Rebirth of the Capital Legend

"Haha... the market's bullish sentiment has finally completely returned to the oversold main line areas of 'new energy industry chain', 'film and television media', 'Internet software', 'electronic information'... "Seeing that the market's expectations of 'oversold rebound' are getting stronger and stronger, and noticing that more and more active follow-up funds in the market are withdrawing from the relatively high-level 'big infrastructure' main line area to the low-level oversold main line, at this time, the main hot money group of the 'Gusu system' has already laid out a large number of positions in the 'new energy industry chain' main line. He Zhong, who got the first hand, couldn't help laughing when he saw that the profits of his stock account were rapidly expanding. He said, "I said that the liquor, white goods, medicine, and consumer fields that institutions are holding together cannot drive the market's bullish sentiment at all. The high and low switching of the market main line has been completed. As expected, there is not much money in the entire market willing to support the institutions."

"In our A-share market, the vast majority of investors are retail investors." Zheng Jinming, who sits at 'Gusu Renmin Road', took over the conversation and said, "Retail investors are most susceptible to emotions and are most likely to chase ups and downs. Defensive main lines such as liquor, white appliances, medicine, and consumption are mostly areas where blue-chip stocks with large weights or white horse performance stocks with a market value of tens of billions are concentrated. At the same time, it is also an area where institutional groups are heavily clustered.

These are blue chip large-cap stocks and white horse performance stocks.

Naturally, the stock price trend elasticity is weaker than that of the main sector concept stocks such as Internet software, film and television media, electronic information, etc.

Institutions want to guide these core themes and drive sentiment with large-cap stocks in these areas.

It also attracts the capital groups that want to take profits and withdraw from the main field of "big infrastructure".

It was a complete miscalculation and the market reality was not taken into consideration.

The amount of funds of retail investors is small to begin with, so buying blue chip and white horse stocks with low volatility is better than nothing, isn’t it? Moreover, many retail investors enter the market with the idea of ​​making a fortune in a short period of time with a small investment.

Therefore, they speculate, chase rising and falling prices, and engage in short-term trading in the market.

Naturally, it became the inevitable choice for the vast majority of retail investors in the market.

Since short-term speculation is the inevitable choice for the vast majority of retail investors, mainline sectors such as "film and television media", "Internet software", "electronic information", "new energy industry chain", etc., which have higher guidance flexibility, fewer institutional latent orders, and relatively small short-term upward pressure, naturally become a better choice. "

"The fundamental reason is that among the major main lines of the current market, under the logic line of 'high-low switching', 'film and television media', 'Internet software', 'electronic information', 'new energy industry chain'... these main line sectors have the least selling pressure." Old Qian from 'Yuhang Cultural Road' took over and said, "After all, the trend of the market is moving in the direction of least resistance.

Compared with the weighty sectors such as liquor, white appliances, medicine, and consumption, which have more hidden institutions and more complex internal funds.

It is obvious that the main sectors such as 'film and television media', 'Internet software', 'electronic information', 'new energy industry chain', etc., which have already fallen through, are easier to pull and guide.

The reason why there is such a big disagreement on the "big infrastructure" line is at this point.

Isn’t it because the resistance to continuing upward has become too great, and the current market liquidity cannot support the entire sector to break through this resistance?

Whether it is favorable stimulus or chip structure.

In my opinion, the direction of market movement must evolve in the direction of least resistance. "

"Well, I agree with Lao Qian's statement." Zhang Xinlei of 'Magic City Jinling Road' responded, "In the current market, even if there are various off-market information interferences, the 'Internet software', 'film and television media', 'electronic information', 'new energy industry chain' and other sectors that have completely fallen through are indeed the main sectors with the least upward resistance in the market, and the positions of these main sectors, compared with the index, are also obviously oversold.

Since it has fallen too much, there is a need for a rebound.

Therefore, once the logic line of 'high-low switching' is recognized by many funds in the market, the market trend of 'oversold rebound' will inevitably be guided.

The oversold rebound is the main area where it is easy to occur.

