Rebirth of the Capital Legend

"It seems highly likely that the core theme of 'big infrastructure' will reverse," said Zhao Zhiyuan. "As for other main themes in the market, such as liquor, white goods, medicine, consumption, finance, Internet software, film and television media, electronic information, and new energy industry chains, after the buying volume is siphoned off by the main theme of 'big infrastructure', there is basically no possibility of a reverse trend."

"Unless the overall strengthening of the core theme of 'big infrastructure' can completely drive the bullish sentiment in the market and attract more off-market capital groups." Zhang Wei took over and said, "The current market stock of funds cannot support the breakthrough of all the main lines in the market. It can only support the main rise of one or two core main lines, and the rotation rise of multiple main lines. Only after more off-market capital groups are attracted, the market's volume performance will have a general and continuous upward trend, and other main lines will have opportunities."

"Didn't the continuous squeeze and rise of the 'big infrastructure' main line in the past two weeks attract a lot of off-market funds to intervene?" Zhao Zhiyuan said, "If the core main line of 'big infrastructure' can continue to squeeze out the same trend as in the past two weeks and gather enough money-making effects, it feels like the overall market trend will reverse, and there is still a chance!"

"If the core theme of 'big infrastructure' continues to rise at this point, and if it continues to rise in a forced short position..." Liang Jiucheng took over and said, "The amount of buying funds required will be different from before. After all, the main theme of 'big infrastructure' broke out from the bottom before.

At that time, basically all investors holding positions in the entire "big infrastructure" main line area had been completely trapped.

When it is far away from the core trapped area, it is not difficult to pull up, and it does not require too much buying funds to pull up the market.

But look at you now...

In the entire "big infrastructure" main line area, basically all the core stocks have risen to the core area where historical trapped shares have accumulated.

In this area, the trapped orders are extremely heavy.

Moreover, the costs of many retail investors were previously in this range.

In other words, if you want the stock price to quickly move out of this area, you must violently release all the trapped chips gathered in this area and sell them off.

Only in this way can the upward pressure of the entire main line be further reduced and a continuous upward trend can be formed.

However, judging from the market trends in the past few days and the changes in volume this morning, it is obvious that the entire "big infrastructure" main line market does not have the conditions to continue to make a comprehensive breakthrough.

Judging from the current situation, I still expect the market to fluctuate within a range.

Therefore, we don’t need to have too high expectations for this wave of rebound in the main line of ‘big infrastructure’, and we should not be too focused on the pattern and be reluctant to take profits.”

"What Lao Liang said makes sense." Zhang Wei listened to Liang Jiucheng's analysis, pondered for a moment, nodded slightly, and responded, "So far, the transaction volume of the entire market has not increased significantly compared to yesterday. Not only has it not increased, but it has also shrunk. This shows that the existing funds are still in the game. There is no obvious group of off-site buying funds involved, and the volume cannot be released. Without the involvement of off-site buying funds, it can be basically seen that this rebound is a short-term local repair trend."

"The core theme of 'big infrastructure' has been fluctuating for several days at this position." Zhao Zhiyuan disagreed with the two people's views and said, "During the fluctuations in the past few days, many chips have settled down, so naturally there won't be too much volume bursting out. Only when the stock price is about to break through the important pressure level will the volume burst out, right? And obviously, the core theme of 'big infrastructure' is still some distance away from the previous high, and it has not reached the time of bursting volume. If we really want to judge whether this rebound is a range-bound fluctuation, I think we have to wait patiently for a number of core stocks to rebound to the stock price high point a few days ago to see whether they can actually break through and whether they can actually increase in volume before we can judge. It is definitely too early to conclude that it is a rebound trend of range-bound fluctuations."

"Then wait and see." Liang Jiucheng said with a smile, "Whether it is a rebound from range fluctuations or a reversal breakthrough, it will become clearer and clearer as the market trends."

"In fact, even if it is a volatile rebound trend..." Zhang Wei thought for a moment and said, "The profit from intervening at this time is also very substantial, and the risk is not great."

