Rebirth of the Capital Legend

It was stimulated by the trend of the external market and also by the benign money-making effect of the previous few consecutive trading days.

On Thursday, August 8, the market indices of the two cities all opened higher after a ten-minute call auction, and the opening range was all above 4%. Among them, the main sector stocks such as "real estate", "infrastructure", "coal", and "nonferrous metals", which were chased by a large number of active capital groups in the market in the previous few trading days, especially the leading stocks in various industries, opened higher and were generally stronger than the index.

However, core main-line stocks continue to be snapped up by market funds.

A number of small-cap stocks with conceptual themes and many growth stocks in the market still showed a relatively weak trend. When the market index generally opened high, they opened slightly lower, and there was little active buying attention during the entire call auction process.

"Looking at the call auction patterns of the two markets, various market funds are still converging on the main line of 'big infrastructure'." At 9:26 a.m., when the two markets had just finished the call auction and entered a short five-minute trading suspension period, Jia Yongxiang, the trading team leader of the 'Hua Rui Fund' management company, the 'Hua Rui Performance Growth No. 1' main fund product trading room in Shanghai, took a quick look at the call auction results of the two markets and the opening patterns of various market main lines, and said, "Moreover, it seems that the market expectations are still increasing. The consistency of many main line core stocks is very high."

In his observation, most of the popular concept stocks with the main line of "big infrastructure", such as "Shenhuo Shares", "Pingmei Energy", "Tianshan Cement", "Beijiang Communications Construction", "Capital Group", "Yu Development", "Bayi Steel", "Linggang Shares" and so on, opened higher with an increase of more than 5%.

Among them, the weighted stock of 'Huaguo MCC', which led the market's bullish sentiment yesterday and is a 'big infrastructure' main line, opened higher today with a gain of around 6%. In addition, the volume was fully released during the call auction, and the funds to take over appeared particularly strong.

"It is surprising that the market opened so high without any positive news." Song Shaopu, the main fund product manager of 'Hua Rui Excellent Growth No. 1', responded to Jia Yongxiang's words, "However, although the hype sentiment and market trend expectations of the core theme of 'big infrastructure' are still strengthening, other market themes, especially the concept theme, are obviously lagging behind and are being continuously drained by the 'big infrastructure' theme."

"That's right." Jia Yongxiang observed the performance of the main market sectors where stocks with themes such as technology, Internet, and film and television media converged, nodded slightly, and responded, "The polarization trend of the market has not improved. Initially, it still hasn't gotten rid of the market characteristics of the local market."

Song Shaopu said: "The polarized market trend also fully illustrates one point, that is, the active capital flow in the market is obviously still insufficient, which shows that the outbreak of this round of 'big infrastructure' main line market has not been able to fully attract a large number of off-site funds to enter the market, and there is not enough incremental funds entering the market to promote a general rise in the market. In other words... the market has not gotten rid of the pattern of stock capital game."

"If it is still a game of stock funds..." Jia Yongxiang pondered for a moment and asked, "Does it mean that the core theme of 'big infrastructure' still cannot go far? Does it mean that the outbreak of this round of market is just a short rebound in the big market down cycle, rather than a reversal?"

"It is certain that there will be a short-term rebound in the big down cycle." Song Shaopu responded, "Without the continuous entry of large amounts of off-market funds, there is no way to talk about a reversal. At the same time, the current macroeconomic fundamentals are not enough to cause a reversal in the market.

But even if we judge that this is a short-term rebound, it does not mean that we cannot invest in this round of market.

It does not mean that this round of market trend has no sustainability at all.

In general, as long as the local liquidity of the market is okay, there will still be a sustained structural market, just like the consumption and medicine at the beginning of the year... Now, in the overall downward trend of the market, the consumption and medicine sectors have benefited from the reversal of industry fundamentals, and are not they still independently strengthening and forming a sustained upward trend?

I think the same is true when applied to the current main line of "big infrastructure".

We can remain pessimistic about the overall market trend, but we should still be relatively optimistic about the local main market trends.

