Rebirth of the Capital Legend

Of course, when the main trend of "big infrastructure" began to show internal differentiation and weakening.

The other core themes of the entire market, as well as the major concept themes, have shown significantly weaker performance and more severe plunges.

"What's going on? Why did you suddenly dive into the water?"

Noticing that the market trend took a sharp turn for the worse and many stocks plunged, Jia Yongxiang, the trading team leader of the Huarui Fund Management Company's "Huarui Excellent Growth No. 1" fund product trading room, had a look of surprise on his face: "Could it be that the short-term trend of the main line of "big infrastructure" has really come to an end?"

"It's not a problem with the main line of 'big infrastructure'." Song Shaopu, the product manager of the 'Hua Rui Excellent Growth No. 1' fund standing next to Jia Yongxiang, responded: "It's a problem caused by insufficient market volume. Look at the other main line sectors of the market except 'big infrastructure'. The trend is obviously weaker and the dive is more fierce."

"Can't the proactive buying take over the selling pressure from above?" Jia Yongxiang asked.

Song Shaopu pondered for a moment and responded: "It feels like this. Although this wave of sustained rebound has achieved a profit-making effect through the main line of 'big infrastructure' and boosted the market's bullish sentiment, it has generally failed to reverse the bear market pattern and trend.

Also, the current core theme of "big infrastructure"...

After almost two weeks of continuous rise, the short-term gains of related stocks have generally reached 30% or even 50%.

It has already reached the deep lock-up area where retail investors’ chips are accumulated.

There are a lot of trapped chips in this range. If you want to break through, you need a large amount of continuous buying.

However, in a bear market, short-term bullish sentiment and the intervention of a small amount of incremental off-market funds cannot support such a large amount of active buying.

Therefore, there will be obvious fluctuations and dives in the market trend.

However, this trend phenomenon is normal as long as the underlying logic and future expectations of the core theme of "big infrastructure" remain unchanged.

Then, after a brief shock, wait for a continuous influx of buying funds.

Digest the locked-in chips at this stage, stabilize the internal chip structure again, and settle it down. Then... the market trend of this core main line will most likely continue to break through in the future. "

"That is to say... there is a high probability that at this point, the main line of 'big infrastructure' will enter a violent fluctuation market trend, right?" After listening to Song Shaopu's analysis, Jia Yongxiang understood, "It seems that the core main line of 'big infrastructure' is facing upward pressure, not only from the selling pressure of unwinding positions, but also from the concentrated selling pressure of profit-taking positions. With the combined selling of these two forces, it is difficult to hold up the current buying volume.

Also... it feels like the funds have been unwound or made profits from the main area of ​​'big infrastructure'.

Many did not continue to stay in the market.

This can be seen from the divergence in the main line of "big infrastructure", but no other main line sectors have rotated up, forming a "high and low switching" trend phenomenon.

I am worried that if this continues, the subsequent "big infrastructure" main line will enter a period of volatile adjustments.

The bullish sentiment of the entire market and the bullish confidence of the vast investor group will quickly fade away in the absence of a new market main line to take over.

Funds are constantly flowing out, coupled with a gradual decline in sentiment.

I am afraid that the subsequent market volume will not only fail to increase further, but will further decrease. Without the support of volume, there will be no sustainable market. "

"Although the overall market situation is not optimistic," Song Shaopu said, "it is still very likely that the strong underlying logic of the core theme of 'big infrastructure' and future expectations will lead to a sustained local market trend. In addition, from the perspective of K-line patterns, except for the ChiNext Index, the Shanghai Index, Shenzhen Index, and A50 Index have all actually formed a rebound breakthrough pattern. It should be said that from a technical analysis, the market trend will not stop here."

"But the short-term sentiment in the market is indeed collapsing," said Jia Yongxiang.

Song Shaopu continued, "Short-term sentiment is something that hot money is concerned about, so we don't need to pay too much attention to it. Even if short-term sentiment is declining, the investment preferences of all parties in the market are increasingly leaning towards the main line weight leaders and high-performance leaders.