Liang Jiucheng nodded slightly and said, "That's right. The entire 'big infrastructure' theme should be the core theme with the most funds gathered in the market, the most solid underlying logic, and the strongest future expectations. Such a core theme... as long as there is optimistic buying in the market, then the downward adjustment will naturally be a clear speculation and investment opportunity."

"The price of 'Gemdale Group' has reached the upper limit," Zhao Zhiyuan said. "It seems that the 'big infrastructure' line has been completely stabilized. There is a high probability that there will be no major changes in today's market trend."

"Yes." Zhang Wei nodded. "It depends on how much emotion and long-term funds this core theme can bring about."

After saying that, Zhang Wei turned his attention again to the two markets where trading was intense.

Just as they were talking...

Both the Shanghai and Shenzhen Composite Indexes have achieved a 1.23% increase. At the same time, various industry sectors related to the "big infrastructure" theme and many related hot stocks have also stabilized at the top of the two cities' growth rankings.

Among them, in addition to "Gemdale Group", in the real estate development sector, the core weighted stock "China Merchants Shekou" also reached the daily limit and almost set a new high.

And other market themes besides the 'big infrastructure' theme.

Most of the core weighted sectors that are supported by major institutional capital groups, such as consumption, medicine, liquor, white appliances, and finance, have also kept up with the index's growth.

Only the low-level main-line sectors such as Internet software, film and television media, electronic information, and new energy industry chains, which are rarely paid attention to by major funds, are still weak, and there is basically no proactive buying.

"The main theme of 'big infrastructure' is still bullish, and many stocks have reversed yesterday's trend."

Noting the vigorous rebound in the market's "big infrastructure" main-line related sectors and related concept stocks, some retail investors gathered on the online stock investment exchange platform sighed.

"Indeed, leading stocks like Conch Cement, Huaxin Building Materials, Gemdale Group, etc., almost hit new highs. They are really strong. Sigh... I should have focused on leading stocks earlier. I bought a lot of miscellaneous follow-up stocks, and now they can't even outperform the index."

“It didn’t outperform the index, but it still went up. Damn… I even lost money today.”

"Alas, the stocks I held today almost hit the limit down. The 'Internet software' sector is really a pitfall. It doesn't follow the market when it rises, but follows it very quickly when it falls."

"In the 'Internet software' sector, there are 'LeTV', 'Baofeng Technology', 'Netspeed Technology'... These hot stocks that were hyped up in the last round of bull market are now ignored by everyone. There is no big money to manipulate the market, and there is no trend of sustained rebound."

"Those holding the 'Internet software' sector should sell their stocks as soon as possible, as this sector has clearly not hit bottom."

"It's already locked up, how can I cut it off?"

"If you don't sell, you will definitely lose money later. If you sell, you will buy the leading core stocks of the 'big infrastructure' main line and you will make your money back soon. Instead of suffering by holding on to weak stocks, it is better to chase the leading stocks and die on the leading stocks rather than die on the following stocks or weak stocks that are not in the main line."

"It seems like the price of China Merchants Shekou is going to reach its daily limit. Can I still buy it?"

"The core hot spots of the market today are real estate and construction. Since the momentum is picking up, I think it's worth buying."

"As long as there is popularity and active buyers, you can definitely buy it!"

"Today's market trend is still dominated by institutional funds, right?"

"Many concept stocks also rose very well, such as 'Shenhuo Co., Ltd.', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Co., Ltd.'... A lot of these early popular concept stocks also hit the daily limit."

"Didn't the real estate and financial sectors move together before? Why does it seem that after the real estate sector has skyrocketed, the financial sector has not moved much?"

"When did the linkage between real estate and finance come about?"

"During the bull market last year, real estate and finance would have moved in tandem, right? In the past six months, finance and real estate have been moving in separate directions. Previously, finance had been rising, but the real estate sector hadn't moved much. Now... the real estate sector is just making up for the rise compared to the already high-flying financial sector. Let's make up for the rise in the past six months first, and then talk about the linkage issue later."

"The financial sector has risen even higher than during last year's bull market. Why is there still a need for linkage?"

