Rebirth of the Capital Legend

"But the two sub-sectors of consumer electronics and security lenses cannot carry too much follow-up funds." Jia Yongxiang said, "and these two sub-sectors cannot drive the index and the overall market sentiment. If the several core themes of the market cannot gather the consistent long-term forces of various funds in the market, and the market divergence is too large, it is estimated that... In the end, these two sub-sectors will still be difficult to remain unscathed, right?

In fact, in my opinion, there is nothing wrong with the index being at this position and making appropriate pullback adjustments, and an overall sell-off to release the large amount of profit-taking that has accumulated recently.

The index has been supported like this, and the trend is sideways and fluctuating.

Instead, it makes a lot of hesitant funds in the market reluctant to sell their chips, and makes hesitant funds outside the market dare not enter the market to go long. At the same time, it also makes a lot of funds in the market dare not increase their positions massively.

I feel that only a sharp downward move as a whole can fully release the profit-taking and truly adjust the main market structure.

Only then can we truly gather the market's consistent bullish momentum."

"What you said makes sense." Song Shaopu nodded and responded, "It is true that the sideways fluctuation with reduced volume will prolong the time period for market adjustment, and will also cause psychological concerns for both sellers and buyers inside and outside the market. However, how the market trend will go... is not up to us to decide. It depends on the final combined force of various funds in the market. If the final combined force of the market is still dominated by reduced volume fluctuations, then we can only wait patiently."

At this time, the core trend of the overall market performance is not clear.

Therefore, they have no intention of changing their trading strategies, or increasing or reducing their positions at this time.

"Yeah." Jia Yongxiang nodded, and then said, "Recently, there has been no movement in the relevant seats associated with the institution 'Hua Yi Capital'. I feel that in order to break the current long-short balance in the market, this capital must ignite and drive the sentiment. Otherwise, this balance may be difficult to break in the short term."

"Huayi Capital should have already completed its position building on the main line of 'big infrastructure'," Song Shaopu guessed. "It's not time to charge into the market yet. The fact that this institution remains silent is actually not a bad thing for the current market trend."

As the two talked, the market trading time continued...

At 9:35, the two sub-sectors of consumer electronics and security lenses, which were inertially surging, and their related core hot stocks, including Lixun Precision, Changying Precision, Anjie Technology, Goertek, O-Film Technology, Hikvision, Dahua Technology, etc., all encountered upward intraday resistance.

At the same time, popular concept stocks in the main areas of 'oversold rebound' and 'big infrastructure'.

A number of stocks including 'Shenhuo Co., Ltd.', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Shouchuang Group', 'Yu Development', 'Bayi Steel', 'Linggang Co., Ltd.', as well as a number of stocks including 'Baofeng Technology', 'Netspeed Technology', 'LeTV', etc., also showed a pattern of opening low and closing low.

And due to the weakening of these two main lines, the Shanghai Composite Index, ChiNext Index and Shenzhen Composite Index were also driven to dive downward.

At 9:42, the bullish sentiment in the two markets continued to cool down, with the Shanghai Composite Index, ChiNext Index and Shenzhen Composite Index all falling by more than 0.5%.

At 9:47, the price of 'Shenhuo Stock' dropped rapidly to 5%, and the main line of 'big infrastructure' related sectors further weakened.

At 9:52, the two major branch sectors of consumer electronics and security lenses had fallen back to the flat position due to the continuous selling.

At 9:55, funds in the market began to gradually flow into defensive sectors such as consumption, medicine, white appliances, and liquor. The A50 index began to rise against the trend, and the large financial sector moved slightly.

At 9:58, the intraday decline of "Beijiang Communications Construction" also widened to 5%. The market's bullish sentiment further weakened and risk aversion continued to heat up.

At 10:02, the consumer electronics and security lens sectors fell below the water level. As for the Internet software, film and television media, new energy industry chain, electronic information and other related sector indexes associated with the market's 'oversold rebound', they also fell steadily. A large number of remaining short-term profit-taking orders and stop-loss orders quickly fled.

At 10:05, the leading heavyweight stocks in the "big infrastructure" theme, such as Poly Real Estate, Conch Cement, Shenhua Coal, and China Construction, also suffered a certain degree of selling pressure, and their share prices were under pressure.

At 10:11, the Shanghai Composite Index received assistance from the A50 Index and its decline was reduced. However, the ChiNext Index, which had no support from safe-haven funds, saw its decline further widen, falling to a drop of nearly 1%.