What's more, whether it is the real estate, construction sector, or the steel, coal, and nonferrous metals sector.

The market has been falling for a long time, hitting a record low in valuation, and there is already enough margin of safety for investment. "

"That means... we should continue to increase our positions and go long as planned, right?" Jia Yongxiang responded, "Mr. Song is still optimistic about the outbreak of the 'big infrastructure' theme, and is optimistic that this core theme will become the outbreak point of the market in the second half of the year and the main focus of major funds?"

"There is no doubt about it." Song Shaopu said without any doubt.

"Okay." Jia Yongxiang nodded, and seeing that Song Shaopu was so determined, he said nothing more.

Then, he turned around and instructed all the traders in the trading room to continue to increase their positions according to the established trading strategy, further increase the holdings of fund products in the main area of ​​"big infrastructure", and at the same time, not to be afraid of market fluctuations and not to consider too many position building costs.

Just as the two were discussing the results of the two markets' call auctions and looking forward to subsequent market trend changes.

Yesterday, the "Qilu Gang" of hot money jointly traded "Huaguo MCC", a core weighted popular stock in the main field of "big infrastructure".

Zhao Zhiyuan of Weihai Rongcheng Shidao was particularly excited when he saw the stock of Huaguo Zhongye, which opened sharply higher at around 6%. He laughed and said, "This wave is really beautiful. Looking at the opening pattern, Huaguo Zhongye has undoubtedly become the leader in the central capacity of the entire 'big infrastructure' main line."

"Originally, I expected it to open higher than 3.5%, which would be a victory." Zhang Wei, who was sitting at 'Weihai Rongcheng Chengshan', also responded with a smile, "I didn't expect it to open higher than 6%, which is much stronger than expected. And looking at the entire call auction trend of this check, the active buying is also very strong. I feel that after the opening, as long as the hype sentiment of the 'big infrastructure' main line does not collapse, and there are still a large number of main funds to take over the stock chips of the 'big infrastructure' main line, then the 'Huaguo Zhongye' check will continue to be hyped up."

"Today's opening sentiment is very good." At this time, Liang Jiucheng of the 'Jinan Lishan Road' sales department also said, "Originally, I thought today would be a day of huge divergence in the core theme of 'big infrastructure'. Now it seems... this divergence will probably be postponed. The willingness of various market funds to chase the core theme of 'big infrastructure' is stronger than I expected. In addition, looking at the domestic real estate stocks in the Hong Kong stock market, the opening sentiment feedback and market feedback are also good."

"The key is that almost all of the stocks that hit their daily limit yesterday, such as Shenhuo Shares, Pingmei Energy, Tianshan Cement, Beijiang Communications Construction, Capital Group, Chongqing Development, Bayi Steel, Linggang Shares... these popular concept stocks with relatively high market recognition in the main line of 'big infrastructure', all showed no negative feedback today." Zhao Zhiyuan said, "A good money-making effect is the best medicine to support the continued advancement of sentiment. As long as there is no extreme negative feedback trend, the willingness of various short-term capital groups in the market to chase high prices will not weaken. Whether we are investing in high-standard sentiment stocks or capacity-leading stocks, there will be no big problems."

"I see that the opening of other main-line small and medium-sized concept stocks in the market is still a bit weak." Zhang Wei responded, "Are you two too optimistic?"

Liang Jiucheng responded: "It is normal for other main-line concept stocks to perform weakly, which shows that the active funds in the market are still converging towards the main-line field of 'big infrastructure'. Don't forget... the current market trend pattern is in a bear market.

Since it is a bear market, market liquidity and incremental capital flows are extremely limited.

That is in the case of stock game.

Is it true that the market can only produce a main trend that lasts for a relatively long time if it concentrates active capital flows and bullish sentiment on a core main line?

If these non-core concept-themed stocks are no longer sucked dry by the core hot stocks.

There is no money to sell these non-core main concept stocks and chase the core main hot stocks.

This means that the funds supporting the core hot stocks to go long are beginning to be insufficient, that is, the potential driving force for going long has begun to decline.

