internal differences in the market have increased greatly. At the same time, the main funds that previously dominated the market are continuing to withdraw."

"You mean... Huayi Capital?" Jia Yongxiang asked.

Song Shaopu nodded and said, "It's possible!"

"Shouldn't it be?" Jia Yongxiang said, "I think Huayi Capital has not changed its trading strategy at the moment. And with such a large amount of funds coming in, it's unlikely that they are here to speculate on the short term, right? And... after our analysis, can't we clearly understand that the fundamental logic of these core themes is reversing?"

"There is definitely no problem with the logic of our analysis," Song Shaopu said. "But in addition to the logic of the analysis, we must also respect the market trend. If the market trend is not as expected, it means that the logic of our analysis is not recognized by the market. In this case... we should be vigilant."

"Now, we..." Jia Yongxiang said hesitantly.

Song Shaopu thought for a moment and said, "Since the market's bullish sentiment is declining, and the selling pressure of the relevant core main lines is continuing to increase, let's wait and see how the subsequent market feedback is. If there is no problem in the macro logic, and the core main institution 'Huayi Capital' has not changed its established investment strategy and is willing to maintain the market and maintain the trend of these major main lines, then there will definitely be traces in the subsequent market feedback. In a bear market, there are a lot of chips in the market, so we don't need to be too anxious."