Rebirth of the Capital Legend

"Okay." Jia Yongxiang nodded and said, "Then we'll wait and see and wait for further feedback from the market."

Just as Song Shaopu said, in a bear market, the buying point on the left is very dangerous, because in a bear market, the liquidity of the entire market is extremely limited. If the logic of the main market trend is not strong enough, it will not be able to get the unanimous follow-up of the vast majority of investors in the market, especially the countless retail investors.

Then, it will be difficult to form a consistent long position and it will be difficult to develop a sustainable market trend.

Moreover, the money-making effect was achieved with great fanfare last Friday.

It's only been a weekend, and after a surge in early trading today, buying quickly began to weaken. This doesn't look like a sustainable trend at all.

Therefore, it is reasonable to arouse a certain degree of vigilance.

"Then...what about our positions in other main lines, such as 'new energy industry chain', 'medicine', 'consumption' and other main lines?" Jia Yongxiang paused for a while and then said, "Are we still continuing to reduce positions according to the original plan and freeing up the corresponding positions and funds in advance?"

Song Shaopu responded: "We can slow down our buying plan and wait and see how the market reacts to the subsequent market trends, but our selling plan must still be executed according to the original strategy we formulated before."

Currently, the market performance is...

Although buying in the real estate, steel, coal and nonferrous metal sectors is waning.

But in general, these major core sectors still have a capital siphoning effect on other market sectors.

In other words, while these major core sectors were rising, the market trends of other main sectors did not improve at all, and some even fell a lot due to the siphoning of active funds.

Under this situation, it is definitely a good idea to reduce positions first and recover some funds.

Also, in a bear market, with relatively limited market liquidity, it is impossible for the market to form a general rise.

This means that regardless of whether the subsequent core sectors such as real estate, coal, nonferrous metals, and steel can form a sustained market trend, other sectors that have been siphoned away active funds will not have much chance.

"Okay." Jia Yongxiang nodded quickly.

Then, the corresponding changes in trading strategies were communicated to all traders in the trading room.

As the 'Hua Rui High-Performance Growth No. 1' fund product followed the trend and adjusted its trading strategy, it slowed down the buying speed of core stocks in main sectors such as real estate, steel, coal, and nonferrous metals.

On the market, the trends of the major core sectors including real estate, steel, coal and nonferrous metals are shown.

The upward pressure begins to grow greater.

Moreover, as trading time goes by, the desire to sell of various funds in the market is getting stronger and stronger, while active buying is decreasing.

As the market approached midday, the downward trend appeared.

Even many active retail investors in the market who like to chase rising and falling prices and blindly follow the trend have clearly felt it.

“Fuck, this trend… I feel like it’s going to collapse this afternoon. Oh, I’m chasing highs again.”

Faced with the core hot sectors such as real estate, steel, coal, and nonferrous metals, many industry leading stocks and hotly speculated small-cap concept stocks generally showed a trend of rising and falling near the midday closing. Some people expressed helplessness and emotion at the online stock investment forum where retail investors gathered.

"I also chased highs, but alas, the volume is not good enough. The trading volume of the two markets has not improved."

"Without volume, it's hard to have a market. There's no way."

"Is it because there are too many locked-in shares in the market? Without strong and sustained attacks from large funds, it is difficult to really pull up the market. In fact, the sentiment in the morning was good, but unfortunately the subsequent buying failed to keep up."

"I feel like sectors like real estate, coal, nonferrous metals, and steel are still lacking some major positive stimulus, right? With President Su's influence alone, it's hard to support the full-scale outbreak of these major main lines and attract a large amount of big funds from the sidelines to assist!"

"I still think it is the locked-in orders in the market that suppress the market trend, not a logical problem."

"These major sectors are indeed locked in too much."

"There are at least trillions of yuan of funds stuck in the steel, coal and nonferrous metal sectors. With such a huge amount of locked-in stocks, without any major policy benefits or bull market atmosphere, who will rescue them if we just rely on the stock of funds?"

"Hasn't there been major policy benefits over the past six months? There was no improvement before that either! So I don't think it's a matter of benefits."

“To put it bluntly, the current market is too short of money.”

"It's not that there is a lack of money, it's that there is no money-making effect, and off-market funds are unwilling to come in."

"Also, after more than half a year of sluggish market conditions, everyone has learned to take a bite and leave, and there are very few funds in the market that understand the overall situation."

