Rebirth of the Capital Legend

"Do we need to adjust our trading strategy?" Huang Qingyun asked, "Do we need to reduce our holdings of stocks in the main area of ​​'big infrastructure' and make initial profit-taking operations?"

Moen Xingtao thought for a moment and responded, "Let's wait and see. Although the current sentiment shows signs of receding, the major active capital flows in the market are still flowing into the main line of 'big infrastructure'. Moreover, the core weighted stocks of the main line of 'big infrastructure' that we focus on holding are still in the stage of unanimous expectation acceleration, and there is no divergence of volume stagnation.

This round of rebound of the main line of "big infrastructure"...

It started to break out a week ago and has developed to this point and reached its current high position.

Even if the sentiment recedes and the main market trend falls into adjustment, I don't think it will form an A-killing trend like the previous small-theme main lines. It will most likely form a platform oscillation pattern with large volume.

In other words, even if we want to initially take profits and reduce our positions, there will be clearer opportunities to reduce our positions later.

And the market will provide ample opportunities to reduce positions and take profits.

Also, although from the perspective of short-term trading, the core theme of "big infrastructure" has reached this position and has begun to enter the area where the previously trapped chips have been heavily deposited, the pressure to continue to rise is increasing, and the need to adjust the shock is increasing.

However, from the perspective of macro and long-term logic.

The 'big infrastructure' line has just broken out of a weekly breakout trend, which means that this core line has a high probability of rising in the future. We can be bearish on the 'big infrastructure' core line in the short term, but we must not be bearish in the long term. "

"Yes." Huang Qingyun nodded and said, "What Mr. Men said is consistent with my thoughts. Indeed, comprehensive analysis shows that at this point, even if the market sentiment temporarily ebbs, it is estimated that it is just a short-term shock adjustment trend in the overall long-term trend breakthrough trend. In the future, the core theme of 'big infrastructure' will definitely reach a new high."

"So," said Men Xingtao, "even if we want to reduce our positions to stop profits, we must stick to the principle of heavy allocation on the core line of 'big infrastructure'."

Conduct an analysis based on future expectations of all major market sectors.

Men Xingtao still thinks that the core theme of "big infrastructure" has better future logic and greater certainty.

However, since we have discovered that the short-term hype sentiment has receded, we feel that the market may experience drastic adjustments in the future.

Then, reduce part of the position immediately and take profit to reduce the overall holding cost.

It is still necessary to wait until the main line of "big infrastructure" forms an oscillation platform, or the chip structure at this stage turns for the better, and the stock price falls back to a short-term oscillation platform low, then buy back the chips and hold them again.

Their institution is not one of those large financial institutions with billions of dollars in scale in the industry.

Although its flexibility cannot be compared with that of the hot money in the market, its flexibility in trading operation ideas is still relatively high compared with those large institutions in the industry.

For large capital institutions with a scale of over 10 billion, it can be said that there is not much meaning in doing T in the short term to reduce costs.

After all, with a large amount of capital and a small position, the cost reduction for T is limited, and there is a possibility of losing chips, so the cost-effectiveness is relatively not worthwhile.

But for them, doing T with a small position can still substantially reduce the holding cost and increase the net value of the fund products.

"That's for sure," Huang Qingyun responded. "The short-term bearish outlook does not change our long-term bullish outlook. For the next six months, our overall strategic layout will still focus on the core theme of 'big infrastructure'.

As the two continued their discussion...

The trading time of the two cities has unknowingly slipped to 11:03.

As the market entered the last half hour before the midday closing, the divergence in the trends of large-cap blue-chip stocks, blue-chip stocks and small-cap concept stocks in the two markets, as well as the divergence in the trends of corresponding individual stocks within the core theme of "big infrastructure", began to show increasingly obvious signs.

At 11:07 a.m., popular stocks in the last bull market, such as "Baofeng Technology", "LeTV", and "Netspeed Technology", which are also the core components of the ChiNext Index, began to continue to fall, and the volume and amount of large capital outflows were still increasing.

On the other hand, the main area of ​​'big infrastructure' is being fiercely pursued by various market funds.

A number of popular leading stocks are still siphoning active capital flows from the market, while non-popular leading stocks, that is, other ordinary component stocks within each major sector, are also clearly showing a trend of large net capital outflows.