If this is true, then we should be bearish rather than bullish.

I think the current situation and the market trends of the main lines are pretty good.

As the saying goes, 'When a whale is born, everything falls'. In my opinion, under the current market with extremely limited liquidity, the core theme of 'big infrastructure' is the giant whale in the market.

If you want this giant whale to keep swimming and moving forward.

To do that, we must continuously draw blood from other market main lines and continuously withdraw active follow-up funds.

As long as these non-core concept stocks continue to lose money, we don’t have to worry too much about the collapse of the core main line of "big infrastructure" and can concentrate funds on "Huaguo Zhongye" to attract more funds to follow suit and help us. "

"Brother Liang is right." Zhao Zhiyuan agreed and responded, "Under limited market liquidity, local market trends and polarized market trends are normal. Now we only need to keep an eye on 'Shenhuo Shares', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Shares'... These stocks have high market recognition and are being concentratedly pursued by various active capital groups. As long as these stocks have relatively good positive feedback, then the 'Huaguo Zhongye' stock can continue to move up."

Seeing that the market opened with good sentiment, various active capital groups are still converging towards the main area of ​​'big infrastructure'.

Then, he will no longer be satisfied with just making a high opening premium and leaving the market.

He also hopes to take advantage of the hype of the "big infrastructure" theme and follow the example of Mr. Su from "Huayi Capital" to create a main-line leading stock that will be chased and discussed by investors across the market, so as to earn at least double the profits from heavy positions.

Similarly, Liang Jiuchen had the same idea in his mind.

Therefore, at 9:19, after realizing that the entire market's bullish sentiment was still converging towards the "big infrastructure" main line, he decisively withdrew all his sell orders and maintained a heavy locked position.

Of course, the two of them have the same firm idea, and want to continue to lock in positions and go long, attract more funds to speculate on the stock of "Huaguo MCC", and then build the stock of "Huaguo MCC" into the absolute core weight leader of this round of "big infrastructure" main line market.

Zhang Wei was still somewhat hesitant.

However, considering that the three of them are a team and have worked together in the past, they always go in and out together.

Even though he had some doubts in his mind, he did not express them clearly. He just pondered for a moment and then turned his attention back to the two market charts.

And when he turned his attention back to the two markets...

At this time, the market trading time had reached 9:30. After a short 5-minute suspension, the two markets ushered in the formal bidding transaction.

Countless eyes are focused on it.

The two stock markets had just started to jump again. 'Shenhuo Group', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Shouchuang Group', 'Yu Development', 'Bayi Steel', 'Linggang Group'... these popular concept stocks, as well as 'Huaguo MCC', 'Wuhan Iron and Steel Group', 'Shougang Group' and several other 'big infrastructure' main line heavyweight popular stocks, were all frantically snapped up by various active capital groups and follow-up retail capital groups in an instant.

As a result, these funds continued to rush to buy shares.

At 9:31, in just one minute, Pingmei Energy once again quickly hit the daily limit, achieving three consecutive daily limit increases.

Immediately afterwards, at 9:32, the volume of "Huaguo MCC" exploded to 2.7 million, and the stock price reached 8.79%.

At 9:33, "Shouchuang Group" hit the daily limit, also achieving three consecutive daily limit trends.

At 9:34, 'Beijiang Communications Construction' opened high and closed the board. The market trends of the two markets once again revolved around the main line of 'big infrastructure'. Profit-taking and taking over were hit head-on, causing the volume of major core sectors such as 'real estate', 'construction', 'coal', 'nonferrous metals', 'steel', etc. to rapidly increase.

“Isn’t this plate too fast?”

Noticing that the two markets exploded too quickly in the first five minutes after the official opening, Xu Qiao, one of the main speculators of the "Magic City Ultra-Short Gang", stared at the market and suddenly frowned. He continued: "The volume has increased so much in a short period of time, which shows that the market divergence is widening, and other non-mainline concept stocks in the market are losing blood too quickly and the decline is accelerating... I always feel that this is not a benign trend and a good phenomenon!"