A number of core leaders in the main line of "big infrastructure" may not necessarily adjust.

Moreover, even if there is an adjustment, it will most likely be a strong adjustment.

If we predict the short-term market sentiment at this time and think about selling part of our stock holdings to make a difference, we are very likely to sell all our chips directly.

After all, compared with the entire market, buying is relatively weak.

But if we narrow the scope to the leading stocks in the core area of ​​'big infrastructure', the buying will be very strong.

This is just like the core leaders in the previous liquor, white goods, medicine, consumer and other sectors.

Even though the market as a whole has been declining in the past six months, these stocks have been able to rely on strong underlying logic and expectations of future performance explosion to seize the only active buying opportunities and develop an independent upward trend amidst the continuously shrinking market liquidity.

In other words, the volume of the entire market has shrunk.

It will not affect the liquidity of these core leading stocks, nor will it have much impact on their trends.

In fact, when the market is generally diving, many concept stocks and mainstream marginal stocks continue to weaken and begin to show panic selling, are the core stocks with the highest weight still as stable as a rock, and are they even stronger? "

Jia Yongxiang observed carefully for a while and indeed found the internal market differentiation phenomenon that Song Shaopu mentioned. After pondering for a moment, he responded: "It seems to be just as Manager Song said. When the market is generally plummeting, the trend of a number of core leading stocks in the market is actually strengthening."

"Right." Song Shaopu smiled and said, "If you look at the trend of A50, it will be more obvious. For the entire market, especially after many large capital groups in the market have begun to form the operating idea of ​​'preferring big to dislike small', that is, when more and more funds begin to abandon concept stocks and embrace performance stocks and high-performance growth stocks, the more the market falls, the more these core weighted leaders will become the target of large funds' concentrated group."

"Doesn't this mean that no matter whether the index goes up or down, these core leaders will form their own independent trends and siphon the liquidity of other concept stocks in the market?" Jia Yongxiang was a little surprised. "That doesn't make sense. Logically speaking... when the market falls, these stocks will also be suppressed by emotions and valuations."

"Under the guidance of strong underlying logic and extremely strong expectations of future performance explosion, sentiment suppression and valuation suppression are not that important." Song Shaopu said, "What's more, our A-share market has always liked to go to extremes, always like to go from one extreme to another.

After more than half a year of market trends...

I believe that many major funds in the market who are keenly aware of the market have discovered the fact that funds are increasingly flocking to blue-chip and white horse stocks with high performance and increasingly abandoning small-cap concept stocks, and are all making strategic changes.

At the same time, it seems that regulatory policies are also moving in this direction.

The investment approach that is originally guided by expectations and performance is also advocated by major institutions in the industry and the country.

Since the market has already formed such an investment bias in the spontaneous behavior of funds, then, with the subsequent factors such as money-making effect, liquidity, favorable policies, intentional guidance and publicity by institutions, this investment bias will naturally be strengthened.”

"I understand." Jia Yongxiang nodded and no longer mentioned the issue of reducing positions and taking profits.

Then, he turned his attention back to the two markets...

As the market trading hours continued, the diving trend of individual stocks and indexes had come to an end.

The Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index gradually rebounded to recover from their plunge, and many stocks in the market also followed the index in slowly rebounding to recover from their losses.

Jia Yongxiang observed carefully and found that the two markets had plunged.

In the subconscious bottom-fishing of on- and off-market funds, the stocks they prioritize buying are still concentrated in the main area of ​​"big infrastructure."

This can be observed from the market trend.

Among the diving and rebounding stocks, the rebound of stocks related to the main line of "big infrastructure" was obviously stronger than that of other main line stocks.

This shows that after the core theme of "big infrastructure" began to touch the area where locked-in chips were concentrated, the concentrated selling pressure from profit-taking and unwinding suppressed the further concentrated advancement of the market, but the limited active buying volume in the market was still concentrated on this core theme.

There are still many investors who have insufficient positions on and off the market and are thinking about following up with positions and going further long.

At the same time, when observing this phenomenon...

