Rebirth of the Capital Legend

"Okay." Zhao Zhiyuan responded immediately after hearing Liang Jiuchen's words, and said, "We still have to focus on the core main line of the market. I have always felt that film and television media, Internet software, new energy industry chain, electronic information... these oversold main lines are difficult to form a big climate. Sure enough... After rebounding for two days, it all fell back today, and many stocks even continued to hit new lows.

The core theme of "big infrastructure" is still more resilient.

With the main funds of large institutions, Mr. Su of "Huayi Capital", and many other fund groups inside and outside the market following suit and going long, it is very difficult to adjust to a very deep range.

But after a few days of adjustment...

It seems that the main funds in the market are more focused on individual stocks in the main field of "big infrastructure".

Previously, the active buying volume and trend strength of second-tier blue-chip stocks such as Greenland Group, Huaxin Cement, Shougang Group, Yanzhou Coal Mining, etc. were obviously not as good as those of first-tier blue-chip stocks such as Poly Real Estate, Kewan Real Estate, Gemdale Group, Conch Cement, China Construction, Shenhua Coal Mining, etc.

This shows that the main capital groups in the market give priority to building long positions.

Obviously, I am more optimistic about the performance of the core leading stocks of each industry sector. I think...if we want to quickly build a position, we have to start from this aspect. "

"Looking at the active buying on the market, there is indeed such a phenomenon." Zhang Wei nodded in response, "Old Zhao, which stock do you think is suitable to focus on?"

"Let's take the Gemdale Group," Zhao Zhiyuan said. "This stock has high market recognition and is also a core weight leader in the real estate sector. In addition, compared with other core weight leaders, its market cap is not particularly large. At the same time, institutions do not have complete control over this stock, so it is beneficial for us to intervene and guide its trend."

"Okay." After hearing Zhao Zhiyuan's choice of target stock, Liang Jiucheng pondered for a moment and nodded in response, "Then let's start with this stock."

After saying this, without waiting for the two to respond, he started using his own financial account.

They were aggressively buying up and building positions in the stock of "Golden Land Group".

At the same time, as he swept up the stocks and built up positions, Zhao Zhiyuan and Zhang Wei quickly followed suit and invested large sums of money in the stock market of "Golden Land Group".

When several large funds were injected into the stock of "Golden Land Group" at the same time.

Even though the circulating volume of this stock is in the tens of billions, in an instant, due to the imbalance of buying and selling power on the market, its stock price quickly rose under the sudden surge in active buying power. In just one or two minutes, it jumped from underwater to red.

And when 'Golden Land Group' quickly pulled up from deep water and turned red.

The entire real estate development sector, including the main buying funds concentrated on related real estate stocks such as Poly Real Estate, Kewan Real Estate, China Merchants Shekou, Greenland Group, Beijing Capital Group, Financial Street, Sunac China..., also moved suddenly, accelerated their buying pace, and began to work together to push up the share price of this stock.

Therefore, at 2:37 pm, under the influence of all this buying funds, the real estate development sector index successfully reversed into a V-shape and turned positive from its intraday low of nearly 3%.

However, the real estate development sector turned red due to the influx of bargain-hunting funds.

In the entire "big infrastructure" main line area, traditional industry sectors such as construction decoration, building materials, steel, coal, nonferrous metals, petroleum, and chemicals, which are highly correlated with the trend of the real estate development sector, have also ushered in active and strong buying, and the corresponding industry sector indexes have also shown a rapid rebound and rise.

Then, right after that…

At 2:41 p.m., the decline in the two major index sectors of building decoration and building materials shrunk to less than 1%. At the same time, related concept stocks such as "Huaxin Cement", "Tianshan Cement", "Huaxin Building Materials", "Oriental Yuhong"..., under the influence of strong bottom-fishing, achieved a V-shaped reversal and successfully turned red and rose.

At 2:44 p.m., the decline of the Shanghai Composite Index also narrowed to less than 1%, but the decline of the ChiNext Index was still in deep water at this time, and the market fell by 2.33%, with almost no decent rebound. The Internet software, electronic information, film and television media, new energy industry chain, and other main sectors of the market that are highly correlated with the ChiNext Index, did not show any obvious movement. It seems that the main scope of the on-site funds and bottom-fishing is completely concentrated in several traditional industry sectors with the "big infrastructure" as the main line.

At 2:47 p.m., "Gemdale Group" rose by more than 3%, with the intraday fluctuation approaching 10%.

