Rebirth of the Capital Legend

However, while the index's decline has gradually narrowed due to the entry of bargain-hunting funds, the oversold main sectors that have rebounded sharply in the past two days, such as Internet software, film and television media, electronic information, and new energy industry chain, have not seen a clear bottoming out rebound. Instead, the selling pressure on the market is still intensifying.

"It feels like a lot of money is buying the stocks of the 'big infrastructure' main line at the bottom." At 2:35 p.m., in Shanghai, Sino Private Equity Fund Company, 'Sino Future No. 1' Fund Product Trading Room, Fund Trading Team Leader Huang Qingyun was closely watching the changes in the two markets, especially noting that the 'big infrastructure' main line sectors that originally led the market decline were all rebounding rapidly. He couldn't help but say, "It seems that the many popular weighted stocks of the core main line of 'big infrastructure', as well as a number of industry leading stocks, have really strong potential buying power and are obviously unable to fall!"

Hearing Huang Qingyun's words, Men Xingtao, the product manager of the 'Sino Future No. 1' fund, who was standing next to him and also keeping a close eye on the changes in the market trends of the two markets, responded: "The strong underlying logic and the expected explosive performance in the future have provided strong support for the stock price of the core theme of 'big infrastructure'.

At the same time, due to the rapid rebound in the previous wave of the core theme of "big infrastructure" under the guidance of "Huayi Capital", many slow-reacting major institutional funds in the industry did not have time to enter positions at the bottom.

In addition, there are many groups of investors in the market who blindly follow the trend of the institution "Huayi Capital".

It is no problem to say that the potential buying on the 'big infrastructure' line is the strongest among all the main lines in the entire market.

There is such strong potential buying.

Naturally, when the stock prices undergo drastic adjustments, there will be no shortage of funds to buy at the bottom.

In fact, looking at the entire market, only the "big infrastructure" line can gather the market's bullish sentiment and drive the market index. Other main lines have proven difficult to form a consistent bullish force for various market funds in the past few days, so at this time...

Various fund groups in the market have once again converged on the main line of "big infrastructure" to carry out large-scale bottom-fishing.

It is also completely logical and expected.”

"Yes, that's true." Huang Qingyun nodded and continued, "But looking at the trends of many core stocks in the entire main line of 'big infrastructure', it feels like the correction is still not enough, not to mention the time for the correction. I always feel that the adjustment time and adjustment space here are not sufficient. It's a bit too early to intervene at this time? In any case... I feel like we have to wait until the market shrinks again and the overall chip structure stabilizes before there is a possibility of restarting the upward trend, right? With the current market volume and investment confidence, it stands to reason that it doesn't make sense to go back directly."

"Who knows whether this is the short-term bottom of the adjustment of the core theme of 'big infrastructure'?" Men Xingtao smiled and said, "But in terms of the fundamentals of the entire 'big infrastructure' theme, the actual valuation of many core leading stocks, and the expected future performance explosion, we know that even if the stock prices of many core leading stocks in the core theme of 'big infrastructure' do not fall back, their investment cost performance is also very high. These core leading stocks also have great potential for continued growth.

Since the current share prices of these core leading stocks are obviously undervalued.

And in our expectations, it is highly likely that it will continue to rise in the future to repair its undervalued valuation.

Therefore, there is no need for us to over-predict the short-term trend of the market or be too swayed by the short-term sentiment of the market. We just need to be optimistic about the future general direction and industrial development trends.

According to the future industrial development trend...

There is no doubt that the 'real estate industry chain' still has a large wave of golden development opportunities, and if the macro-development strategic plan of 'New Era Road and Maritime Silk Road' can continue to be implemented, then the vast space for 'big infrastructure' in the future will be far from reaching its peak.

In addition, market investors previously had various prejudices against traditional industries.

This means that after the fundamentals of the entire "big infrastructure" main industry have improved significantly, there is a huge expectation gap here.

On the whole, since it is very cost-effective to continue increasing holdings at the current position, we don't need to care about changes in short-term sentiment, but just keep a close eye on industry development trends and changes in expectations.

