Rebirth of the Capital Legend

Just as the 'big infrastructure' main line is pulling back and other low-level main lines are taking over the funds flowing out of the 'big infrastructure' main line, the market trend continues to spread and ferment along the path of 'high and low switching'.

At 10:55 am, in the fields of 'security lens' and 'consumer electronics', the core leading stocks 'Hikvision' and 'Lixun Precision' received continuous large buying orders of tens of thousands of shares, and their stock prices showed a trend of continuous explosive increase, jumping by more than 5 points.

At 11:01 am, the oversold rebound of 'Netspeed Technology' hit the daily limit, driving the entire 'Internet Software' sector index up by more than 2%.

At 11:06 am, LeTV surged more than 5%, and the film and television media sector exploded.

At 11:12 am, 'Qianzhou Moutai' surged by more than 3%. In the liquor sector, slightly smaller liquor stocks such as 'Yingjia Gongjiu' and 'Shede Wine' also welcomed the follow-up speculation of active market hot money. The share prices of the two stocks soared sharply in just two or three minutes and quickly rose to the daily limit.

At 11:17 am, Dahua Technology, the core stock of the security lens industry, quickly hit the daily limit after a trading volume of nearly 8 million yuan. At the same time, other small and medium-sized stocks in the same sector also experienced a big outbreak at this time, with countless active short-term funds following suit.

At 11:21 a.m., the core sector indices of real estate, building decoration, building materials, steel, coal, nonferrous metals and other core sectors in the main field of "big infrastructure" turned green and fell underwater, becoming the leading decliners in the two markets. Among them, 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." also continued to fall.

At 11:25 am, when the two markets were about to close at noon, the first unusual movement in the morning, "Beijiang Communications Construction", which had led to the collapse of the entire "big infrastructure" main line of bullish sentiment, continued to fall, and the market decline reached 6%.

At 11:26 am, 'Tianci Materials' hit the daily limit, and the 'lithium battery' sector and the main market trend of the 'new energy industry chain' continued to strengthen.

Finally, when 11:30 noon arrived.

When the two markets closed, the "high-low switching" trend of the entire market had become very obvious.

Industry sectors and concept sectors related to the "big infrastructure" main line, as well as numerous related concept stocks, including core weight stocks in the main line field, have all experienced drastic shock adjustments, while many short-term oversold concept main lines that had previously been excessively siphoned funds by the "big infrastructure" main line, as well as the liquor, white appliances, pharmaceuticals, and consumer main lines that were heavily supported by institutions, have experienced a general rebound.

Moreover, this comes at a time when the main line of "big infrastructure" is generally adjusted.

The Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index did not follow the decline, but maintained a stable trend. Among them, the ChiNext Index even exceeded the Shanghai Composite Index's growth rate at a time when the "big infrastructure" main line was undergoing comprehensive adjustments, showing a half-day surge of 1.32%.

"Looking at the market trend this morning, the main line of 'big infrastructure' should have ushered in a short-term adjustment. In the next few days, I'm afraid it will be a platform-like market." After the midday close, in Shanghai, inside the 'Hua Yi Capital' institution, in the main fund trading room of 'Hua Yi Yuan Zheng 1 Hao', fund manager Hou Baolong took a look at the frozen market, tilted his head to observe Su Yi, and said, "The main line of 'big infrastructure' has reached this position in the short term, which is actually a bit beyond expectations. I just didn't expect... It actually entered an adjustment cycle despite the good news last night. It's a pity for the large amount of funds that chased high buying in the early trading today. It is estimated that these funds will be trapped at high levels for a long time."

"The entire 'big infrastructure' main line began to loosen up yesterday." Su Yi responded, "It is completely expected that it will enter an adjustment today. Regardless of whether there was any positive news last night, it will be difficult for the 'big infrastructure' main line to open up space today."

"That's true." Hou Baolong nodded. "As the A-share market's 'big infrastructure' mainline's short-term upward momentum has weakened, the Hong Kong stock market's domestic real estate stocks have also seen their upward momentum weaken. It is estimated that they will also enter a short-term adjustment trend. Judging from the situation... the correlation between the trends of the two markets is really getting stronger and stronger."

Su Yi smiled and said with certainty: "In fact, in this wave of domestic real estate stock market, apart from us, most of the funds involved are probably domestic capital, so the market trends of the two places are so highly correlated. As for Hong Kong and foreign capital, they probably haven't reacted yet and have not built large-scale positions."

