Rebirth of the Capital Legend

"There is nothing we can do about it. The market funds are working together like this, and no one can change it." Li Jinshi responded, "We can only say that the bear market pattern has been deeply rooted in people's minds. The short-term rebound cannot attract too much off-market funds to intervene. Without the large-scale intervention of off-market funds, it is impossible to support the continuation of the core main line of 'big infrastructure' and to withstand the combined selling pressure of short-term profit-taking and stop-loss orders."

"On the one hand, there is not enough incremental funds." Liao Guoxiang said, "On the other hand, the market of the main line of 'big infrastructure' has risen too quickly in the past few days, and many funds have not reacted at all, resulting in insufficient turnover of the bottom chip structure, and many institutional main funds are unwilling to aggressively chase high prices, thus forming the current market divergence and excessive selling pressure. "

"However, the rise of Chinese real estate stocks in the Hong Kong stock market is still fierce." Li Jinshi said, "I feel that the 'big infrastructure' line, even though there are great differences in the market today, and the selling pressure from profit-taking and early stop-loss orders is very heavy, it is not the time for the market to end completely."

"In terms of valuation, domestic real estate stocks in the Hong Kong stock market are inherently more undervalued than those in the A-share market," said Chen Guiyun. "It is somewhat inaccurate to judge the trend of the A-share market based on the trend of the Hong Kong stock market. Moreover, the styles of funds that dominate the market and the nature of the main funds involved in the two markets are completely different. The Hong Kong stock market...is mainly dominated by foreign institutions, while the A-share market is mainly led by these domestic institutions, as well as active hot money and active retail investors in the market."

"But it's still okay to take it as a reference, right?" Li Jinshi said, "Besides, Mr. Su from Huayi Capital is not intervening on a large scale just to make a small profit."

Liao Guoxiang responded: "Based on the underlying logic of the industry's fundamentals, we can see that the long-term investment logic of the core theme of 'big infrastructure' and the improvement of fundamentals are definitely biased towards continued optimism, but we cannot consider it from a long-term thinking logic!

Analysis of industry fundamentals, future long-term expectations, and analysis of short- and medium-term operating data of industry-leading stocks.

These things... are basically what the institutional groups in the market are good at.

As short-term speculators in the market, we cannot analyze the market according to the logic of institutions, but we must judge the buying and selling points of the market based on changes in market sentiment.

After all, even if the long-term logic of the core theme of "big infrastructure" is not a problem.

Its market trend cannot happen overnight. It must go through many long-term back-and-forth fluctuations and various corrections before reaching the long-term expected stock price position.

How long will this be? No one knows.

We must never turn short-term transactions into long-term transactions. This does not conform to our trading model and there is also a lot of uncertainty.

Therefore, the so-called correct logic in the long term actually has little to do with us.

What we should pay attention to first is the market sentiment, the follow-up of buying funds in the market and on the market, and the continuous changes in selling power.

As long as the market divergence continues to expand, the buying power continues to be weaker than the selling power, and the upward attack is weak.

So, no matter what the subsequent trend is, this is a definite selling point in the short term.

Since it is a definite selling point, we should not hesitate too much, but act decisively, give up all illusions, and stop profit decisively. "

"Brother Liao is right." Chen Guiyun nodded slightly. "We who are doing short-term trading must not turn short-term trading into long-term trading. Since the feedback from the market is not good, and since the follow-up funds are less willing to take over, and at the same time, many active main funds that have taken profits and stopped profits have also begun to disperse funds to do 'high-low switching', then we should stop profits and withdraw."

"In the main line of 'big infrastructure', the trend of the entire main line is in a divergent state, yes." Li Jinshi took over and said, "But the hot leading stocks like 'Shenhuo Shares', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Shares'...are obviously still in the process of accelerating their trend, right? I feel that for these hot leading stocks, the clear point of reducing positions and taking profits should be tomorrow."

Liao Guoxiang thought for a moment and said, “The divergence of the popular leading stocks in the main line of ‘big infrastructure’ is indeed not that big at present, but in the case of a big divergence of the entire main line, it is basically certain that the divergence of these popular stocks will increase as the subsequent trading market progresses.

