Rebirth of the Capital Legend

"From the data of the Dragon and Tiger List released after the market, major institutions in the industry are still increasing their positions in the core theme of 'big infrastructure'." After reading the data of the Dragon and Tiger List of the two cities after the market, Yu Xiaolu, the trading team leader of the 'Jufeng Future Growth' fund product trading room inside Jufeng Asset Management Company in Shanghai, said, "Mr. Lu, this shows that our position adjustment strategy is executed without any problems. It also shows that the underlying logic of the core theme of 'big infrastructure' and various related expectations in the future are increasingly recognized by various fund groups in the market."

Lu Xiangxiang glanced at the institutional buying seats on the Dragon and Tiger List of the two cities, nodded slightly, and responded: "From the perspective of the buying seats of various institutions, it is indeed so, but from the market's volume performance today, and the trend of other main lines, the subsequent market development of the core line of 'big infrastructure' is still quite tempting.

Today, under the core theme of "big infrastructure", the prices of related core stocks continued to soar.

The overall market index did not rise much, and, like the ChiNext Index, it was still in a downward trend today.

This shows that the driving effect of the core theme of "big infrastructure" on other market themes and the overall market sentiment has been gradually reduced.

Moreover, other main market trends have formed a polarization with the core main trend of "big infrastructure".

This also shows that the funds for the core stock chips of the main line of "big infrastructure" today mostly come from the stop-loss funds of other main lines, rather than the incremental funds from the OTC market.

This means that the main line of "big infrastructure" has reached its current position.

Even though the money-making effect is still continuing, the investment cost-effectiveness has lost sufficient appeal to a large number of investors who have not yet entered the market, especially retail investors.

In other words, because the real estate market in major offline cities is too hot, it has siphoned off too much active market funds.

This has led to a significant reduction in the attractiveness of the stock market.

Even with the publicity from major institutions and financial media over the weekend, as well as the guidance from Huayi Capital, it is difficult to attract too much incremental funds to intervene.

Without too much incremental off-site funds, there is no way to improve the liquidity of funds in the market.

In other words, the on-site valuation and investment risk preference cannot be effectively improved. After all, the driving force behind the rise in stock prices ultimately depends on capital.

And there is something else that worries me even more.

Today, a lot of funds have been used to take profits and stop losses in the main area of ​​'big infrastructure'.

According to common sense, this part of the profit-taking funds should be used to "switch high and low" and buy other low-priced stocks.

But if you look at today's market trends, there is obviously not much capital involved in low-priced stocks.

Not only is there no obvious buying support, but there is also a large net outflow of funds, and sell-offs are emerging one after another.

This illustrates the group of funds that have taken profits from the main area of ​​"big infrastructure".

It has not entered these low-level main line sectors.

But where did these funds go? Since there is no main line sector to take over the low position, and there is no other main line direction in the market, there is no obvious abnormal movement.

This shows that a small portion of these profit-taking funds are still gambling in the market.

Most people may have chosen to go short and withdraw from the market.

This indirectly shows that the current market sentiment is not as stable as we imagined, and it also shows that the confidence of investors in the market is still lacking.

It also illustrates the core theme area of ​​"big infrastructure".

After selling a large number of stocks to get rid of the losses, no new stocks were bought.

This shows that the majority of retail investors are still inclined to be more cautious about the subsequent market development and their willingness to chase rising prices is average.

Judging from the market trend, it is very likely that the subsequent market volume will not be able to increase further.

Then, the "big infrastructure" line, which is the core theme of the market, may find it difficult to develop a relatively consistent upward trend.

After all, the market capitalization of the "big infrastructure" line, including real estate, construction, nonferrous metals, coal, and steel sectors, is not small. If we want this main line to have a continuous upward trend, the volume of sustained buying required will be very large.

This can be done without a large amount of incremental off-market funds entering the market.

The sell-offs at low levels and the covering of positions by many institutions in the industry are far from enough to support the core line to develop a sustained trend. "After hearing Lu Xiangxiang's analysis, Yu Xiaolu thought about it and felt that it made some sense. The current market trend, from the perspective of volume, was indeed not optimistic. So she pondered for a while and responded, "Mr. Lu, if the bear market situation cannot be effectively improved and transformed, it is indeed difficult for the core line of 'big infrastructure' to develop a continuous upward trend.

But the underlying logic of this core theme and the expectation of future performance explosion are strong enough.

