Rebirth of the Capital Legend

"Institutions and brokerages have started to hype up blue chips and high-performing white horse stocks." Noting the after-hours market investment sentiment and the changes in the views of various financial media and brokerage institutions, Li Jinshi, the main hot money group of the "Fushan Group", said after the brief resumption of trading, "These guys...are they trying to take advantage of the short-term enthusiasm created by this wave of market money-making effects to lure new investors into the market so that they can sell their stocks at ease?"

"It's possible." Chen Guiyun responded, "But this is a bear market. After experiencing the baptism of several previous stock market crashes, most retail investors off the market are not so easily fooled. What's more, although the current market volume has increased in the past two days, it has not reached the point where it can change the market trend. What can the increase of tens of billions of volume change? If you ask me... after this wave of rebound, the market will most likely fall back."

"It's definitely right to look at the rebound first." At this time, Liao Guoxiang responded, "However, the institutions and a number of financial media are taking advantage of the hot market to promote it so vigorously. It is not bad for the overall market trend and for us. In my opinion, how the market goes, whether it rises or falls, is not very important. The key is to have volume. As long as the trading volume can rise, there will definitely be a market and there will definitely be good short-term opportunities."

"Not necessarily." Li Jinshi disagreed. "Looking at the market trends in recent months, the main groups of funds have generally concentrated on large-cap stocks with better liquidity. It is becoming increasingly difficult to speculate on concept stocks. Even if the stocks hit the daily limit on the first day, there is generally no premium on the second day. However... in the past few days, with the full outbreak of the core theme of "big infrastructure" and the recovery of liquidity in the entire market, there have been some opportunities. I feel that the current market investment style is changing. The short-term speculation ideas we relied on before seem to be less and less suitable for the market."

Chen Guiyun pondered for a while and said, "Based on the market trends in the past few months and recently, there are indeed signs that large funds in the market are gathering and speculating on blue-chip stocks and blue-chip stocks, but this sign... shouldn't last for a long time, right?"

"Institutional funds can hold blue chip and white horse stocks together, but retail investors will definitely not do so." Liao Guoxiang said, "The funds of retail investors are usually small funds of tens of thousands, hundreds of thousands, and blue chip and white horse stocks, even if the liquidity is relatively abundant, have very low elasticity.

Furthermore, the liquidity of small-cap stocks is completely unimpeded for retail investors who have small amounts of capital entering and exiting.

What's more, retail investors all like to chase rising and sell falling prices, and they all have the mentality of making a small profit with a big investment.

It is simply impossible to ask most of them to buy blue-chip and white horse stocks that are backed by institutions. This is determined by human nature and has nothing to do with fund guidance or investment style.

Therefore, as long as we have the A-share market, the structure of the investor groups participating in the market.

It is still dominated by retail investors.

Then, this speculative style of speculation based on small and poor stocks, concepts and hot spots will never disappear. In other words, the so-called "value investment" concept currently dominated by these institutions and financial media will never become the mainstream of the A-share market, nor will it lead the market to form a long bull trend.

In addition, these large institutional fund groups use the guise of "value investment".

In essence, it is still a business of earning stock price differences.

Their fundamental purpose is to guide retail investors to follow the trend of the blue-chip and white horse stocks they are holding, so as to support them and enable them to make money and achieve good performance.

In fact, the current behavior of institutions holding blue-chip and white horse stocks is no different from the previous behavior of hyping hot concepts. The only difference is that the slogan has changed. "

"Brother Liao is right." Li Jinshi responded, "But judging from the market trend, the current market dominance and pricing power have indeed been concentrated in the hands of institutions. On the two markets, some core blue-chip stocks with heavyweights and some popular blue-chip stocks with good performance have indeed moved much more smoothly than many small growth tickets and concept stocks, and have generally formed a trend of breakthrough.

If this is the unanimous choice of the main funds in the market.

Then, it is very likely that this market style of preferring large tickets and abandoning small tickets will continue driven by the money-making effect.

Brother Liao just talked about the retail investors in the market.

