Rebirth of the Capital Legend

"Before the midday closing, the intraday market volume actually increased." Noticing the midday closing situation of the two markets, He Zhongwei, one of the main speculators of the 'Gusu system', was a little surprised and said, "I originally thought it was just a weak rebound, but it seems to be a little different from the expected trend."

"The driving force of the 'big infrastructure' line cannot be ignored." Zheng Jinming responded, "Today's entire market, the rebound trend of other main line-related stocks, and the rapid recovery of market bullish sentiment are all driven by the core theme of 'big infrastructure'. Now that the volume has been released, the sustainability of the market can be appropriately viewed with a higher level. To be honest, this trend... is a bit surprising."

"This amplified volume still can't support the current upward trend of the market, right?" Zhang Xinlei pondered for a moment, but was not as optimistic as the two of them. He said, "The core theme of 'big infrastructure' can maintain its current market trend. The key point is that it has siphoned active funds from other main lines of the market to support it. There is no obvious sign of intervention of incremental funds from the off-market. Moreover, the 'big infrastructure' line has not yet deviated from the stock price range platform formed in the past few days. 95% of the stocks in the main line sector have not even touched the previous high position before the adjustment a few days ago. At this time... seeing a little sign of the market's intraday volume amplification, we start talking about a breakthrough trend. Isn't it a bit too optimistic?"

"Whether this is a signal that the adjustment of the core theme of 'big infrastructure' has ended," He Zhong said, "it's always right to focus on the core theme of 'big infrastructure' to make a profit, right?"

"Lao He, are you going to give up completely on the main lines of 'oversold rebound' such as new energy, film and television media, and Internet software that you guided before?" Lao Qian asked, "I still have some of my bottom positions in the 'new energy industry chain' main line's 'Dofluoro' stock. Are you not going to do this direction?"

He Zhong responded: "Old Qian, in the current market... the main sectors of 'oversold rebound' such as new energy, film and television media, and Internet software, as well as a number of popular concept stocks, it is difficult to gather the market's long-term joint force and sustained speculation sentiment. At present, the major major capital groups in the market are obviously bearish on the 'oversold rebound' line, and they do not agree with the expected logic of sectors such as new energy, film and television media, and Internet software. Without the joint efforts of the major funds in the market, it is impossible to gather sustained long-term speculation sentiment. Even if we spend money to guide, it will be difficult for the market to come out."

A number of retail investors in the market said that the collapse of yesterday's low-level main sectors and related hot concept stocks was caused by them.

But in fact, they are much more visionary than some of the retail investors who are clamoring.

There is really no effective follow-up from institutional funds and no favorable news, which led to the low-level rebound line, but there is no sustainability at all.

But the market has not taken off, and this has little to do with them.

After all, the limited amount of funds they have cannot substantially influence the development trend of market conditions.

"Old He is right." Zheng Jinming took over the conversation and responded, "'New energy industry chain', 'film and television media', 'electronic information', 'Internet software'... these low-level mainline sectors are far inferior to the core mainline of 'big infrastructure', whether in terms of fundamental expectations or the degree of capital participation, and the retail investors' follow-up effect is even more incomparable. Similarly, to guide a hot concept stock to the daily limit, 3000 million funds may be enough to guide the hot concept stocks in the main field of 'big infrastructure'. However, in these low-level mainline sectors, due to the continuous selling pressure of internal locked-in shares and the selling of many institutions lurking in these low-level mainline sectors, even if tens of millions more are spent, it is difficult to guide enough long-term follow-up forces and the concentrated long-term sentiment!"

"Strong and popular stocks are indeed guided by market conditions, so it will be easier." Lao Qian nodded slightly.

"In fact, the market trend this morning, driven by the core theme of 'big infrastructure', seems strong, with many stocks rebounding, but..." Zhang Xinlei took over and said, "In fact, the follow-up effect of retail investors is still somewhat insufficient, especially the main sectors and hot concept stocks related to the ChiNext Index, which can be clearly seen by comparing the main sectors and hot stocks related to the Shanghai Composite Index and the A50 Index.

