Rebirth of the Capital Legend

"This morning's trend is really beautiful!" After the midday close, in the trading room of the 'Blue Chip Hybrid Select' fund product in the 'Nuoan Capital' company in Shanghai, fund manager Wang Shujie stared at the market and said with emotion, "The core theme of the market, 'Big Infrastructure', has not only re-emerged, but also driven the entire market up. From the perspective of volume, after 10 a.m., there are obvious signs of continued entry of off-site funds!"

"Yes, that's true." Trading team leader Li Shangfeng nodded in response, "Before 10 a.m., although the market sentiment of the core theme of 'big infrastructure' reversed and many popular stocks rose sharply, the overall situation was still a stock game.

At that time, regardless of whether it was the more defensive safe-haven sectors such as liquor, white appliances, and medicine.

It is still a flexible sector with higher investment risks such as Internet software, film and television media, and new energy industry chain.

Overall, large funds are in a state of outflow.

Moreover, the core stocks in these concept sectors did not rebound with the index at that time.

But you see now, not only has the net buying volume of large funds in sectors such as real estate, building decoration, building materials, steel, coal, and nonferrous metals related to the main line of "big infrastructure" returned to positive, but even other concept sectors such as liquor, medicine, white goods, Internet software, film and television media, and new energy industry chain, which had previously shown a net outflow of funds and were siphoned off by the main line of "big infrastructure", the net inflow of large funds has returned to above positive.

This shows that after 10 o'clock in the market, a large amount of incremental funds from outside the market entered the market.

Moreover, after 10 o'clock, the intraday volume of the entire market gradually increased, and the buying became stronger and stronger, which can also be felt. "

"The core theme of the market, 'Big Infrastructure', has driven other main sectors of the market and has a positive feedback effect on the market index. So..." Wang Shujie took over Li Shangfeng's words and continued, "It means that the market trend may really reverse."

Li Shangfeng turned his gaze to Wang Shujie and asked, "Mr. Wang, do you think the market situation of the whole market may form a reversal trend under the main line of 'big infrastructure'? I think... it is probably still difficult. There should be no problem with a short-term rebound, but if the trend is to be reversed, the current market volume is not enough.

Despite yesterday's sharp sell-off and this morning's panic selling.

A lot of floating chips such as the previous trapped shares and profit-taking shares gathered in the main line of "big infrastructure" have been cleared, which relatively reduced the pressure on the continued upward movement of the core main line of "big infrastructure".

But we analyze it from the perspective of the development of the entire market.

The current trapped positions in the market are still very heavy, and the overall market confidence has not been restored.

Currently, almost 90% of investors in the market believe that the market will rebound, and the booming offline real estate market will also drive active capital groups in the financial market to move into the real estate market for speculation, which will cause further lack of liquidity in the online financial market.

In other words, without further release of liquidity by the central bank.

It is basically unrealistic for the market to reverse the trend under the current liquidity conditions.

After all, quantity comes before price. Without quantity, how can there be any market conditions?

What's more, the Federal Reserve is very likely to raise interest rates next. When the US dollar enters the interest rate hike channel and global active funds are siphoned off by the US dollar, my country's monetary policy will also be restricted. The central bank will have fewer cards in its hand and will dare not expand market liquidity on a large scale.

The offline real estate market diverts capital liquidity, and the US dollar interest rate hike restricts the inflow of global funds into my country.

Under the constraints of various fundamental factors.

I think the probability of the entire market breaking away from the current trend pattern, returning to a bull market, and launching a sustained counterattack is not high.”

"Do you think the market really lacks funds?" Wang Shujie asked with a smile.

Li Shangfeng responded: "Isn't there a shortage? In fact, many stocks in the market are quite cheap. The reason why the stock price can't rise is not because of the lack of market liquidity and the lack of funds to make the market, which leads to the suppression of valuation and the refusal to rise, right?"

"I don't think there is a shortage of it." Wang Shujie said, "Look at the current real estate market in various cities. There are more and more unsold properties launched by developers. The active capital flow consumed by the national real estate market should be much larger than that of the stock market, right? But you see that housing prices are still being hyped up, and there is a trend of getting more and more hyped up.

This shows that the market liquidity is relatively sufficient.

It also shows that there is a lot of active money in the market and the potential buying power is stronger than we expected.

I think the main reason why the stock market is unpopular at the moment is due to people’s lack of confidence and insufficient expectations.