It is a fact that the vast majority of people like to chase rising and falling prices, chase market hotspots, and trade frequently.

But at the same time...if market liquidity is increasingly concentrated on blue-chip stocks with high weight and performance, and the liquidity of small concept tickets is becoming increasingly scarce, funds chasing short-term speculation, as well as retail investors chasing ups and downs, find that they can make less and less money in the short term and continue to lose money, while high-performance white horses and blue-chip stocks with high weight have shown a sustained and smooth upward trend, then under the guidance of the market's money-making effect.

It is very likely that they are hot money and retail investors who are involved in short-term market speculation.

will be further reduced.

More and more funds will tend to invest in blue-chip stocks with high weight and good performance.

At the same time, the increasing concentration of funds and the continued stimulation of the money-making effect will continue to strengthen the trend of weighted blue chips and high-performance white horse stocks.

This will create a situation where market-weighted blue-chip and high-performance stocks continue to bleed from small tickets.

The market's large-cap and small-cap switching styles are becoming more and more obvious and more and more extreme. "

"I think what Lao Li said makes sense." Chen Guiyun pondered for a while and said, "The concentration of institutional funds will strengthen the trend, and the strengthening of the trend will further stimulate the money-making effect in the big ticket sector. At the same time, the improvement of the money-making effect will attract more funds to join, strengthening the continuation of the trend.

When the market is in a bear market stage where the volume cannot continue to expand, that is, when the market liquidity is in a relatively scarce range.

Big tickets absorb too much liquidity.

This will inevitably lead to a greater scarcity of liquidity for small tickets in the market, making short-term trading models based on hot spot speculation and concept speculation increasingly difficult.

Although the vast majority of investors participating in the market are retail investors.

Moreover, most retail investors like to chase rising and falling prices and follow market hotspots.

But at the same time, retail investors are also the group most likely to be swayed by big funds and the most likely to follow the trend.

They have little independent judgment ability and do not care who they support. As long as there is a money-making effect in a certain area of ​​the market, they will continue to concentrate on that area.

Moreover, as the short-term ecology becomes increasingly difficult, the active hot money in the market will gradually become quiet.

This can be seen and predicted from the continuous decline of the market in the past six months, the continuous reduction of trading volume, and the significant decline in the activity of hot money on the Dragon and Tiger List. "

"So, what you mean is..." Liao Guoxiang paused and continued, "You think the investment style of the market has changed, and we should follow the market trend and enter blue-chip and white horse stocks to support these large institutional capital groups?"

Li Jinshi said: "According to my observation, except for the white goods, liquor, medicine, banking and other sectors that have been in the trend for more than half a year, the core main line of 'big infrastructure' that has just been hit by the core main institution 'Huayi Capital' to make money, the corresponding blue chip and white horse stocks have not yet fully formed the trend, and currently the major institutional groups do not have many positions in the core blue chip and white horse stocks in this main line.

Also, I think the market is shifting its investment style towards larger tickets, with smaller tickets becoming increasingly less liquid.

At present, the trend has only just begun to form.

It should be said that many people inside and outside the field are not aware of this.

Since the trend has just been formed, and the major institutions have not yet completed their positions and concentrated group behavior, then our participation in it cannot be said to be making wedding dresses for others, nor can it be said to be carrying the sedan chair for the institutions.

Moreover, when we know that the future trend changes in the market will most likely continue to strengthen in the direction of blue-chip stocks with high weight and good performance, short-term speculation will become increasingly difficult.

There is no reason for us not to follow changes in market trends and change our trading models according to market investment styles!

Lao Liao, didn’t you say before that no matter what trading model is used, it is real as long as you can make profits in the market?

Since the market trend has changed, the previous model is no longer effective, so why not make a change? Look at Mr. Su from Huayi Capital.

Didn't the change happen in time?

Speaking of which, this Mr. Su is really awesome.

Various operating styles and investment concepts can be switched smoothly.

