Rebirth of the Capital Legend

"There is not enough room or time for adjustment in the main line of 'big infrastructure', right?" Lao Qian said, "Many core stocks in the main line of 'big infrastructure' have not fallen much. Why is the capital flowing back at this time? What's the logic? Could it be that there is some sudden and major positive stimulus in the market news regarding the main line of 'big infrastructure'?"

"For the 'big infrastructure' line, the good news has been going on all the time, but investors in the market have become somewhat immune to the good news." Zhang Xinlei said, "But no matter what the reason... From the current market, it is a fact that the active capital flow in the market has re-gathered towards the 'big infrastructure' main line. At the same time, the main line of the market's 'oversold rebound', related film and television media, new energy industry chain, Internet software, electronic information... and other main line fields continue to lose blood, and the active buying volume continues to decrease. In this case, there is no need to hesitate. As short-term traders, don't we always have to respect the market?"

Having said that, Zhang Xinlei did not wait for the others to respond, and had already begun to reduce his holdings and take profits on stocks such as "Dofluoro", "Tianqi Lithium", "Ganfeng Lithium", etc.

"Mr. Zhang is right. We still have to respect the market situation." Zheng Jinming thought for a moment and responded, "No matter what the reason for the abnormal movement of funds in the market is, it is always right to reduce positions and take profits first. It is always right to take the profits into your hands."

"The first divergence between long and short positions on the market does not mean a reversal of the market's long and short positions." He Zhong still frowned at this time and said, "I always feel that the main institutional players in the market are deliberately guiding the market to attract funds from the main line of the market's 'oversold rebound' to gather towards the main line of 'big infrastructure', thereby competing for market liquidity. If we smash the market at this time... wouldn't it be exactly what the main institutional players want? Now that we have lost the first move on the chips on the main line of 'big infrastructure', if we follow suit at this time, we can only be helping the other party.

What’s more, didn’t Lao Qian just say that?

At present, the time and space for adjustment on the core theme of "big infrastructure" are far from enough. The chip structure of the entire "big infrastructure" theme is still quite chaotic. Even if the funds are transferred back to continue speculating on this theme, it is difficult to open up any space height. "

"Old He, I know what you're thinking." Zhang Xinlei said, "But the main trend of the market is not subject to our will, nor can it be guided by our unilateral funds. Generally speaking...how the market will go depends on the concerted efforts of all parties involved.

According to the current market changes, it is obvious that the combined direction of funds has shifted back to the core theme of "big infrastructure".

The entire "oversold rebound" main line and the follow-up buying funds have gradually weakened.

At the same time, the selling force in the market is increasing.

In this situation, if we forcibly maintain the market and the emotions, it will not only be difficult to guide the funds to gather again, but it will go against the trend and trap ourselves.

I think that no matter when...we should follow the trend in our operations and never go against the trend."

"I think what Lao Zhang said makes sense." Zheng Jinming responded quickly, "The first rule of trading is to follow the trend. Don't trade against the trend. The current market's 'oversold rebound' line has already shown a downward trend. We have the first-mover advantage and cost advantage. Why don't we decisively take profits and sell when we realize that the trend is not right? We are not an institution. There is no need to forcibly maintain the sentiment and trend of the entire main line. Selling and taking profits, leaving, and then switching to a main line that can form a joint force of various market funds and gather bullish sentiment, isn't it? "

Zheng Jinming said he didn't quite understand He Zhong's persistence.

In his trading rules, in addition to following market trends, there is another important point, that is, you cannot fall in love with stocks, you cannot hold on to one stock, or one main line, causing a sharp decline in profits, or being submerged by the receding tide.

While they were talking...

The two markets are still trading fiercely.

The entire 'oversold rebound' main line-related sectors, whether it is the Internet software, film and television media sectors, or the new energy industry chain, electronic information and other sectors, the corresponding core hot stocks are still continuing to explode, and the 'Dofluoro' stock, which is heavily held by several people, has now exploded and fallen, and selling orders are pouring out of the market.