Moreover, major institutions in the industry currently have relatively consistent expectations regarding this core theme.

Coupled with the fundamental impetus of the continued recovery of offline real estate, as well as the support of national macroeconomic strategies such as "supply-side structural reform", "New Era Road and Maritime Silk Road", "new infrastructure", and "continued promotion of urbanization", as well as the current core main line of "big infrastructure", the core leading stocks are still extremely undervalued.

I think it is not difficult to follow this main line and develop an overall upward trend.

In other words, the core theme of "big infrastructure" may fluctuate in its trend in the future, but the long-term trend will definitely not change.

Moreover, it does not matter whether the liquidity in the market can be effectively increased.

The market's investment trends and structural changes in the market are still very obvious.

That is, all kinds of capital groups in the current market, whether they are institutions, retail investors, or hot money, have basically realized that the market's heavyweight large-cap stocks, especially the trend of leading stocks in various industries, are obviously stronger than small-cap concept stocks. Under such circumstances...

Such a trend of capital bias changes.

This will inevitably drive the existing capital groups in the market to continuously shift their positions to the weighted stocks and industry leading stocks in various industries.

That is to say, this is the polarized trend today.

It is very likely to become a daily trend in the subsequent market trends.

Since the market's investment preference is shifting towards large-cap weighted stocks and industry leading stocks, and the underlying logic and future expectations of the 'big infrastructure' main line are strong enough, then what do we have to worry about since we hold high-quality, undervalued industry leading stocks in the 'big infrastructure' main line?

Whether it is a bear market or a bull market, there are always investment opportunities in the market.

We just need to seize the investment opportunities that are relatively certain at the moment.

As for the rest…I think bear markets and bull markets will only affect the overall valuation level of the market, sentiment and risk appetite. It is still difficult to affect the underlying logic and the operation of the industry cycle.”

"That's true." Lu Xiangxiang nodded slightly, smiled, and said, "I don't doubt the correctness of our large-scale adjustment of the core strategy of 'big infrastructure'. I just think that under the current situation, based on the market trend and the change in volume, we need to lower our expectations for the medium- and short-term trend of the core theme of 'big infrastructure'. At the same time, we must be prepared to harvest profits in a timely manner when the emotional catharsis is completed and the buying power is obviously unable to keep up, and carry out trading plans for position control and swing operations."

"Yeah." Yu Xiaolu agreed with what Lu Xiangxiang said, and couldn't help but smile and said, "Indeed, since the core main trend cannot form a coherent upward trend under the stock game, position control and wave operation are indeed necessary.

Mr. Lu, rest assured, I will observe the market trends carefully.

When market sentiment shows a clear decline and buying is clearly insufficient, traders will reduce their positions and take profits, and control their positions. "

"Okay." Lu Xiangxiang nodded, paused, and then said, "It seems that Huayi Capital is not listed on the market's Dragon and Tiger List today!"

"Indeed not." Yu Xiaolu replied, "It is possible that Huayi Capital has already completed its plan to build a position in the core theme of 'big infrastructure'. After all, the main funds under their organization are still heavily invested in the major sectors of liquor, medicine, and white appliances, especially the 'liquor' sector. In the absence of reducing their holdings in liquor, medicine, and white appliances, the amount of funds they can use to deploy in the main line of 'big infrastructure' should not be particularly large."

Based on the holdings data previously released by the main fund product 'Hua Yi Expedition No. 1' under 'Hua Yi Capital'.

There are also semi-annual report data released by the core leading stocks in the liquor, white appliances, and pharmaceutical sectors, especially the published data on circulating shareholders.

Yu Xiaolu knew the institution "Huayi Capital".

At least 300 billion chips were purchased in the core leading stocks of the liquor, white goods and pharmaceutical sectors.

In other words, the other party's holdings in the major sectors of liquor, white goods, and medicine should have accounted for more than 1% of the positions of the entire "Huayi Expedition No. 50" fund product.

In this way, the other party will naturally not be able to follow up on too large a scale of holdings in the main area of ​​"big infrastructure".

"I don't want to know how much the other party has laid out on the core theme of 'big infrastructure'." Lu Xiangxiang said, "I just think that the other party did not continue to buy chips. Does he also feel that the market trend is somewhat lower than expected, and that the core theme of 'big infrastructure' has almost reached the end of this wave of emotional speculation after some buying capacity issues?"