Even if this is not the short-term bottom, even if the subsequent "big infrastructure" main line still has relatively large shock adjustments.

As long as the underlying logic exists and there is a strong expectation of future performance explosion.

Then, reflected in the stock price, it will rise back up just as quickly as it fell.

According to this logic, a short-term cost disadvantage will not have a big impact. As long as the general direction is correct, you will be able to make money sooner or later. "

After listening to Men Xingtao's analysis, Huang Qingyun thought about it for a moment and understood what he meant. He responded, "Then according to Mr. Men's meaning... we should continue to increase our holdings of leading stocks in the core theme of 'big infrastructure'. We don't have to wait for the more drastic adjustments that may occur in the market later. We can directly buy at the bottom at this position to increase our fund's holdings in the core theme of 'big infrastructure'?"

Men Xingtao nodded and said, "That's what I mean. I think we are not market speculators, and we are not making money from the emotional premium in the market development of one or two days. There is no need to worry too much about the purchase cost of one or two days. As long as we don't buy too expensively, and the fundamentals continue to improve, and the expectations for future performance explosion continue to increase, then it's fine.

In the mid- to long-term thinking logic...

If you blindly pursue the best buying point and the best holding cost.

It is very likely that you will miss the opportunity to participate in the market, which will lead to missing out on bigger market opportunities and causing greater transaction costs and friction.

In my opinion, we should have a correct mindset in trading.

That is the time to buy. It is not a point, but a relatively wide range.

When we are trading, we must give ourselves enough tolerance and there is no need to pursue excessive precision.

You said that based on the current market trends and volume feedback, there is no reason for the entire "big infrastructure" main line to go back directly and continue to break through.

But what if, with sufficient potential buying support, it really goes back in a V-shape beyond expectations?

Then we will not intervene at this time and will not take the opportunity to further increase our positions.

It will be difficult to find a better buying point later. Moreover, for a core line like this that has strong underlying logic and future expectations as support, once the market sentiment picks up and the funds in the market once again form a consistent long position expectation, the market will rise quite quickly.

If you fail to keep up accidentally, it will be difficult to keep up later.

Just like the first wave of the main line of "big infrastructure", it continued to squeeze out for two consecutive weeks.

So in the continuous short squeeze trend, the group of investors who have been waiting for the "big infrastructure" line to pull back and step back to the support level when it broke through before intervening in the position, the final result is not to miss out completely, but to chase at a higher position in the end?"

"What Mr. Men said... does make some sense." Huang Qingyun pondered for a while and responded, "In investment, sometimes it really pays to have a vague correctness."

"And there is never a shortage of smart money in the market." Men Xingtao paused and emphasized, "So many big funds, at this time, facing the plummeting market trend, are buying the core leading stocks of the main line of 'big infrastructure' on a large scale, and spending huge amounts of money to take on the selling pressure of profit-taking, stop-loss, and loosening of locked-in shares in the market. Is it just to lose money?

In the financial trading market, the most taboo thing is to speculate on trends and fantasize.

The most important thing is not to be smart.

Since the market trend has given a signal, we have also found that a large amount of funds are bottom-fishing the core leading stocks in the main field of "big infrastructure".

Then we have to respect the market trend, respect the development and changes of the market, follow the trend and chase the development trend. "

Huang Qingyun nodded firmly when he heard this and said, "Boss Men, I understand. I will immediately ask the traders to continue buying into the main line of 'big infrastructure'. We will focus on holdings and buy multiple core leading stocks with strong bottom-fishing capabilities by large funds, further increasing the holding weight of our fund products in the main line of 'big infrastructure'.

After saying this, he did not wait for Monxingtao to give further instructions, and immediately issued corresponding trading instructions to the traders behind him.

When his order was completed...

In the market, the industry sector index trends related to the "big infrastructure" main line have quickly recovered nearly 1 point of decline.

Among them, popular core leading stocks such as Shenhua Coal, Conch Cement, Huaxin Building Materials, Oriental Yuhong, Poly Real Estate, China Merchants Shekou, and Gemdale Group have shown a trend of rebounding with the intervention of a large number of bargain-hunting funds.

