Rebirth of the Capital Legend

"What should we do now?" asked Old Qian from Yuhang Cultural Road. "Should we cut our positions and pursue the core theme of 'big infrastructure'?"

"It is definitely not worth chasing." Zheng Jinming of 'Gusu Renmin Road' thought for a moment and responded, "Even if the 'big infrastructure' line has been extended in the short term by the good news, the internal chip structure has been loosened, and the selling pressure from profit-taking and unwinding is still continuous. In addition, the short-term upside space is already too large. With the market trend forming an overbought state, there is not much short-term upside space and potential to continue to rise."

"But we don't chase the 'big infrastructure' line. As long as a large number of active capital groups and a large number of retail investors continue to converge on the core main line of 'big infrastructure', the oversold rebound logic of the market's 'high-low switching' will not hold." Lao Qian said, "And the oversold rebound logic of 'high-low switching' does not hold, and the first-hand chips we have on the main line of 'new energy industry chain' will be meaningless. In addition to the current market trend and the direction of major capital concentration... In addition to the core main line of 'big infrastructure', other core main line sectors dominated by institutions such as medicine, consumption, liquor, and white appliances are also siphoning the main capital groups in the market. It seems that the market's investment style and hype style have returned to large-cap stocks and industry-leading stocks."

"The 'big infrastructure' main line has shown an unexpected recovery trend, and large funds will definitely focus on heavyweight stocks and industry leading stocks." Zhang Xinlei took over and said, "There is nothing strange about this. The key is... Can the market divergence of the 'big infrastructure' line expand again in a short period of time? As long as the internal divergence of the core main line of 'big infrastructure' can continue to expand, then I think the logic line of 'high-low switching' will definitely be established."

In his opinion, as long as there are internal differences on the "big infrastructure" line, this divergence between bulls and bears can be further rapidly amplified.

Then, the group of funds that withdraw to take profits will inevitably choose the low-level oversold sectors for a rebound.

"So... should we continue to wait for the market to diverge at a high level?" asked Lao Qian. "At present, most of the short-term funds that bought the bottom at the end of yesterday's trading, such as the 'new energy industry chain', 'film and television media', 'Internet software', etc., are rapidly withdrawing. The corresponding core concept stocks are also falling rapidly. If we continue to hesitate, I am afraid we will have to stay and pay for the rebound at the end of yesterday's trading."

Hearing what Lao Qian said, He Zhong stared at the direction of the two markets, pondered for a moment, gritted his teeth, and said: "I don't believe that the line of 'big infrastructure', at this position, can completely reverse the loosening of the internal chip structure and continue to open up space with just a little bit of good news.

Putting aside other factors, we only analyze from the current market buying volume, main line chip structure, upward breakthrough pressure and other technical forms.

At this time, continue to pursue the cost-effectiveness of the core hot stocks of the "big infrastructure" main line.

It should be far less cost-effective than lurking in the low-level oversold main line, waiting for the "big infrastructure" main line trend to diverge again, and many active capital groups in the market will follow suit and rush into the low-level oversold main line speculation.

So, no matter how the market goes today.

Since I have chosen the market's 'high-low switching' logic line for layout, I must believe in my own judgment and pay for my own cognition. "

"Old He is right." Zheng Jinming continued, "We don't have the first move. If we continue to chase the core hot stocks of the 'big infrastructure' main line at this time, we will most likely be making way for others. And no matter how you look at it... the internal bullish sentiment of the 'big infrastructure' line is unlikely to continue to ferment deeply and attract more incremental buying funds from the outside. In this case, it is obvious that it is still lurking in the low-level oversold main line, waiting for the internal trend divergence of the 'big infrastructure' main line to continue to expand, and the funds in the market will naturally flow to the low-level oversold main line. The cost-effectiveness is the highest."

After saying that, he didn't care what other people thought.

Directly using the funds account operated by himself, he continued to take the opportunity to buy some chips among the sharply falling main-line stocks of the "new energy industry chain".

