Rebirth of the Capital Legend

"Regardless of whether the current market liquidity can support the 'elephant dance', based on the current market trend and the flow of core main funds in the market..." Sun Chengyu said, "It is certain that the market investment trend is concentrated on large-cap stocks. Since the market's capital investment bias is changing towards large-cap stocks, we naturally have to follow the market trend and make corresponding trading changes.

When we are trading, we should try less to predict the market and more to follow the market.

Regardless of whether this direction and trend is reasonable or not, the major funds in the market have unanimously formed a consensus expectation of this investment direction.

So, existence is reasonable, and we should respect the market.”

"Brother Sun, you don't want to follow the trend and take over the heavy-cap stocks of the 'big infrastructure' main line, do you?" Zhao Qiang was very surprised when he heard what Sun Chengyu said, and said, "These heavy-cap stocks are basically the stocks that institutions hold together. We always feel a little uncomfortable if we intervene to help them."

"As long as we can make money, it doesn't really matter whether we are supporting institutions or not." Lao Yang also responded at this time, "Isn't our ultimate goal to make money? Since it is to make money, then it is natural to follow the trend where the main funds in the market are most concentrated.

After all, the concentration of major funds inevitably means the concentration of investment opportunities.

Moreover, in the financial market, only where funds are concentrated can excess market return opportunities be generated.

Regardless of whether the main capital group prefers small and medium-sized concept stocks or large-cap stocks with greater liquidity in terms of expectations.

The underlying logic behind our trading has not changed.

Whether participating in the hype of small-cap stocks or following the trend of large-cap stocks, it is actually nothing more than speculation, and the profit is the profit from the stock price difference.

As long as there is a gap in expectations, there is an opportunity to harvest the stock price difference.

So, is it really that important what method you use and what investment style you follow? I don’t think so.

I believe that the real masters of the market will not be complacent and stick to one trading model, just like Mr. Su from Huayi Capital. Hasn't he also changed his investment style from speculating on small-cap concept stocks to focusing on core leading stocks and guiding and promoting the main market trends?

The reason why Mr. Su changed his trading style...

I believe that he must have discovered the change in the market's capital preference and discovered that after the devastation of the previous stock market crash, the market's investment style will inevitably abandon the concentrated speculation of small-cap concept stocks and turn to another extreme direction. "

"Mr. Su of Huayi Capital did this because the amount of funds he manages is already very large. With tens of billions of funds, he cannot freely enter and exit small-cap stocks with limited liquidity," Zhao Qiang responded. "But core blue chips and high-performance white horses are basically stocks with a market value of more than tens of billions. The liquidity on the market is relatively abundant, allowing him to enter and exit at will. In other words... I think the change in their trading strategy is not because they have found that the market investment trend is increasingly concentrated in large-cap stocks, but because they are forced to change their trading strategy due to their investment volume."

“Is it really a matter of capital volume?” Old Yang smiled and said, “I don’t think so. Anyway, now that the market trend has changed so much, I think there is no reason not to follow.”

"There is no need to discuss the changes in the investment strategy of Mr. Su of Huayi Capital." Sun Chengyu said, "As I said before, we will change in accordance with the market trend."

"However, after the core theme of 'big infrastructure' comes out, even if the market's capital preference is not on small-cap concept stocks, some small-cap concept stocks relying on the core theme of 'big infrastructure' should still have continued speculation opportunities." Lao Yang thought for a while and said, "If you continue to focus on the core theme of 'big infrastructure' and don't change your mindset, it's fine. However, with the overall trend of speculation in small-cap concept stocks and the atmosphere of gradually decreasing emotions, the previous speculation model will definitely become more difficult."

"Corresponding to individual stocks..." Zhao Qiang thought for a moment and continued, "Do you think that the two stocks of 'Tianshan Cement' and 'Capital Group' can once again turn from emotional differences to consensus and achieve a third wave of consecutive daily limit increases?"

Sun Chengyu responded: "From a short-term perspective, if the investment sentiment of the core theme of 'big infrastructure' and the sentiment of the main funds to follow suit and do more can continue, and the overall market divergence of the entire main line can turn to consensus, then naturally these hot concept stocks hyped around the main line of 'big infrastructure' will also have the opportunity to reverse or go out of the third wave of consecutive daily limit.

