Rebirth of the Capital Legend

"It's nothing strange." Chen Guiyun responded in the group, "The index originally had no support at this position. It's normal to go up or down. Yesterday's intraday surge in the ChiNext Index was only driven by a short-term rebound in the oversold main lines of the Internet software, electronic information, film and television media, and new energy industry chains. There is no underlying core logic support. Naturally, once sentiment weakens a little and profit-taking flees, the index will return to its original path."

"It is normal for the ChiNext Index to retreat," said Li Jinshi. "In this year's market trend, the ChiNext Index has always been weaker than the Shanghai and Shenzhen indices. I just didn't expect that the 'big infrastructure' line, with strong underlying logic support and strong expectations of explosive performance, could still fall so sharply today after having already retreated a lot in the past two days.

This shows that even if the underlying logic is strong, expectations for future performance explosion are strong.

Compared with the real estate market, investors in today's stock market generally lack confidence and are generally pessimistic about future market trends.

But it’s a little strange…

Judging from the market trends, the investment sentiment in the market is obviously very low, and everyone's confidence in the future market is obviously insufficient.

However, today the market is continuing to adjust downward, which can be described as a unilateral downward trend. The volume is indeed increasing step by step, which shows that there are still many capital groups that are passively taking over the continuous selling in the market.

Logically speaking, with the collapse of sentiment in the market, the market trend should be the same as before, and even if there is a sharp drop, it will be difficult to release volume.

But now, at least in terms of volume performance, it is obviously different from before.

This makes me feel that although the sentiment in the market is currently low, it has been stimulated by the previous wave of continuous rising prices in the main line of "big infrastructure".

There is still potential for long positions in the market, and there is a lot of potential long funds.”

"Most of the passive buyers should be institutional funds, right?" Chen Guiyun said. "Moreover, in the unilateral downward trend of the market, the stocks that seem to have some resistance are mostly institutionally-led core weight and blue chip performance core stocks. Other small and medium-cap concept stocks are basically still showing a trend of unlimited plunge. There are few passive or active buying funds, and the selling force on the market has not weakened as the market trading time goes by."

"This shows that the overall investment style of the market has indeed changed." Liao Guoxiang, who also closely watched the changes in the market and pondered for a while, said, "Looking at the trend of related stocks, the active hot money in the market has completely lost its pricing power, and the stocks that retail investors are willing to follow suit are mostly concentrated in the main line of institutional investors."

"That's true." Li Jinshi nodded and continued, "The small and medium-cap concept stocks in the market basically all showed an unresistance downward trend, while the core leading stocks in the main line of 'big infrastructure', as well as some core leading stocks in defensive sectors such as liquor, white appliances, medicine, consumption, and finance, showed much smoother trends, and during the decline, there were also signs of passive buying intervention."

"It is clear that the 'oversold main line' market trend that broke out in the past two days is a pure bull market." Chen Guiyun said, "It is said that when the tide recedes, you will know who is swimming naked. With the adjustment of the unilateral decline of the market, it is clear which core main line sectors are strong and which are weak. It is also obvious which main line areas the overall investment style of the market is mainly concentrated in."

"From the market trend, the passive acceptance of funds in defensive sectors such as liquor, white goods, medicine, consumption, and finance is definitely the strongest." Li Jinshi said, "But when it comes to specific stocks, it feels that in the main line of 'big infrastructure', the leading stocks that truly have underlying core logic and strong future expectations should be the ones with the strongest resistance in the weak market. It can also be seen that in the correction of these stock prices, a lot of passive buying funds have intervened."

He believes that the entire market is in a unilateral downward trend.

Stocks that truly have potential for layout and can quickly emerge to rebound when the subsequent market correction ends and stabilizes.

It's not the stocks that seem to be able to reverse the market and stubbornly remain in the green at this moment, but those stocks that have obvious resistance in the process of following the index decline and have passive and continuous buying.

There is no doubt that this phenomenon occurs most frequently in the core leading stock areas of various sectors headed by the "big infrastructure" main line.