At 10:15, "Shenhuo Co., Ltd." fell by 7%, and the coal sector index fell by 1.5%. The entire "big infrastructure" main line seemed to begin to break away from the weak and volatile pattern and adjusted downward sharply. Along with the rapid sell-off of a number of popular concept stocks in the "big infrastructure" main line, the trading volume in the entire main line field also began to expand rapidly.

At 10:18, the stock price of "Baofeng Technology" experienced a flash crash, and the capital outflow in the entire "oversold rebound" main line area began to accelerate.

At 10:20, the main funds in the main line of 'oversold rebound' and 'big infrastructure' all showed a net outflow trend. The net inflow rate of funds in defensive sectors such as liquor, white appliances, medicine, consumption, and finance began to accelerate. The risk aversion sentiment of market funds further heated up, and the number of stocks that hit the daily limit in the two markets was reduced to less than 30. The bullish sentiment of short-term speculation quickly faded.

At 10:25, the decline of the ChiNext Index widened to 1.2%. Although the Shanghai Composite Index was affected by the counter-trend rise of the A50 Index, it gradually declined again due to the decline of other stocks in the market, gradually widening the decline.

At 10:31, the share price of 'Qianzhou Moutai', which had been fluctuating for a long time with shrinking volume, turned positive and rose, and the intraday increase reached nearly 1%, while driving up the liquor sector index and related stocks.

At 10:33, the red sectors in the two cities were all concentrated in the banking, liquor, white goods, pharmaceutical, and consumer sectors. The market's risk aversion sentiment continued to rise, while the speculative sentiment of short-term funds continued to decline. The low-lying and oversold sectors such as Internet software, electronic information, new energy industry chain, film and television media, which were heavily hyped by the market boom and various short-term active funds in the past two days, began to show a unilateral sell-off trend, and fully gave up the gains of the previous two days.

At 10:39, in the 'new energy industry chain', the core concept leading stock 'Dofluoro' suddenly began to plunge rapidly with large volume, and the intraday decline reached 5.35%.

At 10:41, driven by the diving trend of the core popular leaders, the entire "lithium battery" sector and the entire "new energy industry chain" main line all followed suit and dived.

At 10:45, the share price of Shenhuo Co., Ltd. fell by 8%, and it seemed that it was about to hit the limit down.

At 10:48, except for defensive sectors such as banking, insurance, liquor, white goods, medicine, and consumption, other main sectors and their related concept sectors in the two cities all turned to a downward trend.

At 10:50, in the entire "oversold rebound" main line area, a lot of funds began to panic and sell off, and the number of stocks that flash crashed and fell increased rapidly.

"What the hell is this? How come the main lines of 'oversold rebound' and 'big infrastructure' all collapsed all of a sudden?" Noticing the sharp downturn in the two markets, many retail investors gathered on the stock investment discussion platform across the Internet were instantly furious. Many people complained, "The 'oversold rebound' line hasn't risen much in the past two days. Why is it starting to be harvested now?"

"It's really outrageous. I didn't get to eat meat, but I just got beaten."

"The key is that the 'big infrastructure' line has also collapsed. I used to think that the 'oversold rebound' line and the 'big infrastructure' main line were a seesaw, but now it seems... that's not the case."

"'Film and TV media', 'Internet software', 'new energy industry chain'... these oversold main lines, there is no profit taking, why are they being smashed so hard? The funds that are smashing the market are simply sick."

"Oh, I'm chasing highs again. Wasn't the 'electronic consumption' line already recognizable at the end of yesterday's trading? Why is it not working today?"

"It feels like there is basically no strong buying in the market!"

"Buying has all poured into defensive sectors such as liquor, white goods, consumption, medicine, and finance."

"Have all the funds in the market turned to defense? Sigh... The market's sustainability is really poor. We really can't have too high expectations for the current market situation."

"The 'Gusu system' hot money dumped the market yesterday and ran away. It would be strange if the market didn't fall after the oversold rebound."

"Indeed, these speculators have no vision."

"Fuck, it feels like the market can't stop falling. Sigh... I'll stop the loss first and come back after the market stops falling and stabilizes. In a bear market, you really can't have too high expectations."

"The 'big infrastructure' line has been adjusted for a few days, so it shouldn't fall that much, right? And Huayi Capital, which is headed by President Su, should still be in the main field of 'big infrastructure', right?"

"Even if President Su continues to make plans, he can't stop other funds in the market from selling!"

