Rebirth of the Capital Legend

"Such a rapid explosion in volume indicates that the selling pressure from profit-taking is heavier than everyone expected before the market opened." Old Wu took over and said, "And the rapid loss of small and medium-sized stocks in other main concept areas indicates that the buying funds that take over the selling pressure from profit-taking are mostly from existing funds on the market, rather than incremental funds off the market.

It means that the existing funds are selling off the small and medium-sized stocks in other main concept areas, in order to take over the popular stocks and weighted stocks in the "big infrastructure" main area.

Then, once the market divergence in the main area of ​​"big infrastructure" widens, the money-making effect will quickly recede.

Then this kind of carrying power will inevitably decline rapidly.

From this point of view... today's market trend is not optimistic. The funds that chase high prices today are very likely to chase the short-term high point of the main line of "big infrastructure" and suffer a considerable pullback.

Moreover, from the logic of short-term speculation.

A large number of profit-taking orders are fleeing from the "big infrastructure" main line area, and they are bound to choose the low-level oversold main line for speculation.

From this perspective, it is the fields of 'mobile internet', 'film and television media', 'new energy industry chain', etc., which are currently suffering from severe losses and retail investors' most severe losses, that have seen good buying opportunities, providing a temporary opportunity for funds to 'switch between high and low' to make profits. "

Lao Zhang chuckled and responded, "The sentiment in the call auction was too consistent, and I felt something was wrong. Sure enough... after the official opening, the divergence in the market instantly widened. But the intense turnover here shouldn't be a bad thing, right?"

Brother Chen thought for a moment and responded: "The intense turnover here is definitely not a bad thing for the core theme of 'big infrastructure' in the long run. If the main line market wants to go long-term, it must require intense turnover to continuously raise everyone's holding costs.

But in terms of short-term trends, such a large volume here is not optimistic.

After all, the market as a whole is now a bear market, and liquidity is gradually becoming scarce.

In the absence of liquidity, when the market is completely a game of stock, the increase in volume is basically equivalent to short-term speculation. It is time for the active short-term capital groups to reap profits and switch between high and low. "

"But judging from the current market situation..." Lao Zhang paused and said, "There has been no concentrated panic selling of popular stocks in the main field of 'big infrastructure', as well as a number of short-term concept stocks with high market recognition, and the receiving funds are still flowing in continuously. Although the volume has increased a lot, there is no situation where the receiving funds cannot handle the market situation. In addition, many stocks such as 'Pingmei Energy', 'Beijiang Communications Construction', 'Tianshan Cement', 'Capital Group', etc. are still sealed at the daily limit, and there is no sign of loosening of the limit."

"The ebb of emotions is a process," said Lao Wu. "As the main line of 'big infrastructure', the hot concept leading stocks with the largest number of active funds will definitely be affected last. We cannot judge the trend of the entire 'big infrastructure' main line based on the market trends of these stocks alone."

"In fact, the hype and follow-up of the core theme of 'big infrastructure' at the beginning have clearly exceeded expectations." Brother Chen said, "The short-term profit-taking funds in the market have chosen to take profits here, which is no problem at all."

"But the long-term logic should be fine, right?" Xu Qiao said.

"There is no problem with the long-term logic," said Lao Wu. "But there is not much long-term capital in the market at present. From the perspective of the long-term capital's trading logic, the long-term capital must hope that the core stocks in the core main line of 'big infrastructure' can make a strong correction at the current time point to provide a better buying point. Therefore... the buying point and trading logic of long-term capital are essentially contradictory to those of short-term capital. We cannot use the short-term trading thinking logic to set up the trading thinking logic of the long-term main capital in the market."

"That's true." Xu Qiao nodded slightly, "It seems... I have to sell some of the popular stocks in the 'big infrastructure' main line that I bought in the last one or two trading days."

"There's nothing wrong with stopping profit during a big divergence." Lao Zhang responded, "But, Lao Wu, is the 'high-low switching' logic you mentioned reliable? At present, it seems that there is a divergence in the market of the 'big infrastructure' main line, but there is no active capital group to make the high-low switching of the main lines such as 'mobile Internet', 'film and television media', and 'new energy industry chain'!"