At 11:13, 'Baofeng Technology' plunged rapidly without any negative news, plunging more than 5%. At the same time, 'LeTV', 'Netspeed Technology' and several other stocks also followed suit and plunged. On the market, the decline of the ChiNext Index also widened.

At 11:15, the Shanghai Composite Index hit a 1.5% increase. In the main area of ​​'big infrastructure', core leading stocks such as 'Poly Real Estate', 'Kewan Real Estate', 'China Construction', 'Gemdale Group', 'China Metallurgical', 'Conch Cement', 'Huaxin Cement', 'Shenhua Coal' and 'Jincheng Coal' continued to rise. Large funds are still converging on these stocks. At the same time, bank weighted stocks in the A50 index, as well as stocks in the consumer, pharmaceutical, liquor and white appliance sectors, also rose simultaneously and received the attention of major funds in the market.

At 11:20, the buying of second- and third-tier concept stocks in the main field of "big infrastructure", such as "Financial Street", "Yu Development", "Oriental Yuhong", "Huaxin Building Materials", "Gujia Furniture", "Wuhan Iron and Steel Group", "Shougang Group", "Yanzhou Coal Mining" and other small-cap concept stocks, suddenly loosened, and the intraday trend began to show an obvious correction pattern. At the same time, the "technology" concept stocks in the ChiNext Index, which had once plummeted, instead welcomed some funds to buy at the bottom, and the stock price began to rebound.

At 11:25, 'Beijiang Communications Construction', one of the leading stocks in the main line of popular concepts of 'big infrastructure', which had hit the daily limit early in the early trading session, suddenly saw a large number of active selling orders on the daily limit. However, due to the large number of daily limit orders, the active buying was still relatively strong, resulting in the fact that despite a wave of large volume on the market, there was no sign of a bursting board.

However, this sudden leakage performance still attracted the attention of many sensitive short-term funds in the market.

So, at 11:28, 11:29, until the last moment of the two markets' closing at noon.

In the market, a large number of popular concept stocks such as 'Shenhuo Co., Ltd.', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Co., Ltd.', etc., have shown signs of loosening to varying degrees.

Even in the last ten seconds before closing.

On the daily limit of 'Beijiang Communications Construction' which had already seen a leakage of volume, there were continuous large sell orders of tens of thousands of shares.

Although these large sell orders of tens of thousands of shares before the midday closing did not cause a crash in the market trend, they had already given the internal capital group that locked up the shares, as well as the retail investors who followed the trend and placed buy orders, a psychological expectation that this stock would crash when it opened in the afternoon.

At the same time, we also provide other popular concept stocks in the entire "big infrastructure" main line.

It creates a psychological expectation that chips are loosening, bullish sentiment is about to collapse, and the market will once again see huge divergence between bulls and bears.

"Fuck, a big order crashed the market at the last second, are you kidding me?"

Seeing the final midday closing situation of the two markets, among the group of retail investors gathered on the online stock investment exchange platform at this time, there were retail investors who bought in the early trading session, and a thousand horses were running through their minds, and they couldn't help but complain.

"The cheque for 'Beijiang Communications Construction' leaked such a large amount near the midday trading session that it will definitely crash when the market opens in the afternoon."

"There should be no suspense about the stock crash. The key is this check... It is very likely to bring down the long sentiment of the entire 'big infrastructure' main line!"

"Yes, that's what I was afraid of. Sigh... I really shouldn't have bought at a high price this morning."

"With such a strong logic in the core theme of 'big infrastructure', there are still risks in chasing high prices, which shows that the overall situation of the market is still relatively weak."

"Don't forget, this is a bear market. In a bear market, the biggest source of losses is chasing high prices."

"In fact, as early as after 10 o'clock, I felt that the overall market trend was obviously wrong. Many concept stocks in the main line of 'big infrastructure' have experienced a situation of large volume and stagnation. However, everyone's attention is on the market's leading stocks, and the shrinking volume and strength of leading stocks have temporarily concealed the phenomenon of the decline in sentiment and the increase in market differences."

"I feel that the volume performance is fine, why is there a sudden divergence?"

"Is this volume okay? Obviously the buying is a bit exhausted. Look at the core constituent stocks of the ChiNext Index, which have been sucked into a mess by the main line of 'big infrastructure'."