Of course, confidence.

You say he is valuable, he is more valuable than gold, you say he is worthless, he is indeed worthless. "

"Confidence?" Li Shangfeng pondered Wang Shujie's words for a while and responded, "Confidence is indeed important, but the problems of market fundamentals also exist in reality!"

"Do you think the current macroeconomic situation is very bad?" Wang Shujie asked again.

Li Shangfeng responded: "That's not necessarily the case. Although the current growth rate of my country's GDP has slowed down compared with previous years, it is still in a stage of rapid development."

"Since the fundamentals are not bad and the performance of many companies in the market is still growing, it is not a fundamental problem, but a purely emotional problem." Wang Shujie said, "The market has fallen to the current position, and there is no need to increase the volume too much. Just a slight increase in volume is enough to attract continuous off-market funds to enter the market. That is enough to start a round of long-term trend rise at this bottom range.

In other words, at this time, the potential market liquidity is sufficient.

The only problem is how to stimulate this potential market liquidity and allow more off-market funds to participate.

I have thought about this problem before, wondering how to restore the market's bullish confidence... Now seeing the rapid outbreak of "big infrastructure" and the continuous influx of off-market funds into the market, this problem has been solved.

The main force of capital, 'Hua Yi Capital', is still very powerful.

The timing of launching the market at this position was just right.

As long as the money-making effect is achieved and extreme negative feedback is avoided as much as possible, then there will be good money-making effects and positive feedback.

The potential bullish force will definitely be stimulated.

By then, the market's confidence in going long will gradually recover, and as time goes by, the performance of many companies will also be verified, and the overall market trend will naturally emerge."

"According to Mr. Wang's opinion..." Li Shangfeng responded, "Should we still take a higher view of the development of the main trend of 'big infrastructure'?"

Wang Shujie smiled and nodded, "You have to look at it with a higher regard."

"But our holdings in the main area of ​​'big infrastructure' are already quite high," said Li Shangfeng. "In my opinion, the current expectations of the liquor, white appliances, and pharmaceutical sectors have not been fully realized, and the internal chips are well locked, and the rise is also showing a trend of continuous shrinking. I feel that it is better to hold a balanced position in the liquor, white appliances, pharmaceuticals, real estate, construction and decoration, coal and other sectors."

Wang Shujie said: "It is safe to hold a balanced position, but it is difficult to outperform the market and our competitors. This is already the second half of the year, and the net value ranking of our fund products this year is our best performance in many years.

If we can keep it up, or go a step further.

I feel there is a good chance of winning the Golden Bull Award this year."

Although he now has a certain position within Nuoan Capital, and the fund products he is in charge of have also reached a scale of tens of billions.

But there is still a gap between him and becoming a star fund manager in the industry and winning the 'Golden Bull Award' he desires.

At present, the net value performance of the fund products is very close to the goal he wants to achieve.

In this way, he hopes to rely on his own accurate judgment and necessary portfolio adjustments to further increase the net value of the fund products and achieve his goals and wishes.

Li Shangfeng was stunned when he heard what Wang Shujie said, then he reacted and thought for a moment, then he said: "Okay, since Mr. Wang is so sure that the market of the core theme of 'big infrastructure' can come out, and the overall market structure in the second half of the year will be better than the first half, then I will change the trading strategy and let the traders adjust the fund positions by about 10% to the main theme of 'big infrastructure'."

After saying this, he didn't wait for Wang Shujie to give any more instructions.

The adjusted trading strategies were then communicated to all the traders in the trading room.

While the two of them deeply analyzed the market trends and finally decided to further change their trading strategies, focusing on the main line of "big infrastructure" to seek subsequent excess returns in the market.

At this time, the major forums for online stock investment exchanges...

The retail investors gathered here are already having heated discussions, and their opinions have shifted from the divergent views in the morning to a consensus on bullishness.

"There is no doubt that the market will continue to rise in the afternoon, and there is a chance of a big positive today."

"After 10 a.m., the volume of the entire market showed an increasing trend. Needless to say... the market will continue to rise in the afternoon."

"The main theme of 'big infrastructure' is great. I didn't expect that real estate would be the main focus today."

"It feels like the 'coal-flying, colorful' market has become the mainstream."

"Pingmei Energy has completed its rebound. It has basically been confirmed to be the leader of this round of market. It was a mistake not to buy this stock this morning."

