Rebirth of the Capital Legend

"Yes, that's true." Lu Xiangxiang, who was also observing the opening of the two markets beside Yu Xiaolu, responded, "And it feels like this consensus expectation is getting stronger and stronger. At the same time, the main capital groups in the market seem to be investing more and more in large-cap blue-chip stocks and high-performance white horse stocks. It seems... a complete change in market investment style is imminent."

"There are fewer and fewer funds willing to take over small and medium-sized concept stocks, and the money-making effect is getting weaker and weaker. Naturally, more and more funds will flee from small and medium-sized concept stocks." Yu Xiaolu said, "It is said that retail investors like to buy at the bottom and get bargains, but in fact, when these oversold main line areas have not produced money-making effects, and each rebound is not sustainable, then retail investors will flee very quickly."

Lu Xiangxiang nodded and continued, "At present, Internet software, film and television media, electronic information... these main sectors that were over-speculated in the last round of bull market and over-drafted the expectations for the next N years should not have a lot of institutional funds or large investors locked in their positions, right?"

Yu Xiaolu responded: "In the main sectors such as Internet software, film and television media, and electronic information, there should be no other active fund holdings except for the passive fund products in the industry. Most of the chips in them are in the hands of retail investors. Therefore, when the market rebounds, these stocks perform relatively weakly and cannot form a joint force. After all, without the main funds holding positions, no one is willing to support the retail investors. Moreover... Generally speaking, the retail investors are the most inconsistent and it is the most difficult to form a unified force.

Of course, at its core...

Film and television media, Internet software, electronic information...these main sectors have no large financial institutions participating.

The most basic logic is that, in addition to the fact that these main sectors have already invested heavily in expectations for many years to come, the entire "mobile Internet" has now developed to a point where the market is close to saturation. It is difficult to have the explosive performance growth of previous years, and it is also difficult to find new growth points.

After all, with the widespread popularization of smart phones, the number of new Internet users in China has now begun to show a downward trend.

In this situation, the industry has no new growth and no expectation of sustained growth, so naturally the major financial institutions are reluctant to get involved.

What's more, there are many core hot stocks in these main sectors.

Even though the stock price has been halved after more than half a year of continuous decline, it is still obviously overvalued compared with the valuations of many stocks in traditional industry sectors such as liquor, white appliances, medicine, consumption, finance, and real estate development, building decoration, building materials, nonferrous metals, steel, coal, etc. in the main line of "big infrastructure".

Anyway, from my point of view, the market will continue to rebound or even reverse.

These main lines and related hot stock groups that exploded in the last bull market will not perform well.

Not to mention that now in the market, many major capital groups and even many smart retail investors have realized that the overall investment trend of the market has changed.

Therefore, Mr. Lu, there is no need for us to waste our energy on the main lines of Internet software, film and television media, electronic information... which have neither core underlying logical support nor actual fundamental support, nor valuation advantages. We still need to focus on the core line of "big infrastructure."

Because no matter how you look at it...

The 'big infrastructure' line is likely to be the main line sector in the subsequent market breakthrough trend. "

"I agree." Lu Xiangxiang nodded and said, "In terms of timing, valuation, fundamental logic... in terms of all aspects, the core themes in the entire market should not have an investment cost-effectiveness of the 'big infrastructure' theme. However, our positions in the core theme of 'big infrastructure' have long been full. Now we can only wait for this core theme to change on its own."

After saying that, she turned her attention back to the trading screens of the two markets.

At this time, the market trading time had reached 9:30. After a brief suspension of 5 minutes, the two markets officially ushered in the continuous bidding trading time.

When the two markets just resumed their movement...

Across the entire market, the core leading stocks related to the "big infrastructure" main line and its popular concept stocks were instantly rushed to by the main capital groups in the market, as well as a group of active hot money and keen followers of retail investors. As various funds rushed to buy, the share prices of these stocks also rose rapidly in the moment of opening.

At 9:31, in the main field of "big infrastructure", the major sector indexes of real estate development, building decoration, building materials, nonferrous metals, steel, and coal all rose by more than 1%. Among them, "Golden Land Group", "Conch Cement", "Huaxin Building Materials", "Shougang Group", "Jincheng Coal Industry" and many other leading stocks rose by more than 3%.

