Rebirth of the Capital Legend

"Since the core targets are different in each round of speculation..." Li Jinshi thought for a moment and said, "Then we can dig deeper and find some blue chip stocks in the main line of 'big infrastructure' that have not been hyped by funds, are relatively low in relative position, have good fundamentals, and have a relatively clean chip structure. We can then ambush them first."

"I think so." Chen Guiyun responded, "If the market situation develops in the future, and the core direction of speculation by the main funds in the market is still revolving around the main line of 'big infrastructure', then we can take advantage of the fact that the overall chip structure of this main line has not been fully adjusted and dig deeper. The cost-effectiveness of lurking and buying low at this time should be higher than following the trend."

"There is no doubt that the focus of subsequent market speculation will definitely revolve around the line of 'big infrastructure'." Liao Guoxiang said, "And it seems that if the market wants to truly complete a new breakthrough trend, it will take some time to adjust. We... have plenty of opportunities to screen targets and potential positions."

"Okay." Li Jinshi said with a smile, "Let's do it."

Following his affirmative answer, the other two people also agreed with his idea.

While several major speculators of the "Fushan Group" were discussing the current market trends and analyzing possible changes and developments in the subsequent market.

At this time, the main hot money group of Shanghai Super Short Gang.

Xu Qiao took a look at the disclosed data of the Dragon and Tiger List of the two cities. He was particularly surprised to see that retail investors were selling in large quantities while institutions and hot money were buying in large quantities. He said, "It seems that the institutional groups have not yet completed their positions on the core theme of 'big infrastructure'. Currently, most of the chips are still in the hands of retail investors."

"Generally speaking, large-scale institutional positions require the support of expected certainty." Old Wu took over and said, "Although the offline real estate market in major cities has fully recovered and housing prices across the country are generally on an upward trend, the performance of stocks related to the real estate industry chain has not yet been reflected, and there is insufficient certainty. Therefore, although a large number of institutions are optimistic about the future market of the core theme of 'big infrastructure', they will definitely not fill their positions in a short period of time.

There are not many active hot money in the market now.

They simply can't take on much chips.

In addition to the "big infrastructure" line, with the comprehensive withdrawal of large funds in the early stage, there are also huge amounts of retail funds trapped in several stock market crashes.

The internal chip structure of this core line cannot be reconsolidated and adjusted so quickly.

That is to say, at present, when there is still insufficient certainty in performance expectations, most institutions are still hesitant and wavering when building positions.

At the same time, the liquidity of the entire market is relatively scarce.

Faced with the continuous selling of trapped shares in the market, the "big infrastructure" line will definitely not be able to continue to make a substantial breakthrough in the short term.

There is a high probability that the stock price will fluctuate along the already established stock price range.

Only when the volume continues to shrink during the shock period, the selling volume in the market is greatly reduced, and the upward pressure is weakened, will a breakthrough pattern be formed again.

I estimate that the timeline for this breakthrough will be around the time when a number of companies announce their third quarter earnings forecasts.

After all, at that time, the performance of many companies will be reflected to a certain extent. The industry leaders and blue-chip stocks in the relevant real estate industry chain will have their valuations further reduced under the certainty of performance growth, and naturally the safety margin for institutional participation will be higher.”

"When the third quarter report is coming?" Lao Zhang was stunned and asked, "Does it take so long to fluctuate?"

Old Wu laughed and continued, "How long the horizontal line is, how high the vertical line is. I think it's not a bad thing for the 'big infrastructure' line to fluctuate for a while in this range."

"That's true... but it's a bit too impatient," said Lao Zhang. "And if the market fails to break through and create another wave of market conditions to generate a money-making effect, the money-making effect created by the continuous short squeeze of the core theme of 'big infrastructure' and the off-market capital groups that have been attracted will gradually recede and exit the market. By then... the market may fall into a situation where there are only 300 to 400 billion yuan in daily trading volume, there is basically no sustained money-making effect, and the on-market capital groups are constantly fleeing."

