Rebirth of the Capital Legend

Seeing that she was very hesitant, Yu Xiaolu responded hurriedly: "Mr. Lu, if you say that the market can form a bear-bull reversal at this position, driven by the main line of 'big infrastructure', I think it is unlikely, but if it is a sustained rebound, the probability is still very high.

After all, the market has been falling for a long time.

Both the position of the market index and the position of individual stocks in the market are in an oversold state.

In addition, judging from the current recovery of the offline real estate market in various places, the boom in the property market and the rise in housing prices, a recovery of the macro economy is foreseeable.

Furthermore, new urbanization construction, supply-side structural reform, the new era of the Silk Road and the Maritime Silk Road...

These macroeconomic policy guidelines, under the main line of "big infrastructure", have seen a surge in demand, and the underlying logic makes sense.

Since the underlying logic of the "big infrastructure" main line is smooth and the valuations of the corresponding related sectors and stocks are extremely low, the expected performance explosion in the next few quarters, or in the next one or two years, is very likely. Coupled with the index trend, there is also a technical rebound demand.

The resonance of the two will lead to a sustained rebound and the possibility of a wave of main investment opportunities.

It is extremely huge.

Moreover, since the core theme of "big infrastructure" involves so many market industry sectors, concept sectors, and related stocks, the entire theme is very large.

When such a main line market starts, a sustained rebound will form.

It will inevitably drive other main lines and other conceptual themes of the market, and will also inevitably attract some off-market funds to go long. In other words, with the further fermentation and continuation of the core main line of "big infrastructure", I believe that the liquidity of the subsequent market will be restored.

We estimate that the transaction opportunities and investment opportunities we are looking for will also increase accordingly.”

"You mean... we should adjust our positions towards the main line of 'big infrastructure' and increase our fund's current positions, right?" After hearing Yu Xiaolu's analysis, Lu Xiangxiang pondered for a moment and responded, "In the past two days, the market volume has indeed increased, but there are still some problems with the relative recovery of market confidence. Moreover, if there is no sustained upward trend here and it is just a short-term rebound, the main line of 'big infrastructure' has rebounded for many trading days, and the corresponding core stocks have generally increased by about 20% in the short term. If we intervene at this time... there is a risk of taking over at a high position and making wedding clothes for others."

"Boss Lu, I think the main theme of 'big infrastructure' should have already gone out of the trend." Yu Xiaolu knew what Lu Xiangxiang was worried about, paused, and continued, "The market volume is gradually increasing, which shows that off-market funds are constantly entering the market to take over the chips.

At the same time, the offline real estate market in various cities continues to recover with the passage of time.

Plus the benefits of corresponding policies.

In other words, as market trading time goes by, future expectations for the core theme of "big infrastructure" are actually continuing to strengthen.

Since expectations continue to increase, the buying funds are also increasing.

Then the upward trend of this main line cannot be stopped.

In fact, according to the recent market trends, there are also many core leading stocks in the "big infrastructure" main line field with K-line trends.

The upward breakthrough trend has already emerged.

Furthermore, compare the expected changes in the future of the core theme of "big infrastructure" with the current valuations of a number of leading stocks in core industries within the corresponding sectors.

The current position is still very low.

Industry leaders like 'Anhui Conch Cement', 'Poly Real Estate', 'Shenhua Coal', etc. are basically in a state of negative net value, and their PE ratios are all below 10 times.

You have to know that this is the valuation when the industry was at its low point.

If industry fundamentals reverse and future expectations strengthen, performance will show explosive growth.

Then, these core industry leaders all have strong potential for a Davis double-click, and their valuations and performance will increase simultaneously. The simultaneous increase in valuations and performance will also have a very violent stimulus on their stock prices.

According to the current market, many radical institutions have made analyses.

In the future, the share prices of these industry-leading stocks are expected to double.

If the logic of the entire industry's transformation is smooth and the possibility of a Davis double-click is high, then... compare it with the expectations that the share prices of these stocks will easily double.

The current 20% difference in position building costs does not seem so important.

Mr. Lu, my suggestion is... we should still increase our holdings on the core theme of "big infrastructure". After all, it would be a pity to miss out on such a market trend.