"Yes, looking at the market, both large and small funds are selling."

“It’s not that people don’t want a pattern, but the patterns are all set in the sky.”

"Ah, I didn't expect it to be so weak. The market trend... is really a bit below expectations."

"Let's see how the market performs this afternoon. If the big funds don't maintain the market, many of the funds that entered today will have to sell at a loss and leave tomorrow."

"It still requires big funds to take the initiative to guide and maintain the market."

"It all depends on how Mr. Su operates. I feel that with today's market trend, Mr. Su definitely won't sell."

"It seems that Mr. Su alone cannot turn the tide. We still need the joint efforts of everyone in the market. But now... it seems that there is no such joint effort."

"As long as the industry fundamentals of these core themes are changing, I think the market should be able to recover."

"Without funds, what's the use of fundamentals? Aren't the high-quality stocks and blue-chip stocks in the market undervalued now? How much do you think they'll rise?"

"That can't be said. There are many stocks that continue to strengthen against the trend. Take Qianzhou Moutai for example. Its monthly line has been positive for eight consecutive months. It has completely walked out of the trough of last year's stock market crash and has even set a new historical high."

"The 'Qianzhou Moutai' stock is really great, it's simply amazing... it's heading north without looking back."

"It seems that the main fund 'Hua Yi Yuan Zheng No. 1' managed by President Su also holds a large position in the stock 'Qianzhou Moutai', right?"

"It is indeed a heavy holding. According to the semi-annual report, the fund product 'Huayi Expedition No. 1' is directly listed among the top ten shareholders of 'Qianzhou Moutai', holding a total of 4.99% of the shares, with a market value of more than 100 billion."

"Awesome! Mr. Su's stock picking ability is really amazing!"

"Hehe, many people said before that Mr. Su was from a hot money background and only knew how to trade short-term. But now, with the net value of the 'Hua Yi Expedition No. 1' fund product rising steadily, many people have been slapped in the face."

"In fact, the top speculators active in the market are very capable in both short-term and long-term investment."

"From this perspective, the main fund 'Hua Yi Yuan Zheng No. 1' managed by President Su has launched the 'new energy industry chain' as the main line, and has increased its holdings of leading stocks in core industries such as 'real estate', 'steel', 'coal', and 'nonferrous metals'. This is definitely not short-term speculation?"

"Probably not. It seems that Mr. Su rarely participates in short-term market speculation now, right?"

"It seems that since the establishment of the main fund product 'Hua Yi Yuan Zheng No. 1', Mr. Su has not used the seat of 'Fuxing Road' to participate in any short-term speculation in the market."

"It seems that Mr. Su's operating style has completely changed."

"If it's not short-term speculation, then it's long-term investment. I think since the 'Hua Yi Expedition No. 1' fund product managed by Mr. Su has been aggressively building positions in these core sectors and buying them so urgently, it clearly shows that Mr. Su is quite optimistic about the future market trends of these core sectors."

“I am optimistic for sure, but the specific market trend... still depends on the combined efforts of the market!”

"I think there is no overall rebound in the market today, but the local market should still be okay."

"Based on the market trends of the pharmaceutical and liquor sectors in the past six months, I think Mr. Su's vision is absolutely amazing. I am optimistic that the real estate sector will be able to break through the siege. Under Mr. Su's guidance, it will become another main line sector that all major funds will focus on in the subsequent market."

"That's right. Based on the previous trends of the pharmaceutical and liquor sectors, sustainability should be worth looking forward to."

"What's there to be afraid of? As long as the housing prices in offline cities continue to rise, the real estate sector will rise sharply sooner or later, regardless of whether it falls back or not. What is this called... value return, right?"

“Haha, yes, the value is back.”

"Ever since Mr. Su changed his trading model and started value investing, damn... I've also started studying these things."

"I always feel that the overall style of the market is changing, and institutions have become the core dominant force."

"That's right. Without President Su's guidance, the hot money in the market must have lost a lot of money in the past six months."

"It seems that the market situation of the A-share market still depends on President Su!"

"Whether it's long-term or short-term, you can never go wrong by following Mr. Su. As long as Mr. Su's 'Hua Yi Expedition No. 1' fund product is still optimistic about the real estate sector and still has positions in the sector, then I will stick to this sector. Anyway, I have increased my position. Even if I am temporarily trapped, I will not leave the market as long as the overall logic is correct."

