Rebirth of the Capital Legend

"Boss Su, looking at the market trend, the core theme of 'big infrastructure' has been unanimously recognized by all funds in the market, forming a relatively consistent expectation." Noting that the market trend in the afternoon had completely entered the trend of 'the strong get stronger and the weak get weaker', at this time in Shanghai, inside the 'Hua Yi Capital' company, in the main fund product trading room of 'Hua Yi Expedition No. 1', fund manager Hou Baolong stared at the changes in the two markets, turned to Su Yi beside him, and reported to him, "According to this trend... the subsequent follow-up funds, driven by the money-making effect, should form a virtuous circle, and the core theme of 'big infrastructure' should also be able to develop a sustainable trend."

After hearing what Hou Baolong said, Su Yi glanced at the trend of the core stocks of the main line of "big infrastructure" which was still going strong, nodded slightly, and responded: "The various funds in the market have indeed formed a relatively consistent expectation on the core line of "big infrastructure", but the market's volume performance is somewhat unsatisfactory!"

"In terms of volume, it feels okay," Hou Baolong said. "Overall, the trading volume of the two cities is still showing a gradual upward trend."

Su Yi replied: "From the changes in the two markets, this part of the new trading volume is mostly due to the loss-making orders deposited in other main lines to adjust positions to focus on the core main line. It is not caused by incremental funds from the outside market at all. If it is really caused by incremental funds from the outside market, this kind of 'ice and fire' trend will not be formed in the market."

The entry of incremental funds is usually not concentrated in one sector or one main line.

After all, investors in the market have different trading patterns.

Some people like to chase hot spots and gamble on high-risk profits, while others like to lurk in low-priced stocks and wait for the wind to come.

The various trading models will naturally cause general abnormal movements in various sectors of the market when incremental funds enter the market.

Today, in the market situation, only the line of "big infrastructure" has emerged.

Most of the other main lines are still in a state of continuous blood loss.

This shows that the current market structure is still a game of stock, and a market structure of stock game will naturally not be able to create a sustained general rise in prices, nor can it turn the index rebound into a trend reversal.

"Mr. Su means that the current market is still unable to reverse its trend, right?" Hou Baolong asked, "Without the support of sustained volume, the only trend is a rebound and fluctuation."

Su Yi nodded slightly and said, "If we cannot attract a large amount of incremental funds from the outside, the market will not go far. Even if there is support from the core logic, it is estimated that it can only be a local market or a structural market."

"So, we have to lower our expectations for the core theme of 'big infrastructure'?" Hou Baolong said, "We have to follow the market trend?"

Su Yi replied: "Volume is the basis of all market conditions. If the subsequent market volume cannot be further increased, it will be difficult for the main line of 'big infrastructure' to form a strong and sustained reversal trend. What's more, the recovery of the offline real estate market will lead to a performance explosion, which will be delayed. It is estimated that it will take until next year to see the corresponding expectations being fulfilled. Before that... the dominant force in the market is still sentiment and the replenishment of institutional positions. Therefore, when market sentiment enters a recession, it is also possible to appropriately reduce positions to lock in some profits."

"Okay, Mr. Su, I understand." Hou Baolong responded, "Trading strategies and following market trends are indeed very important."

As the two of them talked, the trading market at this time...

The core stocks related to the main line of "big infrastructure" are still continuing to strengthen, and the market's "ice and fire" trend pattern is also continuing.

Finally, at 3 o'clock in the afternoon, both markets closed.

The Shanghai Composite Index closed up slightly, while the ChiNext Index fell by more than 1%. Most stocks in the two markets fell, while most of the core weighted stocks rose, especially the core weighted stocks in the main line of "big infrastructure", which basically all closed with a big increase, and on the market, large funds all showed a large inflow.

"Oh, damn, it's another day of underperforming the market. I lost a lot today, but the index closed in the green. It's just too much..."