Moreover, even if we do not consider the expected changes in the fundamentals of the core theme of "big infrastructure" and the possibility of performance explosion, this position, based on the K-line pattern of the index trend alone, also has a strong rebound demand, not to mention that the current market volume and price have already come out. "

"Okay then." After Yu Xiaolu's persuasion, Lu Xiangxiang weighed the pros and cons again and again, and finally glanced at the trend of the main line of 'big infrastructure' which was still rising and fermenting on the market, and said, "Then according to your opinion and the corresponding position building strategy, we will build positions in the core leading stocks of the main line of 'big infrastructure' and increase the proportion of our fund's positions. I hope that this time... we can seize the opportunity and not step on the pitfalls of the main line of 'new energy industry chain' again."

"Well, okay, Mr. Lu." Yu Xiaolu responded.

Then, he began to use the strategy he had discussed with Lu Xiangxiang, and ordered all the traders in the trading room to invest funds and buy up the core stocks of the "big infrastructure" main line on the trading boards of the two cities.

As traders invested money, they bought stocks in large quantities.

On the trading floors of the two cities, a number of "big infrastructure" heavyweight leading stocks, including 'Anhui Conch Cement', 'Poly Real Estate', 'Kewan Real Estate', 'China Merchants Shekou', 'Golden Land Group', 'Shenhua Coal', 'Yunnan Guizhou Copper', 'China Baosteel', 'China Construction', 'Huaxin Building Materials', 'China MCC', 'China Railway', 'China Construction', etc., have once again attracted concentrated buying orders, and their share prices have further broken through upward, setting new intraday highs and rebound highs.

And with the momentum of these heavyweight leading stocks...

Other concept-themed stocks in the entire "big infrastructure" main line area, as well as other main line stocks, were also instantly driven and welcomed active buying.

As more and more stocks actively move upward, more and more buying funds flow into the market.

The Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index also continued to break through upward with volume, setting new intraday rebound highs one after another.

At 10:49 a.m., the Shanghai Composite Index rose by more than 2%. In addition to the abnormal increase in the weights of the main line of "big infrastructure", the core leaders in other sectors such as oil, banking, medicine, and liquor, especially the low-valuation blue-chip leading stocks, also ushered in an overall rise.

At 11:02 a.m., the growth rate of the ChiNext Index also broke through 2%. The corresponding core stocks of the weighted sectors of the ChiNext, such as 'Film and Television Media', 'Internet Software', 'Electronic Information' and other sectors, also ushered in a sustained upward breakthrough, and the market trend is getting stronger and stronger.

At 11:12, the stock price of 'Huaguo MCC' hit the daily limit again, setting a new high in this round of rebound.

At 11:17, China Railway Corporation hit the daily limit, and the stocks of central enterprises in the infrastructure sector with "China" in their names welcomed widespread large buying orders of tens of thousands of shares.

At 11:22, the 'Real Estate' sector index had a daily gain of 3.78%.

At 11:25, just before the midday closing, the "cement" sector once again soared sharply, and the corresponding concept stocks all soared by more than 7%. Among them, BeiXin Building Materials, Huaxin Cement, Jinou Cement, and Tianshan Cement stocks basically all hit the daily limit, and the bullish sentiment of the entire sector reached a climax.

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

The Shanghai and Shenzhen stock markets, whether it is the index or individual stocks, all achieved a general rise, and the trading volume of the two markets, compared with yesterday, increased by nearly 300 billion year-on-year.

This reflects the continued fermentation of bullish sentiment in the market and the rapid spread of information on the Internet.

Incremental funds from the OTC market are still continuing to enter the market to go long.

"Haha, it was wise to buy the heavyweight leaders at a low price in the early trading." After the two markets closed at noon, during the break, investors who had already made a lot of profits during the day couldn't help but speak up on the online stock investment discussion platform, "The market has skyrocketed for two consecutive days, especially today, despite the sharp drop in US stocks last night, it has achieved a skyrocketing pattern of opening low and closing high. I feel... the market trend is really going to reverse, maybe a small bull market will really be born here."

"The stocks that have risen are basically real estate, infrastructure, steel, coal and other things. Can traditional industries support the bull market? Although the market has generally risen, the 'technology' stocks, which are the core of future industries, are still very weak. They can't rise as fast as the overall market, and they haven't generated much money-making effect."

"What about 'technology'? After the hype last year, the so-called technology stocks have seen their share prices cut in half, but their valuations are still sky-high. How can they keep rising?"

"The coal, steel, nonferrous metals, infrastructure and real estate sectors have been depressed for a long time, and their relative valuations are indeed cheap. Now, with the favorable wind of the property market and the macroeconomic strategy of 'big infrastructure', the fundamentals of the industry have reversed, and there is indeed speculation and investment value."