"How did Mr. Su know that the funds involved in this wave of speculation in domestic real estate stocks are most likely domestic capital?" Hou Baolong asked curiously.

Su Yi responded: "Because the trend of this wave of domestic real estate stocks has almost been continuously squeezed up. Although our institution has helped, the vast majority of funds following the trend are the protagonists of this round of market. This K-line pattern is obviously completely different from the trading style of Hong Kong and foreign capital. It is very similar to the traces of many hot money following the trend in the A-share market."

"It's good that the two markets fluctuate synchronously." Hou Baolong paused and said, "This kind of linkage makes it easier to create a high space for the main line of the market and bring greater influence to the market, thereby stimulating more bullish sentiment."

Su Yi nodded and said, "That's true."

"Looking at the performance of the market volume, today's volume seems to have increased a bit compared to yesterday." Hou Baolong paused and said, "Moreover, the main line of 'big infrastructure' has adjusted, but the market index has not fallen but risen. This also shows that a large amount of funds that have flowed out of the main line of 'big infrastructure' have not left the market, but have flowed into a number of low-level main lines for new speculation and acceptance. This should be a sign of an improvement in the overall market sentiment, right?"

"Indeed, your judgment is correct." Su Yi nodded slightly and said with a smile, "The core theme of 'big infrastructure' has been adjusted, but the market index has not been forced to adjust accordingly. Instead, it has stabilized. In the entire market, there are quite a few stocks that are in the green. This does show that most of the incremental funds that entered the market before did not flow out of the market, but stayed in the market for gambling. This is a good phenomenon. As the saying goes, where there is volume, there is a market. As long as the trading volume can be maintained, then whether the funds are used for short-term speculation or long-term investment, it will be beneficial to the development of the market."

"In addition to the Internet software, film and television media, and new energy industry chain sectors where hot money is concentrated, the liquor, white goods, pharmaceutical, and consumer sectors that are mainly supported by institutions have also moved abnormally." Hou Baolong said, "And the two branch sectors of 'electronic consumption' and 'security lens' that you mentioned before and asked our fund to focus on building positions have also exploded today. Several core stocks that we have focused on building positions have shown a trend of sharp rise."

Currently, the main fund product they manage is 'Hua Yi Expedition No. 1'.

In terms of specific position distribution, the liquor sector accounts for 30%, consumption, medicine, and white appliances each account for 10%, the 'big infrastructure' main line accounts for 20%, and 'consumer electronics', 'security lenses', and 'new energy industry chain' account for the remaining 20%.

When the main theme of "big infrastructure" continued to soar, the net value of their funds performed strongly.

When the main line of "big infrastructure" adjusts and other core lines lead the rise, the net value of their funds will continue to stabilize and rise and continue to break upward.

This is the position distribution that Su Yi requested.

Especially when he discovered that every main area of ​​focus of the entire fund was almost the core area that could not be avoided by market speculation.

Hou Baolong's macro layout for Su Yi and his research on the main line fundamentals.

That's admiration from the bottom of my heart.

Just as the two of them were expressing their feelings and analyzing the market conditions, and still maintained an optimistic attitude towards the subsequent market trends.

At this time, in the stock investment exchange forum across the entire network, the mood of countless retail investors gathered on the exchange platform was obviously in a state of extreme confusion.

Some retail investors who had chased high prices of stocks related to the "big infrastructure" theme in the early trading session were all very depressed.

Another part of the retail investors who have been deeply trapped in small and medium-sized concept stocks, especially the main sectors such as new energy industry chain, Internet software, film and television media, and electronic information that have been oversold recently, finally got to hold their heads high and showed excitement.

"The rise of the market for so many days had nothing to do with me, but today it finally has something to do with me."

"Fuck, I'm so unlucky. The 'big infrastructure' line has been rising for so many days. I kept watching it but didn't dare to buy it before. Today I finally made up my mind to buy it and chased it to the highest point."

"Sure enough, when emotions reach a climax, it's time to leave."

"LeTV is going to hit the daily limit today, which is really rare."

"I was saying that the 'Internet software' sector has been falling for so long, it's time for it to rebound."

"I just sold my shares of LeTV in the early trading session and bought Beijiang Communications Construction at a high price. What kind of stock is this? It's really fucked up. It hit the market's adjustment point precisely."