What's more, the two are very different in terms of trends and emotional feedback.

I have never seen a continued polarized trend between the Shanghai Composite Index and the ChiNext Index, which can further expand the market's money-making effect and follow-up effect.

In other words, popular high-level main lines and unpopular low-level main lines.

The trend gap is so large and the degree of fragmentation is so high. In addition to the original factors such as capital preference and investment direction, the most important fundamental reason is the lack of market liquidity.

However, the market liquidity is insufficient, and the market is launched rashly, leading many stocks to surge.

The final result will most likely be a surge and then a fall, forming a short-term oscillating trend platform.

Also, at the current position, liquidity is difficult to support, and if we continue to go long, people’s confidence will not be very strong.”

"Mr. Zhang's concerns are not without reason." Zheng Jinming thought for a while and said, "However, compared with the trends of other main sectors in the entire market, the core theme of 'big infrastructure' still has very obvious advantages. If we want to follow the trend, it seems that the only choice is still the core theme of 'big infrastructure'. There are only 'Shenhuo Co., Ltd.', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Co., Ltd.'... These are the popular concept stocks of the 'big infrastructure' theme with high market recognition that we can choose from."

"Within the same main line, the trend of small and medium-sized concept stocks now seems to be not as stable as the core leaders with heavyweights, and the blue-chip stocks with good performance?" Lao Qian said, "In fact, there is no need to think too much. Even if it is the 'big infrastructure' line, under the current liquidity constraints, it is impossible to break through the high space of the previous few days and form an effective breakthrough trend. As long as the rebound trend in front of us has foreseeable sustainability, then I think... we can still carry out arbitrage operations."

"There is no problem with arbitrage operations." Zhang Xinlei said, "As long as you lower your expectations and follow the previous logic of taking a bite and leaving, I think there is no problem at all. Moreover, compared with the core main lines of the entire market, the line of 'big infrastructure' does have a good tolerance rate. Even if you buy the wrong stock or misjudge the trend, you can quickly sell it out if the liquidity is relatively good, and you will not lose a few points. It is not like the Internet software, film and television media, electronic information, and new energy industry chain main line sectors that have basically no active large funds buying attention. There are many small and medium-sized concept stocks that do not have enough follow-up orders if you want to sell quickly.

I saw the trend this morning...

It is part of the main industry chain of film and television media, Internet software, electronic information, and new energy.

Several concept-themed stocks that were previously relatively recognizable in the market have experienced flash crashes.

This is because when the main players in the market left the market and sold their shares, the market was unable to take over and there was no active buying. "

"You know what, there are indeed quite a few stocks that experienced flash crashes this morning." Old Qian nodded slightly and said, "This shows that the liquidity of the stocks in the low-level mainline sectors is indeed poor. It also shows that the 'big infrastructure' line is indeed continuing to siphon active funds from other mainline areas of the market to support the market!"

"In a bear market, there are few general rallies." He Zhong insisted, "I think the current market liquidity can only support the trend of the main line of 'big infrastructure', and there is no problem at all. In addition, the institutional capital groups have already completed their positions in the defensive main line sectors such as liquor, white appliances, medicine, consumption, and finance, and have already held a lot of chips and locked up a lot of chips.

In this case, a large number of chips are locked up, so it will not be too difficult to pull up the market.

Therefore, it is completely reasonable that the overall market trend is shrinking and rising in the area where the locked-in chips have been loosened."

"Anyway, no matter what..." After hearing the different opinions of He Zhong and Zhang Xinlei on the current market trend, Zheng Jinming thought for a while and said, "As long as the long funds in the market are trading, they can't avoid the core theme of 'big infrastructure'. As long as we know this, we can actually participate in the market speculation of the main theme of 'big infrastructure' with confidence. At least there is no problem with instant arbitrage."