Although in the major main line area, the decline in market sentiment of core popular leading stocks often lags behind the decline in the overall main line sentiment.

But the overall mainline hype sentiment has entered a period of divergence and decline.

The premium that popular leading stocks have is just a risk premium.

In trading, we should avoid making profits on the ‘last penny’ because the profits on the ‘last penny’ are often disproportionate to the risk and profit.

Accompanied by the discussion among several core main speculators of the "Fushan Group" in the internal group.

At this moment, the 'Yuhang Group' is among the main hot money groups.

Zhao Qiang, Sun Chengyu, Lao Yang and others who focused on 'Wuhan Iron and Steel Group' yesterday and brought out the concepts of 'SOE reform' and 'restructuring' in the market, all felt that the core theme of 'big infrastructure' and the market trend for half a day were somewhat below their expectations.

"Alas, there is a lack of important positive support. It seems that the line of 'SOE reform' and 'restructuring concept' has not been brought out. Although the check of 'Wuhan Iron and Steel Group' opened high and fluctuated with large volume, the market attention and the buying power on the market are still strong, but there is no relay fund that dares to continue to close the board and do more." Zhao Qiang sighed and said, "According to this situation, the market trend in the afternoon will be even uglier."

"In a bear market, there is no strong enough hard-core logic, and the market funds are generally not willing to chase high prices." Lao Yang responded, "There is nothing we can do about it."

Sun Chengyu saw the conversation between the two people in the group, pondered for a moment, and said: "The short-term speculation sentiment on the core theme of 'big infrastructure' has reached a relatively large divergence point. In addition, the overall market volume today is not enough, and the off-market funds are limited. If there is no new major positive stimulus at noon... I am afraid that its short-term market trend will be difficult to continue to rise."

"So, should we quit while we're ahead?" Zhao Qiang asked.

Sun Chengyu responded: "Since the funds to follow the trend are limited and the sentiment does not support further speculation, it is natural to stop while the going is good."

"Alas..." Zhao Qiang couldn't help but sigh again after hearing what Sun Chengyu said, "Damn it, I just made a profit from the next day's premium, I'm really unwilling to accept it!"

“In a bear market, it’s enough to make a profit.” Old Yang laughed.

He didn't feel unwilling at all. After all, although he didn't make much, he still made money.

"Old Yang is right." Sun Chengyu took over and said, "In a bear market, you can't demand absolute profits. As long as there is profit and the principal is not withdrawn too deeply, it's good. After all, in the market... not everyone is Mr. Su of Huayi Capital. Not everyone can step on the market rhythm as accurately as he does and make profits on both ends."

As they were talking, the time had already reached 1 o'clock in the afternoon.

After the emotional buildup in the afternoon and discussions among many investors, the two markets finally ushered in the formal bidding trading session in the afternoon.

When the two markets started to fluctuate again.

The main area of ​​'big infrastructure' that countless investors in the market have focused on, whether it is the real estate sector, or the building decoration, building materials, nonferrous metals, and coal sectors, the corresponding component stocks within the sectors have all begun to dive rapidly in volume, and concentrated selling orders have emerged in an endless stream.

"Alas, there is no hope. It seems that the big funds in the market have given up on the main line of 'big infrastructure'."

It was noticed that in the entire "big infrastructure" main line area, almost all the concept component stocks began to dive in the afternoon, and the selling volume on the market continued to increase significantly. On the online stock investment exchange forum, among the large number of retail investors who bought high in the morning, some people sighed helplessly and felt very disappointed.

"In a bear market, you really can't chase high prices. Damn it...why didn't I remember that?"

"Knowledge and action are not in harmony. Sigh... I am speechless. The stocks I sold at a loss in the early trading session are now rising. The stocks I bought at a high price in the early trading session have lost money as expected."

"I'm really being slapped in the face over and over again. This is such a weird market."

"It broke right after I bought it. I really am a master at this."

"I'm sorry, everyone. I've ruined the market. As expected, leading stocks are either too expensive to buy or are a rip-off if you buy them."

"This trend is really amazing. It has buried all those who bought in today."

"Who is dumping the stocks? Where is the heavy selling coming from? The stock didn't rise much before!"

