Rebirth of the Capital Legend

Chapter 441: Strengthen investment confidence!

"Looking at today's market trend, the emotional collapse is mainly due to the huge selling pressure on the 'big infrastructure' line. Some active fund groups in the market that took the lead yesterday felt that the volume could not support the 'big infrastructure' line to break through quickly, so they reversed and smashed the market, which brought down the long sentiment of the entire market." Li Shangfeng said, "From this logical perspective... I feel that whether the market can perform well still depends on the performance of the 'big infrastructure' line!"

"That's for sure." Wang Shujie nodded and continued to respond, "The 'big infrastructure' line is currently the main line with the highest degree of recognition among all kinds of funds in the market, and it has the strongest underlying logic and future expectations. If this main line cannot be developed and a consistent long position cannot be formed, then the other main lines of the market will naturally have no chance. Moreover, if we want to attract incremental off-site funds to intervene through the market's money-making effect, only the 'big infrastructure' line is possible."

"Mr. Wang, what do you think of the defensive mainline sectors such as liquor, white appliances, medicine, consumption, and finance?" Li Shangfeng said, "If the subsequent trend of the 'big infrastructure' line continues to be lower than expected, do you think these defensive mainline sectors can continue to form a continuous group of institutional main funds in the market and break out of the independent market trend like the previous six months? I am thinking... If the subsequent trend of the 'big infrastructure' line continues to be lower than expected and cannot form an upward breakthrough, should we move some of the positions currently arranged on the 'big infrastructure' line to the defensive mainline sectors such as liquor, white appliances, medicine, consumption, and finance?"

"I don't think it's necessary," Wang Shujie said. "Although the current trends of defensive mainline sectors such as liquor, white goods, medicine, consumption, and finance are better than the core mainline of 'big infrastructure' and other major mainline sectors in the market, the overall valuation of these defensive mainline sectors, at least compared with the current market average valuation, is not much underestimated.

In other words, these defensive main-line sectors are almost entering the stage of realizing expectations.

When its stock price has already reflected some future expectations.

Even though the core leading stocks of these main sectors have a certain degree of safe-haven properties due to relatively abundant liquidity and small stock price fluctuations, it is difficult to get more aggressive and active position building actions from various fund groups in the market in the absence of sufficient investment cost-effectiveness.

That is to say, defensive sectors such as liquor, white goods, medicine, consumption, and finance.

It is now very difficult to imitate the independent market trend in the first half of the year.

Moreover, even for the strongest "white wine" sector, the potential for stock price increases is not great due to the changes in industry fundamentals next year and the expectation of explosive performance.

Therefore, there is no need for us to continue to increase the positions of core stocks in these defensive main-line sectors at this point.

Furthermore, in the past year, the "national team" has reached a new high in the scale of its holdings in defensive main-line sectors such as liquor, white appliances, medicine, consumption, and finance.

In other words, as subsequent market trading time progresses, the fundamentals and future performance expectations will also be fulfilled.

It is also difficult for the "national team" to continue increasing its positions in these defensive sectors.

In short, at the current position, the potential active buying of these defensive main-line sectors has no advantage compared to the number of potential profit-taking orders.

For these defensive mainline sectors, I personally think...

The optimistic expectation is that the core leading stocks of these main sectors will be able to maintain a strong and volatile trend in the subsequent market fluctuations.

The less optimistic expectations are for those stocks that have already delivered on a lot of performance and future expectations.

There is a high probability that as the market investment sentiment turns pessimistic, the market index will fall, or there may be a compensatory decline. "

"Will there be a rebound?" Li Shangfeng said, "This should be impossible, right? After all, the 'national team' has deposited nearly one trillion yuan of funds in the core leading stocks of defensive sectors such as liquor, white appliances, medicine, consumption, and finance, and the 'national team' will most likely not have plans to reduce its holdings in the short term. I guess it is likely that these huge holdings of the 'national team' will eventually be transferred from Huijin and Zhengjin to the pension fund accounts as pension funds further enter the market, and finally form a market stabilization fund.

