Rebirth of the Capital Legend

"It's still a problem of market liquidity and investor confidence." Hearing Li Shangfeng's question, Wang Shujie took over and said, "Liquidity is scarce, the market lacks confidence in going long, and the core mainline's internal chip structure has not been adjusted. It has been suppressed by profit-taking and locked-in shares, and has never been able to form an effective long-term force. Naturally, there is less capital to actively move up, and the stock price can only adjust downward."

"The liquidity of the market is more abundant than before, right?" Li Shangfeng said. "The overall market position is not high at present, and the core locked-in shares are above 3000 points in the Shanghai Composite Index. It seems that it is not just a problem of liquidity and investor confidence, right?"

Wang Shujie said: "Based on what I know... there is definitely no negative news at the moment. Since it is not affected by the news, it can only be the market's own self-adjustment. In fact... such an adjustment can clear out the short-term profit-taking and free stop-loss orders in the market, as well as the locked-in orders that people want to sell, and reduce the pressure on the future market's upward trend. There is nothing wrong with it."

"The fear is that once it falls, it will be hard to rise again," said Li Shangfeng. "It's hard to build up emotions, but it's very easy to collapse."

Wang Shujie smiled and said, "No, as long as there is strong enough underlying logic and expectations, the market will be able to recover quickly after the correction. After all, the positions of many major institutions in the industry are still obviously insufficient on the core theme of 'big infrastructure'.

Faced with performance pressure in the second half of the year, they have the need to continue to increase their holdings.

At the same time, looking at the entire market, the industry fundamentals and underlying logic of the core theme of "big infrastructure" are continuously strengthening.

Since the underlying investment logic continues to strengthen, it means that expectations for future stock price increases are still strengthening.

In this way, there will naturally be sufficient momentum for stock prices to rise.

I can say with certainty that after the 'big infrastructure' line is adjusted downward, it will definitely explode again and quickly surpass the previous high point.

At present, housing prices and the real estate market in major cities across the country have shown signs of a full-scale outbreak.

In this case, all companies related to the entire real estate industry chain will benefit from it, and the value of related listed company stocks will also be significantly improved.

In general……

At this stage, with the decline in stock prices in the main area of ​​"big infrastructure", the cost-effectiveness is getting higher and higher.

At this time, we just need to maintain a certain degree of patience and wait for the market to adjust and retrace to end. When there is a significant reduction in volume, we can continue to increase our positions. "

"Okay." Li Shangfeng said, "I think so too."

While the two were discussing...

At this moment, on the entire network's stock investment discussion platform, the views held by major retail investor groups are far less optimistic than those of institutions.

"Shit, it's over. This trend... there will be a one-sided sell-off this afternoon."

"The entire market hotspot has been wiped out. The main line of 'big infrastructure' is a pure money-losing effect, and the line of 'oversold rebound' is also over. I originally thought that the liquor, white goods, pharmaceutical, consumer, and financial sectors could be used as a hedge, but now it seems... there is no way to hedge, and it has collapsed along with the market."

“The consumption, medicine, finance, liquor, and white goods sectors can’t be considered a collapse, right?”

"It's only a matter of time. The buying volume of these sectors has obviously weakened near the midday close."

"When the nest is overturned, all the eggs will be broken. When the market is in a one-sided decline, where can we find any safe havens except short positions? What's more... In my opinion, the valuations and absolute stock prices of many core stocks in the consumer, pharmaceutical, financial, liquor, and white goods sectors are not cheap. If these corresponding stocks were not supported by institutional funds, I believe that their trends would not be fundamentally different from those of stocks in the oversold main sectors such as Internet software, film and television media, electronic information, and new energy industry chains."

"That's right. If it weren't for the support of many core stocks in these defensive sectors and the concentrated support of institutions, the Shanghai Composite Index would probably be around 2000 points now."

"So, the current market's investment cost-effectiveness is really not high, and the so-called support is not solid either."

"It seems that I still can't hold a large position. It seems that the market has not yet gotten rid of the weak and volatile market situation. In the future... it may be better to participate with a light position."

"Is there any hope for the 'big infrastructure' line? My position is fully invested in the stock 'Poly Real Estate'."