Moreover, the three core leading stocks with slightly smaller circulating market volumes, namely 'HuaXin Building Materials', 'Oriental Yuhong' and 'Golden Land Group', were pushed up to a positive trend by the bottom-fishing buying funds in just over ten minutes, basically repairing all the intraday losses.

Of course, with a lot of bargain hunting funds...

The main defensive sectors such as liquor, white appliances, medicine, consumption, finance, etc., which are heavily supported by institutions, and their related core leading stocks, also have some local movements at this time, but the magnitude of the movement and the signs of big funds buying at the bottom are not as obvious as those of the "big infrastructure" main line.

"It seems that the first choice of bargain hunting funds is still on the main line of 'big infrastructure'." Noting that the bottoming rebound of the main line of 'big infrastructure' was the most powerful in the late trading of the two markets, Zhao Zhiyuan, one of the main speculators of the 'Qilu Gang', said with emotion, "After many speculators took profits and fled, the 'oversold rebound' line seems to have been completely abandoned by funds on and off the market. In the main line of 'big infrastructure', liquor, white appliances, medicine, consumption, and finance have all rebounded from the bottom, and bargain hunting funds have obviously intervened. However, these oversold main lines did not even have a weak rebound, and in various sectors, the net outflow of large funds has not shrunk at all with the intervention of bargain hunting funds, but has expanded. It's simply outrageous. Fortunately, we saw that something was wrong and decisively stopped profit and ran away... Otherwise, this wave would have been buried."

After hearing Zhao Zhiyuan's complaints, Zhang Wei carefully observed the market trends of the two markets and responded: "As I said before, in a bear market, market liquidity is not sufficient, there is no strong enough expectation of fundamental reversal, no strong underlying logic and expectation of future performance explosion, no recognition and guidance from the main funds of many large institutions in the industry, only the main line of the concept, it is difficult to come out again, and it is difficult to get the unanimous long-term force of many fund groups in the market.

This also shows that the various capital groups participating in market transactions are becoming smarter.

It also shows that the current trading ideas and investment styles in the market are completely different from those in the past when the concept was hyped. It is difficult to make money if you still use the old thinking to speculate in stocks. "

"Old Zhao is right." Liang Jiucheng responded, "A-shares always like to make a sharp turn from one extreme to another. After institutions have taken control of the market trend, especially after the retail investors' investment thinking has gradually changed, it is really difficult to make money by speculating on concepts and small and medium-sized stocks. It is indeed time for us to completely change our trading thinking and follow the institutional funds to speculate."

"The root cause is still the problem of liquidity, right?" Zhao Zhiyuan said. "In a bear market, the overall market liquidity is scarce, and retail investors have little desire and enthusiasm to participate in speculation. However, due to regulatory restrictions, institutions must maintain sufficient positions in a bear market. This naturally shifts the dominance of market trends from hot money and retail investors to institutional main funds."

"I don't think we need to care about or discuss the fundamental reasons for this change in investment and speculation style," Zhang Wei said. "It is more important to identify opportunities, see the future direction of market trends, and intervene in time to make money. Since there are signs of big funds intervening based on the market trend... From all indications, the big funds in the market are still building positions around the main line of 'big infrastructure'.

Then, we can naturally hype and make a profit around the core theme of "big infrastructure".

I feel that today's market crash and adjustment is a good buying point.

However, this buying point is not in the small and medium-cap concept stocks that have adjusted most fiercely, but in the core weight leading stocks that seem to be relatively resistant to declines. "

"Yes, it's not that the more it falls, the greater the chance of a rebound." Liang Jiucheng said, "Since the big funds in the market have made their choice and pointed out the direction for everyone, and the core theme of 'big infrastructure', whether it is from the perspective of the depth of big funds' involvement, the logic of fundamental transformation, the expectation of future performance explosion, the strength of retail funds following the trend... and other factors, there is still a lot of room for speculation and expectation. Then there is no need for us to hesitate. Taking advantage of the market's sharp decline and adjustment, taking back the chips of the 'big infrastructure' main line stocks that were sold before is the correct operating idea at present."