Rebirth of the Capital Legend

Chapter 411 The fight for market liquidity!

"Indeed, after the mood brewed in the afternoon, the logic of the market's 'high-low switching' trend has been recognized by more and more market main capital groups, and more follow-up capital groups are moving in this direction." Zhang Wei heard Zhao Zhiyuan's words and responded, "The core theme of 'big infrastructure' has become increasingly heavy due to the internal profit-taking and unwinding selling pressure.

At the same time, the logic line of 'high-low switching' becomes clearer and clearer.

This directly led to the complete collapse of the bullish sentiment within the core theme of "big infrastructure", the lack of basic buying, and also gave rise to the desire of more internal holding funds groups to sell and adjust their positions.

Since the market trend has turned, it has exceeded our expectations.

That means there is no problem in reducing our holdings and selling Greenland Group shares to timely enter the market's low-level main line."

After they continued to sell off, the stock of "Greenland Group" at this time.

With the decline of the bullish sentiment in the "real estate" sector and the entire "big infrastructure" main line, the stock has continued to fall from the position close to the daily limit in the morning trading to the flat price, burying all the funds that bought at high prices this morning. Moreover, this continuous falling trend is still continuing as the bullish sentiment of the "big infrastructure" main line becomes increasingly depressed and the market's "high-low switching" logic line gains more recognition.

It can be predicted that more funds will subsequently flee from the main area of ​​'big infrastructure'.

The trend of the Greenland Group check will become increasingly weak.

If they had not sold their stocks promptly to lock in profits, their profits would have been reduced by several million by now.

"With regard to the 'big infrastructure' line, the internal bullish sentiment has declined and even collapsed. The related sectors and related stocks in the entire main line have entered the adjustment stage. Basically, there is no doubt about it." At this time, Liang Jiucheng, who had been paying attention to the market trends of the two markets, also responded at this time, "But the large amount of funds flowing out of the core main line of 'big infrastructure' has not all flowed into the low-level oversold main line and its related sectors in the market. This may bring uncertainty to the subsequent market trend and the high room for speculation."

"Lao Liang, are you worried that after the funds are diverted to various main lines, it will be difficult to form a consistent long trend?" Zhang Wei reacted and asked, "Are you also worried that the latent funds in different main lines will hinder each other in order to compete for the active capital liquidity in the market?"

"Yes." Liang Jiucheng nodded and continued, "In the current market environment, the volume cannot support the simultaneous outbreak of multiple core themes. In other words, if the two main forces of institutions and hot money in the market cannot form a consistent expectation and cannot work together, then... the overall upward trend will be difficult to form. It is also difficult for the entire market to rebound without the core theme of 'big infrastructure'. Open up any space and form a sustained money-making effect."

According to his observation...

Currently, active hot money groups in the market are mainly concentrated in oversold sectors such as 'Internet software', 'new energy industry chain', 'film and television media', 'electronic information', etc., where institutional holdings are sparse. By hyping up highly recognizable popular stocks in these sectors, they drive the overall bullish sentiment of the market and attract active retail investors in other main areas to participate.

As the main institutions with the largest amount of funds in the current market.

They completely focused their attention on defensive market sectors such as liquor, white goods, medicine, and consumption, and continued to buy related stocks in groups.

Through this form of group cooperation, we can stabilize the index and maintain the market's bullish sentiment.

It also attracts the large number of retail investors who are free in other main areas of the market to concentrate on these large-cap blue-chip stocks and high-performance white horse stocks.

The two financial forces are basically playing their own games at the moment.

You pull your plate, and I make my trend.

If the market liquidity is very abundant, there will naturally be no problem with the situation where two main funds work together to assist, because sufficient liquidity can support multiple main lines and follow-up buying of many stocks.

But right now, the market is in a bear market.

Although the main line of "big infrastructure" has continued to rise over this period of time, the continuous money-making effect brought by the main line of "big infrastructure" has attracted the entry of some off-market capital groups, adding some liquidity to the market.

The increased liquidity is far from enough to support the market's sustained and general upward trend with multiple main lines running in parallel.