"The market did see a moderate increase in volume this morning, and I hope this trend of increasing volume can continue in the afternoon."

"Luckily I didn't sell after the stock opened sharply lower this morning, so I'm finally making money now."

"Recently, the real estate market has been really strong. Not only the A-share market is strong, but the Hong Kong stock market is also very strong."

"The real estate market is booming because housing prices have exploded, but I feel like the funds currently active in the market are all going into real estate speculation, right? The sustainability of the stock market is questionable!"

"How can real estate speculation be that easy? At present... stocks are more cost-effective."

"It feels like the market has completely changed. The stocks that have surged this year are basically traditional sectors and stocks. Technology stocks have really become irrelevant."

"The technology sector has no money-making effect at all. Who will take over?"

"The key is that there are so many locked-in shares that it is impossible for the stock to rise."

"Is it because the timing is not right yet? In general, I think it is still a matter of fundamentals. At present, the fundamentals of the main sectors of the 'real estate industry chain', such as real estate, building decoration, building materials, steel, coal, and nonferrous metals, have improved significantly, and policies are also supportive, so stock prices have exploded. The technology sector, without these favorable factors now, will naturally find it difficult to move forward. However, I think the main trend of the market in the future will definitely return to the technology sector again."

"Not only is there a change in the main style, but also a change in the style of large and small caps. In the entire market, large-cap stocks are obviously stronger than small-cap stocks."

"The large-cap stocks are much more resistant to risks, so they should lead the rise!"

"The current market style is mainly focused on speculating on industry leaders."

"It is true. The real major funds active in the market are basically converging towards the leaders of various industries. The real industry leaders have basically not fallen much this year. In addition, stocks such as 'Qianzhou Moutai', 'Wanhua Group', 'Poly Real Estate', 'Conch Cement', 'Kewan Real Estate', 'Hua Shang Bank', 'Ping An Insurance', etc. have basically recovered the losses during the stock market crash, and many of them have even set new historical highs."

"It seems that my previous stock trading approach was wrong. I should really embrace industry leaders."

"Yes, it is obvious that the main line of this round of 'big infrastructure' has exploded, and the stocks with the smoothest trend are also the core leading stocks of each sector. Today, the stocks with the largest net inflow of large funds in the entire market are 'Poly Real Estate', 'Kewan Real Estate', 'Conch Cement', 'Shenhua Coal', 'Shanzhou Coal', 'Zijin Mining' and other industry leading stocks."

"Then I'll trade these leading stocks this afternoon."

"It's gone up too much, it's hard to start!"

"Is this a big increase? Isn't it just rising from the bottom?"

"The market has generally increased by 7 points in a day. Isn't that enough?"

“You can’t just look at the intraday. The trend is out, the sentiment is up, and the fundamentals are supportive, so just go for it with a heavy position.”

"Yes, if I hesitate now, I will most likely not be able to afford it later. Anyway, I have decided to invest all my money in Conch Cement this afternoon. Housing prices are skyrocketing, and the industry sectors related to the real estate industry chain and the leading stocks in related core industries will inevitably rise in share prices. Let's wait and see if there is room for doubling first."

"Institutions didn't have much stake in the core theme of 'big infrastructure' before, right?"

"That's right. It means that everyone's costs are about the same now."

"Compared with the valuations of other market stocks, I feel that the core leading stocks related to the 'real estate industry chain' are indeed quite undervalued."

"I still say the same thing. Just follow Mr. Su's concept stocks and buy them. I don't care about other logic."

"Yes, today is definitely a good time to buy."

"I am optimistic that the 'big infrastructure' theme will become the core leading theme in the second half of the year. The steel, cement, and coal sectors have been falling for so long that they almost missed the entire bull market. It is time to recover and start a sustained rally."

With the overall reversal of market sentiment and heated discussions on online stock investment forums...

The one and a half hour lunch break passed in a flash.

Soon, at 1 p.m., after a brief halt, the two markets once again entered a period of continuous bidding trading.

When the market started to move again, the leading stocks of the "big infrastructure" main line, which had already gained market recognition in the morning and had formed a money-making effect, as well as the core hot concept stocks, instantly ushered in a wave of rapid and concentrated buying power.

This buying power is like a flood that spreads across the corresponding stock markets.

But in an instant.

That is, it swept away more than a dozen orders in front of the corresponding stocks, causing all the corresponding stocks to rise in a straight line within one minute of the opening.