However, the risk of this profit game should be relatively high.

After all, with a large amount of profit-taking already accumulated in the previous period, the subsequent speculation, the funds to follow the trend, and the market volume have to be further expanded.

Looking at today's market trends, the trend of increasing volume has obviously weakened.

This shows that in a bear market, the capital groups that are interested in participating in the market, those who should have entered the market, have basically already entered the market.

It will be very difficult to attract additional off-market funds in the future.

At least a stronger money-making effect on the market is needed to truly stimulate the market. However, it is quite difficult to achieve a stronger money-making effect on the market in the face of a huge amount of locked-in shares and a macroeconomic environment where overall liquidity is not sufficient. It can be said that it is basically impossible to happen.

In other words, the bear market situation is unlikely to change in the short term.

Since the overall bear market pattern is difficult to change, it will be difficult to attract incremental capital groups outside the market who usually do not pay much attention to the stock market.

Since in reality, there is no more incremental funds entering the market.

This means that the subsequent market development will most likely still be in a market structure of stock game.

Since it is a market of stock game, it is impossible to have a sustained general rebound like the trend in the past few days. The entire market, the trends of major main lines, and the large-cap and small-cap style preferences mentioned just now will inevitably continue to differentiate, presenting a pattern of the strong getting stronger and the weak getting weaker.

There are also groups of funds in the market that will inevitably continue to abandon weak stocks and further pursue strong stocks.

After all, in a differentiated market trend, funds will be more advantageous if they stick together.

This can be seen from the trends of medicine, liquor, and white goods in the past six months. "

"Brother Sun has a thorough understanding of the market." Lao Yang said, "That's true. Although the market volume has increased in the past few days, the actual market trend has not changed. It is estimated that in the future, the market trend of the entire market will most likely be more and more concentrated on liquor, white goods, medicine, real estate, construction, nonferrous metals, steel, coal... These are strong sectors that have already reversed their fundamental logic. Other market sectors are estimated to have no chance."

"Since the market trend of the core theme of 'big infrastructure' has not ended and there is still a chance for differences to turn into consensus, there is no need to think about it so much." Zhao Qiang smiled and said, "Let's finish this wave of market first. It happens that the two checks of 'Tianshan Cement' and 'Capital Group' provide a good buying point today." After saying that, he did not wait for Sun Chengyu and Lao Yang to respond.

He used his own trading account to invest more than 2000 million yuan in the stocks of Tianshan Cement and Shouchuang Group.

When his main buy order was swallowed up by the sell order.

The share prices of Tianshan Cement and Shouchuang Group were also passively raised by him by nearly 2 points.

At the same time, due to the continued strength of other core leading stocks in the main field of "big infrastructure", other concept hot stocks such as "Shenhuo Co., Ltd.", "Pingmei Energy", "Beijiang Communications Construction", "Yu Development", "Bayi Steel", "Linggang Co., Ltd.", etc., were also rapidly driven higher.

The continued rise of these stocks also drives new follow-up funds to follow up, thereby further pushing up stock prices.

At 10:21, the core leading stocks of the "big infrastructure" main line, such as 'Golden Land Group', 'Greenland Group', 'Huaxin Building Materials', 'Huaxin Cement', 'Oriental Yuhong', 'Conch Cement', etc., all saw their intraday gains exceed 5% again, and the trading volume continued to expand, and there was an obvious trend of divergence turning into consensus.

At 10:32, after a huge intraday shock of 12 points, 'Shou Chuang Group' once again hit the daily limit, opening the curtain for a full-scale counterattack by stocks with conceptual themes in the main field of 'big infrastructure'.

At 10:36, after "Shouchuang Group" hit the daily limit, "Pingmei Energy" rushed to the daily limit.

At 10:38, Pingmei Energy hit the daily limit.

At 10:43, 'Greenland Group' hit the daily limit under the guidance of the 'Qilu Gang', a group of short-term hot money, which collectively locked their positions or continued to increase their positions.