The main lines are Internet software, film and television media, electronic information, and new energy industry chain. "

"After the institutional group found that they could not guide other active funds in the market to follow the trend of weighted sectors such as liquor, white appliances, medicine, and consumption, I think... as the subsequent market trading time goes by, more funds in the market will discover this and further concentrate on "Internet software", "film and television media", "electronic information", "new energy industry chain"... these oversold main lines?" He Zhong said, "It feels that the market trend has basically become clear, and it has reached the right buying point in the market. We can continue to increase our positions and go long."

"Well, judging from the market and individual stock trends, it is indeed the case." Lao Qian said, "And just as we expected, the vanguard of this round of oversold rebound is the core theme of 'new energy industry chain' and the core stocks with high market recognition in this core field."

"It's a rare opportunity to hit the right market rhythm." Zheng Jinming was also very happy at this time and said, "Very good, I can continue to increase my position and go long."

Without waiting for the others to reply...

He used the remaining funds in his stock account to continue buying large amounts of core hot stocks such as "Tianqi Lithium", "Ganfeng Lithium", "Penghui Energy", and "Pioneer Intelligent Technology" that had not yet reached their daily limit, and at the same time invested in a number of hot concept stocks in the "Internet Software" sector.

Almost at the same time, in Shanghai, the main hot money group was in Shanghai's ultra-short gang.

Brother Chen and Old Wu stared at the market trend and the trend of a large number of funds following the trend, shifting to the main lines of "Internet software", "film and television media", "electronic information", "new energy industry chain" and so on. Especially when they saw the increasingly weak trend of the main lines of liquor, white goods, medicine, and consumption, they frowned. Among them, Old Wu couldn't help but say in the group: "It seems that... with the recovery of the long sentiment of the main lines of "Internet software", "film and television media", "electronic information", "new energy industry chain" and so on, and the profit effect of a number of related stocks, the overall long sentiment of the market has not declined with the drastic adjustment of the main line of "big infrastructure", but seems to have become more active, and has directly led to the situation that there is no active hype fund following up in the defensive sector."

"Haha, that's true." Xu Qiao responded, "Brother Chen, Old Wu, it seems that you two made a mistake in judging the market this time. The core theme led by institutions failed to boost sentiment, nor did it attract other major capital groups in the market, and the retail capital groups to follow suit and do more. It seems that... on the market, the active hot money in the market has regained the initiative in guiding the market."

"I did make some wrong estimates," Chen said. "It seems that I overestimated the appeal of institutions and underestimated the trading bias of retail investors in the market to chase ups and downs."

"Not every institution has the appeal of 'Hua Yi Capital' run by Brother Su." Old Zhang chuckled and took over the conversation, "In the previous core theme of 'big infrastructure', the reason why the weighted stocks were able to make institutions, retail investors, and hot money work together to go long and aggressively buy shares is... not the fundamentals of these weighted stocks, but that these stocks are related stocks that Brother Su has built up large positions in.

Over the past six months in the market, it seems that all the stocks that the Su brothers have built positions in are popular.

They will be snapped up by various capital groups in the market and attract a large group of retail investors to follow suit.

Without the support of the Su brothers' seats, it would be basically difficult for these institutions in the field to guide and dominate the market trends and attract a large number of retail investors to follow suit.

After all, for the vast majority of retail investors in the market.

Chasing short-term transactions, chasing hot concept stocks, following hot money to engage in short-term speculation and emotional speculation are their subconscious actions and inertial thinking.

Therefore, from the very beginning, I felt that what you said, Brother Chen, was true, that the market was likely to shift towards heavyweight and blue-chip stocks.

There are some problems.

Although the overall market style is biased towards value blue chips and performance white horses.

However, the concept speculation and emotional speculation in the market will never disappear or truly recede as long as our market is still dominated by retail investors.

It just means that when market liquidity is limited, the space for emotional speculation and short-term speculation will be reduced, and the difficulty will increase accordingly. "

"Lao Zhang, your position should have already entered the 'new energy industry chain' line, right?" Xu Qiao took the opportunity to ask.