Moreover, I feel that the market investment trend has gradually shifted from the previous concept speculation to the large-ticket group. He should have been the first to discover and guide it, right? "

"If you can make money steadily, I don't mind any trading model or style," Liao Guoxiang said. "It's just that the change in market investment style is not yet fully formed. And the core theme of 'big infrastructure', the corresponding blue-chip stocks and high-performance white horse stocks, are not sure whether they can break out of the long-term breakthrough pattern and continue the upward trend."

"Based on the previous trends of liquor, white appliances, and pharmaceutical sectors, I think it is highly likely that a number of high-quality blue-chip and white horse stocks in the core main line of 'big infrastructure' will continue to rise?" Chen Guiyun said, "After all, the fundamental changes in the industry are substantial. There is no need to look at various market analysis reports. At present, the housing prices in major offline cities have generally risen, and there is almost a consensus. In addition, the funds for real estate speculation are also increasing. Just two days ago, I heard that the housing speculation groups in Wenzhou have already rushed to major second- and third-tier cities for large-scale activities.

At the so-called critical moment, market confidence is gold.

With the hot sentiment in the property market and the support of policies, funds from all sources will really flow into the real estate market like a flood.

What's more, in recent years, a large number of migrant workers have stayed in cities and become the new urban population.

Their demand for buying houses is real.

There is still a lot of room to tap into actual real estate demand, and the current macro-economy also requires further stimulation from real estate.

If the real estate industry fully recovers, then the entire real estate industry chain will also recover.

Related sectors such as construction decoration, building materials, steel, cement, nonferrous metals, and related industries will also recover synchronously.

In short, I think the long-term expectation logic of the "big infrastructure" line is still very hardcore.

Otherwise, the institution 'Huayi Capital' and the legendary Mr. Su would not have been frantically building positions in the core leading stocks in the 'big infrastructure' main line area in the recent period, scrambling to buy stocks regardless of cost, and bringing out this round of 'big infrastructure' main line market in the form of continuous short squeeze.

It was precisely because Mr. Su of Huayi Capital built up his positions quickly and recklessly regardless of cost.

This led to the outbreak of the main line of "big infrastructure" market, which was very sudden and made many large institutional capital groups in the industry unable to react.

Previously, due to the downturn in the industry, especially in the steel, coal and cement sectors, there was a serious overcapacity problem.

All major industry organizations are quite pessimistic about the entire real estate industry chain.

Under the dominance of pessimistic expectations, there are naturally not many positions.

In other words, this time, facing the outbreak of the main line of "big infrastructure", all capital groups in the market are basically standing on the same starting line.

There is no large amount of capital that has the first-mover advantage and greater cost advantage.

After all, the real estate industry chain sectors such as real estate, building decoration, building materials, steel, coal, and nonferrous metals were all filled with retail investors who were trapped in the previous bull market.

In general, the current chip structure in the entire "big infrastructure" main line area is still relatively scattered.

And it is gradually shifting from decentralization to centralization.

At this moment, we follow the changes in market trends, switch to a new investment style, and work with major institutional groups to simultaneously hold together the blue-chip and white horse performance stocks in the main field of "big infrastructure". It feels like it's just the right time.

Regardless of whether this investment style and market trend can be formed in the long term in the future.

It’s always a good idea to make a layout at this time and take a certain position ratio, right?

If this investment style doesn’t emerge in the future and the market is still dominated by concept speculation, then you won’t lose much money if you sell at that time.”

"Old Chen has a point." Li Jinshi responded, "We still have to follow the market trend. After all, this trend is the consistent direction of the combined forces of funds and the direction of the market's money-making effect. In the final analysis, we still have to respect the market."

Liao Guoxiang thought about it carefully and felt that there was nothing wrong with what the two said. He said, "Okay, let's take a look at the market trend tomorrow and enter some positions. Haha... I never thought that one day, I, Liao, would become a 'value investor' in the eyes of institutions."

Li Jinshi chuckled and said, "I don't think we are called 'value investors'. To be more precise, we are 'trend investors'. Anyway, we just go wherever there is a money-making effect in the market. We follow the market trend."