Rebirth of the Capital Legend

"Let's cut our positions while we still have profits." As soon as Zhang Wei finished speaking, Liang Jiucheng quickly responded, "Damn, the market sentiment is declining too fast."

As he spoke, he quickly placed a continuous sell order of 10,000 lots and sold all the chips he held.

And accompanied by his sell order.

When continuous large sell orders of tens of thousands of shares slammed into the disk of "Huaguo MCC", the stock price instantly turned red with a 3.75% increase, and then plunged into the water, showing a rapid dive and a complete collapse of the disk.

And at the moment when Liang Jiucheng decisively cut his position and took profit.

Zhang Wei and Zhao Zhiyuan also simultaneously cut their positions and took profits, directly clearing their positions with one click and selling all the "Huaguo MCC" shares in their hands at the market price.

At the same time, the rapid selling of the three major funds further intensified the market volatility of this core stock.

At 2:49, the volume of "Huaguo MCC" exploded again, and the stock price continued to fall from about 1.73% below the water level to 3.29%. The intraday amplitude exceeded 10%. At the same time, its trend formed a complete "dark cloud cover" pattern on the daily K-line chart.

At 2:50, 'Huaguo MCC' encountered concentrated selling by major funds.

Other core leading stocks in the market such as 'Jinke Group', 'Kewan Real Estate', 'Huaguo Construction', 'Poly Real Estate', etc., as well as concept leading stocks such as 'Shenhuo Shares', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Shares', etc. all plunged under the influence of the explosive volume.

The Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index had already shown a continuous volatile downward trend.

Several major market core indices have also slipped below the water level, and the decline of the ChiNext Index is still the largest among the major indices.

At 2:51, Pingmei Energy, the leading concept stock, was affected by the concentrated selling of funds in the market, and its intraday decline widened to about 5%. The intraday amplitude exceeded 15%. All the buying orders undertaken during the day had been killed, and the selling orders on the market were still emerging in an endless stream.

At 2:52, the intraday decline of the two stocks "Golden Land Group" and "Huaguo MCC" widened to about 4%. At the same time, the main-line related sector indexes of the "big infrastructure" such as real estate, building decoration, building materials, steel, coal, nonferrous metals, etc., all fell from the intraday highs and showed a downward trend.

However, as the "big infrastructure" collapsed across the board, sentiment quickly cooled.

Liquor, white goods, pharmaceuticals and other highly defensive sectors, as well as their sector indexes, related weighted concept stocks and core leading stocks, saw a large number of active buying orders in the last ten minutes of the closing period. Many major capital groups and active capital groups in the market began to flock to these defensive trend sectors that have been strengthening against the trend for a long time for risk aversion, thus abandoning the "big infrastructure" main line sector that was in a comprehensive retreat.

At 2:53, Pingmei Energy fell sharply again, breaking through the upper and lower floors.

At 2:54, the main capital flows of all related sectors in the main field of "big infrastructure" changed from net inflow to net outflow. Moreover, at this time, even many of the leading stocks in the main line of "big infrastructure" that were previously publicly bought by the "Fuxing Road" seat, such as "Poly Real Estate", "Conch Cement", "Kewan Real Estate", "Shenhua Coal Industry" and other stocks, also began to plummet rapidly.

At 2:55, the stock price plummeted to the lower limit. Pingmei Energy, which had been in a "ceiling and floor" situation, quickly opened the lower limit. After the leading stocks related to the concept of "big infrastructure" plunged sharply to escape the panic selling, active bargain-hunting funds in the market began to enter the market quickly.

At 2:56, Pingmei Energy's share price rose straight from the lower limit to around 6% of the intraday decline due to a large amount of bargain-hunting funds.

At the same time, under the influence of bottom-fishing funds.

A number of core leading stocks that had plummeted, including 'Jinke Group', 'Kewan Real Estate', 'China Construction', 'Poly Real Estate', 'China Metallurgical', etc., as well as 'Shenhuo Group', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Group', etc., have all begun to rebound rapidly.

At 2:57, the market entered the last three minutes of the closing auction.