"Alas, once the market fell and the bullish sentiment collapsed, we returned to our previous investment style of focusing on medicine, liquor, white goods, consumption, and finance."

"When the A50 index came up, I knew it was not a good thing."

"It is indeed becoming increasingly difficult to trade in the short term in the market now. The market's consecutive trading heights have been suppressed within three levels."

"What's disgusting is the 'Gusu Group' and 'Yuhang Group' hot money. They start to dump stocks as soon as they have a few points of profit. They are basically the ones who dump stocks every other day. Sigh... I really miss the days when President Su was a short-term trader. As long as President Su's seat appears, the stock will basically continue to rise by the daily limit, and you can make money by following him. Now, I follow these guys to hype up stocks, but I don't get to eat any meat. I'm really getting beaten up. If this continues... I have to change my trading model and have to follow the defensive mainline sectors such as liquor, white appliances, medicine, consumption, and finance."

"These speculators really have no vision, but... the fundamental reason is the poor market liquidity, right? The buying orders are poor and cannot withstand the selling orders when the stock price rises. Although the speculators in the market can dominate the market, they cannot force the market to rise. They can only light a fire and follow the trend of the market. When the speculators feel that they can't pull the market up, they will naturally stop pulling it up, and they will definitely start to dump the market."

"It's not about forcing the market to move up, at least we can maintain the market a little bit."

"Yes, how can you expect everyone to follow you without maintaining the board?"

"Today, all the hot spots in the market have disappeared. Only the defensive sectors still have some popularity. Judging from this situation... I am afraid that the market will form a one-sided plunge in the future."

"The ChiNext Index has risen sharply in the past day, right? Is this round of market... over?"

"It went up with a small volume, but it went down with a large volume. I am really impressed."

"The price is already so low, but I didn't expect that there would be more volume. It's really... the selling orders are endless."

"That's right, I'm confused. I don't know where all these meat cutting plates came from."

"I have finally figured it out. Large-cap stocks are safer. They fall less and don't fall behind when they rise. I really can't mess around with small-cap stocks anymore."

"Except for a few speculators, almost no one is doing small-ticket trading now."

“No wonder the liquidity of small tickets is getting worse and worse. For many stocks…it seems that the main funds in them cannot sell the stocks, and they are all flash crashes.”

"In the past two days, I saw that the Internet software, electronic information, film and television media, new energy industry chain... these low-priced mainline small-cap concept stocks have skyrocketed. I thought the market investment style has returned, but I didn't expect... this is just an illusion. The whole "oversold rebound" hype is purely a trap. Alas... I was cut off by this wave."

"Even Mr. Su has turned to investing in core large-cap stocks, which is enough to prove that the path of market concept speculation is obviously not feasible in the short term."

“But I really don’t want to be a sedan bearer for an organization!”

"Institutions now have a much larger presence than hot money. I think institutional stocks have more potential and are more profitable, right?"

"Let's just follow the market trend. Currently, the market is dominated by institutions."

"That's right. Looking at the entire market, stocks that seem to be performing well are basically dominated by institutions. Now... even in short-term speculation, the premium of hot money seats is completely inferior to the premium of institutional seats."

"If you ask me, it's safer to buy the stocks that Mr. Su has openly held."

"Yes, no matter when, buying the stocks that Mr. Su holds is always a better choice, especially when you don't know what to do, just follow him mindlessly."

"It's no wonder that the stocks that Mr. Su openly holds have stronger trends than other stocks. They often fall less and rise more. Even if the overall market is not good, every time there is a sharp drop in volume, there are funds that take the initiative to buy. There is no shortage of buying orders, which shows that everyone has the same idea."

"Needless to say, President Su is the only true god of A-shares."

"Because everyone knows the general situation of the Su family, they will not sell off easily, so they are naturally willing to follow suit."

Along with heated discussions among many retail investors...

At this time, the two markets are still continuing to decline, and after all major main lines have lost their bullish momentum, the decline rate of the major main line sectors is continuing to increase, and the volume during the decline is also showing a continuous increasing trend.

"There is no volume in the shock, but the decline has released a lot of volume." Noticing that the intraday volume of the two markets was gradually increasing, Xu Qiao, who was among the main hot money group of Shanghai's ultra-short gang, smiled and said helplessly, "It seems that the vast majority of investors in the market still lack confidence in the future market trend. Once the sentiment in the market collapses a little, panic selling will begin to emerge in an endless stream."