At 9:32, driven by the fact that all the indexes of the sectors related to the main line of "big infrastructure" were in the green, the Shanghai Composite Index's increase instantly expanded to about 0.5%. The rise of the Shanghai Composite Index also led to the recovery of market sentiment, as well as the rise of defensive main-line sectors such as liquor, white appliances, medicine, consumption, and finance, which are the main sources of institutional funds. As for the ChiNext Index, there are also main-line sectors such as Internet software, film and television media, electronic information, and new energy industry chain, which have a high correlation with the ChiNext Index. After the market officially opened, they performed even weaker. Internal investors holding positions were all selling large quantities of chips related to hot stocks in these main-line sectors.

At 9:33, 'Golden Land Group', as the core leading stock of the entire 'big infrastructure' main line, showed a leading trend, and the market increase quickly broke through 5%.

At 9:34, a large number of popular stocks that were on the main line of oversold rebound, such as Netspeed Technology, LeTV, and Baofeng Technology, continued to fall rapidly, and the market decline widened to 2%.

At 9:35, all industry sectors under the main line of "big infrastructure" showed a trend of large net capital inflows.

At 9:36, the intraday increase of the Shanghai Composite Index expanded to 0.7%, while the ChiNext Index was still in a downward trend, and the gap between its increase and the Shanghai Composite Index widened to 1.5%.

At 9:37, 'Shou Chuang Group', a previously popular concept stock in the real estate development sector, continued to rise straight and hit the daily limit.

At 9:38, 'Huaguo MCC' moved abnormally, with the market price rising by more than 5%.

At 9:39, the A50 index rose by more than 1%, with Shenhua Coal Industry and Qianzhou Moutai leading the gains. Driven by Qianzhou Moutai, the market liquor sector index rose by 1.35% on the day. Among them, first-tier liquor stocks such as Luzhou Laojiao and Wuliangye rose by more than 2%, significantly ahead of the index.

At 9:40, the share price of 'Gemdale Group' increased by more than 7%, showing a strong potential to hit the daily limit, and the intraday trading volume increased rapidly, indicating that it has become the popular leader in the entire real estate development sector.

At 9:41, the share price of LeTV suddenly dropped by 5%. In the entire Internet software and film and television media sector, many concept stocks that rebounded in the past few days have hit new lows under the continuous internal selling pressure, completely swallowing up the rebound gains in the past few days.

At 9:42, "Huaxin Cement" rose sharply. In the whole main line of "big infrastructure", with the rise of a number of heavyweight stocks such as "Golden Land Group", "Poly Real Estate", "Kewan Real Estate", "China Merchants Shekou", "China Construction", "China Railway Construction", "China Metallurgical", "Conch Cement", "Huaxin Building Materials", "Shenhua Coal", "Shougang Shares"..., a number of early popular concept stocks such as "Shenhuo Shares", "Pingmei Energy", "Tianshan Cement", "Beijiang Communications Construction", "Capital Group", "Yu Development", "Bayi Steel", "Linggang Shares"... also rose rapidly, attracting many retail investors in the market, as well as the main speculators to rush in.

At 9:43, the market's bullish sentiment quickly recovered and "Gemdale Group" began to hit the daily limit.

At 9:44, the real estate development sector index rose 2.57% on the day, while the Shanghai Composite Index rose 1%, completely reversing yesterday's adjustment trend.

At 9:45, Conch Cement surged in volume, up more than 3%, with the potential to hit its previous high.

At 9:46, the net inflow of main funds in the entire "big infrastructure" main line field has exceeded 10 billion, and the entire main line sector has become the leading core main line that has attracted the attention of market investors.

At 9:47, the share price of "Gemdale Group" hit the daily limit.

At 9:48, the leading stocks in the real estate sector, including Poly Real Estate, Kewan Real Estate and China Merchants Shekou, all saw their intraday gains exceed 3%.

At 9:49, after 20 minutes of intense trading, the share price of 'Golden Land Group' hit the daily limit, and the intraday trading volume reached more than 7 million yuan. The trading volume in 20 minutes was almost equal to the trading volume of yesterday.

