Rebirth of the Capital Legend

When the funds in his hands were invested in the core leading stocks of the two major technology sectors, "consumer electronics" and "security lenses", the market also ushered in the last fifteen minutes of trading session.

Under the hot bullish sentiment, the usual late-trading dive no longer exists.

Whether it is the real estate, building decoration, building materials, nonferrous metals, steel, and coal sectors that are chased by most of the active funds in the market, or the banking, petrochemical, consumer electronics, security lens and other sectors that have frequent fluctuations in the afternoon, or the Internet software, film and television media and other sectors that have been severely oversold and are making up for the lows, the corresponding core stocks all show a scene of continuous inflow of large funds and continuous active buying.

"After today's positive line with large volume, the market position and trend of the core theme of 'big infrastructure' have been completely established, right?" Seeing that after the market trading time entered the end of the day, a large number of main buying funds continued to scramble for shares. At this time, in the Shanghai, Shanghai, Sino Private Equity Fund Company, 'Sino Future No. 1' Fund Product Trading Room, the trading team leader Huang Qingyun stared at the changes in the two markets and said, "Now the entire market has a large volume of more than 400 billion. It is estimated that after the closing, the volume will be close to 450 billion. This should be enough to fully explain that the off-site fund groups are entering the market in a big way, and a large amount of new funds are building positions."

"Yes, that's right." Men Xingtao, product manager of the 'Sino Future No. 1' fund, responded, "Today's large-volume positive line is indeed very beautiful, and from a technical perspective, the space for a sustained upward rebound has indeed opened up."

"Fortunately, we reacted in time." Huang Qingyun smiled and said, "This wave of market driven by the main line of 'big infrastructure' has reversed rapidly. In just a few days, a number of heavyweight stocks in this core main line have generally risen by more than 20%. I am afraid that the cost advantage will not be so good for the funds for subsequent position building."

"If the future expectation is to double the space, the 20% fluctuation in the cost of opening a position is not that important." Men Xingtao said, "The key is to see the market trend come out, and the confidence in long positions gradually warms up and recovers. The cost advantage cannot determine the rise and fall of the stock price, but only slightly enhances the confidence of shareholders."

"Yeah." Huang Qingyun nodded, and then said, "Boss Men, do you feel that the market trend in the past few days is different from before? Whether it is the core theme of 'big infrastructure' or other main concepts in the market, generally speaking... the trend of the core weight leaders is smoother, while the trend of small concept tickets is obviously more divergent, even though there is continued speculation by hot money."

"We discovered it a long time ago," said Men Xingtao. "This shows that hot money is no longer the dominant force in the market."

"Why do you say that?" Huang Qingyun asked in confusion, "Looking at the trends of Shenhuo Shares, Pingmei Energy, Tianshan Cement, Beijiang Communications Construction, Capital Group, Chongqing Development, Bayi Steel, Linggang Shares... these stocks, hot money is still very active, and its ability to drive sentiment is also quite strong!"

"But the trends of these stocks are basically following the trends of the weighted core leading stocks in each sector and are fluctuating." Men Xingtao said, "You can overlap the K-line of these stocks with the K-line of the core weighted leading stocks in the corresponding sectors to see if they are enlarged versions of the K-line of the weighted core leading stocks?"

Huang Qingyun observed carefully for a while and said, "It seems to be true."

"The real direction of the market's capital has unconsciously shifted to the weighted core leading stocks." Men Xingtao said, "And from the perspective of market liquidity alone, the liquidity of the weighted core leading stocks is becoming more and more abundant, while the liquidity of small tickets is gradually drying up.

This phenomenon occurred in the first half of the year when various institutional groups concentrated on sectors such as liquor, white appliances, and pharmaceuticals.

It gradually manifested itself.

My understanding is that this change in market investment style and risk appetite is mainly due to the aftermath of last year’s consecutive stock market crashes.”

"What does this have to do with last year's continuous stock market crash?" Huang Qingyun asked puzzledly.

Meng Xingtao paused and continued, "During the continuous stock market crash last year, which stocks fell the most and which sectors were sold off the most by funds? Weren't they the small-cap growth stocks and concept leading stocks that were jointly speculated by all investor groups during the bull market?