The Shanghai Composite Index and the Shenzhen Composite Index were both frozen in the decline range of 1.2% to 1.3%. As for the ChiNext Index, although a few technology stocks and media stocks have received the attention of some active short-term funds amid the rapid ebb of the "big infrastructure" main line sentiment, and some self-proclaimed smart short-term funds are switching between highs and lows, but in the end, the decline of the ChiNext Index was still deeper than that of the Shanghai Composite Index and the Shenzhen Composite Index, and was frozen at 1.67%.

On the contrary, the A50 index fell rapidly in the late trading.

Driven by the rebound of leading stocks in defensive sectors such as white appliances, liquor, and medicine, as well as leading stocks in the banking sector, the index recovered most of its losses and only fell slightly by 0.73%.

Finally, after the last 3 minutes of call auction, it was 3 o'clock in the afternoon.

The two markets are approaching the final closing moment.

The declines of the Shanghai Composite Index and the Shenzhen Composite Index have slightly retracted, while the decline of the ChiNext Index has remained basically unchanged. A number of market leading stocks and popular concept stocks, some of which are highly recognizable, have generally been snapped up by bargain-hunting funds in the last three minutes, and have recovered the decline of 1 to 2 points.

But even in the last three minutes of the call auction, the panic selling sentiment in the market eased.

In terms of the final closing results of the two markets.

The entire day's trend was still extremely tragic.

Looking back at the intraday market trends, as the main attack direction of the market's main funds and the active main fund group in the entire market, the "big infrastructure" main line that the vast majority of retail investors focus on has been continuously fluctuating downward since it opened sharply higher in the morning in line with consensus expectations, and has formed a large negative line with large volume of opening high and closing low.

This has caused the K-line patterns of almost all the core leading stocks in the entire "big infrastructure" main line to be extremely ugly, and has also greatly hit the confidence of various funds undertaken during the day, as well as the expectations of the vast number of investors inside and outside the market for the subsequent market trends of the core "big infrastructure" main line.

"Damn it, today's trend is really too ugly."

After the two markets closed, seeing the tragic trend of the main line of "big infrastructure" and the tens of billions of funds that were trapped and killed in the day, at this time in Shanghai, inside the "New Energy Industry Growth Hybrid Fund Product" trading room of Nuoan Capital, the trading team leader Bao Yongquan couldn't help but complain with a dark face: "Since the early trading, the funds have been smashing the market, and it was only in the last few minutes of the closing that the market stopped slightly. This is simply ruthless... All the funds that took over the main line of "big infrastructure" today were trapped and killed in the market."

"This trend..." Yang Shengfan, the manager of the New Energy Industry Growth Hybrid Fund Product, sighed and said, "No one expected this!"

Bao Yongquan frowned, still unable to understand the trend of the day, and said: "How could it be like this? How could it be like this? In the past few trading days, there was such a vigorous bullish sentiment and such an enthusiastic long market, how could it suddenly come to an end?"

"It seems that many so-called bullish funds are not sincere!" Yang Shengfan said with emotion, "Most of them are bullish verbally, but not in actual action. Looking at the trading volume in the past few days, especially today's trading volume, we can see that there are not many buying orders for the core stocks of the main line of 'big infrastructure'. Instead, there are lurking short-term selling orders and short-term profit-taking selling orders, which appear to be endless."

"Yes!" Bao Yongquan nodded in response, "Everyone verbally agrees with the logic of the core theme of 'big infrastructure', but in fact, it seems that no action has been taken, and it has not attracted enough off-market funds to come in, which has led to such an ugly trend pattern during the day."

"This shows that we still can't have too high expectations in a bear market," said Yang Shengfan.

Bao Yongquan thought for a moment and responded: "I think the most important thing is the core theme of 'big infrastructure'. At present, it is only at the left buying point driven by favorable policies and the improvement of fundamentals. There is no actual performance growth expectation to drive the market. Therefore, various fund groups in the market have insufficient confidence in the future expected market development of this core theme. They dare not enter the market with heavy positions and go long when future expectations and future performance are still unclear, and they are determined to go long.

From this perspective...

The core theme of "big infrastructure" is currently clearly different from the liquor, white goods, and pharmaceutical sectors.