This is also the fundamental reason why the oversold stocks at low levels start to rise, while the stocks related to the main line of "big infrastructure" start to fall madly, and the market is extremely polarized.

Nowadays, institutions want to pull defensive sectors such as liquor, white appliances, medicine, and consumption.

We can use these core weighted stocks with stable chips and strong institutional support to stabilize the market and hedge against adjustments to the main line of "big infrastructure."

It is bound to siphon off active capital groups in the main field of "big infrastructure".

Institutions used these core stocks in the defensive sectors to siphon off active funds flowing out of the main area of ​​"big infrastructure."

Then, naturally, there will not be so many follow-up buying orders for the low-level oversold main line dominated by hot money.

And there was not enough follow-up buying.

Naturally, it will be impossible to produce a sustained money-making effect, withstand the selling pressure on the market, achieve a high increase in individual stocks, and form a main sector effect.

In other words, the two main funds are diverting operations from each other.

He was very worried that the market would not recover.

There is a worry that in the end, whether it is the defensive sectors such as liquor, white appliances, medicine, and consumption, or the oversold main sectors such as Internet software, electronic information, and film and television media, they will not be able to form a hot money-making effect and attract the active participation and consistent long positions of the market's active retail capital groups.

As long as it is unable to stimulate the market's bullish sentiment and form a situation in which retail investors follow suit and go long.

Therefore, it is still difficult to maintain market stability relying solely on the capital volume of institutions and hot money.

After all, in the A-share market, 85% of investors are retail investors, which also means that the real dominant capital group in the market is the retail investors who follow the trend.

"There is nothing we can do about it." Zhao Zhiyuan took over and said, "Institutions are unwilling to support hot money, and hot money is unwilling to help institutions. The speculation in the A-share market has always been like this. In the oversold main areas of 'film and television media', 'Internet software', 'electronic information', 'new energy industry chain'... there are few potential institutional main funds at present, and the relevant chips are basically in the hands of retail investors, so it is naturally easier to pull up the market. In other words, the hot money active in the market, such as us, have no choice if we want to make a market and guide this round of market.

All I can say is that those institutions that claim to be "value investors" have no vision.

They clearly know that it is not advisable to disperse funds or guide multiple main lines at the same time to disperse market liquidity at this time, but they insist on pulling up defensive sectors such as liquor, white goods, consumption, and medicine when the oversold main lines such as "film and television media", "Internet software", "electronic information", and "new energy industry chain" are rising, competing for market liquidity.

They don't know that these defensive plates will move.

Will the market's investment risk appetite decrease?

Do you wonder if the rapid rise of these defensive sectors will siphon off the already limited active liquidity in the market, creating the risk of a decline in bullish sentiment?

I guess they must know.

The purpose of doing so is to compete for market liquidity and guide retail investors to these large-cap stocks and blue-chip stocks, so as to avoid the corresponding retracement of the net value of their fund products when the main line of "big infrastructure" falls into the adjustment stage. "

"Let it be." Zhang Wei said, "The market trend is quite split, and the operating logic of institutions and hot money is completely different. In the past six months of this year, in addition to the recent 'big infrastructure' theme and the 'new energy industry chain' theme at the beginning of the year, the institutions and hot money in the market rarely have the same expectations.

Fortunately, the current market liquidity is not as bad as it was in the first half of the year.

Even though institutions have driven the liquor, white goods, pharmaceutical, and consumer sectors, they have diverted a lot of active follow-up funds in the market.

However, the Internet software, film and television media, electronic information, new energy industry chain...these major oversold main sectors have already been severely oversold recently, and most of the chips inside are deeply trapped.

Generally speaking, for these deeply trapped shares, people are reluctant to cut their losses when the market just starts to rise.

These oversold main sectors and related core stocks have at least 30% room to go before they can fall below the upper concentrated lock-up area.

That is to say, even if liquidity is relatively limited.

Even if the group of follow-up funds is relatively limited.

Within the 30% increase in space, the upward pressure will not be very great, and the selling pressure in the market will not be very great either.