At that time, due to the liquidity problem of small receipts, a lot of funds were trapped in the small receipts and could not be released at all.

There are many institutions in the industry here.

Therefore, during that period, many private equity funds in the industry were liquidated.

Then, after experiencing the baptism of the stock market crash, many large financial institutions in the industry realized the importance of liquidity. After the stock market crash continued, the market fell to a low level. The liquor, white goods, and pharmaceutical sectors, which showed a fundamental reversal at the time, did indeed present good investment opportunities, with low valuations and good future performance expectations.

As a result, the major institutions began to form groups around the core weighted leading stocks in the liquor, white goods and pharmaceutical sectors.

Afterwards, this situation of grouping together high-performing blue-chip stocks, and even grouping together core weighted blue-chip stocks, gradually spread to the entire market.

This is also the reason why the A50 Index and the Shanghai Composite Index have been stronger than the Shenzhen Composite Index and the ChiNext Index in the past six months.

Once this kind of capital risk preference and investment preference is formed, it is difficult to change within a short period of time. According to the recent market trend...

There is no doubt that this investment style continues to deepen.

As the core main force guiding the outbreak of the "big infrastructure" main line, Huayi Capital's core holdings are currently exposed mainly in the weighted core blue-chip stocks, and the key positions are all large stocks with a market value of tens of billions or hundreds of billions in the core main line of "big infrastructure". "

"If you look at it this way..." Huang Qingyun thought for a moment and said, "This round of market rebound is very likely to be a wave of heavyweight, blue-chip, and high-performance white horse stocks led by major institutions in the industry!"

"I guess so too," said Menxingtao. "It is obvious that the investment style and investment preference of the market have gradually changed from the previous style of speculating on small tickets to the style of speculating on large tickets with sufficient liquidity. After the market dominance returned to the hands of large institutions, some blue-chip stocks with good performance also showed a certain degree of liquidity premium. In other words... Under the guidance of this investment style, the core leaders of the market will most likely usher in a revaluation of value and a general increase in valuation in the future.

As long as this liquidity premium can be generated, the valuation premium of industry leaders will be generally recognized by all market funds.

Then, there is hope for the market's long-term rebound trend, or reversal trend.

Of course, the ultimate reason for the rise in stock prices, in addition to the general increase in valuations, the most important reason... is still the actual performance expectations.

And there is no doubt that the core theme is "big infrastructure".

The future performance is expected to explode, and the industry fundamentals have already reversed. We must naturally have confidence and continue to lay out in this main line. "

"If the future market can change from the previous concept speculation mode to a performance-driven mode, with blue chips and high-performance growth stocks as the leading force, then the long-term bull trend of A-shares will be promising," Huang Qingyun said excitedly. "In fact, there are still many high-quality core leading stocks in our A-share market, but these stocks were not favored by various funds before, and it was difficult to increase their valuations."

Men Xingtao nodded and said, "If the subjective guidance of large institutions can continue, and the market can form a benign pricing model and a healthy investment style, then the long bull trend is indeed worth looking forward to. But now... we still have to focus on the present and take one step at a time."

"That's natural," Huang Qingyun responded. "After the continuous short squeeze and rise of the core theme of 'big infrastructure', the corresponding leading stocks with high weight have accumulated profits on the market and have reached a point where they need to be vented. I estimate that after the market breakthrough trend is established, there will be another fierce retracement adjustment in the trend. At that time... we can also take this opportunity to make further adjustments to the positions and further adjust the positions to the strong leading stocks."

Due to the recent core theme of "big infrastructure", the outbreak has been quite rapid.

In the process of building positions, they simply increased their positions and spread out their positions on the corresponding popular leading stocks in the entire main line, without conducting focused research and controlling the proportion of specific stock positions.

Subsequently, the market trend continued and profit-taking took place.

What they need to focus on is to eliminate the weak and keep the strong, and further focus their core positions on the core leading stocks with the strongest future expectations, the most underestimated current valuations, the largest expected room for stock price increases, and the greatest financial synergy, in order to seize the largest excess profits in the future market.

As the two discussed...

Before the market knew it, it had already reached 3 o'clock in the afternoon and the two markets had reached their final closing time.

After a day of fierce trading, the Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index all closed with large positive lines with large volume, and broke through the previous pressure level, forming a beautiful breakthrough trend.