"I know that when everyone is optimistic, the market trend will inevitably go wrong."

“What should I do now? I bought in at the upper limit this morning, and I can’t sell it even if the price goes down today!”

"I can only stare blankly, but the underlying logic of the 'big infrastructure' line is so strong that even if the leader explodes, it is estimated that it will not be killed, and there will definitely be opportunities for a rebound in the future."

"This trend is really disgusting. I hope someone big will maintain the market when the market opens in the afternoon."

"That's impossible. If this happens before the midday close, emotions will definitely ferment. After the afternoon opening, there will definitely be big differences on the core theme of 'big infrastructure'."

"Those who chase high prices and buy popular stocks in the main line of 'big infrastructure' today are likely to lose money."

"Once the core theme of 'big infrastructure' collapses, other main themes in the market will not improve either. The overall sentiment is divided, and it doesn't matter what you buy, you will suffer losses."

"That's true. The liquor, white goods, consumer, and pharmaceutical sectors have also been driven by the main theme of 'big infrastructure' to some extent."

"There is a divergence of sentiment on the main line of 'big infrastructure', so funds should go back to 'switch between high and low', right? In this case... after the afternoon opening, will the 'tech' sector stocks that were drained by the main line of 'big infrastructure' in the early trading session, especially some market-recognizable tech stocks that hit intraday lows, have a strong chance of rebounding?"

“That’s not certain, but there will definitely be funds to switch between high and low, but the direction… is still hard to guess at the moment.”

"Alas, we finally had a few days of good life, but it seems that we will have to enter hell mode again in the next few days."

"It's not really hell mode, right? After all, after the stimulus of the 'big infrastructure' market, the overall liquidity of the market has increased a bit compared to before. The short-term ecology of the market is recovering, and the tolerance rate is also greater than before. Look at 'Shenhuo Co., Ltd.', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Co., Ltd.'... These stocks have actually reached their current position, and several of them have diverged three times. This was simply unimaginable before, right?"

"That's right. As long as there is volume, there will be a market. It seems there is no need to panic."

"That's right. The index has adjusted for two or three days in the past week, and after each adjustment, it was able to rebound the next day. This means that the market has entered a new general rebound cycle. Since the market is rebounding as a whole, even if you are trapped for a short period of time, there will be opportunities to get out of the trap soon."

"I feel that other market main lines, whether in terms of long-term logic or short-term expectations, are not at the same level as the core main line of 'big infrastructure'. Overall, the underlying logic of the line of 'big infrastructure' is the most solid, and the position is not high. If the market shows a sharp drop in sentiment in the afternoon and opens lower tomorrow, I feel that I can continue to increase my position and buy chips. I am sure that... even if there is a big divergence in the trend of the core main line of 'big infrastructure', it will definitely set a new high in the future."

"Haha... I am equally optimistic. I am firmly optimistic about the long-term market trend of 'big infrastructure'. I didn't keep up with this trend before. Now I am waiting for the divergence to increase my position."

"There should be a lot of funds outside the market, wanting to buy chips in the main line of 'big infrastructure', right?"

"In fact, there is still a lot of potential buying in the market."

"I think it's better to have a disagreement and consolidate the chips before going up."

"I hold the chips of the check of 'Conch Cement'. Anyway, no matter how you look at it, the chips at this position are still very cheap. In a word, this ticket is in the context of the fundamental reversal of the entire 'big infrastructure' main line, the continued hot offline real estate market, and the general continued rise in housing prices across the country. I dare to buy more as the price falls."

Amid the ongoing discussion...

As the lunch break progressed, even though the emotional differences were widening, panic did not spread significantly.

After all, the main line of "big infrastructure" has continued to rise for more than a week, and the money-making effect has stimulated it.

In particular, after each previous divergence, a counter-trend was formed the next day, which brought back the divergent sentiment and rebounded to a new high. This phenomenon gave the majority of retail investors who realized that market sentiment was diverging again enough confidence to believe that past history would repeat itself in the future.

So, there is a divergence of sentiment, but it does not reach the point of panic.

After a break of one and a half hours, the market resumed trading at 1 pm.

The check of 'Beijiang Communications Construction', which has attracted much attention from the vast investor groups in the market, quickly broke the board, but was taken over by surging buying orders. After a large turnover, it closed the daily limit again at 1:05.