In other words, potential passive buying action during the market's downward trend.

It is foreseeable that after the subsequent market adjustments are over, the main line of "big infrastructure" will most likely once again serve as the market's main task and form a counter-attack trend.

Of course, this also indirectly points out the direction in which he should build his position.

"For defensive sectors such as liquor, white goods, medicine, consumption, and finance, institutions are too close together, and the internal chip structure is complex, and the relative position is not low." Liao Guoxiang took over and said, "These defensive sectors, although they have the support of institutional main funds, can't fall much, but if they want to rise, the space in the short and medium term is also extremely limited. Simply put... it is difficult to form a three-party long-term force among institutions, hot money, and retail investors.

On the other hand, the core theme of "big infrastructure"...

The recent adjustments are relatively sufficient. In addition, institutions have not yet completed their final positions in this main field, and the internal chip structure is relatively clean.

So, with strong underlying logic and the support of expectations for explosive performance in the future.

It is very easy to attract concentrated bottom-fishing from all walks of life, presenting a resistant downward trend.

Just talking about the "big infrastructure" line, I think it is time to take advantage of the bad market sentiment, when there is a serious outflow of profit-taking, stop-loss and trapped shares.

A large-scale killing creates a pit, which is beneficial to the rapid re-gathering of the internal chip structure.

It can also shorten the overall adjustment time of the core theme of "big infrastructure."

"Haha, I think so too." Li Jinshi laughed and continued, "The real estate market in major offline cities and the entire national real estate market are so hot. I heard that you have to queue up for a lottery to buy a house now. This is an extremely hot effect.

It is almost certain that in the next one or two years, companies related to the real estate industry chain will see a huge explosion in performance.

Originally, in the current main line of "big infrastructure", the valuations of the corresponding core leading stocks in core sectors such as real estate, building decoration, building materials, steel, coal, and nonferrous metals appear to be very underestimated.

It is simply because there are too many trapped shares accumulated previously, and with limited market liquidity, there is no way for the price to go up in the short term.

But this just creates a huge expectation gap for the subsequent market to explode again.

I am sure that after this wave of market adjustments is over and the chip structure of the entire "big infrastructure" main line field is re-consolidated, the subsequent market explosion will most likely exceed the previous wave.

Moreover, there is a high probability that an upward breakthrough trend will be formed, led by the core leading stocks within the main line.

As the money-making effect of the 'oversold rebound' line has rapidly receded in the past two days and the losing effect has condensed, it is almost certain that the path of concept speculation will become increasingly difficult in the future, and related concept speculation will probably become increasingly difficult to gain recognition from the many retail investors in the market and form a consistent follow-up effect.

After all, for most of this year...

Almost every time a concept hype market comes together, there is no good result, and it basically shows an A-killing trend.

On the other hand, the follow-up institutions are heavily invested in core blue-chip stocks and there is also a group of investors who invest in high-performance blue-chip stocks.

As the market continues to shrink and fall.

However, it obtained very good investment returns and easily and comfortably outperformed the market index.

Such a phenomenon and such a money-making effect will continue to spread rapidly as the short-term market ecology further deteriorates.

It will also further gain recognition and continued following from a large number of retail investors.

What's more, even Mr. Su from Huayi Capital, who was previously crazily pursued by most retail investors in the market, has abandoned short-term thinking and turned to the "value investment" camp.

Then the market investment style of chasing weighted stocks and performance stocks will naturally become more and more intense.

The overall investment trend of the market has completely changed, which is completely predictable."

"Old Li, your investment thinking has changed a little too quickly." Chen Guiyun smiled and responded, "From what you said, are you determined to continue to invest heavily in the core leading stocks in the main line of 'big infrastructure'? Are you no longer doing short-term trading and hyping up concepts?"

Li Jinshi said: "It's not that we don't speculate in the short term, but under the current market trend and the guidance of major funds, it is better to focus on core leading stocks to make money than to speculate in concepts. No matter when, we have to follow the market development trend and embrace the trend to make money, right? Since the market trend has changed and a new outlet has been formed, there is no reason for us to stick to the previous trading model and not change it, right?

