Rebirth of the Capital Legend

I think that when we trade, we have to focus on markets that can attract a large number of retail investors to follow suit, where the underlying logic is strong enough, and where major funds are deeply involved.

Because only such core main line hotspots have a relatively high fault tolerance rate.

Even if you choose the wrong time to enter the market, it doesn’t matter as you won’t lose much money.

But if you do a branch line market...

There is a lack of retail investors following the trend, and the profit-taking pressure in the market is too great, coupled with the continuous siphoning effect of the core theme of "big infrastructure" on market liquidity.

Once you get the market rhythm wrong, it will be difficult to get out of it unscathed.”

"Old Qian is right." Zhao Qiang nodded and replied, "Today's market, the three branch sectors of consumer electronics, petrochemicals, and security lenses are indeed strong, but looking at the sentiment after the market... it seems that the investor groups of all parties in the entire market do not agree with these three branch market trends.

There are also these three branch sectors and strong individual stocks.

Basically, they are all heavyweight stocks that are heavily supported by a number of institutions, such as Lixun Precision, Yantai Wanhua, China Petroleum, China Petrochemical, Dahua Shares, Hikvision, etc.

These weighted stocks generally have large circulating volume and market capitalization.

If we intervene, it will be difficult to guide the market at first.

Secondly, looking at the previous historical trends of these stocks, it seems that the main institutional capital groups intervened in these stocks relatively early and are currently generally in a profitable state.

This means that if we invest in these stocks, our holding costs cannot be compared with others.

If others dump the market to take profits, we won’t be able to withstand it.

Relatively speaking, the core theme of "big infrastructure" is much better.

First of all, the market pays great attention to the "big infrastructure" line. There are a lot of investors focusing on this main line. Among those playing games here are institutions, hot money, and a large number of retail investors. With so many and so many different funds involved, the stability of the market trend is much stronger.

Secondly, the overall scale of the "big infrastructure" line is very large.

With the help of positive emotions.

With the joint participation of multiple fund groups, not only will there be continuous investment opportunities in the core weighted leading stocks that are held by institutions, but small and medium-cap concept stocks will also have continuous speculation opportunities as retail fund groups follow suit in large numbers.

There is also the continued deep involvement of various funds.

The active liquidity of the entire market will continue to concentrate on the line of "big infrastructure".

In this way, there will naturally be more opportunities.”

"The core theme of the market is definitely along the line of 'big infrastructure'," said Sun Chengyu. "This is beyond doubt, but when the core trend is weak, it is still worth paying attention to the branch lines that can perform well and strengthen independently."

"Of course you can pay attention to it," Zhao Qiang said, "but it's really hard to take a position on these branches."

"We can see how long these branches will last tomorrow," said Lao Qian in the group. "If they can last, it's not impossible to speculate with a small position. Currently, the trend of 'big infrastructure' is limited by the overall market liquidity, so it will definitely not be smooth. If these branches can produce a strong enough money-making effect, there should be funds coming to focus on trading."

"The current market liquidity should be able to support the breakthrough of the 'big infrastructure' line, right?" Zhao Qiang said, "After all, the current position of the 'big infrastructure' line is not high, and the continuous incremental funds needed do not need to be too much to go up.

Moreover, the stocks have been washed out after the continuous volatility and adjustments in the early stage.

Now, within the entire "big infrastructure" main line, the chips are stable enough.

As long as the mood is good, the price can go up even if the volume decreases.

The reason why the 'big infrastructure' line was hesitant and divergent during the trading session today was because other branch lines of the market, as well as oversold market lines such as Internet software, film and television media, electronic information, etc., as well as many oversold stocks in the entire market, dispersed liquidity.

This has resulted in a clear lack of liquidity concentrated in the core area of ​​"big infrastructure."

But tomorrow, and even in the next few trading days, the situation will be completely different.

Today, although these oversold main lines and many oversold small and medium-sized concept stocks in the market have generally risen sharply, their trading volume has basically shrunk.

In other words, the sustainability of this oversold recovery trend is relatively poor.

Once this oversold rebound expectation is filled.

These oversold stocks have reached the previous historical heavy range of trapped shares.

Then, the stock price trend of these stocks will naturally reverse, and it will be natural for the "big infrastructure" main line to siphon buying of these stocks.

Moreover, once the money-making effect in other branch sectors of the market weakens.

