Rebirth of the Capital Legend

"Well, this is indeed a bit unexpected." Yu Xiaolu, the head of the trading team of 'Jufeng Future Growth Fund Products' next to Lu Xiangxiang, responded, "Everyone's focus before was on the core line of 'big infrastructure' and the hype line of 'oversold rebound'. Not many people paid attention to the two branch market sectors of 'electronic consumption' and 'security lens'. In fact... based on the previous trend of these two branch sectors, these two branch sectors have been independently strong for several trading days.

Among them, we can look at it through the K-line pattern.

The 'security lens' sub-sector has been gradually strengthening almost when the 'big infrastructure' main line market started in the past two weeks, and has become a companion market sector during the main rise of the 'big infrastructure' main line.

Unfortunately, whether it is us, most institutions in the market, or a large number of retail investors.

No one has noticed the outbreak of this branch sector and the change in expectation gap.

As for the 'consumer electronics' line, although the market launch time is not as early as the 'security lens' sector, the momentum is obviously stronger. The expectations and emotions of speculation and the overall heat spread quickly.

If the core theme of "big infrastructure" and the market's "oversold rebound" line cannot form a unified force of funds in the market, then I estimate that the market speculation of the two branch lines of "consumer electronics" and "security lenses" will continue for a while. "

"Looking at the market trend today, after the sentiment of the 'oversold rebound' line began to ebb, the 'big infrastructure' line did not form a capital synergy." Lu Xiangxiang said, "And the trend performance in the late trading stage did make the two branch sectors of 'consumer electronics' and 'security lenses' rush out. If the sentiment ferments after the market and is accompanied by good news, it is estimated that the market trend of these two major branches will be more intense tomorrow, and the consistency of long funds will be stronger."

"The 'big infrastructure' line has only been ebbing for two trading days, and there is obviously not enough room and time for adjustment. At this stage, it is definitely difficult to form a consistent long-term force of funds." Yu Xiaolu responded, "However, the two major branch sectors of 'consumer electronics' and 'security lenses' have relatively limited carrying funds due to their size. Even if the sentiment ferments after the market, I am afraid there will be no suitable buying point."

Lu Xiangxiang nodded and said, "That's right. It feels like the main funds in the market are guiding the market trends of these two branches. It is only a transition of market rotation when neither the 'oversold rebound' nor the 'big infrastructure' main lines of the market can form a long-term capital force."

"I think so too." Yu Xiaolu said with a smile, "From the overall trend of the market, as well as the volume pattern and the main line structure, the recent market trend is likely to remain volatile, so there is no need for us to rush to adjust positions or deploy new trading strategies."

"Okay." Lu Xiangxiang nodded and said, "Then let's take a look at the market trend in the next two days. Although the adjustment time and space for the 'big infrastructure' line are not sufficient at present, there are still funds buying the bottom after only two trading days of adjustment. This shows that the capital groups on and off the market that have insufficient positions in the main direction of the 'big infrastructure' line are still very optimistic about the 'big infrastructure' line in the medium and long term. It's just that the concentrated selling pressure of profit-taking, unwinding, and free trapped positions on the market has not been released yet, resulting in the temporary inability of various buying funds to form a joint force on this line. But this also means that the 'big infrastructure' line is unlikely to fall too far, right?"

Yu Xiaolu responded: "Mr. Lu is right. From the overall point of view, the market support of the "big infrastructure" line has always been strong. Even if the entire "big infrastructure" line has undergone drastic adjustments in the past two trading days, this sharp decline in the trend adjustment basically occurred in a number of popular concept stocks after the departure of hot money, such as "Shenhuo Shares", "Pingmei Energy", "Tianshan Cement", "Beijiang Communications Construction", "Capital Group", "Yu Development", "Bayi Steel", "Linggang Shares"... The sharp drop in these stocks has led to a significant decline in the long sentiment of the entire "big infrastructure" line.

However, the weighted core leading stocks of the "big infrastructure" main line, such as "Poly Real Estate", "Kewan Real Estate", "Conch Cement", "Huaxin Building Materials", "Huaguo Construction", "Shenhua Coal Industry", "Golden Land Group", etc., have not been adjusted at all, and judging from the market trends of these stocks...

We can see that every time these stocks fall in price, there will be a lot of large buying orders from major players to take over.

And these active buying forces have caused these stocks to not fall at all.

Moreover, I estimate that this phenomenon will most likely continue as many funds have insufficient positions in the main line of "big infrastructure".

Therefore, as long as the core stocks held by our fund are these heavyweight leading stocks.

Well, even if the core theme of "big infrastructure" needs to be adjusted for several trading days in the future, we don't have to worry at all.

There is continuous major buying support, and there are also many major institutions that maintain the market.

The adjustment range of these core leading stocks is extremely limited, and will not have a significant impact on our holdings or the fund's net value performance, nor will it cause too much net value drawdown.

Instead, it is at this time...

If we rashly adjust our portfolio and change stocks, we will abandon the core leading stocks in the "big infrastructure" main line that we have worked so hard to build.

