Rebirth of the Capital Legend

"The short-term market oversold rebound cannot be said to be a change in the market investment style, right?" Hearing Lu Xiangxiang's words, Yu Xiaolu, the trading team leader of 'Jufeng Future Growth Fund Products' sitting next to her, responded, "'Internet software', 'film and television media', 'electronic information', 'new energy industry chain'... these low-level mainline sectors are basically the oversold mainline sectors in the market at the moment. Because the main funds and a large number of retail investors have already cut losses on the stocks related to these mainline sectors, the bottom chip structure of these stocks is relatively clean, which is easy for funds to quickly pull up.

At present, the market as a whole is still in a market atmosphere of stock game. The volume is still insufficient and cannot support the main upward trend of multiple core lines.

Therefore, once the main line of "big infrastructure" falls into a volatile adjustment, internal bullish sentiment begins to collectively decline.

Active funds in the market immediately began to follow up and speculate on the logical line of "oversold rebound". After all, this line... is the main trend line with the least short-term rebound pressure in the entire market. "

"So you think the current market trend is completely reasonable?" Lu Xiangxiang asked, "And do you think that before the internal chip structure of the core theme of 'big infrastructure' is readjusted, the market will continue to revolve around the logic line of 'oversold rebound' and conduct in-depth speculation?"

Yu Xiaolu nodded and said, "I think it is very likely to be like this. No matter when, the market always develops in the direction of least resistance and gathers the main trend. Previously, the main trend of 'big infrastructure' was completely reversed in the fundamentals of the entire real estate industry chain. In addition, the institution 'Huayi Capital' built a large position, and various favorable factors such as 'supply-side structural reform', 'New Era Road, Maritime Silk Road', and 'new infrastructure' stimulated it. It was originally the core main trend with the most cost-effective investment and speculation in the market.

Furthermore, the core theme at that time was "big infrastructure".

Whether it is the real estate, building decoration, building materials sectors, or the steel, coal, and nonferrous metals sectors, they are all in the perennial oversold sectors, and the internal chip structure is the same as the current Internet software, film and television media, electronic information and other sectors.

In other words, its upward driving force is very strong, while the upward resistance is relatively small.

The strong buying power coupled with the advantages of the chip structure.

This is what led to the overall forced rise of the entire "big infrastructure" main line in the past two weeks, with major funds continuously scrambling to buy shares and hot money in various venues following up the speculation one after another.

But now, the entire "big infrastructure" main line has continued to rise for two consecutive weeks.

It has begun to touch the core area of ​​historical trapped chips.

In order to liberate these historically trapped chips and continue to break upward, stronger buying and volume support are needed.

Obviously, there is not so much active strong buying and incremental volume in the market at present.

In this way, when the buying cannot suppress the selling in the market and the market cannot continue to break upward, then naturally there will be more and more selling in the market and the selling pressure will become greater and greater.

This is also the fundamental reason why the core theme of "big infrastructure" has risen and fallen, and is in a state of adjustment.

And if these funds that have withdrawn from the main field of "big infrastructure" do not leave the market, they will naturally flow to other main sectors in the market with the least resistance.

This is also the fundamental reason why the current market's 'oversold rebound' line has emerged.

As for the defensive main-line sectors such as liquor, white appliances, medicine, and consumption dominated by institutions during the trading session, why there was no consensus on fund long positions?

The fundamental reason lies in the upward resistance and the cost-effectiveness of hype.

Also, although the main line of "big infrastructure" has fallen into a period of adjustment, the adjustment is still relatively gentle, and not many stocks have shown a rapid limit-down trend.

In other words, the core theme of the market has receded, but it has not given any particularly bad negative feedback.

As long as the negative feedback in the ebb phase is not particularly serious, it will not trigger collective panic selling and short-selling decisions among various funds in the market.

There is no panic spreading in the market.

Naturally, then there will be no follow-up of safe-haven funds in the defensive sectors.

This can be seen from the fact that although the core theme of "big infrastructure" has been adjusted drastically, the ChiNext Index and the vast majority of small and medium-sized stocks in the market are still in the green.

Another point is that institutions form groups and dominate these defensive sectors.