The active capital groups in the market will certainly further converge on the core area of ​​"big infrastructure".

That is to say, it is expected that...

In the follow-up, the internal liquidity of the "big infrastructure" line and the group of active buying funds will most likely increase. With the potential huge buying, there is no reason why the market will not rise.

What's more, Mr. Su of Huayi Capital still has a strong appeal in the current market.

With the continuous increase and lock-up of funds from the "Hua Yi Capital" channel, the emotional expectations for the "big infrastructure" line will always be there, just like before, because funds from the "Hua Yi Capital" channel were heavily invested in the main sectors of the new energy industry chain, other major fund groups continued to follow suit and speculate on the main line of the new energy industry chain.

I feel like this time...

The market trend that occurred in the first half of the year on the main line of the 'new energy industry chain' is likely to be repeated on the core main line of 'big infrastructure'.

"The situation of the 'big infrastructure' line is different from the 'new energy industry chain' line at the time." Lao Qian in the group said, "I think the 'big infrastructure' line, whether it is the underlying logic or the expectation of future performance improvement from the fundamental change, feels that the 'big infrastructure' line is stronger than the 'new energy industry chain' line at the time, and naturally the market expectations will also be stronger."

"Haha..." Zhao Qiang laughed and said, "Old Qian, you dare to think of it."

"Why do I feel like you two are a little too optimistic?" Sun Chengyu said, "The 'big infrastructure' line is so large that it can't move smoothly. The short-term ecology of the market often has too much consensus in sentiment, so we should be careful. Judging from the market sentiment after today's trading, not only will there be no buying point tomorrow, but there is also a high probability that the market will open high and close low."

"If tomorrow the market opens high and ends low, then next Monday, when the market opens low, there will be a buying opportunity," Zhao Qiang said. "For the main market trend, I don't think we need to be obsessed with the gains and losses of one trading day."

“Xiao Zhao, your current situation… is pretty good!” Lao Qian in the group said with a smile.

"We have to be confident when we trade," Zhao Qiang said. "Since we believe that the 'big infrastructure' line can continue to break through at this position, we should firmly believe in this and dare to continue to increase our positions when the market falls back."

Old Qian nodded slightly and said, "That's right."

Along with the three people's detailed analysis of the after-hours market, there is also an outlook for market trends tomorrow and even next week.

As time goes by...

On the Internet, discussions on the topic of 'Fuxing Road continues to increase its holdings' and the hot news about the market rebounding across the board and more than 2000 stocks closing in the green during the day are still ongoing.

Moreover, the discussion on the topic continues to deepen.

The market's bullish sentiment is still continuing to rise, and more and more people are bullish both on and off the market.

And when it's night time...

The regulators also spoke out again, rarely, to protect the market, saying they would strictly regulate the market, resolutely crack down on stock price manipulation, and further improve the delisting system. At the same time... late at night, in the external market, U.S. stocks once again opened higher and closed higher, setting a new historical high, continuing the bull market trend that has lasted for many years.

We see continued new highs, the bull market trend remains unchanged, and the U.S. stock market is the only one that stands out in the world.

Countless domestic investors are extremely envious.

"Wow, it's a new high again, it's outrageous... Many domestic institutions have been bearish on the US stock market for a long time, right? They said the US stock market bubble is big, but I didn't expect it to be bullish for more than a decade, it's really outrageous."

Faced with the continued record highs of the U.S. stock market, many people at the domestic stock investment exchange forum complained with envy.

There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!

"Yeah, when will our Big A be able to stand up?"

"Bulls are short and bears are long, bulls are long and bears are short. It feels like the A-share market and the U.S. stock market are really two extremes."

"They are mature markets, and we are just a primary market. We can't compare, we can't compare!"

"Indeed, the ecosystems are different and cannot be compared, but... the U.S. stock market feels like it has a pretty big bubble."

“It’s not small, but it just keeps growing!”

“It feels like this has been rising since the bursting of the Internet bubble in 01, right?”

"That's right. It's been a bull market for more than ten years."

"When will our A-share market be able to have a bull market that lasts for more than ten years? I am so envious that I am crying. However, the US stock market continued to rise sharply tonight, setting a new historical high. The A-share market should also be stable tomorrow, right?"

"It's hard to say. Our A-share market always follows the decline but never the rise."

"It will definitely go up tomorrow, what's the doubt? Fuxing Road bought so many shares today. Even if the US stock market doesn't go up tonight, with the influence of Fuxing Road, the follow-up trading will push up the stock price."

