Rebirth of the Capital Legend

"The main institutional investors in the market not only did not sell many chips, but continued to increase their positions, especially in the main field of 'big infrastructure'. This is somewhat surprising." After seeing the latest data of the Dragon and Tiger List of the two cities, a group of retail investors gathered on the stock investment discussion platform of the whole network said in surprise, "From this point of view... the big funds continue to increase their positions, and the subsequent market will definitely rise!"

"Institutions are only increasing their holdings of the stocks on the list related to the core theme of 'big infrastructure'. Institutional funds are selling the other stocks on the list. Of course... the hot money in the market is selling even more aggressively. Basically, there is no hot money with a big picture."

"The purpose of floating capital is to chase rising and falling prices. Their trading methods are completely different from those of institutions."

"There are fewer active speculators in the market now than before. Zhang Mengzhu, Laodong Road, Rongchao Business Center, and other big names rarely appear on the list."

"Indeed, the 'Fushan Group', 'Yuhang Group', 'Gusu Group', 'Qilu Group'... these people are still active. It seems that after Mr. Su's 'Fuxing Road' seat gave up short-term trading, the 'Magic City Ultra-Short Group' rarely appeared. Now the entire market is really dominated by institutions."

"It's no wonder that the investment style of the market is different from before. Hot money no longer participates in short-term market speculation, so naturally the concept speculation market cannot get out of it."

"It's not that hot money doesn't participate, it's that the market's bullish sentiment is poor. Hot money can't guide the market and can't create a money-making effect, so naturally it can't make money. And if it can't make money and can't create a high space for the market, naturally no one is willing to guide the market and individual stock market, and short-term speculation will be out of the question."

“But now, it seems that many institutions are also involved in short-term speculation!”

“Is it possible that the seats of several institutions involved in short-term speculation are impersonated by hot money?”

"Can this still be faked?"

"There should be quite a few hot money in the industry that use structured seats to operate. After all, now, hot money seats, except for Mr. Su's "Fuxing Road", basically have no premium. On the other hand, institutional seats still have some premium, and everyone is more willing to follow suit. As long as there is still room for premium for institutional seats, naturally there will be people who will use seats to pass themselves off as genuine."

"So, the institutional seats we see on the Dragon and Tiger List may not necessarily be real institutions?"

"That's for sure, but there's no need to be nervous. As long as there's a premium effect for institutional seats, even if the ones involved in the transaction are hot money, they can exit safely the next day. And there are still some hot money in the circle, with a certain pattern."

"The current Shanghai ultra-short gangs seem to have more structures than before. The 'Suzhou Group' is pure arbitrage hot money, the main ones who crash the market the next day. The 'Qilu Group', 'Fushan Group', 'Yuhang Group', 'Jinling Group', 'Chengdu Gang'... these guys are better than the 'Suzhou Group', but not much better."

"I think the seats are not important. The most important thing is the logic."

"Yes, as long as the underlying logic is strong enough and the expectations are strong enough, there is no need to worry about hot money dumping the market."

"The key is what kind of underlying logic is strong enough and what kind of expectations are strong enough? If you buy at the wrong point, the core leading stocks of the 'big infrastructure' main line will also lose more than ten points in just a few trading days."

"There is a difference. If you are stuck in a core leading stock with strong liquidity, you will get out of it sooner or later. But if there is no capital attention and small-cap concept stocks that fall every day are stuck at a high level, you don't know when you will get out of it."

“Indeed, it is becoming increasingly difficult to invest in small-cap concept stocks.”

"Institutional and hot money in the market, almost all the big funds, seem to be abandoning small and medium-cap concept stocks."

"There is no other way. After institutions have gathered together to buy the core leading stocks and blue chip stocks with good performance, the liquidity of small and medium-sized concept stocks has basically disappeared. Under such scarce liquidity, many small and medium-sized concept stocks do not have sufficient underlying logic and fundamental support, nor do they have strong expectations for future performance explosions. Naturally, no big funds are willing to pay attention to them and lock in shares."

"Alas, I still miss the market when the turnover was trillions. It is really difficult to trade with the current market volume. Few stocks can achieve consecutive gains."

"90% of the small and medium-sized concept stocks that have been able to hit the high limit recently are from the main line of 'big infrastructure', right?"