There is a high possibility of losing chips, and the subsequent losses will be huge.

After all, in my opinion, the two major branch sectors of "consumer electronics" and "security lenses" rushed out and formed a unanimous long-term force of funds despite the divergence in today's market trends, that is, when the main line of "big infrastructure" and the main line of "oversold rebound" in the market diverged.

However, due to the size of these two branches and the underlying logical expectations.

I still think that from a medium- to long-term perspective, and from subsequent expectations, the market performance of these two branches is still far inferior to that of the core line of "big infrastructure".

What's more, starting from the starting position of these two branch lines.

Up to now, the rebound space of these two branches is no smaller than the first round of continuous rising space of the "big infrastructure" line.

In addition, if these two branches continue to rise, they will soon touch the previous area where trapped chips are concentrated.

It is estimated that once the main line of 'big infrastructure' is slightly adjusted and the chip structure shows new signs of consolidation, the two branch sectors of 'consumer electronics' and 'security lenses' will enter the stage of divergent adjustment.

In other words, the current positions of these two sectors are not far from the height of their divergence adjustment stage, which is not enough for us to focus our attention and funds on these two branch sectors. "

"Okay." Lu Xiangxiang nodded again. It was obvious that Yu Xiaolu's final analysis had strengthened her confidence and determination to continue holding the core leading stocks of the 'big infrastructure' main line. So, after she responded, she paused for a moment and then said, "Then let's stick to the previous trading strategy and wait for the adjustment of the 'big infrastructure' main line to end and move out of a new upward trend."

After saying that, she turned her attention back to the after-hours online stock discussion platform.

I want to observe the trend of investor sentiment after the market closes.

In her observation, she found that the retail investors gathered on major stock investment communication platforms across the Internet had different opinions and serious disagreements on today's market trends.

"It doesn't make sense. The 'oversold rebound' line has only moved a short distance and it's already over?"

Some people are reluctant to believe that the 'oversold rebound' driven by oversold sectors in the market such as Internet software, new energy industry chain, electronic information, film and television media... has ended like this, and they are puzzled.

"I also feel that it won't end so soon. Today should be considered the first divergence, right? I feel that tomorrow the market's 'oversold rebound' line will see some capital flow back, and sentiment will pick up. After all, at the current stage, the chip structure of the 'big infrastructure' line has obviously not been adjusted, and it is difficult to form a consistent force for the market to go long. In fact... everyone has seen today's trend. The 'big infrastructure' main line pulled up in the afternoon, and then it fell instantly at the end of the trading day. It is basically a trend of inducing more and continuing to trap people. If my guess is correct, tomorrow the 'big infrastructure' line will continue to fall, and the many funds that chased the 'big infrastructure' today will continue to sell at a loss. As long as the 'big infrastructure' main line continues to adjust tomorrow, the funds in the market will continue to 'switch between high and low', and sentiment will naturally flow back to the 'oversold rebound' line."

"Isn't that right? Even if the main line of 'big infrastructure' continues to adjust tomorrow, many funds that chased the main line of 'big infrastructure' today will sell their stocks at a loss. There is no need to cut high and low again to chase the market trend of the 'oversold rebound' line? As for the market trend in the afternoon... the 'big infrastructure' line did not produce a profit-making effect, nor did it gather a unified long force of funds. But in terms of the performance of the afternoon market, isn't the market's 'oversold rebound' line trend weaker? In the late trading stage, many major funds that intervened in the 'oversold rebound' line in the past two days basically reduced their positions and stopped profits without thinking, and the extent of their sell-offs was no weaker than that of the main line of 'big infrastructure'."

"Yes, looking at the market trend at the end of the trading day, it is obvious that the two main trends of 'oversold rebound' and 'large infrastructure' have shown signs of capital retreat, while the two sectors of 'consumer electronics' and 'security lenses' have come out. Of course... the defensive sectors such as liquor, white goods, medicine, consumption, and finance that are held by the main institutional funds have also warmed up in the late trading stage, but the trend is not very obvious, and everyone's expectations for this are not high."

"'Consumer electronics' and 'security lenses' can at most be regarded as branch rotations, right? Can they support the main market trend?"

"Anyway, it seems that the 'oversold rebound' line is unlikely to strengthen after the big funds retreat. There is no expectation for this line, and there is no underlying logic. Its market strength and the depth of big funds' involvement are far behind the main line of 'big infrastructure'."

"Anyway, I'll take profit on this 'Do-Fluoride' check at the end of today's trading."

"It stands to reason that the 'oversold rebound' line could continue to push forward this afternoon, especially when the 'big infrastructure' main line cannot form a long-term force. I don't know who is constantly dumping the market?"

"Alas, it must be the profit-taking hot money that intervened yesterday and the day before yesterday that caused the market to crash. These hot money...it is difficult for them to form a joint force, and they are far less structured than institutions."

"It's mainly because we didn't expect it. If there was any positive news, I feel that the new energy industry chain, Internet software, film and television media and other sectors would not be like this today."