"If there are any unusual movements in the financial sector, it will siphon off a lot of liquidity from the market. If you ask me... the financial sector should not fall, but should just stay stable sideways, and never surge."

"Yes, every time there is a big financial change, there is always something bad going on."

"Indeed, I lose money every time the big financial sector surges. Besides, the rise of the big financial sector is good for the Shanghai Composite Index and the A50 Index, but it is basically bad news for other stocks and other main sectors in the market. The current market... simply does not have such a large amount of funds to support the surge in the 'big financial' sector."

“This round feels a bit like an independent market in the real estate sector!”

"Hehe, let's hope so. If this is really an independent market, then we can have a relatively good and continuous profit-making effect. Alas...it's time for us to make some money. We have been losing money for more than half a year."

"What should I do? I didn't have a base position before, and now I see the crazy rise of the main line sectors of 'big infrastructure', and I can't make a move at all!"

"In the current main line of 'big infrastructure', even for some core leading stocks, the valuation expectations have not yet been realized. Anyway, if you believe in the logic, just buy it. If you don't believe it... just look at other market main lines. In fact, in addition to the popular main line of 'big infrastructure', there are many good stocks in the main line sectors such as liquor, white appliances, medicine, and consumption that are held by institutions. According to these sectors, just buy the concept stocks held by Mr. Su. As long as you hold it for a longer period of time, I think it is still difficult to lose money."

"The market volume seems to have not been released today. Could this be a hidden danger?"

"Looking at the volume this morning, it's really not that good."

"The volume is increasing when the price drops, but decreasing when the price rises. What is going on? Can anyone explain this to me?"

"Volume is the foundation of the market. Without volume, there is no market. It seems that we should not be too optimistic about the rebound of the main line of 'big infrastructure'!"

“Whether you are optimistic or pessimistic, at least it should be okay to touch the high point of the past few days, right?”

"Doesn't a rebound with reduced volume prove that the floating chips in the market have been cleared out and the upward pressure is small?"

"You can understand it this way, but I think... the volume is not good enough, or the market has not yet formed a consistent bullish sentiment, and there is insufficient follow-up of potential buying funds in the off-market."

"Emotions need time to slowly brew, just wait... After the money-making effect of the market in the morning comes out, after the mood brews in the afternoon, the market will definitely surge in the afternoon, and there will definitely be a large volume."

"I hope so. With the volume decreasing and the price rising, I always feel uneasy."

"There is nothing to be uneasy about. Even if we cannot break through the previous high and cannot get out of the second wave of the main upward trend, there are a number of major institutional groups helping to lock in positions. The core theme of 'big infrastructure' will not fall too much. The corresponding stocks... can be seen from the trend of the past few days. As long as it falls, the following buying orders will continue to emerge. Of course... For low-level mainline sectors such as film and television media, Internet software, electronic information, and new energy industry chains that are not paid attention to by major funds, how will the market perform, and whether the related stocks can be repaired, that is uncertain."

"It is said that stocks that were hyped up during the last bull market should not be bought at the bottom unless they fall by 70 to 80 percent, and it turned out to be true."

"It's normal for the main market funds to always get tired of the old and love the new."

Along with the continuous discussions among a group of retail investors in the market, there are collisions of views and analysis on the market and even subsequent market trends.

As market trading hours pass...

The much-watched 'big infrastructure' theme is getting stronger and stronger.

The trading volume, which has been criticized by everyone, gradually showed an increasing trend near midday. Many popular leading stocks in the main field of "big infrastructure", as well as concept stocks that have received high attention from retail investors and have strong market recognition, have also seen a large number of active buying funds rushing to buy them.

Its stock prices showed an accelerating upward trend as the market closed at noon.

Moreover, after the core real estate weighted stock 'Golden Land Group' hit the daily limit, the core weighted leading stock 'China Merchants Shekou' in the same sector, after continuous fluctuations at the daily limit, was also blocked at the daily limit by large orders from the main buying funds group before the midday closing, which greatly boosted the bullish investment sentiment and bullish speculation sentiment of the entire 'big infrastructure' main line, and also left considerable expectation space for the opening of the market in the afternoon.