The so-called complacency and reversing market sentiment and market trends are the source of losses.

Since the main institutional capital groups have already gained control of the market, and the retail capital groups in the market are much more willing to follow the institutional seats than to follow the hot money seats, can't we just follow the institutions?

Anyway, as long as I can make money in the end, I don’t care what trading model I use.”

"That's true." Chen Guiyun nodded slightly. "It doesn't matter whether the cat is black or white, as long as it can catch mice, it is a good cat. The financial market is based on results. As long as it can continue to make profits, any trading model is a successful trading model. It's just that the buying point of the 'big infrastructure' main line..."

"I feel like it's almost time to buy." Li Jinshi saw that the Shanghai Composite Index had plunged 2% as it approached 2 o'clock, and that a number of core leading stocks in the main line of 'big infrastructure', driven by concept stocks, had also hit their lows in the past week, with declines of around 3% and 4%. He couldn't help but say, "Most of the institutional groups in the market should still have insufficient positions in the main line of 'big infrastructure'. In other words, most of the institutions in the market should still have a continuous demand to buy and build positions in the core leading stocks in the main line of 'big infrastructure'. In this case...then these core leading stocks are unlikely to fall too far.

At present, these stocks have generally fallen back by about 15% compared to their highs.

I feel it's almost time to build positions in batches to buy at the bottom.

Of course, this is just my personal opinion. As for how the stock prices of these stocks will go in the future, we still have to respect the market and the concerted efforts of all parties’ funds.”

"Since we have determined that after the market adjustment, the core theme that will inevitably emerge as the main task is 'big infrastructure', and we have determined that the investment trend of the market, and even the willingness of the vast majority of retail investors to follow suit, are all moving in the direction of institutional-led shareholding, then..." Liao Guoxiang took over and said, "According to the batch building model, it is completely possible to carry out low-buy operations. Moreover, I feel that although the market trend today is fierce, the volume has been released, and the panic selling has been cleared very quickly.

The profit-taking accumulated in the previous period, the loosened trapped positions, and the stop-loss orders that chased high prices were cleared out quickly.

Then, the time for natural market adjustments will be shortened rapidly.

Moreover, although the market does not have an effective support platform at this position, overall, it has benefited from the two-week short squeeze trend of the previous "big infrastructure" main line.

The index also broke through the pressure level and formed an upward trend.

Once this trend is formed, it will not fall back easily in a short period of time.

Therefore, I estimate that the time for market adjustment is likely to be shorter than what most investors inside and outside the market expect at this moment, and this is obviously a benign adjustment.

In general, it is not risky to buy at the bottom and catch the falling knife here. "

"Since both of you said so..." Chen Guiyun responded, "Then it is most likely correct. Let's buy at the bottom. I like to buy at the bottom."

After saying this, without waiting for the two to respond, he used the funds in his account.

They began to aggressively buy the bottom of core leading stocks in the main area of ​​"big infrastructure", such as "Poly Real Estate", "Kewan Real Estate", "Gemdale Group", "China Construction", "Conch Cement", "Shenhua Coal", "Huaxin Building Materials", "Oriental Yuhong"... and other core leading stocks that are key holdings of institutions and have strong resistance to market trends.

Moreover, along with the entry of several core major speculators of the "Fushan Group" to buy at the bottom...

When the trading time reached after 2:20 pm, that is, when the Shanghai Composite Index hit a low of 2.49%, more sensitive and smart capital groups inside and outside the market began to rush into the market to buy at the bottom, focusing on taking over the core stocks in the "big infrastructure" main line that had fallen to the recent low.

So, when more and more funds for bottom fishing come in.

After 2:30 p.m., when the market trading time enters the last half hour of the closing period.

The bullish and bearish forces within the market began to gradually reverse, and the index gradually narrowed its decline with the entry of a large amount of bargain-hunting funds and continued follow-up buying.