At 2:49 p.m., Oriental Yuhong's share price rose by 2%, and with an extremely strong attitude, it reversed yesterday's adjustment losses.

At 2:50 p.m., the coal and nonferrous metals sectors turned positive and rose.

Subsequently, in the last ten minutes of trading before closing, the entire "big infrastructure" main line rebounded faster and began to siphon buying funds from other main lines in the entire market. This also led to the Internet software, film and television media, electronic information, new energy industry chain, etc., which were originally rarely attended by major buying funds, and the low-level oversold main line sectors became even weaker.

Finally, when 3 o'clock in the afternoon arrived, the two markets closed.

The Shanghai Composite Index retreated to 0.57%, while the ChiNext Index still closed down at 2.19%.

Among them, the A50 index performed the strongest and almost closed at the same level.

After the market closed, facing the market trends of the two markets...

The vast group of retail investors gathered on the entire network's stock investment exchange platform can be said to be in mixed emotions, with those who are bearish and those who are bullish still having huge differences.

The retail investors who mainly hold heavy positions in the low-level and oversold main sectors such as Internet software, film and television media, electronic information, and new energy industry chains are the main force bearish on the market. They are quite pessimistic about both the current sentiment and the expectations for the future market. On the contrary... the retail investors who have shifted their positions to the "big infrastructure" main field, or have chosen to dance with institutions and embraced defensive sectors such as liquor, white appliances, medicine, consumption, and big finance, are obviously not so pessimistic. On the contrary, many of them can look at the subsequent market trends rationally.

"What the hell is going on? The performance of the Shanghai Stock Exchange Index and the ChiNext Index is so different again."

"It feels like the Shanghai Composite Index has been completely distorted now, right? Nearly 1700 stocks in the entire market fell today, and the general decline was between 2 and 3 points. But if you look at the performance of the Shanghai Composite Index, it almost closed in the red. What's even more speechless is the A50 Index, which really didn't fall at all. If you ask me... the rules for compiling indices should have been changed long ago. Whether the market is strong or weak, the performance of the ChiNext Index is obviously more realistic."

“I agree. The Shanghai Stock Index has been completely distorted and can no longer be used as an indicator of market sentiment.”

"I bought the bottom at 2600 points, and was stuck at 2800 points. This trend... is really speechless. The index has clearly risen by 10%, but the stocks I hold have continued to fall by 2600% compared to when the market was at 20 points. It's simply toxic. What kind of rubbish trend is this? What kind of stocks are rising every day?"

"Alas, day after day... the A50 index is rising."

"The stocks that are rising are those that are held by institutions, and they really have little to do with us retail investors."

"I don't understand this market. Liquor, white goods, finance, and medicine are hitting new highs every day, while a large number of core stocks in the main sectors of emerging industries such as film and television media, Internet software, new energy industry chain, electronic information, etc. are hitting new lows every day. Isn't it said that the future is the era of 'technology'? Why are stocks in traditional industries stronger?"

“‘Technology stocks’ are designed to trap people.”

"I couldn't agree more. I really don't understand why institutions keep speculating on liquor and medicines day after day. What's the point? Can speculating on liquor every day create a future?"

"The liquor sector hasn't risen much recently, it's just been fluctuating. The recent strength has been in the 'big infrastructure' sector, real estate, building decoration, building materials, steel, coal, nonferrous metals... I don't know why these sunset industries have suddenly been hyped up again with the term 'new infrastructure'. Now my country's urbanization rate is almost 70%. How much room for growth is there? How much potential is there? These are industries with overcapacity, but they are being talked about as 'value investment'. It's speechless..."

"What a pity! In the current market, it is the institutions that set the prices. You have no choice but to accept it!"

"Oh, it's true. In the past six months, the stocks that have performed well in the market are basically the blue-chip stocks in traditional industries that are heavily held by institutions."

"Technology stocks have no future. If you ask me...it's better to cut losses as soon as possible!"

"In fact, I think that in the market, there is no distinction between good and bad industries and stocks, only overvaluation or undervaluation. The 'big infrastructure' line has been so strong recently and has been recognized by so many capital groups in the market. I believe there must be a strong logic and underlying logic behind it."

“What underlying logic could there be? Isn’t it just institutions banding together?”

"Why don't institutions form a group around film and television media, new energy industry chain, Internet software, etc.?"

"I think we should follow the market trend. If stocks that are backed by institutions are strong, then why don't we just follow the trend? We retail investors have small amounts of capital, so it's easier for us to follow. The market trends are all driven by capital. Since the main capital is concentrated on the main line of 'big infrastructure', then this main line must have its core logic, otherwise it would not be recognized by so many big funds."