Old Wu said: "I feel that this logic is smooth. Of course...how the market will eventually develop depends on the direction of the combined efforts of the main funds of all parties in the market and their consistent expectations."

"The divergence does not mean that the short-term speculation on the main line of 'big infrastructure' will end." Brother Chen thought for a while and emphasized, "Under the full leadership of 'Hua Yi Capital' led by Brother Su, the various funds in the market are still deeply involved in the main line of 'big infrastructure'. Even if there are divergences in the market, I am afraid that it will continue to move upward under the drive of the trend."

"That is to say, the main theme of 'big infrastructure' has begun to enter the 'elimination' stage of popular concept stocks." Xu Qiao said, "The strong will become stronger, and the weak will become weaker."

Having said that, Xu Qiao turned his attention back to the trading screens of the two markets.

As the market trading time continues to advance, the main area of ​​​​"big infrastructure" has attracted the attention of countless investors in the market.

There has been a clear differentiation in the trends of a number of popular stocks and non-popular stocks.

Popular stocks such as 'Shenhuo Group', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Shouchuang Group', 'Yu Development', 'Bayi Steel', 'Linggang Group', etc., are still performing very strongly, either maintaining their daily limit or surging by 5% to 8%, while other less popular concept stocks in real estate, building decoration, building materials, nonferrous metals, coal, steel and other sectors have shown a clear trend of opening high and closing low. Many concept stocks have even fallen back from a high opening to below the water level.

"Fuck, I can't buy the leading stocks, and buying other stocks that make up for the rise is actually a scam."

As the indices of various sectors in the entire "big infrastructure" main line area gradually fell back and the corresponding concept stocks all plummeted, many retail investors gathered on the online stock investment exchange platform, including those who had taken over chips at high levels in the early trading, could not help but complain.

"Yeah, it's really f*cking depressing. You really can't buy stocks that follow the trend in the back row."

"Looking at the situation, today's core theme of 'big infrastructure' feels like it's going to collapse. With such a large volume and such a big divergence in the market, it feels like it will plunge sharply before the end of the afternoon."

"I don't think it's that serious. As long as the leading stocks like China Metallurgical Group, Pingmei Energy, and Shenhuo Shares don't plunge, the sentiment of the entire main line shouldn't collapse."

"The selling pressure on the market is so heavy, I am speechless..."

"The market has been rising for three consecutive days, and there must be a lot of profit taking on the market, but it feels like the capital support is still relatively strong."

"As long as we can take it on, the market will be able to turn from divergence to consensus again."

"In the Hong Kong stock market, Chinese real estate stocks are still rising. It's only been three trading days. I don't believe that the main theme of 'big infrastructure' will end with just this little bit of momentum."

“Looking at the trend, it’s clear that the index has just come out.”

"What are you afraid of? Isn't the Huayi Capital, which is headed by President Su, still increasing its holdings and going long?"

"I don't know which funds are dumping the market. I'm speechless. How much has it risen? They are really a bunch of people without a vision."

"Some of the big funds in the market really have no vision as they sell when the price rises a little bit."

"Alas, it's really boring to buy trend-following stocks. You still have to invest in leading stocks. Leading stocks have an extra life. Even if the main trend collapses, the leading stocks may not collapse."

"Which is the core leader of the main line of 'big infrastructure' now?"

"I think it's 'Capital Group'?"

"I feel that the market position of 'Huaguo Zhongye' and its driving force for the entire 'big infrastructure' main line are obviously stronger. It is hard to say whether the funds of 'Qilu Gang' will lock up their positions today and continue to focus on this stock to create a demonstration effect."

"I also feel that the check from 'Huaguo Zhongye' has become the leading force in the main line of 'big infrastructure'."

“Pingmei Energy is also very strong!”

"But the trend of 'Golden Land Group' is a bit weak today. It has failed to rise after several attempts. Now on the market, large funds have been continuously flowing out, and the stock price has continued to decline. It feels that most of the funds taken over today will be trapped."