"The logic of shrinking volume and rising prices is established, so there is nothing to worry about." Lao Qian laughed and said, "I think many stocks in the main line of 'big infrastructure' are still some distance away from the highs they set a few days ago. Before these stocks hit the previous high pressure level, it should be very low risk to make some arbitrage and earn some profits. However... based on the current market investment preferences of various funds, it seems that the weighted stocks are obviously much stronger than the small and medium-sized concept stocks, and the weighted stocks seem to have a generally smaller amplitude. I am afraid that even if there is arbitrage, there will not be much profit. In general... from a purely trading perspective, it is okay to intervene in arbitrage at this time, and it is also completely okay not to intervene in arbitrage and wait for clearer opportunities in the future. After the core main line of 'big infrastructure' actually breaks through, it is completely okay to make investment opportunities on the right side."

"The performance of weighted stocks is indeed much stronger than that of small and medium-cap concept stocks," said Zheng Jinming. "It feels like this phenomenon has become a common investment trend and speculation style in the market. Of course, among a large number of weighted stocks, the difference between the time-sharing trends of weighted stocks with heavy institutional holdings and those without heavy institutional holdings is still very obvious."

"This check from 'Golden Land Group' doesn't look like a trend guided by an institution, right?" Old Qian changed the subject and asked.

He Zhong responded: "Institutionally-led weighted stocks usually continue to rise in small steps. The Gemdale Group stock price went up almost straight in the morning trading session, and the intraday trend fluctuated greatly. There is no need to study it in detail, nor to use the after-hours Dragon and Tiger List to prove it. It must be the result of the combined efforts of other hot money in the market."

"I agree." Old Qian chuckled and said, "It seems that many smart investors in the market have also clearly noticed that this kind of follow-up funds are increasingly inclined to large-cap stocks, and are disgusted with the investment and speculation trend of small and medium-cap concept stocks with extremely poor liquidity."

"Now that all the major institutions in the market have taken control of the market, it is natural to follow the direction of the institutions." Zheng Jinming said, "This is not difficult to understand, but I didn't expect that the check of 'Gemdale Group', with a market value of nearly 400 billion, could actually pull out such an intraday trend."

"This shows that as long as the follow-up market is strong, it is not that difficult to pull up the heavyweight stocks." He Zhong said, "Alas, what a pity... I hesitated in the early trading and didn't get the upper hand."

"If you want to trade in the direction of the 'big infrastructure' main line, there will definitely be opportunities in the afternoon." Zheng Jinming said, "After the fermentation of emotions in the afternoon, the trend of the 'big infrastructure' main line in the afternoon will definitely be further popular. The follow-up effect of the retail funds in the market is very likely to rise further. I think this market... will rebound for at least two days, and it is completely possible to do a next-day arbitrage market."

"Okay!" He Zhong was very happy to hear what Zheng Jinming said, and responded, "Then let's work together to trade a stock. Judging from the market trend this morning, in the main field of 'big infrastructure', the real estate sector has already had a high sentiment, and many popular core stocks have reached intraday highs. It's not easy to take over, and it's not easy to continue to pull the market to attack. On the contrary, the two core sectors of the real estate industry chain, building decoration and building materials, can be further explored, and many stocks in these two sectors have a certain expectation gap."

"As for the building materials and building decoration sectors..." Lao Qian pondered for a while and said, "The market recognition is relatively high, and the current market trend is good. There seems to be room for intraday gains to be made up. It seems that there are only a few stocks like Oriental Yuhong, Jinou Cement, and Huaxin Building Materials... My suggestion is that Oriental Yuhong is a good stock. It has good fundamentals, institutional lock-ups, and retail investors are willing to follow suit. It is in line with the current market investment style and speculation style."

"Then let's go with the check from 'Oriental Yuhong'." He Zhong made a decisive decision.

The lunch break passed quickly as the core investors in the "Suzhou Group" discussed with each other.

Soon, before anyone knew it, 1 p.m. had arrived and the two markets once again entered a continuous bidding trading session.

I saw that the emotions had been brewing for an hour and a half at noon.

The two stock markets had just started to move, and the "big infrastructure" main-line related industry sector index, which had attracted the attention of countless investors in the market, as well as related concept stocks, weighted stocks, and blue-chip stocks, were all snapped up by buying funds, and stock prices rose rapidly again.