Since the position itself is not low and the amount of potential institutional funds is huge, in order to boost the market of these main sectors and form a consistent long situation, the buying funds required will also be relatively large. In other words, the current upward pressure on these main sectors is not low.

So, various factors change...

Naturally, this has led to various active groups of funds in the market, as well as a large amount of retail funds, continuously concentrating on the "oversold rebound" market dominated by small and medium-sized stocks.

However, at the end of yesterday's trading session, the main trend of "big infrastructure" experienced another sharp adjustment.

The core theme of "new energy industry chain" was once recognizable.

Therefore, today, when the market turned to the logical line of 'oversold rebound', the line of 'new energy industry chain' naturally became the vanguard of the market's rebound. "

"Your analysis makes sense." After listening to Yu Xiaolu's analysis, Lu Xiangxiang responded while watching the closing trends of the two markets, "No matter when, the market trend is indeed moving in the direction of least resistance. Unfortunately... our fund's positions in the main line of 'new energy industry chain' have been completely sold recently. It seems that we will miss out on this round of oversold rebound in the main line of 'new energy industry chain'."

Seeing a trace of regret on Lu Xiangxiang's face, Yu Xiaolu responded with a smile: "Boss Lu, there is nothing to regret. The market conditions are constantly changing. Even the most powerful people cannot predict or anticipate every market trend and buying opportunity.

I think it's good enough if we can grasp the core trend of "big infrastructure".

Although the current core theme of "big infrastructure" has shown an obvious adjustment trend during the day, and today's market has a large negative feedback.

But from a medium- to long-term perspective...

The investment logic and future expectations of the entire "big infrastructure" main line have not weakened compared to before, but are constantly strengthening.

That is, we are almost certain.

When the core theme of "big infrastructure" undergoes short-term adjustments, reconsolidates the chip structure, establishes a support platform here, and adjusts to a certain point in volume, it will definitely continue to break upward to gradually fulfill expectations and realize the valuation increase brought about by the performance explosion.

On the other hand, the current market trend is 'oversold rebound'.

Whether it is the two main sectors of "film and television media" and "Internet software", or the two main sectors of "electronic information" and "new energy industry chain", there is no major change in the fundamental logic, and it is expected that in the future, except for the main sector of "new energy industry chain", other main sectors will continue to deteriorate.

To put it bluntly, this is just a short-term speculation triggered by the advantages of the internal chip structure.

There is limited room for hype and its duration is also limited.

There is great uncertainty as to how much profit the current group of funds participating in this main line speculation, whether they are hot money, retail investors, or following institutions, can ultimately take away.

So, I don’t think it’s a pity that we missed such a short-term speculation opportunity.

This kind of market situation comes quickly and goes quickly.

When hype sentiment is high, funds will follow up fiercely, but when it ebbs, funds will sell off even more fiercely.

I think that the correct approach for us during the outbreak of the main line of the "oversold rebound" market is not to chase this round of speculation.

Instead, you should take advantage of the funds in the market to do "high-low switching" and follow the trend to hype up "oversold rebound" stocks.

Taking advantage of these active funds, a large number of core stocks in the "big infrastructure" main line are sold off, driving down the prices of these stocks with strong future expectations and explosive performance.

Continue to increase holdings of core stocks in the "big infrastructure" main line area on a large scale.

This way, we can take the absolute lead when the main line of "big infrastructure" adjustment is completed in the future."

"While the market is switching between high and low, should we continue to increase our holdings of the core high-quality stocks in the main line of 'big infrastructure'?" Lu Xiangxiang was obviously a little surprised when she heard the strategic decision made by Yu Xiaolu after her analysis. "This is considered increasing holdings against the trend!"

Yu Xiaolu nodded slightly and continued, "If future expectations are getting stronger and stronger, and the stock price continues to rise in the future, it is more and more certain, then it is undoubtedly the right choice to increase positions against the trend. On the contrary, chasing market trends and making emotional investments are wrong decisions."

After hearing this, Lu Xiangxiang thought about it carefully for a moment and felt that the strategy Yu Xiaolu mentioned was indeed in line with their current fund product layout and was indeed a correct decision.

Chasing short-term market trends and being carried away by emotions are indeed not her forte.