"Complaining is useless. Instead of complaining, it is better to review the market and follow the strong stocks."

"I think it's better to accept orders from institutions than from hot money."

"Yes, hot money is the one that kills without blinking an eye. Look at the past two days, the hot money-dominated Internet software, film and television media, and new energy industry chain mainline sectors, especially the 'Gusu system' hot money, which has no pattern at all. It takes a bite of meat and runs away. It's easy to hang everyone up again."

"Oh, don't say it, I was just screwed by the 'Gusu system'."

"I still miss the time when I followed President Su to hype up the concept of Fuxing Road. At that time... it was like picking up money."

"It's not wrong to follow Mr. Su now. It's still about making money. It's just that following Mr. Su before meant making small amounts of money, but now it's just making slow money. But you can still make money in the end."

"After getting used to short-term trading, it's really unbearable to do value investing and watch the stocks I hold fluctuate by one or two points every day."

"Haha, same thing, I am the same, I always like to move around and chase the stocks that have performed well on the growth list."

"In fact, in this market, chasing short-term gains and frequently chasing ups and downs is not as good as holding one of Mr. Su's weighted stocks and not moving it to make more money."

"That's the truth, but unfortunately I can't help it."

"If you want to make continuous profits, you still need to reduce the frequency of operations, increase the certainty of transactions, and avoid the uncertainty of transactions."

"Today, the main line of 'big infrastructure' feels like it has bottomed out and rebounded. Is it likely to start rising again in the future?"

"Is this the end of the adjustment of the main line of 'big infrastructure'?"

'It doesn't feel that fast, right? But today the market has released a lot of volume. The total transaction volume for the whole day has increased by several hundred billion compared to yesterday.'

“Does the increase in volume mean that the floating chips in the market have been almost cleared?”

"It's still uncertain. It depends on whether the market will continue to fall tomorrow and whether the volume will increase. If the market can form a state of shrinking volume and oscillating red tomorrow, it should be able to show that the bottom of the volume that the market has killed today is the bottom position of the recent market adjustment."

"In short, I think we should not be pessimistic about the subsequent market trends at this time."

"Pessimism and optimism, let's see how it works. The ChiNext Index has clearly broken again today, and it may even hit a new low. The Shanghai Composite Index and A50 Index have stabilized."

"Film and television media, Internet software, new energy industry chain, electronic information... these oversold main-line sectors are obviously not being paid attention to by funds. I think we should temporarily avoid such sectors. Looking at the market trends in the past month, except for the past two days, the main funds in these low-level main-line sectors have shown a net outflow trend. This shows that the big funds in the market have no motivation and confidence to go long on these main-line sectors. I think we retail investors... should still focus on the core main line of the market."

"Haven't you noticed? In fact, the investment style of the market is quite different from before."

"That's right. In the current market, it seems that investors clearly prefer large-cap stocks, while they seem to avoid small-cap stocks and are not willing to participate at all."

"Small-cap stocks used to have valuation advantages and valuation premiums, but that no longer seems to be the case."

"Now the main focus is on the leading premium."

“Should industry leaders have a premium? Does the market seem to be going in the wrong direction?”

"Isn't that the wrong way? Anyway, what we retail investors say doesn't count. We just have to do what the institutions do to set prices and guide market trends."

“Yes, follow the market, don’t predict the market.”

"Focusing on core leading stocks and giving them a valuation premium, in my opinion, there is nothing wrong with that. Moreover, industry leaders are more stable in terms of business operations, revenue, and profits, and are more resistant to risks, so they should also have a certain valuation premium."

"Alas...it seems that the investment trend of the market has indeed changed."

With the continuous discussions among countless retail investor groups in the market and on major stock investment exchange platforms across the Internet.

The investment sentiment of the market, stimulated by the bottoming out and rebound of "big infrastructure" in the late trading, gradually turned to the bullish direction amid the divergence.

Especially when 5 o'clock in the afternoon arrives, the Dragon and Tiger List of the two cities is announced.

When everyone saw the latest disclosed data on the Dragon and Tiger List of the two cities, the related "big infrastructure" main concept stocks on the list, the main institutional funds, and the few active main hot money in the market were still increasing their positions in this direction, and the overall situation showed a net buying of large funds and net selling of retail investors. Everyone's judgment on the subsequent trend of the core main line of "big infrastructure" and even the long and short directions of the subsequent market trend has become clearer, and everyone's investment confidence has also been obviously strengthened.