Among them, the index rose sharply in large volume.

As the core theme that has attracted the attention of the majority of investors in the market, industry sectors related to the "big infrastructure" theme, such as real estate, building decoration, building materials, steel, nonferrous metals, coal and other sector indexes, have all outperformed the broader market, showing a leading trend in the two cities.

Even the real estate sector index, which everyone pays the most attention to, showed a huge increase of 4.33%.

A number of core stocks in the real estate sector have generally risen by more than 5%.

Among them, stocks such as 'Golden Land Group', 'Greenland Group', 'Capital Group', 'Financial Street', 'Chongqing Development', etc. all achieved their daily limit, while the three major weighted real estate stocks, 'Poly Real Estate', 'Kewan Real Estate', and 'China Merchants Shekou', all rose by around 7%.

The total number of stocks that hit the daily limit in the two markets reached 83, the highest in the past four months.

In terms of volume, today's transaction volume increased by 432 billion compared to yesterday, reaching nearly 5000 billion.

Faced with such closing situation of the two markets and the intraday profit figures in their accounts, investors in the two markets, whether they are retail investors, hot money, or institutions, are all very excited.

After all, this is a day of big gains across the board.

In particular, it is rare for A-shares to get rid of the impact of last night's sharp drop in U.S. stocks and develop this trend of large-volume independent large-positive lines. This has been sluggish for more than half a year.

"It's a rare independent trend. I didn't expect that our A-share market would stand up one day!"

Amid the still-hot after-hours investor sentiment, some retail investors gathered on the online stock investment exchange platform couldn't help but sigh.

"Haha, indeed, I am really proud of myself today."

"All the stocks I hold have reached their daily limit. This is the first time in the past six months. However, even if all of them have reached their daily limit, it will still be a long way to get my money back!"

"Don't think about the issue of making a profit for now. Anyway, this trend is a great success."

"The core theme of 'big infrastructure' is really strong, but unfortunately I lost the chips the day before yesterday. Now I am really depressed."

"Buy it back quickly. There is no doubt that the real estate sector will continue to rise sharply in the future, and the corresponding core weighted leaders are also really cheap at the moment."

"Isn't 'Kewan Real Estate' cheap anymore? It's almost at the level of the stock price during last year's bull market."

"You can't just look at this one stock, the other stocks are still very cheap."

"Anyway, I have increased my holdings. With such a good market, there is no reason not to increase my holdings. Besides, the index has broken through. I feel that in the next one or two months, we can see 3000 points again."

“I hope so, but it’s not that easy to break through 3000 points.”

"When there is volume, there is a market. In recent days, the market has been showing a trend of increasing volume. I feel that the market... may really be here. There is really no need for us to be pessimistic at this time."

"Today, many heavyweight stocks have risen well, and the general increase is higher than that of non-core popular concept small-cap stocks. It feels like the 'national team' is increasing its holdings? Even banks have risen sharply today."

"It should be that the large institutional groups with light positions in the OTC market have been attracted. The 'national team' bought so much during the stock market crash last year, they should not increase their holdings significantly at this time, and there is no need. It looks like... the institutions are banding together, and will not stick to the core theme of 'big infrastructure'. Will the market trend in the future turn into the previous pharmaceutical, liquor, and white goods sectors?"

"If it really develops into the white goods, liquor and pharmaceutical sectors as before, it will be something to be happy about."

"No matter what, let's be optimistic for now."

“Yes, there are not many opportunities to make money in a bear market. Now that it has come and the volume continues to increase, we must seize it and make a good recovery.”

Amid the heated discussions, everyone's views began to generally tend to be optimistic.

At the same time, as discussions among retail investors become increasingly heated, a number of offline and online financial media organizations and brokerage institutions are also participating.

At this time, in order to attract off-site investors to enter the market.

Taking advantage of the recovering market and bullish sentiment, we are also going all out.

Major financial media outlets have published articles on the layout of the autumn market and the outlook for the golden September and silver October market, while analysts from various brokerage institutions have used various logics to analyze from various aspects, including industry fundamentals, economic macro-level, domestic and foreign valuation comparisons, etc., to explain how many high-performing white horse and blue chip stocks in the current A-share market are undervalued and how they have huge investment value.