He Zhong listened to the opinions of Zheng Jinming, Zhang Xinlei and others.

Seeing that several popular core concept stocks that he had heavily invested in had all exploded, and seeing that the bullish sentiment that had previously gathered in the oversold main areas of Internet software, film and television media, new energy industry chain... had been rapidly declining, and there were countless sell orders in the market, regardless of cost.

Knowing the entire "ultra-low rebound" main line, it is indeed time for emotions to recede.

And with the limited amount of funds he has.

It is simply impossible to pull up the market and guide the recovery of sentiment when sentiment is declining, and it is even more impossible to go against the trend and forcibly restore the daily limit of the "Dofluoro" stock, thereby stabilizing the confidence of various funds that are fleeing.

"Alas..." Thinking of this, he couldn't help but sighed and said, "Since the market sentiment has changed, short-term profit-taking funds and many locked-in shares that are worried about a sharp decline in the market have begun to sell at all costs, so we can only follow suit."

After saying that, he also began to sell off a large number of chips in his trading account.

And with the rapid selling of the core main investors of the "GuSu Group", the speed of the entire "oversold rebound" main line has become faster.

Moreover, the hot stocks related to this entire main line exploded and fell back.

It also led to a rapid plunge in the ChiNext Index around 2 pm, and the market's gains dropped sharply.

"Damn... Is this round of 'oversold rebound' market over? These guys from the 'Gusu Clique' really have no vision." Seeing that in just ten minutes, the ChiNext Index had plunged from a position where it had risen by more than 3 points to a position where it had risen by 1.5%, Zhao Zhiyuan, one of the main speculators from the 'Qilu Clique', could not help but curse and complain, "There is only so little room for growth, and they can't wait to start dumping the market?"

"The 'Gusu Group' has never had much of a vision." Zhang Wei smiled and said, "You shouldn't have too high expectations for the market's 'oversold rebound' line. Think about it... it's an oversold rebound, how much room can there be for speculation? What's more, the current market volume does not support continued speculation. If the leading stocks can create 20% to 30% of space, be content."

"But the space is too low. It's not profitable at all." Zhao Zhiyuan complained.

Liang Jiucheng sighed and responded, "It's fine as long as I can get out without losing money. I didn't have much expectation for the 'oversold rebound' line, but I didn't expect the market to switch so quickly. The ChiNext Index really can't rise steadily for a day!"

"I feel it's still a matter of fundamental expectations and volume," Zhang Wei said. "Internet software, film and television media, new energy industry chain, electronic information... these oversold main lines of the market have a very good chip structure, and the bullish sentiment in the last one or two trading days is also acceptable, but there is a lack of hard logic for fundamental changes, and clear stimulation from favorable news. Without these two things, the vast number of retail investors in the market who flock to this main line will not be able to strengthen their confidence in holding positions, and naturally they will not be able to help lock in chips. Without funds to help lock in chips, under the condition of extremely limited volume, they will naturally be finished if they encounter a little pressure from above."

"Alas, I worked hard for a long time, but earned less than 5 points." Zhao Zhiyuan said as he followed the reduction of positions, "I might as well buy a core leading stock of the 'big infrastructure' main line and lock it in. As expected... the market without underlying logic will never go far. It seems that I have overestimated the market height of the 'oversold rebound' line before."

"It feels like the market sentiment has suddenly turned to the main line of 'big infrastructure'. It may be that there is an influence of deliberate leadership by institutions." Liang Jiucheng said, "In the afternoon, 'Conch Cement', 'Shenhua Coal', 'Huaxin Building Materials', 'Golden Land Group' and several other stocks continued to surge and forcibly regained ground. It is obvious that there is a leading pull of institutional funds. Of course... when the oversold main lines of film and television media, electronic information, Internet software, and new energy industry chains begin to touch the core area of ​​locked-in chips, it is not wrong for institutions to do so in order to compete for market liquidity."