The reason why the liquor, white goods, and pharmaceutical sectors have been able to outperform the market in the long run and continue to rise against the trend and through bull and bear markets is not only because they are defensive and safe-haven sectors, but also because of the rapid transformation of their industry fundamentals, which has brought about substantial performance changes in leading companies in various industries.

The realization of actual performance expectations has led to the continued strong performance of these major sectors.

At present, the core theme of "big infrastructure" has not yet reached the stage of performance, so it is estimated that there will be continued violent fluctuations in the market development. "

"That's right." Yang Shengfan nodded. "Although the change in stock price is caused by emotions and expectations, in the final analysis, there must be performance growth expectations as the underlying logic to support the continued upward movement of stock prices and to produce a chemical reaction under the guidance of emotions and expectations."

"It seems that we are moving quickly from the main line of 'new energy' to the main line of 'big infrastructure'..." Bao Yongquan reflected for a moment and said, "We are still a little too hasty. According to today's market trend, it is estimated that the main line of 'big infrastructure' will continue to fall tomorrow and the day after tomorrow, and it may even bottom out again."

Yang Shengfan thought for a moment and responded: “No one can be completely accurate in the buying point. In fact, for long-term expected changes and long-term layout, the buying point should be a range position, not a specific stock price position. As long as the underlying logic of the main line of ‘big infrastructure’ is not a problem, as long as the real estate, steel, coal, nonferrous metals, cement, building decoration and other sectors are driven by the policy of supply-side structural reform and the continued hot market trend of the offline property market, their fundamentals are continuing to improve.

Then, these actual changes in fundamentals will be reflected in the performance of relevant core leading stocks in the near future.

In other words, as long as there is no problem with the underlying logic.

Then, the performance explosion that truly drives the stock price up will come sooner or later.

Although it is a little early for us to make layout at this position and in this range, it cannot be said to be wrong.

As for reducing holdings in the main line of the 'new energy industry chain', it cannot be said to be wrong.

Judging from the change in the main market trend, it is obvious that the current market hotspot is not on technology stocks at all. The current technology stocks and all technology-related main sectors are still in the stage of killing valuations and emotions, while the "new energy industry chain" happens to be at a critical node of uncertainty where expectations are being fulfilled, waiting for next year's performance verification and industry demand verification.

At this node, the uncertainty of its market trend is much higher than the main line of "big infrastructure".

In general, there is no problem with our high-low switching.

The real root of the problem is that the market is too weak, and the main line of "big infrastructure" has too wide a radiation range. The market driving force of related core stocks requires continuous large-scale buying funds, but the market lacks confidence in going long, and the incremental buying funds have not reached this point, which cannot drive the main line of "big infrastructure" to continue to be high-profile. "

"It is true that the market lacks incremental funds and confidence in long positions, which has restricted the further development of the main line of 'big infrastructure'." Bao Yongquan pondered for a while and nodded in response, "Mr. Yang, with today's trend, it will take a long time for the subsequent market to recover. Should we... continue to build positions according to the established strategy?"

Yang Shengfan thought for a moment and said, "Let's proceed according to the established strategy. There is no problem with the underlying logic. The offline real estate market is getting more and more popular. I think the main line of 'big infrastructure' will come out again after a short period of chip cleaning and chip sedimentation.

We are not short-term investors, so we don't need to pay too much attention to the short-term sentiment of the market.

Moreover, if we judge that this core theme is destined to emerge again in the future.

So, we should be happy when the share prices of the leading stocks in this core main line fall, because this will lower our position building costs and increase the expected profits we can obtain in the future.”

"That seems to be the case." Bao Yongquan pondered for a moment, nodded, and said, "Okay, since Mr. Yang thinks there is no problem and believes that the underlying logic of the 'big infrastructure' main line is correct, and this is just a short-term market sentiment fluctuation, then we... will build positions according to the original plan, continue to sell stocks related to the 'new energy industry chain', and move all positions to the 'big infrastructure' main line."

Yang Shengfan thought for a moment and said, "We don't have to move all of our positions to the main line of 'big infrastructure'. As the liquor, white goods and pharmaceutical sectors with the highest certainty in the market, we can still allocate some positions appropriately. In this way, our strategy can basically achieve both offense and defense."