"For the 'big infrastructure' line, if 'Hua Yi Capital' headed by President Su does not reduce its holdings and still maintains a heavy position, I feel there is still a chance. Even if the short-term and medium-term market peaks, there is a high probability that there will be a double top, so if you are temporarily trapped, there is no need to worry."

"How are the leading stocks of 'big infrastructure' like 'Poly Real Estate' doing? The stock I bought of 'Capital Group' is really bad. It has adjusted back by nearly 20 points in three days. Really... It didn't rise so fast, but it didn't hesitate at all when it fell."

"Alas, it is so difficult to make some money in the stock market."

"It's not just difficult, it's as difficult as ascending to heaven!"

"The key is that there was a wave of buying at the opening this morning. It's really disgusting. I bought this morning but can't sell it. I can only watch the market and the stocks I hold fall all the way."

"Indeed, I didn't understand the wave of inducement to buy in the morning."

"In fact, at the end of yesterday's trading, funds flowed back from the 'oversold rebound' line to the 'big infrastructure' main line, but no long-term force was formed. We should have thought that the market trend today would not be good. What a pity... In the morning, the opening sentiment of the two markets was good, and individual stocks generally showed a trend of recovery, but I still wanted to buy positions."

"I don't think there's any negative news. The US stock market was doing well last night. I don't understand why it suddenly became like this."

"When it rises too much, it falls; when it falls too much, it rises too much. Isn't this normal?"

"The key is where the increase has occurred? In terms of the market's 'oversold rebound', have the main sectors such as film and television media, Internet software, electronic information, and new energy industry chains increased recently? The rebound lasted only two days, and it has fallen back in half a day. Even in these sectors, many stocks have hit new lows again at the close of today's noon. This is called a rebound? It can't even be called a weak rebound!"

"In a weak market, except for the most core main line, other market main lines have no market trend at all."

"Isn't the 'big infrastructure' line the most important theme in the current market? Today, aren't the stocks in the entire 'big infrastructure' main line still falling indiscriminately and collapsing across the board?"

"That's still different. The core theme of 'big infrastructure' has increased a lot in the past."

"In comparison, the trends of the main themes of Internet software, film and television media, electronic information, etc., which are biased towards the ChiNext Index, are indeed much worse than the main themes of 'big infrastructure', as well as the pharmaceutical, consumer, liquor, white goods, and financial sectors that are supported by a large number of institutions."

“As I said long ago, the market’s investment style has shifted to large-cap stocks.”

"The key is that the current position of large-cap blue chip stocks and blue chip stocks with good performance is very awkward. It is impossible to find a buying point. After more than half a year of continuous speculation by institutions, the stock prices of many stocks have returned to the halfway point of last year's bull market. Even stocks like 'Qianzhou Moutai' have hit new highs and completely recovered the lost ground in last year's bull market. At this high level... I really can't bear to buy heavily."

"There's nothing to be ashamed of. In the stock market, you have to understand one thing: the cheaper something is, the less good it is. It's said that many of the core leading stocks in the liquor, pharmaceutical, white appliance, financial, and consumer sectors are hyped up by institutions, but in fact... the performance of the core leading stocks in these sectors is indeed good, and the performance is indeed showing an explosive growth trend."

"When did our Big A surpass its performance?"

"It didn't happen before, but it doesn't mean it won't happen in the future. I feel that the investment style of the market is also obviously cyclical. Looking back at the previous two bull markets, when the market soared in 07, it was the big finance, big infrastructure, and nonferrous metals that took the lead. Even the share prices of the four major banks increased several times. In 15, which was last year, it was the Internet software and electronic information sectors that took the lead, with the largest increase... Now I feel that the market investment style seems to have returned to the initial blue chip weight speculation."

"With such a lack of market liquidity, can blue chip and white horse stocks continue to rise?"

"I think it is possible. With many institutions helping to lock positions, it is actually not difficult to pull up these blue chip and white horse stocks. Even many blue chip and white horse stocks with a market value of 20 to 30 billion yuan can be pulled up with less effort than many small and medium-sized concept stocks with a market value of 30 to 50 billion yuan and heavy locked-in positions."

“What is style or not, if you ask me…it all depends on what the main funds in the market do.”

"Blue chip and white horse stocks are definitely more stable, but in terms of flexibility, they are much worse than small and medium-cap concept stocks."