"That can't be helped," said Old Wu. "We have to respect the market trend. At least at this stage, before the internal chip structure of the core theme of 'big infrastructure' is adjusted, with the current market volume and active buying power, it is difficult to withstand the continued selling pressure and continue to push up the stock price and the index."

"Since the index cannot continue to break through under the current volume..." Xu Qiao said, "then we can only operate according to the previous trading model."

"Pay less attention to the index and more attention to individual stocks." Brother Chen responded at this time, "The index and the main market trend as a whole cannot achieve a comprehensive breakthrough and cannot expand the height space. However, based on my observation of the market trend in the past two days, while the height cannot be expanded, the width of the main market trend is still significantly widening. We can start from this direction."

"When the height cannot be broken, the width is expanding?" Xu Qiao was stunned, not quite understanding what Brother Chen meant, and asked, "Brother Chen, what do you mean by width?"

Hearing Xu Qiao's question, Brother Chen had no time to answer. Old Wu coughed lightly and said, "What Old Chen means... is that the market rotation is still quite obvious, especially the rotation within the main line. Haven't you noticed that in the core main line of 'big infrastructure', the hot stocks are all rising in rotation? The stocks that lead the rise every day are basically different. This shows that many active short-term capital groups in the market have realized that it is difficult to break through the height, and have been exploring other concept stocks with potential at low levels and short-term speculation space as rotation speculation in turn."

"Well, it seems to be true." Lao Zhang nodded in response. "When the height cannot be broken through, it is not bad to expand the width and form a rotation speculation of individual stocks. This will not over-consume the market's long potential, nor will there be a situation where the buying funds in the market cannot bear the selling. It is conducive to maintaining the market's money-making effect, and it is also conducive to allowing the many off-site follow-up funds that have already entered the market to continue to stay in the market for trading. As long as the new off-site funds do not leave, then no matter what stocks these funds buy, it will be beneficial to the development of the market and stimulate the long sentiment in the market."

"That's true," said Old Wu. "So the strategy at this stage is to seize the opportunity to buy at a low price, which is definitely better than chasing the so-called leader and taking over the relay, and the risk is also lower."

"Yes, if you buy low and wait for the opportunity, you may be able to make some money..." said Lao Zhang, "but if you follow the trend and buy high, you will easily be slapped in the face by the market during the volatile phase."

Following the discussion among several people, and their judgment on the market trends.

At this time, on the stock investment discussion platform of the entire network...

The understanding of the group of retail investors is not so clear.

At this moment, after seeing the latest Dragon and Tiger List data disclosed by the market, most retail investors were surprised that institutional funds and hot money were still continuing to buy, but deep down, they still felt relatively pessimistic about the possible market trends in the future.

"Looking at the Dragon and Tiger List data released by the two markets, today's market shouldn't be going like this!"

"Alas, I don't know who crashed the market. It seems that the big funds in the market didn't sell!"

"Regardless of whether the so-called big funds in the market have fled or not, based on this typical high-rise and fall trend this afternoon, we cannot have any extravagant expectations for tomorrow's market."

“We’re definitely going to have to lower our expectations tomorrow.”

"Alas, a number of core stocks in the main line of 'big infrastructure' surged and fell in the afternoon. They did not bring down the main line sector, nor the index. Instead, they brought down the trend of the small-cap concept stocks I hold. I don't understand. The stocks I hold clearly did not rise at all. Why is it that every time the market surges and falls, it falls more sharply than the overall market? There is really a new low under a new low."

“Try to stay away from small and medium-cap pure concept stocks. These stocks are no longer popular in the market.”

"It's trapped, how can I get away from it?"

"Today's market sentiment is so good that it has not been able to go up, and tomorrow is definitely not going to be a good time. Although everyone knows that the 'big infrastructure' line is the most certain and the most actively speculated core line by various funds, but in this entire main line, the leader changes every day, there is no sustainability at all, and it is very difficult to do it!"