"That's true." After thinking about it carefully for a while, Lao Qian felt that it was no longer necessary to cut positions and stop losses at this time. Moreover, even if he sold the chips to stop losses, he didn't know what to buy for a while, so he couldn't help but say, "Since everyone believes that the 'big infrastructure' line is unlikely to form an accelerated breakthrough trend, let's wait and see. At most, we will lose a few points and cut positions tomorrow. Anyway, there are no institutional main funds lurking in the 'new energy industry chain', 'Internet software', 'film and television media'... these low-level oversold main lines. Even if they can't keep up with the overall market, even if the 'big infrastructure' main line, which has been repaired by the trend, continues to suck blood, it will not fall much."

"That's the only way." Zhang Xinlei also said at this time, "We didn't make adjustments immediately after the market opened, so the adjustment is really meaningless now. Besides... most of the popular concept stocks in the core main line of 'big infrastructure' have already recovered from the plunge at the end of yesterday's trading. It's really unwise to sell at a loss and chase highs at this time. And just like what Lao He said... I also have a vague hunch that the repair trend of the 'big infrastructure' line at this time is more like the last inducement before the short-term adjustment trend, and it doesn't look like a real accelerated breakthrough."

"From the perspective of volume performance, it doesn't look like an accelerated breakthrough." He Zhong said, "After all, in addition to the core leading stocks in the main line of 'big infrastructure' and popular concept stocks with high recognition, other marginal concept stocks and ordinary component stocks in the second and third tiers have obviously not kept up with the increase of core stocks, and the market divergence is still relatively large."

"Yes." Lao Qian replied, "Look at the trend... Real estate, construction, steel, coal, nonferrous metals, the sector index generally rose by just over one point, while the core leading stocks within the sector generally rose by about 3 points. This shows that the leading stocks and ordinary component stocks in the industry sector are not only not converging in trend, but the divergence is further widening. When the divergence between the leading stocks and ordinary component stocks widens, according to historical trends... it means that the market trend is weakening."

"In that case, let's wait patiently." Zheng Jinming said, "In the same period, today's market volume performance has not changed significantly from yesterday. I estimate that after the most active half an hour of trading time at the beginning of the session, the market's follow-up buying volume in the main line of 'big infrastructure' will gradually fail to keep up, and the main market trend will definitely change."

After carefully analyzing the market trend, the main hot money of the "Gusu system" decided to continue to lurk in the low-level oversold main line and continue to be bearish on the core hot main line of "big infrastructure"...

Almost at the same time, among the main hot money group of the "Qilu Gang".

In the stock of 'Greenland Group', several core major speculators who still hold a large position and have not yet completely exited the market to take profits also vaguely feel the core theme of 'big infrastructure'. The rapid offensive at the beginning of today's trading seems to be the last inducement to buy under the impact of favorable factors.

"I really didn't expect that the Greenland Group check would give us such a good opportunity to exit today." Zhao Zhiyuan, who was already planning to sell his chips to take profits, chuckled and said, "Originally, I thought that this check would open much lower after the large volume of missed orders at the end of yesterday's trading, but I didn't expect it to open higher and even rise by 5 points during the trading session."

"I'm talking about the 'big infrastructure' line. Even if the bullish sentiment ebbs, it is impossible for an extreme trend to occur. At least it will give everyone enough time and opportunities to exit and take profits." Zhang Wei took over and said, "The buying is really strong. I invested 1500 million and didn't even make a splash."

In just the first 10 minutes or so of the trading session, he had already sold half of the Greenland Group shares he held.

"The overall buying volume in the market has not increased. At this position, the price cannot go up with a reduced volume." Liang Jiucheng responded, "It is probably a trend of inducing more buying. We have already made almost 20% profit from the Greenland Group check. It is definitely wise to withdraw from the market at this time. Even if we make a wrong judgment, the line of 'big infrastructure' at this position will really form a trend of accelerated breakthrough, and there will not be much room for upward movement."

"Lao Liang, if the 'big infrastructure' line is a lure for more today, then... the logic of the market's 'high-low switching' should still be valid, right?" Zhao Zhiyuan said, "Is the 'new energy industry chain', the core theme of the low-level oversold market that we discussed before, still worth lurking?"