"It is indeed no problem for the main institutional funds to guide the long sentiment in the market and many short-term speculative funds to flow back to the main line of 'big infrastructure' for speculation." Zhang Wei said, "But at present, it is more obvious that the 'big infrastructure' line does not seem to have adjusted to a cost-effectiveness level, and it has not adjusted to a space. At this time, even if various funds are guided back, it is difficult to create market space and condense the market to make money, right? At most, it can only go through a pullback market, and it cannot form a trend breakthrough."

"There is no chance of a trend breakthrough," Liang Jiucheng said. "We can expect a pullback, but the space is definitely very limited."

"I see..." Zhao Zhiyuan continued, "Whether it is the market's 'oversold rebound' line or the 'big infrastructure' line, in the short term, I'm afraid it will be difficult to break through the trend smoothly. If we keep chasing back and forth like this and are led by emotions, I feel that there is a high probability that we will be slapped in the face on both sides. It is very likely that if we chase the stocks related to the 'big infrastructure' main line now, these stocks will start to fall again after the market opens tomorrow, and the emotions will return to the 'oversold rebound' side."

"Well, what Lao Zhao said makes sense." Zhang Wei responded, "I think the overall market is also in a volatile trend. At this point, the main lines do not support a sustained upward breakthrough. Instead of chasing emotions, it is better to drive with calm, so as not to be swayed. I estimate that many active funds chasing the main line of 'big infrastructure' at this time will turn around and speculate on the 'oversold rebound' line after finding that it is unprofitable or continuing to be quickly harvested."

"Mr. Zhang has hit the nail on the head." Liang Jiucheng responded, "At this moment, the overall market trend is unclear. The correct operation is to either hold a short position and wait for the market to eventually choose a definite direction, or stay on a fixed main line and wait for the market to find a better buying point for position adjustment."

"So... you two are not planning to adjust your positions?" Zhao Zhiyuan said with a little surprise.

Zhang Wei laughed and said, "Like you just said, the market didn't rise much in the first place, and it won't fall much in the correction. There's no need to adjust the position to chase the sentiment. Isn't it better to wait for the sentiment to turn around and lift the sedan chair? Anyway, for the time being, before the main line of 'big infrastructure' forms a chip structure support platform, the market of the entire main line of 'big infrastructure' will not rise, so there is no need for us to be too anxious."

From his point of view...

At present, no matter how the main institutional players guide the "big infrastructure" line, its on-site chip structure is chaotic, and it is a fact that there is insufficient time and space for adjustment. At the same time, due to the limited liquidity of the market, it is impossible to force a trend breakthrough without further precipitation of the chip structure.

Therefore, at this time, there is a brief recovery in the main market trend of "big infrastructure" and a diversion of active capital groups in the market.

He was not worried at all, and he knew that the main line of "big infrastructure" at this time had no ability to quickly break through the short-term top that had just been formed.

Since the core line of the market cannot be broken through substantially, the funds in the market will continue to speculate in the market.

Then it will inevitably flow back and forth in multiple main lines.

In other words, the market is bound to form a rotation trend among the main lines in the volatile market trend, and the space for rotation rebound is still very narrow.

"Okay." After hearing Liang Jiucheng and Zhang Wei's analysis, Zhao Zhiyuan thought about it and felt that what they said made sense. He responded, "Then let's not do anything for now and wait and see how the market trends change. I also feel that the adjustment of the 'big infrastructure' line, whether in terms of time or space, is obviously not enough."

Having said that, he turned his attention back to the rapid trading trends in the two markets.

As the market trading time continued, the market sentiment of "oversold rebound" continued to ebb, and the funds that poured into the "big infrastructure" main line speculation, after briefly pulling up the corresponding core hot stocks, also began to encounter strong selling pressure on the upper market.

In short, after 2:30 p.m. in the market, the overall divergence between bulls and bears began to increase.

Both the trend of the Shanghai Composite Index and the ChiNext Index have become entangled, forming a shrinking and oscillating pattern that is neither going up nor down.