Rebirth of the Capital Legend

Amid the bombardment of positive market information and sentiment, it is also receiving high attention and heated discussions from countless investors.

The next day, Wednesday, August 8th.

The market has not officially opened yet, and countless investors are worried.

A number of core leading stocks in the main field of "big infrastructure" have already reached their daily limit in my mind.

"Boss Su, the market sentiment is a little too heated." In the morning, about fifteen minutes before the market opened, in the trading room of Huayi Expedition No. 1 fund product in Huayi Capital, Hou Baolong, the fund product manager, browsed the market information and did a pre-market analysis. He then reported to Su Yi, "This rapid consistency of emotional expression can easily lead to overly high expectations of market trends, thereby overdrawing the market's ability to go long."

"In a bear market, emotions come and go quickly." Su Yi smiled and said, "It's okay. As long as the core theme of 'big infrastructure' is supported by underlying logic and has long-term investment value, and the expectation of fundamental reversal and cycle reversal always exists, no matter how the short-term market fluctuates, the impact will be limited. Moreover, our holding target... is not to gain short-term benefits and profits, so naturally we don't need to pay too much attention to the short-term trend. If there is no good buying point, we will wait. If there is a good buying point, we will continue to buy."

In financial market transactions, patience is the first element.

What's more, now that the size of funds has grown to this point, it is no longer possible for the entire fund product to engage in short-term trading.

Since it is a long-term transaction, you must be more patient.

Therefore, he can now take a completely normal attitude towards the short-term intensification of market sentiment and the short-term speculation of active short-term funds.

Furthermore, they now have the entire 'Hua Yi Expedition No. 1' fund product.

The weight of holdings in the main area of ​​"big infrastructure" is less than 8% of the entire fund product position, even if the short-term trend of this main line is too volatile.

The impact on the net value of the entire fund product is also close to zero.

"I'm not worried about not being able to buy chips, or that the cost of building a position is too high," Hou Baolong said. "I'm worried about the trend of the main line of 'big infrastructure' because of the extreme emotional reaction, which affects the overall market trend, or affects our positions in several other major main line areas, such as 'pharmaceuticals', 'white wine', 'white appliances', and 'security lenses'."

Su Yi turned his head, stared at Hou Baolong with a smile, and said, "Manager Hou, I still say the same thing. As long as the underlying logic supporting these core themes and our heavily invested stocks is still there, there is no need to worry too much. You just need to focus on the underlying investment logic of these stocks, pay attention to industry trends, and track the industry fundamentals.

The short-term trend of the market can be left to the short-term capital groups active in the market.

We cannot predict the short-term trend of the market, nor can we interfere with the short-term trend of the market every time.

As long as there is no problem with the underlying logic, and as long as the stock price has not yet met most of the expectations, you can hold your position safely and wait patiently for the expectations to be met.

Of course, if the underlying logic loosens, the reversal of industry fundamentals may fall short of established expectations.

Moreover, the main funds concentrated in the main line areas show signs of long-term and continuous withdrawal, and expectations are beginning to shift from consistency to divergence.

So, even if the short-term market is still rising, it should be time to withdraw and take profits, or stop losses. "

"I understand, Mr. Su." After hearing Su Yi's analysis, Hou Baolong nodded, turned his attention to each trading group, and issued intraday trading tasks to each trading group.

As he gave the order...

The market trading time moved to 9:15, and the call auction of the two markets began.

When the two markets entered the call auction, a number of popular stocks in the "big infrastructure" line that attracted much attention from the market investors basically all opened at the daily limit.

However, the daily limit pattern before 9:20 may be false.

After all, before 9:20, buy and sell orders can be cancelled.

But even so, such an initial call auction opening situation was clearly beyond the expectations of the majority of market investors and many institutional investors.

"Last night's favorable news was really like adding fuel to the fire!"

Noticing the initial call auction scene that far exceeded market expectations, Song Shaopu, a fund manager at the Huarui Fund Management Company in Shanghai, chuckled in the trading room of the main fund product "Huarui Performance Growth No. 1".