Lao Zhang chuckled and said, "I bought some positions in Tianqi Lithium and Ganfeng Lithium. The price of Dofluoro rose too fast and I couldn't keep up. I feel that during the period of adjustment and shock of the core theme of 'big infrastructure', the short-term speculation sentiment in the market, especially the 'oversold rebound' line, is likely to ferment for a few days and develop into a sustained market."

"There is no need for high probability," Xu Qiao said. "Looking at the changes in funds in the main lines of the market, as well as the follow-up effect of most active funds in the market, it is obvious that the line of 'oversold rebound' has been recognized by all parties in the market, and this market logic is constantly strengthening as the market trading time goes by."

"Indeed, other main-line funds in the market are flowing into the oversold main line of the market. Many oversold stocks with poor fundamentals have shown signs of active funds' attention." Lao Wu said, "Since the market has made its choice and formed the final synergy and consensus expectations on the logic line of 'oversold rebound', then we can only respect the market and continue to adjust positions in this direction."

Although, the current market trend is different from his previous judgment.

However, under the premise that the fundamental principle of trading is to abandon subjective assumptions and respect the market, he will also make corrections in a timely manner and keep up with market trends.

After saying that, Old Wu quickly began to adjust his positions to the oversold main area of ​​the market without waiting for the others to react.

With the rapid adjustment of positions by several people...

At the same time, many active capital groups in the entire market are quickly following suit and buying.

As the market trading hours progressed, after 2 p.m., the market's trend style and the main capital groups in the market began to increasingly concentrate on the main areas of "Internet software", "film and television media", "electronic information", "new energy industry chain"...

At 2:08, the two major sector indexes of "lithium battery" and "new energy vehicle" rose by more than 4%, and within the sector, more than 10 small and medium-sized concept stocks hit the daily limit, including "Tianqi Lithium", "Ganfeng Lithium", "Dofluoro", "Tianci Materials", "Penghui Energy", "Guoxuan High-tech"... many popular core stocks have successfully hit the daily limit.

At 2:14, the 'Internet Software' sector index surged by more than 4.11%. Within the sector, oversold popular concept stocks also began to hit the daily limit, and the net inflow of large funds within the sector exceeded 10 billion. In a blink of an eye, small-cap concept stocks that had been abandoned by everyone and fled with crazy stop-losses, rose rapidly, launching a magnificent and violent rebound trend.

At 2:21, the ChiNext Index rose 2% during the day, but the Shanghai Composite Index fell from its intraday high of around 1.2% to below 0.5%.

At 2:32, LeTV hit the daily limit, marking the first daily limit this year.

At 2:37, "Shouchuang Group" hit the limit down. The entire real estate sector, and even all related sectors in the entire "big infrastructure" main line field, all showed a sharp decline. The popular concept stocks in the "big infrastructure" main line that had been hotly pursued by a lot of funds, all showed a trend of limit down.

At 2:42, the Shanghai Composite Index plunged and turned green. A number of large-cap stocks in the two markets fell back. At the same time, oversold small-cap concept stocks in the entire market ushered in a general rebound. A huge amount of active funds flowed out of large-cap stocks and blue-chip stocks and joined the hype of concept stocks.

At 2:45, when the Shanghai Composite Index and the A50 Index all turned green and moved downward, most of the nearly 2700 stocks in the market actually closed in the green, showing a pattern of opening low and closing high. It seemed that while the large-cap stocks fell, the liquidity of the small-cap stocks in the market became active.

"Hey, what's going on? Why do I feel that the other main lines of heavyweight stocks and blue chip stocks with good performance have also collapsed with the adjustment of the main line of 'big infrastructure'?" Noticing the abnormal seesaw trend between large-cap stocks and small-cap stocks in the late trading, Lu Xiangxiang, the fund product manager of 'Jufeng Future Growth Fund Products' in the trading room of 'Jufeng Asset Management Company' in Shanghai, was staring at the changes in the market and was quite surprised. "Didn't they say that the market investment trend has long shifted to blue chip heavyweight stocks and blue chip stocks with good performance? How come now... with the adjustment of the main line of 'big infrastructure', the whole market has returned to the previous hype concept and junk stocks flying all over the sky?"