In addition, I think that the short-term speculative funds that do "high-low switching" originally expected this round of market conditions to hedge against the market during the adjustment phase of the "big infrastructure" main line.

In other words, people didn't have high expectations for the market potential of an "oversold rebound."

And we all know that once the core theme of "big infrastructure" has been fully adjusted and the internal chip structure has been re-condensed and stabilized, the logic of this line will no longer exist.

Therefore, when expectations are not high, there is still 30% room for upward movement and the selling pressure is not great.

I think even if liquidity is diverted, it can still support this round of "oversold rebound" market.

In fact, in the current market trend, whether it is the core stocks related to defensive sectors such as liquor, white appliances, medicine, and consumption, or the core stocks related to the main line of the film and television media, Internet software, electronic information, and new energy industry chain, the rebound trend is shrinking.

As long as the volume does not increase on a large scale, the market trend can continue under the current liquidity.

At least a few days of rebound will allow a few stocks to have a smooth trend and corresponding profit effect. This is still possible with the current market liquidity. "

"Hehe, what Lao Zhang said makes sense." Zhao Zhiyuan agreed deeply with Zhang Wei's analysis, nodded, and continued with a smile, "Lao Liang, we are not doing long-term investment, so we don't need to think too much. We just need to focus on the present. No matter how the subsequent volume changes, based on the current market sentiment and the follow-up effect of retail investors, it is enough to make a short-term profit of about 15% to 25% on oversold rebound stocks such as Baofeng Technology, LeTV, Netspeed Technology, Huawen Media, Dofluoro, Tianci Materials, Ganfeng Lithium, Tianqi Lithium, Penghui Energy, etc., which have almost achieved recognition and market profit effects.

As for the future, liquidity cannot support a higher rebound space, and the buying on the market begins to weaken...

Then we should stop while we are ahead and return to the core theme of "big infrastructure". "

"Okay." Liang Jiucheng thought about it and felt that what Zhao Zhiyuan and Zhang Wei said made some sense, so he responded, "Then let's continue to build positions and follow up."

Just like what the other party said, they are not an institution.

Moreover, the amount of funds in hand is not so large that after entering the market, sufficient liquidity is required to exit the market.

As short-term speculative funds, it is enough to focus on immediate interests.

It is obvious that the market is currently undergoing a logical transition of "switching between high and low". There are indeed short-term speculation opportunities, and the certainty of this speculative opportunity is still quite high.

Thinking of these...

Liang Jiuchen's gaze quickly turned back to the two stock markets.

Afterwards, without waiting for the other two people to respond, he had already invested the funds in his account into several oversold concept stocks that were actively rising, and bought them in large quantities.

Accompanied by the buying assistance of several core main speculators of the "Qilu Gang".

At the same time, with the guidance and assistance of other major hot money in the market, a large number of retail investors who withdrew from the main line of "big infrastructure" followed suit and went long.

As market trading hours continue to advance.

Internet software, electronic information, new energy industry chain, film and television media... and other oversold main sectors.

The abnormal movements are becoming more and more frequent.

Moreover, driven by these oversold main lines, the ChiNext Index finally reversed its downward trend and continued to rise, becoming the most eye-catching among the core indexes of the two markets.

The continued rise of the ChiNext Index also quickly boosted the bullish sentiment of small and medium-cap stocks in the entire market.

Therefore, after 1:30 p.m., as more and more retail investors followed the trend and flocked to speculate on these oversold stocks, the most active speculators in the market finally created an overall money-making effect in the market and guided most of the active funds in the market to the main line of the low-level sectors.

The logic of the market's 'high and low switching' and the main trend of the market's 'oversold rebound'.

Becoming more and more obvious and clear.

Of course, at the same time, defensive sectors such as liquor, white appliances, medicine, and consumption, which are dominated by institutional groups, began to fall involuntarily and uncontrollably after a brief surge in the afternoon due to the rapid flow of active internal retail funds to other low-level oversold main lines.

At this point, hot money and active retail investors have finally formed a unified force.

It also wrested back market control from the hands of institutional groups that had been trying to use their financial strengths to guide the market.

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