"In the entire real estate sector, 8 stocks hit the daily limit in the initial call auction, and almost all related concept stocks opened more than 5 points higher. In the entire 'big infrastructure main line' field, including coal, steel, nonferrous metals, building decoration, building materials, cement, etc., the total number of stocks that hit the daily limit in the initial call auction reached 32." In the trading room, trading team leader Jia Yongxiang was also surprised. "This kind of grand occasion has not been seen for a while. It seems that the market's consistent expectations for the core theme of 'big infrastructure' have been fully formed."

"Yes!" Song Shaopu said with emotion, "It's a pity that I bought too little yesterday."

Jia Yongxiang said helplessly: "Who knew there would be so many good news tonight? But now that I think about it... I feel that many of the institutions that followed the trend and bought yesterday must have received inside information, right?"

"That's not clear." Song Shaopu said, "But no matter what, the domestic real estate cycle is indeed coming out of the trough and returning to the cyclical prosperity. Coupled with the policy catalysis of 'supply-side structural reform' and 'new era land and sea Silk Road', the main line of 'big infrastructure' continues to receive attention from the main capital groups inside and outside the market. It is also natural for it to break away from other main sectors of the market and develop an independent market!"

"It's just that the fermentation speed is a bit too fast." Jia Yongxiang said, "It doesn't give us too many opportunities to calmly build positions."

Song Shaopu said: "Let's wait and see. If it is a long-term logic, there is no need to fight for these two or three trading days. Short-term funds will retreat quickly after excessive speculation. By then, it will be in time to build a position again when the market falls. Now... there is no need to chase aggressively."

"Okay." Jia Yongxiang responded.

When he looked up again, he noticed the large screen showing the market conditions in the trading room.

At this time, the trading time had passed 9:20, and the two markets entered the real call auction trading stage where orders could not be withdrawn.

After the first five minutes of call auction.

The market conditions in the two markets at this time were significantly lower than those at 9:15.

The index growth of the 'real estate' sector has fallen from the initial 5.32% to 3.21%. There are only 5 sector concept stocks that have maintained an increase of more than 12%. Among them, 3 concept stocks still maintain the daily limit mode, namely 'Shouchuang Shares', 'Yu Development' and 'Shahe Shares'.

As for the coal, steel, nonferrous metals, building decoration, and building materials sectors that are linked to the real estate sector.

The extent of the decline will be relatively greater.

However, popular stocks such as Pingmei Energy, Shenhuo Co., Ltd., Beijiang Communications Construction Co., Ltd., Tianshan Cement, Bayi Steel, etc., are still maintaining their daily limit.

But as market trading hours progress.

9点21分，9点22分，9点23分……

The number of stocks that maintain their daily limit is further decreasing, while the index growth of core sectors is also continuing to decline.

Finally, when 9:25 arrived, the call auctions in the two markets ended.

The index growth of the real estate sector was fixed at 2.74%. In the sector, only one stock, 'Shouchuang Shares', maintained a daily limit, while the others all maintained a high opening of 0.5% to 8%.

However, sectors such as coal, steel, building decoration, construction materials, nonferrous metals, and cement all lagged behind the real estate sector in opening higher, with increases ranging from 1.21% to 1.95%. Among them, Pingmei Energy opened 8.11% higher, and Shenhuo Co., Ltd. opened 9.33% higher, just one step away from the increase board. Several other popular stocks opened near the 5% increase level.

As for non-popular main line areas.

The pharmaceutical, consumer-related sectors, as well as the financial sector, showed a slightly higher opening and a flat opening trend.

'Mobile Internet', 'Film and Television Media', 'New Energy Industry Chain' and other technology-oriented and emerging industry-related sectors all showed a trend of opening slightly lower.

On the whole, the entire market still shows that Shanghai is strong and Shenzhen is weak.

In other words, the A50 index is far stronger than the ChiNext index.

The main active funds in the market, as well as the main institutional funds, are still concentrated in the main line of "big infrastructure", as well as in the main line sectors with strong defensiveness such as medicine, consumption, and finance.

"Fortunately, this opening is still in line with expectations."