"Originally, this wave of 'oversold rebound' was the time when the main line of 'big infrastructure' was adjusted, and the arbitrage market made by the hot money in the market should not be expected too much. In fact... As expected, it rebounded for only two trading days, and the hot money that made profits began to dump the market collectively."

"Consumer electronics and security lenses, are there any major positive news for these two sectors? Why are they so strong?"

"Consumer electronics should still follow the concept of 'mass consumption', right? As for the 'security lens' sector, it was able to strengthen independently, probably because the semi-annual performance of industry leaders such as 'Dahua Technology' and 'Hikvision' exceeded expectations, and the guidance for third-quarter performance expectations gradually increased."

"The trend of the main concept of 'consumer electronics' and 'big consumption' is not very correlated, right? Previously, when the liquor and consumer sectors rose, the 'consumer electronics' sector basically did not follow. On the contrary, after the liquor and consumer sectors fell into sideways fluctuations recently, the 'consumer electronics' sector has independently strengthened."

"In the 'consumer electronics' sector, the stocks that led the gains are basically those in the 'Apple industry chain', right?"

"It's true. Today, the stocks leading the gains are basically Lixun Precision, O-Film Technology, Goertek, Lens Technology, Anjie Technology, and Changying Precision... these Apple concept stocks. The other stocks have basically not moved at all."

"Could it be that the funds are speculating on the 'Apple concept'?"

"This possibility cannot be ruled out. After all, Apple's new product launch conference is coming in September."

"Oh my god, it is very likely that the funds are really speculating in this direction. From this perspective, before Apple's new product launch in September, the expectations for Apple-related stocks will not be low, and the stock price will obviously have room for continued growth. There will definitely be funds coming to speculate one after another. I feel that this is a sector with a relatively high certainty in the next month or so."

"Haha... I felt the same way, so I decisively bought a position in the stock 'Lixun Precision' at the end of the trading day."

"This is a sideline, not the main line. I feel that the funds' attention is limited, and the space is also limited, right? Moreover, this sector has been rising quietly for several days. This sudden climax of sentiment makes me feel like the funds that have already made profits in the market are eager to sell, and deliberately raise the price to attract external funds to take over."

"No way, how much has it increased?"

"It's OK as long as there is an expectation. As long as there is an expectation, there will be capital speculation. Now there is still more than a month before Apple's new product launch in September. With such a long time, it doesn't seem like the right time to ship, right? I think the previous trend is the first wave of the market. Now that sentiment and market attention have risen, it is possible to move towards a major upward trend. Anyway, no matter how you look at it... when the main line of 'big infrastructure' and the main line of the market's 'oversold rebound' cannot form a long-term synergy, the only line worth investing in the market is 'consumer electronics'."

"I agree. If the active fund groups in the market want to continue to play in the market, the only direction they can go is... the 'consumer electronics' line for the time being."

"What about the 'new energy industry chain' line? This is the first divergence, and there is not much rebound. Is there really no chance?"

"Who knows? I think whether there will be any chances for the 'oversold rebound' line in the future depends on the data of the Dragon and Tiger List, whether the hot money has left, and tomorrow's market feedback. However, judging from the market trend at the end of today, the 'new energy industry chain' line has indeed shown the trend of large funds leaving the market."

"On the 'oversold rebound' line, the leading stocks should still have a chance to rebound, right?"

"I think there is a high probability that there will be, but if we cannot form a long-term force and cannot restore the long-term sentiment that collapsed today, even if there is a pullback, it is time to reduce positions or clear positions to stop profits and losses."

"Alas, today's market is really hard to understand. The market changes too quickly."

"It is difficult for market funds to form a concerted force in one direction, so it is naturally difficult to do anything, and it is easy to be slapped in the face back and forth. At this time, you can either be stubborn and bet on one direction, or wait with empty positions."

"I feel it's better to be empty..."

On the entire network's stock investment exchange platform, these numerous retail investors analyze the day's market and look forward to future market trends.

It can be clearly seen that there are still huge differences in opinions.

Many people still have illusions and hopes for the oversold main sectors of the market, such as the new energy industry chain, film and television media, Internet software, electronic information, etc., which have clearly shown a money-making effect in the past two days, and their related hot stocks. They are looking forward to these stocks rebounding tomorrow so that they can get out of the market and make money.

There are quite a few retail investors who have heavy investments in the main area of ​​'big infrastructure'.

We also hold the view that the 'big infrastructure' theme is the most core theme of the current market and the direction with the most powerful force for capital to go long. We expect that the relevant core stocks that encountered resistance today will be able to rise in volume tomorrow and lead the 'big infrastructure' core theme of the market to break out of the upward trend again.

Of course, there is also a small number of retail investors who are firmly optimistic about the consumer electronics and security lens sectors.

Overall, market sentiment is deeply divided and opinions are very inconsistent.

This obvious difference became more serious after the release of the Dragon and Tiger List of the two cities at 5 pm.