At 9:50, driven by the daily limit of 'Gemdale Group', stocks related to the 'real estate development' sector, and even other related sectors and stocks of the entire 'big infrastructure' main line, were all encouraged by the sentiment. All related stocks followed the abnormal movement and rose, and the 'big infrastructure' main line also began to further siphon active capital flows from other main lines in the market.

"Sure enough, this check from 'Golden Land Group' has become the weighted core rebound leader in the entire 'big infrastructure' main line field." Seeing that 'Golden Land Group' hit the daily limit, and also seeing that the entire 'big infrastructure' main line has become the market's leading core main line, at this time, Zhao Zhiyuan, a member of the 'Qilu Gang' main hot money group, couldn't help but laugh and said, "This wave of decisive adjustment of positions from the oversold main line sectors such as Internet software, film and television media, and new energy industry chain to buy the bottom of 'Golden Land Group' is simply too beautiful. It seems... it is not that difficult to grasp the rhythm of the market!"

"When the call auction ended, the main line of 'big infrastructure' was the only one that stood out." Zhang Wei responded, "Today, the main line of 'big infrastructure' rebounded and many stocks showed a rebound trend, which was within expectations. I just didn't expect that the sentiment would warm up so quickly after the official opening. For the check of 'Golden Land Group', I only had time to place the first buy order at a low price, and I couldn't buy it later, so I could only increase my position at the upper limit price."

"What do you mean by within expectations?" Zhao Zhiyuan disagreed. "The current performance of the 'big infrastructure' line is already beyond expectations, right? Originally, the main investors in the market expected that this core line would continue to adjust."

"Today, the core theme of 'big infrastructure' opened so strongly, thanks to the many favorable news last night." Liang Jiucheng responded at this time after completing part of the position building operation on 'Golden Land Group', "But the attack was so fierce at the opening, I am still a little worried that the subsequent market volume will not be able to keep up and will not be able to bear the continuous selling power in the market. Once the subsequent volume cannot keep up, the market trend at noon or even in the afternoon will most likely rise and fall again."

"No way?" Zhao Zhiyuan said, "Although the market is currently in a bear market and liquidity is relatively scarce, there should be no problem for funds to focus on attacking the core theme of 'big infrastructure' and supporting the market of a core theme, right? Moreover, in the field of the 'big infrastructure' theme, after the adjustment of these few trading days, there should not be many short-term profit-taking orders accumulated in the market in the early stage. Logically speaking... the market can take it."

"If we only focus on the main line of 'big infrastructure', I believe that at the current position, as well as the number of profit-taking and stop-loss orders sold, there is a high probability that it can be taken over, but..." Liang Jiucheng paused and continued, "Currently, there are still main line sectors such as liquor, white appliances, consumption, medicine, and finance where institutional main funds are heavily concentrated, competing with the main line of 'big infrastructure' for liquidity."

"Market sentiment has generally warmed up, and the overall risk aversion sentiment is in a trend of continuous cooling." Zhang Wei took over and said, "If we analyze it from this logic, the defensive main line sectors such as liquor, white goods, medicine, consumption, and finance should not be able to distinguish the liquidity of the main line of 'big infrastructure'. As for other main line sectors such as Internet software, film and television media, and new energy industry chain... let alone."

"Yes, I think so too." Zhao Zhiyuan nodded and said, "The funds in the market should follow the money-making effect. At present, the money-making effect of the main line of 'big infrastructure' is the best in the entire market. With such a good money-making effect, it stands to reason that the group of bullish funds following the trend will only become more and more concentrated on the core main line of 'big infrastructure'. In fact, 'big infrastructure' is also siphoning the liquidity of the low-level oversold main lines such as Internet software, film and television media, and new energy industry chain."

"That's not necessarily true." Liang Jiucheng was still quite cautious about the market trend. After a pause, he continued, "Let's wait and see. With the current market liquidity and overall volume, it's not realistic to expect a direct V-shaped reversal. I feel that the subsequent market trend will definitely fluctuate. Of course, if it can rebound directly and reverse the adjustment trend of the previous few days, that would naturally be the best and strongest trend."