Jia Yongxiang also discovered other main areas of the market. The core main line of "new energy industry chain" showed obvious changes half an hour after the trading time entered the last trading day. Some core stocks with high recognition such as "Dofluoro", "Ganfeng Lithium", "Tianqi Lithium", "Tianci Materials", "Penghui Energy"... showed obvious signs of active buying funds concentrated in buying and building positions.

"Manager Song..." Jia Yongxiang hurriedly reported to Song Shaopu after discovering this phenomenon, "It feels like there are major funds building positions in the main direction of the 'new energy industry chain'. The trends of many stocks are obviously different. It seems that... the active hot money in the market is doing the 'high-low switching' operation."

After hearing what Jia Yongxiang said, Song Shaopu carefully observed the market, smiled, and said, "That's true. However, the hot money working together to do 'high-low switching' is good for the overall market trend and the stimulation of market liquidity. Moreover, the timing and the main target of entry are also good."

In his opinion, compared with other market main lines.

If we want to guide the large amount of funds flowing out from the main line of "big infrastructure" to switch between high and low, we must keep these funds in the market for trading.

Then, the core theme of 'new energy industry chain' is undoubtedly the most appropriate.

After all, although there are rumors of negative news and policies in the short term for this core theme, the long-term logic is not a problem.

Moreover, there are many core leading stocks with high recognition in this main field.

It is also highly likely that performance will be realized next year and that performance will continue to grow at a high speed.

In addition, after Huayi Capital's large-scale reduction of holdings and exit, there are not many potential buyers in the main field of "new energy industry chain".

Moreover, the chip structure has settled down again after continuous adjustments during this period.

These factors are the core theme of the "new energy industry chain", which can undertake the "high and low switching" of funds and continue to stimulate the market's enthusiasm for buying.

As he spoke...

At 2:35 p.m., Ganfeng Lithium and Tianqi Lithium, the two core leading stocks of the new energy industry chain, had pulled up from a position of almost 3 points underwater to the red market. At the same time, a number of stocks including Dofluoro, Tianci Materials, and Penghui Energy followed suit.

At 2:41 p.m., as the core leading stocks of the 'big infrastructure' main line continued to remain strong and marginal stocks continued to differentiate, more 'new energy industry chain' main line stocks began to move abnormally.

At 2:45 p.m., "Dofluoro" rose from underwater to a nearly 3% increase.

At 2:46, influenced by the abnormal movement of the main theme of 'new energy industry chain', the ChiNext Index began to rebound rapidly. At the same time, main themes such as 'Internet software', 'film and television media', 'electronic information', 'consumer electronics', etc. also showed signs of active funds intervening in bottom-fishing.

At 2:49, "Dofluoro" rose by more than 5%. More and more investors and active funds in the market began to pay attention to the main line of the "new energy industry chain" and other medium- and short-term oversold market main lines.

"Damn... it turns out that we still need the 'new energy industry chain' line to generate emotions, form market synergy, and complete the market's 'high-low switching' logic." Seeing that in the late trading stage, the 'new energy industry chain' main line finally attracted the attention of a large number of funds and concentrated buying behavior, He Zhong, who had previously tried to guide the 'high-low switching' in the 'Internet software' and 'film and television media' main line sectors, could not help but sigh, "You are right. Only with expectations and logic can we form a consensus. It is always difficult to form an effective consensus by relying solely on the advantages of the chip structure and the funds."

"Haha..." Hearing He Zhong's words, Zheng Jinming of 'Gusu Renmin Road' laughed and responded, "What Lao He said... at least your logical judgment is correct. The sentiment on the 'big infrastructure' line has indeed loosened, and the active funds in the market do have the idea of ​​'high-low switching'."

"The check from 'Do-Fluoride' is very recognizable." Lao Qian from 'Yuhang Wenhua Road' interrupted.

"Indeed." Zhang Xinlei of 'Modu Jinling Road' responded, "Can anyone help and ignite the market to close the board? The market's 'high-low switching' sentiment atmosphere is forming. If we pull the board at this time and make it more recognizable, there will definitely be a lot of premium space tomorrow, and there is a high probability that we can take profits."