In addition, whether it is the 'new energy industry chain' line, or the 'Internet software', 'film and television media'... these oversold main lines, there is indeed no sign of a fundamental reversal driving the market. It is simply the active funds in the market and the 'high and low switching' speculation of many hot money.

In this case, we should continue to take advantage of the situation where funds in the market are selling off the core stocks of the "big infrastructure" line and pushing down the stock prices.

It is undoubtedly correct to overcome the fear of profit drawdown and increase positions against the trend.

Thinking of this, Lu Xiangxiang's eyes gradually changed from hesitation and confusion to determination. She nodded slightly and said, "Okay, then let's execute the strategy you mentioned, but... looking at the market feedback, the adjustment trend of the core theme of 'big infrastructure' has just begun, and today's high-rise and fall buried a lot of capital groups chasing highs.

These groups of funds will do so after the market opens tomorrow.

Especially when the market's 'oversold rebound' trend intensifies.

There will inevitably be a large number of people cutting their positions and chasing the hot "oversold rebound" related stocks at low levels.

We can take advantage of these funds to sell at a loss and create panic selling, and gradually increase our positions against the trend in the form of grid building. "

"Okay." Yu Xiaolu responded with a smile on her face.

After analyzing the market, the two adjusted the fund's trading strategy in a timely manner, hoping that the internal selling of the main line of "big infrastructure" would be less panic.

Before we knew it, the market had reached the final ten minutes of trading.

After the market trading time entered 2:50, the market's 'oversold rebound' trend and the 'big infrastructure' main line of panic selling trend became more extreme.

In the main field of 'big infrastructure'.

Stocks related to real estate, building decoration, building materials, steel, coal, nonferrous metals and other sectors.

In particular, many small-cap concept stocks that did not have the main funds of large institutions to maintain the market fell further rapidly in the late trading. A huge amount of active funds took the opportunity to escape before the closing.

After all, in today's main field of "big infrastructure", there is such a large amount of trapped shares.

If a lot of funds do not sell in the future, the market will inevitably face a more panic selling situation when it opens tomorrow morning, and face more funds selling at stop losses.

On the other hand, the main sectors such as Internet software, film and television media, and new energy industry chain that have already gained recognition and intraday money-making effects, the related core concept stocks are still rising sharply and forming a trend of batch limit-up as a large amount of funds fleeing from the main field of "big infrastructure" switch between high and low.

As for the defensive main-line sectors such as liquor, white goods, medicine, and consumption, which are dominated by many major institutional groups.

It basically maintains a trend of small fluctuations with no volume.

There is not much active buying, but there is not much selling either.

In this situation where the market's highs and lows are switching more and more obviously, active funds in the market are actively pouring into oversold stocks for rebound and fleeing from relatively high-priced stocks.

When 3 o'clock in the afternoon arrived, the two markets finally closed.

After a day of intense market changes, the Shanghai Composite Index barely closed at the flat line, up 0.09%, while the ChiNext Index experienced a big explosion, closing with a huge increase of 1.73%.

Among them, the core component stocks of the ChiNext Index.

LeTV, Netspeed Technology, Baofeng Technology, and Pioneer Intelligence all successfully hit the daily limit.

"The core theme of 'big infrastructure', real estate, building decoration, building materials, nonferrous metals, steel, coal... and other sector indexes all led the market to fall, and closed with a clear high-rise and fall bare-footed negative line. This trend is a bit ugly." After seeing the final closing results of the two markets, Jia Yongxiang, the trading team leader of the 'Hua Rui Performance Growth No. 1' main fund product trading room of Hua Rui Fund Management Company in Shanghai, stared at the closing results of the two markets, frowned visibly, and said, "It seems that the core theme of 'big infrastructure' is inevitably entering a stage of adjustment."

Hearing Jia Yongxiang's words, Song Shaopu, the product manager of the 'Hua Rui Excellent Growth No. 1' fund standing next to him, nodded. There was no big change on his face, but his brows were obviously frowned. He responded: "Since the early high and fall, the 'big infrastructure' line has encountered the upward main force entering the adjustment stage, which is not surprising. What really surprised me is that... the market actually chose 'new energy industry chain', 'film and television media', 'Internet software'... these small and medium-sized junk stocks where the internal main funds have stopped losses and retreated, as the breakthrough point for the short-term market switching."