"I've already lost 50% so I don't mind losing 20% ​​more. I'll just stay in the Internet software sector and hold the check from 'Netspeed Technology'."

"Speaking of the check for LeTV, is it considered a blue chip, a white horse, or a concept stock?"

"LeTV should be considered a concept stock, right? Anyway, I think the recent trend of this stock is consistent with the trend of other concept stocks, but it has little correlation with the trend of the blue chip and white horse stocks on the main board."

"What's so good about LeTV? Why does it seem so popular and has so many people holding it?"

"It's just the financial big names on various platforms who are hyping it up. Anyway, I don't understand this stock and I won't buy it."

"Is there still strong expectation and logic for the LeEco check in the future? I feel the subsequent performance of this check will not be bad either."

"Isn't the main line of 'big infrastructure' the one that the market expects to be the most certain at the moment?"

"The main theme of 'big infrastructure' has fallen like a dog, and you are still bragging about it?"

"Which main trend in the market is not falling like a dog? As long as Mr. Su has not opened a position, I think it is better to hold firmly. Moreover, although the market index fell today, it did not break. If the sentiment in the market can be stabilized in the future, a strong recovery of the market is also possible."

"There's no need to be overly pessimistic in this position, right?"

"But it's obviously not optimistic. The main line of 'big infrastructure' should have strengthened yesterday, but it didn't. Since it can't go up, it has no choice but to continue to go down."

"Well, let's wait and see the adjustment. Today's volume exploded, which gave me a very bad feeling."

"Yes, a huge drop in volume means it will continue to fall!"

“Shouldn’t a huge volume be a good thing? It means that the amount of passive funds in the market is increasing. It would be a bad thing if the volume shrank, right?”

"Then we can see the situation of explosive and shrinking volume. It is hard to say how the market will move in the future. Let's wait and see the feedback from the market trend in the afternoon."

Along with the heated discussions among countless retail investment groups on online stock investment exchange platforms...

During the entire lunch break.

The market's pessimism and panic continue to deepen and spread.

This resulted in the two markets reopening for trading at 1 p.m. after a one and a half hour break.

The major market indices fell rapidly without any pause and continued to plummet. As the indices fell rapidly, the trading volume continued to increase. Popular sectors that many investors paid attention to, such as film and television media, Internet software, electronic information, new energy industry chain, real estate development, architectural decoration, building materials, nonferrous metals, steel, coal, etc., still showed a unilateral downward trend.

And as market sentiment further deteriorates...

Defensive sectors such as liquor, white goods, medicine, finance, and consumption could no longer hold on and began to fluctuate and fall in large volumes.

At 1:07 p.m., "China Capital Group" hit the lower limit, and the entire real estate development index sector fell 2.47% on the day.

At 1:12 p.m., LeTV plunged 5%, almost wiping out all the rebound gains of the previous two days.

At 1:15 p.m., "Qianzhou Moutai" turned from rising to falling, and the entire liquor index sector also turned from red to green.

At 1:18 p.m., the Shanghai Composite Index fell 1% during the day, while the ChiNext Index fell 1.62%.

At 1:23, "Shenhuo Co., Ltd." hit the limit down. A number of previously popular concept stocks on the "big infrastructure" main line, including "Pingmei Energy", "Tianshan Cement", "Beijiang Communications Construction", "Capital Group", "Yu Development", "Bayi Steel", "Linggang Co., Ltd.", etc., all fell by more than 5% at this time.

At 1:27 am, only the banking, insurance and pharmaceutical sectors in the two cities maintained a slightly positive trend.

At 1:31, the number of stocks that fell in the two markets reached more than 1700, and the market began to show a completely unilateral downward trend. Panic selling began to increase rapidly in various hot stocks and core concept stocks. At the same time, the explosion of trading volume also began to increase step by step.

"Oh my god...it's a one-sided plunge!"

Seeing that the bulls had no resistance on the market, Li Jinshi, one of the main speculators of the "Fushan Group", stared at the changes in the market with his eyes, somewhat surprised, and said: "Without any negative news, the short-term profit-taking and the loosening of the locked-in selling pressure can suppress the market to this extent. It is outrageous. I feel that if this continues... the bullish sentiment in the market will completely collapse. It will be troublesome to repair it later."