"'Conch Cement', 'Wuhan Iron and Steel Group', 'Huaguo Baosteel'... these heavyweight stocks are also like this. The big funds on the market have been continuously flowing out."

"Damn it! I even cut my position in Ciwen Media in the early trading session and was chasing after Gemdale Group. Now I am in trouble."

"Alas, I just know that you can't chase high prices in a bear market, but I don't put my knowledge into practice!"

"It's so annoying. I watched it for two days and it just kept going up without me buying. Today I decided to sell at a loss to chase the main trend, but it's still at the highest point. This market... is really not for human beings to play with!"

"It makes no difference. You'll lose money no matter what you buy."

"It's so hard to make some money. You should go short in a bear market."

"The active buying is obviously still weakening. Alas, it's not even 11 o'clock yet, and the overall market, as well as the sectors related to the 'big infrastructure' theme, feel like they're going to fall quite a bit today!"

This was accompanied by heated discussions among many retail investor groups on online stock investment exchange forums.

After the market trading time entered 11 o'clock in the morning, the active buying power in the entire "big infrastructure" main line area began to weaken further.

At the same time, some active capital groups have taken profits and stopped profit from the main line of "big infrastructure".

It began to flow back into the consumer and pharmaceutical sectors.

Another group of active funds that fled with profits began to take the opportunity to buy some oversold concept leading stocks with high market recognition in main line areas such as "film and television media", "mobile Internet", and "new energy industry chain", and bought the bottom of the blood chips of many retail investors.

Due to the high and low switching of the profit-making capital groups.

Near the midday closing, a number of concept sectors in the main field of "big infrastructure", as well as a number of concept stocks, including all related stocks including popular concept leading stocks, showed a clear trend of large-scale selling. A large number of on-site profit-making funds followed suit and sold off, driving the two market indices to fall as well.

Finally, when 11:30 noon arrived, the two markets closed at noon.

The Shanghai Composite Index and the Shenzhen Composite Index basically closed at the flat position, falling nearly 1.2% from their intraday highs. As for the ChiNext Index, when the Shanghai Composite Index and the Shenzhen Composite Index fell, it was pulled up a lot from the deep water, and finally settled at a drop of 0.32%.

"Eh...After analyzing the market trend this morning, I feel like the funds in the market are switching between high and low!"

After the two markets closed at noon, Li Jinshi, one of the main speculators of the "Fushan Group", briefly reviewed the market trends in the morning and said: "According to the market trends in the morning, the market divergence on the core theme of "big infrastructure" in the afternoon is expected to increase further. In addition, as funds in the market begin to switch between high and low, the active fund groups in the market will definitely be further dispersed. In this way... there will be even less buying funds that can be gathered in the main line of "big infrastructure"."

"It's a stock market, but everyone's focus is so scattered, so it's doomed to fail." Chen Guiyun said, "The core theme of 'big infrastructure' is expected to continue to plunge this afternoon, and this plunge... the sentiment is collapsing, and it will be difficult to recover in a few trading days."

"Alas..." After hearing what the two said, Liao Guoxiang, a core figure of the 'Fushan Group', sighed helplessly and said, "The short-term speculative funds in the market are still like frightened birds. Not many people have the pattern of continuously locking up their positions. As soon as they make a little profit, they start to sell off."

"There is no other way." Li Jinshi said, "In a bear market, the pattern is equal to losing money."

"Old Liao, it's time to run away in the afternoon, right?" Chen Guiyun asked.

Liao Guoxiang nodded slightly and responded: "Since the short-term chip structure of the entire 'big infrastructure' main line has begun to loosen, we can only stop while we are ahead. Lao Li is right. In a bear market, when everyone is running and killing each other, once the situation changes, it will be taken over by others, and the floating profit will be turned into floating loss."

"In fact, the main reason is the lack of incremental funds in the market." Chen Guiyun said, "If the market liquidity was better, the divergence on the main line of 'big infrastructure' today would not be so serious. It's a pity that Mr. Su of 'Huayi Capital' spent a huge amount of money to hype the main line. This market... after such a drop today, it is really hard to say whether it can gather emotions again, re-consolidate the chip structure, and come out again."