In other words, the risk of the "national team" reducing its holdings or selling off its shares is still very low.

This also shows that fundamentally, the potential selling power in the liquor, white goods, medicine, consumption, and finance sectors is still significantly smaller than that in other main market sectors. After all, these defensive main sectors have the largest core main funds, the "national team", to help lock positions.

Since the potential selling force is smaller than that of other main market sectors.

Then, naturally, the market trend and its stock price performance will not be lower than the performance of other market main lines.

What's more, in the current market, various capital groups have a clearer understanding of defensive main-line sectors such as liquor, white appliances, medicine, consumption, and finance.

Including active hot money and retail investors in the market.

Everyone knows that these defensive main-line sectors have safe-haven properties. They have the help of the "national team" to lock positions, and there are also a number of institutional main funds in the market that speculate and continue to buy chips. What's more, the fundamentals of a number of core leading stocks in these defensive main-line sectors are not bad.

This will instill a kind of investment inertial thinking into the active hot money and retail investors in the market.

Whenever the market trends are bad, they will flock to defensive sectors such as liquor, white appliances, medicine, consumption, and finance to hedge risks.

However, the current market has not yet escaped the bear market trend pattern.

In other words, there are always some problems with the market's medium- and long-term investment sentiment.

Since the market investment sentiment and confidence in the medium and long term are insufficient, and the market liquidity is obviously insufficient, the intervention of incremental off-market funds is very limited.

At the same time, the only main sector that has hope of breaking upward is the "big infrastructure" sector.

It was also cast a shadow and the whole trend went wrong.

So, if the market sentiment continues to decline and expectations get worse, looking at the entire market, only the defensive mainline sectors such as liquor, white goods, medicine, consumption, and finance can form an extreme group of funds in the market due to the inertia of investors' thinking, the "national team" locking positions, and institutional grouping, which can maintain relative stability and outperform the market and the market! "

"You are right," Wang Shujie responded, "but this is an extreme case. Considering the current hot real estate market, the average increase in national housing prices in the last quarter, and the fact that the second half of the year is always the peak season for real estate sales, these factors should be taken into consideration.

It is basically certain that the national real estate market atmosphere will be even hotter in the second half of the year.

The real estate market continues to be a hot bull market.

It will inevitably be transmitted to the entire real estate industry chain, allowing companies and related industries in the entire real estate industry chain to benefit.

That is to say, no matter how pessimistic the market's investment sentiment and liquidity are.

As far as the fundamentals of the core theme of "big infrastructure" are concerned, its fundamentals are definitely getting better and better, and the subsequent performance expectations of the leading stocks in related core industries are also getting better and better.

Since expectations are still increasing, I believe...

The current pricing deviation behavior in the market will definitely be corrected later.

After careful analysis, we can find that the stock prices of a number of core stocks in the "big infrastructure" main sector in the current market have not performed well and the stock price trend is slightly lower than expected.

The fundamental reason is not because there is any problem with its logic and expectations.

Rather, it is entirely caused by the pessimistic market sentiment and the chip structure factors within the "big infrastructure" line itself.

However, looking to the future, looking forward to subsequent market trends.

This pessimistic sentiment in the market can be continuously improved when positive news continues to stimulate, the offline real estate bull market becomes more and more powerful, and the external market trend continues to stimulate.

Read the error-free version at 69shuba! 6=9+shu_ba is the first to publish this novel.

As for the chip structure factor...

When this batch of short-term profit-taking was cleared, the historical trapped positions were cleared out due to lack of confidence in the future market.

Have the two suppressive factors that you are worried about, which are currently seriously restricting the upward breakthrough of the stock prices of individual stocks related to the core theme of "big infrastructure", disappeared and been significantly improved?

When the factors suppressing the stock prices of individual stocks related to the core theme of "big infrastructure" have been significantly improved.