Liang Jiucheng said: "It is definitely worth lurking, and looking at the trend, the fierce attack of the main line of 'big infrastructure' at the beginning of the session siphoned a lot of active funds from other main lines, which made the main line of 'new energy industry chain', which moved abnormally at the end of yesterday's session, fall back and step on it, providing a good buying point."

"Haha, I think so too." Zhao Zhiyuan laughed and said, "I wonder if the 'Gusu Group' guys stopped their losses in the early trading session. If they happened to stop their losses and leave the market, and then follow the rebounding 'big infrastructure' main line, it would be perfect."

Zhang Wei looked at the market trends of a number of low-level oversold main lines such as "new energy industry chain", "film and television media", and "Internet software", as well as the changes in the volume of many core target stocks, and said: "Looking at the changes in the market volume, at the beginning of the trading session, "Duo Fluoride", "Tianci Materials", "Tianqi Lithium", "Ganfeng Lithium"... these related stocks that were heavily held by the "Gusu system" hot money group yesterday did not show a panic selling situation, and their volume at the time of the sell-off was not significantly increased. I estimate that the "Gusu system" hot money should still be lurking in these stocks and have not left the market."

"Then why don't these guys maintain the market trend and guide the funds to follow suit?" Zhao Zhiyuan asked in confusion, "They let their own stocks be siphoned away by the 'big infrastructure' main line and let the stock price fall freely?"

Liang Jiucheng said: "Stimulated by the positive news last night, the market's bullish sentiment continued to focus on the main line of 'big infrastructure' at the beginning of the trading session. The direction of the combined long position of funds also tended to the core main line of 'big infrastructure'. Under such circumstances... with the amount of funds in the hands of the 'Gusu system' hot money, even if they took action to maintain the market, they could not take on the selling of related stocks, let alone guide the market's 'high-low switching' trend style. They can only lurk and wait for the arrival of subsequent market opportunities."

"Lao Liang is right." Zhang Wei responded, "It is wise not to force the market to hold the stocks. If we force the market to hold the stocks and force the chips to be sold, it will lead to a situation where only one fund dominates the market, and there will be no follow-up funds. It will be more difficult for these guys to get out of the trap, and it will be more difficult to guide the market to the logic of 'high-low switching'."

As they were talking, several people had basically sold all the Greenland Group stock chips in their hands.

At the same time, due to the joint selling by several of them.

At this time, the share price of Greenland Group has fallen from its intraday high of around 5.33% to near flat.

Same thing across the market.

In the entire "big infrastructure" main line area, popular concept leading stocks similar to "Greenland Group" also showed a trend of rising and falling when the intraday buying volume gradually declined, and the long and short forces on the market once again fell into a huge divergence.

And it becomes subtle as market trading time goes by.

The combined selling force of profit-taking and unwinding seems to have gradually gained the upper hand, resulting in increasing divergence in the market trends of the entire "big infrastructure" main line.

At a time when differences in the main line of "big infrastructure" increased again, popular stocks rose and fell one after another.

The low-priced and oversold main-line related stocks such as "new energy industry chain", "Internet software", "film and television media", "electronic information", etc., which fell rapidly at the beginning of the trading session, especially the popular concept stocks with high market recognition in these main-line sectors, have gradually attracted a lot of smart funds to buy at the bottom. The market trend has formed a completely opposite trend pattern with many stocks in the "big infrastructure" main-line field.

"The divergence in the trend of the main line of 'big infrastructure' has further widened."

Zhao Zhiyuan, who had already sold all his shares of Greenland Group and reaped a wave of profits, immediately turned his attention to stocks such as Dofluoro, Tianqi Lithium, and Tianci Materials, which were bottoming out and rebounding, and whose buying volume was gradually increasing. He said, "It's time to buy up the oversold main line at low levels and do a 'high-low switch' in the market."

After saying that, he directly invested a large amount of money in the two core stocks of "Dofluoro" and "Tianci Materials" by buying them at the market price.

And as he invested funds, and the buying followed.

The trading trends of these two stocks also rebounded more and more rapidly. However, in just a few minutes, they recovered from the sharp drop at the beginning of the trading and returned to the flat position.