"Alas, it's the same. I didn't dare to buy it in the past few days. Once I bought it, it adjusted. I'm really impressed."

"Why do I feel that the market is a bit split in this morning's market trend? Liquor, white goods, medicine... these sectors should be dominated by institutions, right? And Internet software, film and television media, electronic information... these sectors should be dominated by hot money, right? It's really rare to see large-cap stocks and small-cap concept stocks rise in tandem at the same time."

"Today, except for the injured 'big infrastructure' mainline sector, other sectors are basically rising."

"The core theme of 'big infrastructure' has been siphoning market funds too much. How does the saying go? When a whale falls, everything comes to life, right?"

"Don't mention it, it really is a bit like that."

"The 'big infrastructure' line should have reached its end, right? It has generally rebounded by nearly 30% from the bottom."

"It is definitely over in the short term. Today, the market's 'high-low switching' was very beautiful. In the afternoon, we should still focus on the oversold sectors such as Internet software and film and television media. I feel that these oversold sectors can still rise in the afternoon. After all, 'LeTV' and 'NetSpeed ​​Technology' have already set a good example."

"Large-cap stocks and small- and medium-cap concept stocks are rising simultaneously. Can the market volume hold up?"

"I think it should be OK. After all, the 'big infrastructure' line has released a lot of liquidity today."

"Is anyone paying attention to the 'consumer electronics' sector? And the 'security lens' sector, it seems that these two sectors are very strong today."

"At this time of year, it feels like there's always a wave of hype around 'consumer electronics'."

"It seems to be true. Every year with the release of new Apple products, the market's 'Apple concept' stocks are hyped up by funds."

"Lixun Precision, Anjie Technology, Changying Precision, Goertek, O-Film Technology... these stocks are actually very good looking at the K-line patterns, and they are all on the verge of exploding."

"These votes are still dominated by institutions, right? It seems that there are many lurking institutions."

"Stocks dominated by institutions tend to move slowly. I still prefer stocks dominated by hot money. They can rise violently, and of course... they can also fall violently."

“It’s best to find the operating style that suits you best.”

"Yes, stocks dominated by hot money have the advantage of flexibility, while stocks dominated by institutions have the advantage of stability. In fact, both styles are fine, it just depends on which one suits you best."

"Overall, market sentiment is still good, and the volume has been slightly increased."

"Although the core theme of 'big infrastructure' has been adjusted, there is no need to be pessimistic. It feels that the market's sustained rebound cycle has indeed arrived."

"At least one intuitive feeling is that the recent market conditions are much better than those in the first half of the year."

As many retail investor groups continue to discuss on online stock investment exchange platforms...

The lunch break passed in a flash.

Soon, 1 o'clock in the afternoon arrived, and after the emotional brewing in the afternoon, the two markets ushered in the formal continuous bidding trading session in the afternoon.

When the two markets began to stir again.

After the emotions brewed at noon, several major market main-line sectors that performed well in the morning instantly welcomed more main buying and following funds to participate. However, the core theme of "big infrastructure", which had clearly shown a downward trend in the morning and was temporarily abandoned by the main funds, after the reopening, related concept sectors, industry sectors, and many concept stocks all welcomed larger capital selling, and stock prices fell even more sharply.

At 1:01 p.m., Baofeng Technology hit its daily limit, and stocks related to the Internet software sector exploded across the board, with the sector index rising by more than 3 points.

At 1:02 p.m., Beijiang Communications Construction Co., Ltd. hit the limit down, and the net outflow of major funds on the market reached more than 7000 million.

At 1:05 p.m., the real estate sector index fell to 1.53%, with a daily shock of 3.7 points.

At 1:09 p.m., Dahua Technology hit its daily limit and Qianzhou Moutai rose by more than 3%. The consumer, pharmaceutical, liquor and white goods sectors, with the follow-up of a large number of major institutional funds, replaced the main support of the "big infrastructure" for the market index and continued to rise strongly.

"Looking at the market trend, the main theme of 'big infrastructure' has almost completely collapsed." Noticing the market trend after the afternoon opening, Zhao Zhiyuan, one of the main speculators of the 'Qilu Gang', laughed and said, "At the same time, the market's 'high-low switching' trend pattern has been fully formed and has been unanimously recognized by the active capital groups in the market. Moreover, this expectation is becoming stronger and stronger as more and more stocks are expected to rise violently."