After the two markets closed, seeing the market closing in such a situation, a group of retail investors gathered on the online stock investment exchange platform, including many retail investors who suffered losses, could not help but complain.

"Basically, recently, the overall market index has been rising, but individual stocks have not risen much."

"It has been underperforming the market for several days in a row. I really don't understand why the market trend is getting more and more extreme. Damn... it's worse than before when everyone was falling. The current divergent trend is really hard to grasp."

"Except for the core theme of 'big infrastructure', other stocks have basically not risen." "It feels like the market is repeating the 28 split trend. The stocks that have risen are all large-cap stocks with high weights, while small-cap stocks are still falling, and there are still many that have hit new lows."

“But I don’t want to chase the highs in the main line of ‘big infrastructure’ and I don’t want to be taken over by hot money and institutions!”

"I just can't bring myself to chase highs in a bear market."

"I saw the index was in the green and the heavyweight stocks were generally rising, but the stocks I held kept falling. To be honest, I felt really bad. I will wait and see tomorrow. If the trend is still the same, I will really have to sell my stocks. As the saying goes, if you can't beat them, join them. I really can't hold on to the weak small-cap stocks anymore."

"We still have to focus on the core. This is not called chasing highs, it's called following the trend."

"Indeed, large-cap stocks are generally stronger than small-cap concept stocks. It feels like this trend has continued for quite some time. Stocks that are held by institutions are stronger than ordinary stocks. There is nothing we can do about it. We can only sell at a loss and follow suit."

"Today, many of the core stocks that took over the main line of 'big infrastructure' should be sold at a loss, right?"

"There should still be institutional funds. It seems that institutions are still increasing their positions in the core theme of 'big infrastructure', but... hot money is obviously retreating."

"The recent wave of 'big infrastructure' main line market should have made a lot of money for hot money."

"Today, the 'big infrastructure' line looked like it was going to adjust, but I didn't expect it to rebound to a new high in the end. It's really strong."

“I feel like tomorrow or the day after tomorrow, the ‘big infrastructure’ line will continue to rise!”

"The key is how much profit can we make if we chase this position?"

"If you want to buy, you have to wait until this wave of emotional speculation is over and then buy when the market adjusts. If you buy now... you will probably buy at the high point of the correction. And if the core theme of "big infrastructure" is really adjusted in the future, maybe the funds will do a "high-low switch" again, and then both ends will be slapped in the face."

"Well, at this time, it is better to be still than to move."

"Alas, I missed the opportunity to adjust my portfolio when the market started to rise last week. Now I can only wait and see. In a bear market, chasing high prices often leads to being trapped."

"Let's take a look at the Dragon and Tiger List data later. If today's main investors are still institutional investors, we can still look up to the main trend of 'big infrastructure'. In fact, compared with other sectors, many weighted stocks in the core field of 'big infrastructure' are indeed undervalued. In the short term, the stock price trend is at a high point, but in the long run, it is still at the bottom."

"Well, let's take a look at the Dragon and Tiger Rankings first..."

Amid the discussion among the crowd, time passed and 5 o'clock in the afternoon soon arrived.

Under the attention of countless people, the Dragon and Tiger Lists of the two cities were refreshed.

According to the updated data of the Dragon and Tiger List of the two cities, we can see that there are still many institutional buying seats for the core popular stocks of the "big infrastructure" main line on the list, while many hot money that previously participated in the market speculation showed a general selling trend and there was a phenomenon of profit harvesting.

As for other small-cap growth stocks and small-cap concept stocks that made the list today with sharp declines.

There are also many institutional seats selling seats.

This shows that the institutional groups in the market are generally fleeing from the popular sectors of the last bull market, such as Internet software, film and television media, and electronic information, which they were previously trapped in, and are decisively pursuing the popular stocks with heavyweights in the "big infrastructure" main line that have already gone out of the trend and have shown a clear reversal in industry fundamentals.