After the two markets completed the call auction, Li Jinshi, one of the main hot money groups of the "Fushan Group", said.

"'Capital Group' has been flat, which is a bit beyond expectations, right?" Chen Guiyun responded, "I originally expected that this check would provide an opportunity to buy at the opening."

"It's not beyond expectations," Liao Guoxiang said, "after all, there was the positive stimulus last night."

"The Shenhuo shares' stock opened very well," said Li Jinshi. "If nothing unexpected happens, the stock will hit the daily limit in seconds after the official opening."

"Old Li, did you just increase your position?" Chen Guiyun asked.

Li Jinshi responded: "I haven't had time yet. I'll see after the official launch. I don't know if I can buy it."

"If I can't buy it, the check for Pingmei Energy should be fine." Chen Guiyun said, "I'm going to place an order to buy the shares of Pingmei Energy."

"Brother Liao, what about you?" Li Jinshi asked.

Liao Guoxiang responded with a smile: "I have laid out the stocks. 'Capital Group', 'Shenhuo Shares', 'Pingmei Energy', 'Beijiang Communications Construction' and 'Tianshan Cement' have all been placed on order to buy. With such a good mood, no matter who can come out, I will not lose out."

"Fuck..." Li Jinshi was shocked when he heard Liao Guoxiang's flat layout. He couldn't help but sigh, "Brother Liao is really the one with the big picture."

"These few checks should continue to hit the daily limit today, there should be no problem." Chen Guiyun said, "The overall market sentiment is very good, and it didn't open too high. The profit margin yesterday was not large, and there was no desire to dump the market, so the opening market has a strong support and will definitely continue to rise."

"Except for the popular 'big infrastructure' main line, there are also medicine and consumption, which are the main funds in the market. Other main lines are still obviously weak." Li Jinshi said, "It is estimated that today's market trend, except for the 'big infrastructure' line, other main lines and branch lines are still lackluster."

"There is nothing we can do about it," said Liao Guoxiang. "The overall market trading volume is limited, and the incremental funds are also limited. They can only support the fermentation of one core main line. In fact, if other main lines really take off, then we should be worried, because once the active funds in the market are dispersed, the height of the market is bound to be discounted."

The reason why he dared to place a large order after the call auction was to buy all the core hot stocks in the main field of "big infrastructure".

Looking at the entire market, only the core theme of "big infrastructure" is strong.

In the so-called weak market, funds will tend to flock to strong stocks and strong sectors. This has almost become a thinking habit in his years of short-term trading.

"Haha... Mr. Liao is right." Li Jinshi said with a smile, "Let the market be more aggressive."

With the sound of his voice...

The market trading hours just passed 9:30.

The two markets had just entered the formal bidding and trading stage when Liao Guoxiang's popular stocks with high market recognition, such as Pingmei Energy, Shenhuo Co., Ltd., Tianshan Cement, Beijiang Communications Construction, Bayi Steel, Chongqing Development, and Yunnan-Guizhou Copper, were instantly bought up by large orders of tens of thousands of shares, and the daily limit was instantly blocked.

And at the same time.

The main-line related sectors of 'big infrastructure', such as 'real estate', 'coal', 'nonferrous metals', 'steel', 'building decoration', 'building materials', and 'cement', also rose rapidly under the support of a large number of main buying funds, expanding the gains of the sector indexes, and a number of core leading stocks within the sectors also increased rapidly and rose rapidly.

As for the main line of "big infrastructure", after the opening, it continued to be attacked by the active short-term capital groups in the market and the main institutional capital groups. Under the joint scramble for funds, the Shanghai Composite Index, Shenzhen Composite Index, CSI 300 Index and A50 Index were also driven up in an instant.

It’s just that the market’s ‘technology’ stocks are guided by the ChiNext Index and the CSI 500 Index.

There are also main technology sectors such as "mobile Internet", "new energy industry chain", "electronic information", "film and television media", "semiconductors", and their corresponding core stocks and growth concept stocks. At this moment, funds have been siphoned away, showing a downward trend against the trend, which has attracted angry curses from the investors trapped in these main areas.