"Yes, as long as you follow Mr. Su and increase your position and go long at the first opportunity, I think you will be able to make money in the end."

"At the beginning of the year, I followed Mr. Su to buy several core stocks in the liquor sector. This year's account profit and loss has significantly outperformed the market index. I have to say... This feeling of winning without doing anything is really comfortable. Today, I invested some new funds and also bought the core leading stocks in the real estate sector."

"Haha, same... I also bought 'Qianzhou Moutai' at the beginning of the year, and now I want to buy more, but unfortunately the share price of this stock refuses to fall back. But it's not bad to follow President Su and buy some real estate stocks now."

With the heated discussions among many retail investors in the market...

The lunch break is fleeting.

Soon, 1 o'clock in the afternoon arrived and the two markets ushered in a new trading session.

After the emotions brewing in the afternoon and the clash of views among various investor groups, the final direction of the combined force in the market was still biased towards the short position.

So, it started from the opening in the afternoon.

The core stocks of real estate, steel, coal and nonferrous metals, which were bought by a lot of funds in the morning, began to fall from their intraday highs, and the trading volume continued to decline.

And when the trading volume of a number of core stocks is declining and continuing to fall.

Many retail investors who were already undecided about holding shares in the market intensified their follow-the-herd selling.

"Boss Su, the market volume can't keep up, and the trend of individual stocks has obviously begun to fall." Noticing the unusual movement of the two markets, at 1:30 p.m., in the trading room of the main fund "Huayi Expedition No. 1" of "Huayi Capital", fund manager Hou Baolong reported to Su Yi, who was also staring at the trading screen, "The overall market trend is weak, and the willingness of funds to follow the trend and chase high prices is not strong. The trend of the relevant core stocks we plan to build positions has shown different degrees of decline, just as you expected before, and the selling of these stocks is still intensifying."

"Yeah." Su Yi nodded and said, "It's not just a matter of funds chasing high prices to build positions, but also the core stocks of these sectors were expected to be sluggish before, and there was not much institutional main force capital entering to lock positions, which means... these core stocks are basically where retail investors gather the most.

The operations and trading thinking of retail investors in the market are basically similar.

That is, it is difficult to see the long-term expectations of fundamental changes, and one can only intuitively feel the changes in stock prices in the market. It is extremely easy to be affected by emotions and it is also very easy to chase highs and sell lows.

In the early trading, the bullish sentiment in both markets was hot and the willingness of capital chasing was high.

These retail investors who hold chips in the market naturally have a strong desire to lock in their positions and are obviously reluctant to sell.

Now that sentiment is gradually cooling down and we no longer actively guide the market, other large funds have discovered that sentiment has cooled down and that the market pressure is too great, and they are not too willing to chase high prices and buy shares.

Then, the willingness of these retail investors to sell will naturally become stronger and stronger.

In addition, during the bear market, the liquidity of the market was not high, and the active capital flow in the market was limited. The trend of rising and falling became more and more intense after the lunch break. "

"That's right." Hou Baolong responded, "We should now gradually take over the chips and buy them according to the plan, right?"

Su Yi smiled and said, "Don't be in a hurry, wait a little longer. The current market is prone to falling but difficult to rising. In addition, the 'real estate' sector that we focus on lacks institutional funds to continuously lock up positions, so the chip structure is relatively chaotic. With the majority of retail investors chasing ups and downs, there will be quite a lot of opportunities to pick up chips at low prices."

Following his words...

The market's diving trend in the afternoon continues.

At 1:52, the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index all fell by more than 1%. Among them, the real estate sector's increase slipped from a surge of 2.5% in the early trading to around 0.5%. The core weighted leading stocks in the real estate sector, such as Kewan Real Estate, Poly Real Estate, and Gemdale Group, generally fell from around 5% in the early trading to the current 1.5%.

At 2:07, the intraday decline of the ChiNext Index reached 1.5%.

Almost all industry sectors and concept sectors in the two cities showed a downward trend.

At 2:15, Pingmei Energy, which had almost reached its daily limit in the morning, had fallen back to near the flat line, trapping a large amount of funds at the intraday high.

We can see that the panic sentiment in the market has basically formed, and the intraday trading volume has begun to expand.

At this time, Su Yi, who was closely watching the market trend, showed excitement in his eyes. He turned around and told Hou Baolong: "It's almost done, continue to enter the market to take over the chips!"