"In a bear market, a 20 to 30 percent increase is already very high. It would be strange if the short-term profit-taking lurking ahead didn't take a hit."

"I really shouldn't have bought at a low price and bought at a high price. If I hadn't exchanged the shares, I might not have lost money today."

"Some of the big funds that hyped up the 'big infrastructure' line are really sick. They have no pattern at all. The strong emotions and consistent market in the early trading were smashed to pieces."

"Yesterday, so many stocks closed at the upper limit with reduced volume, and many stocks even closed at the upper limit within seconds of opening. There was no turnover, so I should have expected that there would be a big divergence in the market today. As a result... Damn it, I still took a position. I really didn't put my knowledge and actions together. I guess I will lose more than 10% because of my carelessness."

"The logic of the main line of 'big infrastructure' is so rigid, and I don't know what these funds are desperately investing in. Can other main lines be developed from here? Look at the 'mobile Internet', 'new energy industry chain', and 'film and television media' that funds have pulled in. Except for a few stocks that have achieved the effect of making money, are there people following other stocks?"

“I feel that some of the big funds are really rubbish in their market manipulation, and are simply reaping the benefits by relying on their financial advantages.”

"At this time, the funds that are desperately dumping the market and buying stocks in the concept-themed sectors such as 'mobile Internet', 'new energy industry chain', and 'film and television media' do not understand the situation. It would be better to dump the market and buy funds in the pharmaceutical and consumer sectors."

"Damn it, it's still diving... Looks like the short-term trend is going to turn into a long-term trend again."

"Why do I always buy at the highest point?"

"If I don't chase it, it will keep rising. If I chase it, it will turn downward right after I buy it. It's really amazing. Could it be that the main force is eyeing the small amount of money I have?"

"It's still because I didn't fully understand the sentiment. I can't blame others. The early trading position was so high and the volume was so large, I shouldn't have chased high to take over."

"Isn't it possible that Huayi Capital, which is headed by President Su, didn't fail in today's deal?"

"It's definitely not smashed. I believe in Mr. Su's vision."

"As long as Mr. Su doesn't sell it, and as long as Huayi Capital is still around, I think the main line of 'big infrastructure' will never end. Isn't it said that divergence is not the end of the market, but consistency is? It is obvious that many stocks in the main line of 'big infrastructure' today, although there are great divergences in the market and selling pressure is not small, the overall buying support is still relatively strong. As long as the chips are fully exchanged, I feel that there will be a chance to strengthen again in the future."

"Hong Kong-listed Chinese property stocks are still rising anyway, so there's no need to worry too much."

"I don't believe that the 'big infrastructure' market will only last for a few short trading days. Let the funds in the market crash, and I will continue to buy."

"As long as house prices in major offline cities continue to rise, there will be no problem."

"If short-term funds with no pattern are sold out early, it will be beneficial for the market to go further. The current market pattern is no longer dominated by hot money, but by institutions. Just like the liquor, white goods, and pharmaceutical sectors at the beginning of the year, hot money also speculated for a while and then withdrew. What was the result? Subsequently, under the leadership of institutional funds, the liquor, white goods, and pharmaceutical sectors have forcibly set new highs. So... under the real main line logic, I think we still have to take a long-term view."

"That makes sense. I'll wait until the price drops before adding to my position."

Along with the discussions of countless retail investors, there were also profit-taking sales by many active short-term funds in the market...

During the course of market trading hours.

For several consecutive trading days, concept stocks related to the main line of "big infrastructure", which are chased by a large number of active funds and retail investors in the market, are still fluctuating downward, and the selling pressure on the market has not only not eased, but has become heavier.

"Mr. Su, the huge divergence in the main line of 'big infrastructure' has finally emerged."

Noting that the market divergence in the main field of "big infrastructure" is getting bigger and bigger, and the desire of the short-term profit-making funds in the market to flee for their profits is getting stronger and stronger, at a glance, the related "big infrastructure" hot stocks are basically all sold by large orders. At this time, in the Magic City, inside the "Hua Yi Capital" company, in the main fund product trading room of "Hua Yi Expedition No. 1", fund manager Hou Baolong stared at the market and hurriedly reported to Su Yi with a smile: "This market fund divergence is coming faster than we expected!"