"Gemdale Group and Huaxin Building Materials, the two stocks involved in 'Fuxing Road', will certainly rise sharply tomorrow, and may even hit the daily limit. But I am talking about the entire market. The daily limit of these two stocks alone...should not drive all the stocks in the entire market? At most, it can slightly drive the 'big infrastructure' line."

"If the 'big infrastructure' line rises, won't other main sectors and other stocks in the market also rise?"

"That's not certain. It depends on the strength of tomorrow's opening."

"The core leader should be the Oriental Yuhong stock, right? If this stock continues to open higher than expected tomorrow, and continues to rise after the opening, then tomorrow's market will most likely stabilize. Otherwise... it's hard to say. After all, the number of times that the A-share market opens higher and continues to rise is rare in a year."

"Don't worry about it. With such a strong bullish sentiment in the market after the market closed today, the market will definitely rise tomorrow. What's more... there is also the stimulus of external trends now."

"Yes, didn't the regulators release some favorable news tonight?"

"This positive news released by the regulators should not have much impact on the market, right? After all, strict supervision, crackdown on stock price manipulation, and improvement of the delisting system... based on past history, we have said it 50 times, if not 100 times."

"Who cares... I feel like the trend of the market index isn't that important anymore."

"Indeed, the trends of individual stocks and indexes are quite differentiated."

"You mean the large-cap stocks in the A50 index? That's true...these large-cap stocks have been moving in the opposite direction of the index in the past six months."

"It's not just about these big blue chip stocks. In fact, many stocks within the 'big infrastructure' line have also developed independent market trends. Even when the 'big infrastructure' line was adjusted in the early stage, some stocks within this main line not only did not fall, but rose a lot."

“This is the resilience of the core storyline.”

"Indeed, I have come to understand recently that it is safest to focus on the core themes and core leading stocks."

"That's not certain. If you don't get the rhythm right, you can easily suffer huge losses. I bought the 'Golden Land Group' at a high price a few days ago. At that time, I thought that for a large-cap stock like this, the share price and position were low, and even if it adjusted, it shouldn't fall much. I didn't expect... I almost got two limit downs. Fortunately, the trend has finally reversed today, and with the blessing of Mr. Su's seat at 'Fuxing Road'."

"Congratulations! You have made a good deal. I bought the Oriental Yuhong stock, but I sold it at a loss. After I sold it, the stock price started to soar. I regretted it immediately. Unfortunately... when I was hesitating and wanted to buy it back, the Oriental Yuhong stock price went up to the daily limit."

"Alas, let's not talk about it anymore. The recent market trend is indeed very easy to slap in the face."

"I hope I won't be slapped in the face tomorrow. I just had a full position at the end of today's trading."

"I sold my stocks in the early trading and bought them back in the late trading. Tomorrow the market must open higher and close higher, and break through strongly upward, in order to have sustainable market expectations."

"It is unlikely that the stock will open higher and then continue to rise. It is highly likely that after opening higher, it will pull back to clean up the market before continuing to rise."

"In fact, it would be good if tomorrow's market pattern could be the same as today's."

"That's wishful thinking. Today, the increase in the major indexes of the two cities is already the highest in recent times. Tomorrow... my expectation for the market is that as long as there is no big drop, it will be fine. As long as the market can stabilize and reverse today's long-term positive trend, it means that this round of market adjustment has officially ended."

"Anyway, I am definitely not pessimistic about this position."

"Indeed, there is no reason to be pessimistic."

Late at night on the online stock exchange investor platform, a group of retail investors who had not yet slept were having heated discussions, and one could clearly sense that the mood was still high, and they were generally optimistic about the subsequent market trends.

And it is under the influence of this positive external trend.

At the same time, there is also good news from the regulatory authorities. The fundamentals of the main market trends, especially the offline real estate markets in various cities which are closely related to the core trend of "big infrastructure", are still being stimulated by the news of continued price increases.

The next day, Friday, August 8, early trading session.

The market has not yet opened.

Countless groups of investors who are paying attention to the market are already gearing up and looking forward to it.

Moreover, based on the topics discussed and the opinions shared by everyone, it can be seen that... after seeing the screen full of good news, everyone's expectations for the day's trend have increased a little.

The overall bullish sentiment in the market is also obviously stronger than last night.