"That's true, but now even small and medium-cap stocks in the main field of 'big infrastructure' seem to have been abandoned by the main capital groups in the market. It feels like the big capital groups in the market are increasingly concentrating on core weighted blue chip stocks and high-performance white horse stocks."

"We, Big A, tend to go to extremes."

“Will the market continue to be like this? Then what should I do with these small and medium-cap concept stocks that are stuck in my hands?”

"What can I do? Cut some meat!"

"I'm already stuck with 55% of my money, and my account has been cut in half. How can I afford to sell it?"

"If you don't sell, you will be stuck even deeper. Look at the Internet software, electronic information, film and television media... These main sectors have obviously fallen too much. Many popular leading stocks that were hyped up in the last bull market have not received much attention from investors even if they have been cut in half. There is no decent buying at all."

"Based on my 10 years of experience in stock trading, especially the subsequent trends of many stocks that were hyped up during the bull market after the 07 bull market, stocks like 'Netspeed Technology', 'Baofeng Technology', 'LeTV', 'Tonghuashun', 'Quantong Education', etc., the halving of their share prices is definitely just the beginning. These concept stocks without substantial performance support will not stop falling unless they fall by % or %. Even if many big funds in the market want to trade in these stocks, they will give up instantly when they see the countless locked-in orders on these stocks."

"A drop of 80 or 90 percent? That's the end of it!"

"If it really drops by 2000 to percent, then the market will have to go down to points, right?"

"Not necessarily. Maybe if the Shanghai Composite Index stabilizes at 2800 points, these stocks will continue to fall without volume, and eventually stop falling to a fraction of the original price."

"That's right. These stocks are not closely related to the Shanghai Composite Index, but are more closely related to the ChiNext Index."

"The current Shanghai Index has been hijacked by the defensive mainline sectors such as liquor, white appliances, medicine, consumption, and finance, which are large-scale institutional groups, especially the A50 Index. It is completely distorted. If we really calculate it according to the current position of the small and medium-cap concept stocks in the market, the current real point of the Shanghai Index is definitely below 2500 points."

"Anyway, no matter how you analyze it, the main area that is most likely to break out of the market and gather funds to go long is the line of 'big infrastructure', right?"

"Yes, in the entire market, the main line area with the highest recognition by big funds and the strongest synergy of various funds is really only the core line of 'big infrastructure'. Other market main lines feel a little bit lacking. Originally, the fundamental logic and performance explosion expectations of these main line sectors such as liquor, white appliances, medicine, consumption, etc. were still good, but the current positions of these sectors are relatively high. The share prices of many related core stocks have doubled compared to the beginning of the year. As a result, it is difficult for institutions to jointly pull this sector, and it is also difficult to truly achieve the market's money-making effect and attract more potential off-market buyers to enter the market."

"Then we will work on the 'big infrastructure' line later."

"The current position of the 'big infrastructure' line is not too low, right? Not to mention the many small and medium-cap concept stocks in the main field of 'big infrastructure', even the leading stocks such as 'Golden Land Group', 'Poly Real Estate', 'Kewan Real Estate', 'Conch Cement', 'Huaxin Cement', 'Huaxin Building Materials', 'China Construction', 'China Railway Construction', 'Shenhua Coal Industry', 'Jincheng Coal Industry'... have generally risen by about 20% in the past half month. Wouldn't it be a bit suspicious to chase these core leading stocks at this time?"

“To see the trend of these core leading stocks, you don’t have to stare at the daily chart, but look at the weekly and monthly charts. Judging from the long-term trend of the monthly chart, these core leading stocks have not yet come out of the real bottom, and there is no talk of any highs at all. Moreover, although the reason why the stock prices of these stocks can rise is driven by institutional funds, the fundamental reason is that the fundamentals of the industries in which these stocks are located have undergone tremendous changes, which has led to expectations of explosive performance for these stocks. In other words, the core value that determines their stock prices has changed. Since their core values ​​have changed, when the stock prices cannot reflect the core values, they naturally have the opportunity to make up for the rise.”

"It's really hard to say about the fundamentals. Besides, we are not on the same level as the institutions in terms of knowledge and news."