Then, for the main line of "big infrastructure", which itself has very strong future expectations and performance delivery capabilities, a breakthrough and rise is an inevitable result.

And as long as the "big infrastructure" line can reverse and break through.

Then, it will definitely be able to re-gather the overall bullish sentiment of the market, repeat the short squeeze and rise trend of the previous half month, and further attract more off-market funds to enter the market to trade.

That is to say...

Although the current trend of the "big infrastructure" line is somewhat lower than expected, the technical trend has also been somewhat broken.

But as long as the underlying logic remains solid and future expectations remain strong, we should still have more patience and confidence in this core theme and the trading strategy plan we have formulated before.

We should not be afraid of the clouds blocking our view. We should not be swayed by the current market sentiment, which will easily shake our original trading strategy and our confidence. "

After listening to Wang Shujie's words, Li Shangfeng pondered for a while and felt that what the other party said was indeed reasonable. In his heart, he was indeed shaken about the previous trading strategy, so he couldn't help but sigh again and said, "Mr. Wang, you are right. We still can't be swayed by the current market sentiment. From the underlying logic, the line of 'big infrastructure' still has the possibility of continuing to break through after adjustments."

“So…” Wang Shujie laughed and said, “Just hold on a little longer. Our fund products can still withstand this level of drawdown.”

"Okay." Li Shangfeng nodded and said, "Let's wait and see how the market trends in the future."

After saying this, he turned his gaze back to the two markets which had already frozen.

As the two of them reviewed and discussed the after-hours market, the market time had already reached around 5 pm.

Under the watchful eyes of countless investors, the Dragon and Tiger List data of the two cities have been released.

According to the latest updated Dragon and Tiger List buying and selling data in the market, we can see that whether it is the core theme of "big infrastructure" or other main sectors of the market, among the corresponding listed stocks, the main core force of selling is still active hot money and a large number of retail investors who are panic selling.

As a group of institutional funds with relatively long-term thinking logic, larger capital volume and stronger risk resistance.

According to the public list, the sales amount is not large.

On the contrary, there are quite a few institutional funds that are still continuously taking over the selling of hot money and retail investors, and are taking measures to buy at the bottom and increase their positions.

"Sure enough, it's the pattern of hot money and retail investors reducing their positions, while institutional investors increasing their positions." After seeing the latest Dragon and Tiger List data disclosed by the two cities, Huang Qingyun, the trading team leader of the 'Sino Future No. 1' fund product trading room of Sino Private Equity Fund Company in Shanghai, said, "I said that today's panic situation... was caused by the hot money in the market. As expected, I really don't understand. At this point, is there any substantial negative news? At the same time, the substantial fundamentals of the entire 'big infrastructure' main line are still improving. What is there to panic about?"

"It's not all the fault of hot money," said Men Xingtao, product manager of the 'Sino Future No. 1' fund. "Hot money was just carried away by emotions. The real reason for the rapid rise and fall of the 'big infrastructure' line, and the collapse of the investment sentiment of the entire market, and the fundamental reason for the overall plunge in the market today, is that the overall long funds in the market are insufficient to take over, which is restricted by the volume. At the same time, because the 'big infrastructure' line is currently in the core area of ​​historical locked-in disks, the floating stop-loss disk chips that need to be sold out in the market are too heavy."

"That being said... if these hot money had a little more structure and were not so hasty in selling, the entire market wouldn't have been so devastated today." Huang Qingyun took over and continued, "With such a drop, not only have the industry sectors and core stocks in the core mainline area of ​​'big infrastructure' broken, but other mainline sectors of the market, other related stocks, and the overall market index have also broken. Once the technical pattern collapses, it will be even more difficult for market investment sentiment to turn around. The subsequent trend will probably be even more difficult. The space and time for the market to adjust will most likely have to be extended. The consequences of this will be very bad."

"Even so, there's no point in complaining now," said Monxingtao. "Let's think about what strategy we should adopt in the future."