At 10:48, the real estate, construction, nonferrous metals, steel, and coal sector indices all saw their intraday gains exceed 2%. Meanwhile, looking at the other core sectors of the market, except for liquor, white goods, pharmaceuticals, and banks which remained flat, other stocks in the 'technology' and 'media' sectors, as well as related concept sectors, all showed a sustained downward trend.

At 10:53, 'Greenland Group' fluctuated around the daily limit and finally hit the daily limit.

At 10:57, the real estate sector index rose again by 3.11%.

At 11:02, a number of popular concept stocks including Shenhuo Group, Pingmei Energy, Tianshan Cement, Beijiang Communications Construction, Shouchuang Group, Chongqing Development, Bayi Steel, and Linggang Group all reversed their morning plunge and returned to above the opening position after a sharp turnover.

At 11:09, the net inflow of large funds in several core sectors in the main area of ​​"big infrastructure" once again exceeded 20 billion in total.

At 11:12, Conch Cement once again forced a short squeeze and rose by more than 7%, with its share price hitting an annual high.

"Eh... wasn't there a divergence? Why do I feel that the stocks in the main line of 'big infrastructure' are getting stronger as the divergence grows? On the contrary, the stocks in other main line sectors have been falling sharply along with the divergence of the main line of 'big infrastructure', and have almost returned to the position where they started to rise a few days ago."

It is noted that the market trend is still centered around the theme of "big infrastructure".

At this time, among the many retail investors gathered on the online stock investment exchange platform, some people could not help but exclaimed in surprise.

"Indeed, I thought that the many profit-taking funds in the market would 'switch between high and low' and flow to low-priced stocks after the market crash in the morning. I didn't expect that the core sectors focused on by the funds of the entire market were still the 'big infrastructure' theme, and the stocks leading the market were still the stocks related to the 'big infrastructure' theme."

"I thought it would switch between high and low, but I didn't expect that..."

"As expected, the strong get stronger and the weak get weaker. As the market adjusts, the main line of 'big infrastructure' becomes stronger and stronger."

"Why do I feel that every divergence in the market for the core theme of 'big infrastructure' is a buying opportunity? Judging from the capital flows of various sectors in the field of the 'big infrastructure' theme, the large capital groups in the entire market are still continuing to flow into the core leading stocks of these sectors, and the large capital is still continuing to buy!"

"It's numb, I feel like I sold out this morning!"

"Why do I feel that the capital is grouped together, and it is even more serious than yesterday. Damn...Except for the stocks of the core theme of 'big infrastructure', the stocks of other sectors have fallen terribly."

"I thought that in a bear market, high-priced sectors should be avoided, but I didn't expect that low-priced sectors are the ones that should be avoided."

"It has nothing to do with the highs and lows of the sector, right? Whether the stock price rises or not still depends on the core logic and whether there are strong expectations. Currently, in the entire market, only the 'big infrastructure' line has the strongest logic and the strongest expectations."

"It seems that we have to continue to focus on the core theme of 'big infrastructure' and continue to focus on the leading stocks in the field of 'big infrastructure'!"

"That's right. It seems that all the incremental funds that flowed into the OTC market were siphoned away by the 'big infrastructure' line."

"It's not just the incremental funds entering the market from the OTC that have been siphoned off by the 'big infrastructure' line. A lot of the big funds from other sectors in the market have also been siphoned off by the 'big infrastructure' line. Otherwise, with today's market divergence and index adjustments, the corresponding stocks in other sectors would not have fallen so badly."

"Looking at this situation, it is obvious that funds from other sectors are cutting losses and shifting positions to the main line of 'big infrastructure'."

"Focus on the core, focus on the core... I feel that this is useful no matter what stage or time the market is in. Indeed, only strong stocks have greater opportunities. Weak stocks... Alas, they cannot outperform the market when they rebound, and they fall more than the market when they fall. It's really hard to deal with them."

As many retail investors in the market discuss...

The market's investment sentiment, speculative sentiment, the tendency of funds to follow the trend, and the tendency of large funds to form a group are all converging towards the main line of "big infrastructure" after the violent shock in the early trading.