"Indeed, it's a constant slap in the face. Just when you think it's strong and can break through, it instantly turns around and falls back. When you think it's weak and may continue to adjust, it forces you to short the stock and hits the daily limit. This trend... is really bad. It's not right to sell or buy."

“Isn’t it good to sell high and buy low? The volatile phase is a good opportunity to do T!”

"It's easy to say, but it's not that easy to do."

"It seems that I haven't seen any movement in Mr. Su's 'Fuxing Road' seat on the Dragon and Tiger List recently. I don't know how many core leading stocks in the 'Big Infrastructure' main line are still held by Mr. Su's 'Huayi Expedition No. 1' fund product. Is he not running away secretly?"

"What are you thinking? Is Mr. Su that kind of person? I can guarantee that Mr. Su has definitely not reduced his holdings."

"I don't think there will be any reduction in positions, but there will be no further increase in positions either."

"At this point in time, the 'big infrastructure' line could continue to rise or fall. In short, there is a lack of certainty. It is normal not to add to your position at this time, right?"

"After the adjustment, it will definitely break through upwards. Is there any need to think about it?"

"That's not necessarily true. Many people also said the same thing about the core line of the new energy industry chain. But... after a slight change in the pattern, it lost 10 points."

"Anyway, no matter which direction the market index goes, looking at the entire market, I think the 'big infrastructure' line has the strongest expectations and the most involvement of major funds. If people don't dare to go up to the 'big infrastructure' line and feel that they can't get out of it, then the other core lines of the market will be even more difficult to get out of. In this case... it is better to exit the stock market as soon as possible."

"That makes sense. I think at this time, we should not be overly optimistic, but we should not be overly pessimistic either."

"Let's wait and see. If the market trend can stabilize tomorrow and the 'big infrastructure' line can remain at this position without falling, then we can give it a slight boost. If tomorrow's market opens, many stocks that surged and then fell this afternoon open lower than expected, or open significantly lower, then it means that the market's bullish sentiment has continued to decline, and there is naturally no need to continue to structure, or continue to hold or increase positions."

"That makes sense. Anyway, I feel that the market will not be able to go far just relying on the 'big infrastructure' line."

"It depends on the trend of foreign markets tonight, right?"

"In fact, the Chinese real estate stocks in the Hong Kong stock market did not plunge much in the afternoon. To be honest... I really don't understand why the stock price can't go up despite such strong expectations?"

"That's because the rise in stock prices, in addition to expectations, most fundamentally depends on the recognition of funds."

"Yes, yes...If there is no recognition from big funds, even the most undervalued stocks will find it difficult to rise."

"Like stocks in 'Big Finance'?"

"'Big finance' has risen a lot this year, significantly outperforming the market index. It would be great if the subsequent trend of the main line of 'big infrastructure' can be similar to the trend of the 'big finance' line in the first half of the year."

"It's not impossible, keep hope."

"Still keep hope? The more optimistic you are, the more disappointed you will be in the end. I thought the market would go up today, but it turned out to be a different situation. After increasing my position in the afternoon, I still lost money at the end of the trading day."

"Alas, it is so difficult to have a smooth upward trend!"

As market investment sentiment diverges again, everyone's expectations for tomorrow's market trend are generally at a low level.

However, fortunately, as time goes by in the market...

In the evening, the news was positive and the foreign market trends were both pretty good.

This led to the overall investment sentiment in the market recovering slightly compared to the previous day on the next morning, Tuesday, August 8.

And under the influence of the slightly recovered investment sentiment.

In the end, after ten minutes of call auction, the market as a whole actually achieved a small general opening trend. Many market stocks that plunged and fell in the late trading yesterday, including stocks related to the "big infrastructure" main line, as well as film and television media, Internet software, new energy industry chain... and other oversold main line sectors, did not show a negative feedback large low opening trend.

This directly stimulated the enthusiasm of a number of short-term capital groups in the market to chase and follow the trend.

This has given everyone some new expectations for today's market trends.