“But we retail investors also have our own advantages, right?”

"What advantages do we retail investors have?"

"The advantage of a small boat is that it is easy to turn around. If you see that the situation is not right, just one word... run."

"That's true. It's a very long process for institutions to build, reduce and liquidate positions. These core leading stocks will not fall to the limit at any time like small and medium-cap concept stocks. If they realize that the trend is not right, they can withdraw at any time."

"Then there is nothing to worry about. I will cut my positions in concept stocks tomorrow and continue to follow the institutions in increasing their positions in the core leading stocks of the 'big infrastructure' theme."

"Now that the market investment trend has changed, we must follow it."

"I hope that institutions can have a broader vision and take advantage of this bull market in the national real estate market to develop a sustained market for the core theme of 'big infrastructure'."

"I hope so too. At least the 'big infrastructure' line will see a general doubling of prices, right?"

"It seems that in the Hong Kong stock market, the share prices of a number of domestic real estate stocks have almost doubled from the bottom."

"Why are the Chinese real estate stocks on the Hong Kong stock market rising more rapidly than the A-share real estate stocks in recent times?"

"Repair the valuation. Previously, the valuation of Chinese real estate stocks in the Hong Kong stock market was much lower than that of a number of real estate stocks in our A-share market."

"It seems that the market value is indeed being reconstructed. The liquidity of the Hong Kong stock market is much worse than that of our A-shares. If the domestic real estate stocks in the Hong Kong stock market can have such a doubling trend, then there will be no problem for our A-share real estate stocks and related stocks in the real estate industry chain to have a doubling trend."

"Haha, let's hope so...if it doubles, I can get out of this mess."

"Alas, even if I double my money, I still can't get out of this trap. I bought 'China Construction' at a high price in the last bull market, but it seems like I'll have to hold on to it for a long time."

Along with discussions among countless retail investor groups on various stock investment exchange platforms across the Internet... the market's investment sentiment is also constantly changing.

And in the collision of various viewpoints.

Regarding the changes in market investment style and the expected subsequent trends of the "big infrastructure" main line, the views are becoming increasingly clear and consistent.

Then, as time went on...

In the evening, news about the hot real estate market in major cities across the country, including people queuing up to buy houses in various property projects and drawing lots to buy houses, began to flood the screen.

Now, not only capital institutions and investors in the financial market have felt the hot real estate market.

Even home buyers, workers and farmers across the country have felt the rapid recovery of the property market.

Stimulated by the positive news, and also late at night, U.S. stocks opened higher and continued to hit new highs, continuing the bull market trend that has lasted for many years.

After two days of emotional brewing over the weekend...

When Monday, August 8, arrived and the two markets welcomed trading again, the market's investment sentiment and investment atmosphere were obviously much more optimistic and positive than after the market closed last Friday.

In this situation where sentiment has basically warmed up.

At 9:15 am, the two markets entered the initial call auction. In the initial market, whether it was the various industry sectors related to the main line of "big infrastructure", or the defensive industry sectors such as liquor, white appliances, medicine, consumption, finance, or the weak industry sectors such as film and television media, Internet software, electronic information, and new energy industry chain that were significantly adjusted last Friday, all showed a trend of opening high in the red.

However, after the subsequent ten minutes of call auction.

When 9:25 arrived, the call auctions of the two markets ended. In the final opening results, other market main lines except the "big infrastructure" main line finally showed a flat opening trend, and failed to continue the high opening trend at the initial moment of the call auction.

However, even if it opened flat, this has already far exceeded the expectations of many investor groups in the market.

"After the emotional brewing over the weekend, the 'big infrastructure' line has indeed recovered across the board, stimulated by the news and the increasing number of research reports released by many institutions." At 9:25, in Shanghai, inside the 'Jufeng Asset Management Company', in the 'Jufeng for Growth' fund product trading room, trading team leader Yu Xiaolu stared at the opening situation of the two markets with a smile on her face, saying, "This shows that our previous prediction of the market situation was correct. If the market wants to truly stabilize, it still needs to exert its strength on the core theme of 'big infrastructure'. Only the core theme of 'big infrastructure' can truly drive the market's bullish sentiment and the concerted bullish efforts of the main funds of all parties in the market."