"my country's current urbanization rate is only over 60%. Compared with developed countries abroad, there is obviously still huge room for improvement. What's wrong with traditional industries? As long as performance is improving, future expectations are improving, stock prices can rise, and there is a large amount of capital gathering to make a profit, then you should buy."

"I believe that Huayi Capital, headed by President Su, is right to be optimistic about the current real estate market. Housing prices in major offline cities have already risen. There is no reason for real estate stocks to remain unchanged. What's more, the leading stocks in traditional industries that are currently rising are indeed undervalued!"

"Remember the bull market in 09, the main sectors that saw gains were real estate, nonferrous metals, construction, steel, and coal. This time... it won't replicate the market trend of 09, right?"

“It does feel a bit like 09.”

"09? That's too far away, right? But there is a sustained rebound here, so there should be no problem. It's just that its sustainability and explosiveness are still a little doubtful."

"No matter how explosive or sustainable it is, the market sentiment is good now, and it is important to make money now."

"But the stock price has generally increased by 20%. Can we still catch up?"

"If the expectation is to double, what does a 20% increase mean? Moreover, the market sentiment is so hot that as long as there is buying, there is no need to be afraid of higher prices."

"People who are afraid of heights are miserable. When the wind comes, you have to climb quickly."

"Many small-cap concept stocks in the two major sectors of 'Film and Television Media' and 'Internet Software' have no performance and no expectations. Compared with the peak of the bull market, the current stock price is cheap, but is it worth buying? So...cheap or not is actually relative. In my opinion, the core weighted stocks of the 'big infrastructure' main line have reversed fundamentals and performance expectations, and the current stock price is the cheapest in the entire market."

"I agree, hahaha... the stock price is not cheap, you have to look at it dynamically, not statically."

"Never mind, I'll open the market in the afternoon and add more positions."

"The market is still at 2800 points. At this point, no matter how much you buy, you won't lose much money in the future."

"Well, the market will reach 3000 points within three months, right? I think this expectation is not too high, right?"

"If the core theme of 'big infrastructure' can create a trend and a continuous profit-making effect, with this core theme leading the way, it should not be difficult for the market to reach 3000 points."

"Anyway, no matter how you look at it, this should be a definite buying point on the right side."

"Yes, I also think this is the right buying point."

"The U.S. stock market plunged last night. We had expected the market to adjust drastically today. Now that it has developed an independent trend, it is a sign of strength. There is no reason not to buy or increase positions."

"This check of 'Pingmei Energy' is the first three consecutive gains in the recent market without any major positive stimulus, right? Since the space for consecutive gains of short-term speculation in the market is opening up, it means that the risk appetite of long funds is continuously increasing. If you don't increase your positions at this time, when will you increase them?"

"If you want to believe, believe it early. If you don't believe, never believe it. If you believe that the market will continue to rebound, then increase your position and go long without hesitation. If you think that the market will fall sharply in the future, or that this round of "big infrastructure" main line market is a short-term rebound and harvest market, then just go short. As for the reversal of the bear-bull trend... I think it is still impossible to achieve at present. After all, the time adjustment is not enough."

“A comprehensive bull market is indeed unlikely, but localized mainline investment opportunities are entirely possible, right?”

"This is definitely possible. Hasn't liquor, white goods, and medicine already proved this? Institutions don't have too many positions in the core leading stocks in the main line of 'big infrastructure', and they haven't formed a group yet, so the stock price is still undervalued. We must seize this opportunity."

"Yes, now the core pricing power of the market is in the hands of institutions."

"The stocks that have seen good gains today are indeed the ones that are heavily held by institutions."

"So, seize this opportunity..."

As the lunch break progresses, the market discussion becomes more and more heated, and within this heated discussion, the proportion of investors who are bullish on the market is also increasing.

At the same time, major institutions in the industry are also paying increasing attention to the market.

There are also related discussion topics about the stock market, which have gradually begun to spread from the financial circle to outside the circle, gradually attracting the attention of some people outside the circle.

It is in this increasingly hot market sentiment.

Everyone is also hoping that the market will continue to rebound and develop an independent trend.

After a one and a half hour break at noon, the two markets reopened at 1 pm. Concentrated buying funds once again poured into the market, scrambling to buy core performance leading stocks in weighty sectors such as the "big infrastructure" main line, liquor, medicine, white appliances, oil, and banks, once again stimulating the market's bullish enthusiasm and creating an even hotter market money-making effect.