Rebirth of the Capital Legend

"I told you not to rush," said Liao Guoxiang. "The external market trend was bad last Friday, and there was no unexpected positive news over the weekend to further stimulate sentiment. Although there were signs of weakness turning to strength in the morning market call auction, the overall market enthusiasm for long positions was not enough. After the long positions at the beginning of the session were quickly consumed, the subsequent potential funds, in the absence of certainty in the trend, naturally waited and watched."

"However, today, the 'big infrastructure' line, whether it is related hot concept stocks or hot core weight stocks, including 'Oriental Yuhong', 'Huaxin Building Materials', and 'Golden Land Group', all showed a trend of shrinking volume." Chen Guiyun took over and said, "This should be considered a relatively good thing in the market trend, right? This at least shows that the selling pressure at this position has indeed been fully released before, and the internal chips have been precipitated in the previous period when the main institutions in the market continued to increase their positions and buy."

"There is indeed a clear decline in volume." Liao Guoxiang nodded and said, "Buying is not very good, but the selling in the market is indeed exhausted. This shows that the retail investors near this stage should have sold almost everything they should have sold during the previous continuous and violent fluctuations."

"In that case... those who bought at a relatively high price in the morning trading today should not have any problems." Li Jinshi understood what the two people meant and said, "For the entire market, the internal chips have further settled relative to the core main line, and the market has seen a significant reduction in volume, which also shows that the differences are decreasing. It's just that the positive factors and sentiment are not enough, and the potential buying funds group is not proactive enough today."

"That's what I mean." Chen Guiyun nodded and said, "And it's not just the 'big infrastructure' line that is obviously shrinking today. At this moment, the volume of sectors such as liquor, white appliances, medicine, consumption, and finance has shrunk. Even the film and television media, Internet software, and electronic information, which were obviously weak at the beginning of the session... These weak main-line sectors that have continued to fall and have not even rebounded properly, don't seem to be able to release much volume. The retail investors who have been buying more and more have really stopped the stock price after it has been driven to this level. In addition, the stock prices of many stocks are generally only 10% or 20% away from the last bull market. At this level, there is no need to cut losses."

"Today's market trend..." Liao Guoxiang paused and said, "If we can maintain the positive trend and not see a sharp drop in the afternoon, it will be considered a victory."

He didn't have high expectations for today's market trends.

There is no plan to further increase long positions.

Because the buying point he was waiting for did not appear in the morning. Of course... as the market continued to shrink, there was no clear selling point.

Now the funds of the long and short parties in the market are both lacking in certainty.

He thinks that the unclear long and short situation and the unclear on- and off-market favorable factors are also important reasons for the overall shrinkage in the market today.

"It hasn't risen much, so it shouldn't plunge sharply, right?" Li Jinshi said, "The funds that entered the market at the end of last Friday to buy the bottom should have sold at the beginning of the trading session. Those who don't want to sell, there is no need to sell them under this market trend. As for other market themes other than 'big infrastructure', they are obviously not going to be killed, and the impact on the overall market sentiment and the long and short intentions of the main funds is very limited."

"Looking at the distribution of trading volume and the trend of each main line..." Chen Guiyun continued, "Most of the core main capital groups in the market are still concentrated in the 'big infrastructure' main line, consumer electronics, petrochemicals, liquor, white appliances, medicine, consumption, finance... These were previously relatively strong and the main line areas where funds were deeply involved. Although the other main line sectors of the market have also shrunk severely, there are basically no large orders participating in the transaction. All orders are sold by retail investors."

"The market style was not obvious before, but now the market investment trend should be relatively clear." Liao Guoxiang said, "And through the continuous fluctuations in the past one or two months, it is obvious that most of the main capital groups that are still active in the market have completely withdrawn their positions from the previous small-cap concept stocks and deployed them to the core main line of mid- and large-cap weighted and blue-chip stocks.

The current market is outside the core theme of "big infrastructure".

The style of funds has completely shifted towards the mid-to-large-cap blue-chip stocks.

Small-cap stocks are not only not wanted by hot money in the market, but also by institutional investors. That is why many small-cap stocks have such weak performance. Not to mention outperforming the blue-chip stocks that are the focus of the main funds in the market, they are far behind even the index performance. "

"Well, the market trend is very clear, both in terms of the bright and dark lines." Chen Guiyun said, "Moreover, many retail investors in the market should have noticed this market style switch. Many small-cap concept stocks are not only sold by hot money and institutions that were previously trapped, but also by retail investors. As a result, every time there is a rebound, the sustainability of small-cap stocks is relatively poor, because the potential buying and selling are not proportional at all, and are not of the same magnitude."

"But now the small stocks can't be killed, right?" Li Jinshi said, "Many stocks have been slashed, how can they fall further?"

"Just because they can no longer fall doesn't mean they will rise," said Liao Guoxiang. "These small-cap stocks have neither the attention of major buying funds nor the courage of hot money to speculate deeply. Faced with a large number of historical locked-in shares, it is highly likely that even if they can no longer fall, they can only digest the long-term sideways trend."

"Old Liao is right." Chen Guiyun responded, "It is safer to follow the market trend and focus on core hot spots. It is not the right time to intervene in small-cap concept stocks."

Along with several people's discussion and analysis of the market trend...

On the market, the trading time has now entered 10 o'clock in the morning.

After half an hour of fierce trading, both the stock market trends of the "big infrastructure" main line and the market trends of other main lines have tended to stabilize.

The three core popular stocks are 'Gemdale Group', 'Huaxin Building Materials' and 'Oriental Yuhong'.

The volume was reduced and the increase was around 3%.

Other popular weighted leading stocks, such as Poly Real Estate, Conch Cement, China Construction, Shenhua Coal Industry, etc., basically hovered around a 0.5% to 1% increase, which is relatively synchronized with the trend of the industry sector index to which the major weighted stocks belong.

As for other market threads...

In addition to the obviously weak "pan-tech" main lines such as film and television media, Internet software, and electronic information, which are in a decline of 0.7% to 1%, leading the market decline.

Defensive main line sectors such as liquor, white goods, medicine, consumption, finance, petrochemicals, etc.

They all showed a clear trend of shrinking volume and hovered near the flat position.

As for the indexes, the Shanghai Composite Index performed the best today, followed by the A50 Index. The performance of the Shenzhen Composite Index and the ChiNext Index were still relatively weak.

The CSI 500 Index and the CSI 1000 Index, which represent the trends of small- and medium-cap stocks as well as micro-cap stocks in the market, are basically in line with the performance of the ChiNext Index, fluctuating within a drop of 0.7% to 1% underwater. They are not falling deeply, but it is also difficult to pull them into the red.

Faced with such a market trend of shrinking volume and sideways movement, at this moment, the entire network's stock investment exchange forum.

A large number of retail investors feel that the results are somewhat below their expectations.

After all, such a strong call auction trend in the early trading session and the rapid upward trend at the beginning of the trading session did not produce an obvious profit-making effect or a high increase in the market price, which was a bit difficult for everyone to accept.

"With the volume shrinking, it's unlikely that the market will be able to go up."

Some retail investors who had chased high prices on Oriental Yuhong, Gemdale Group and Huaxin Building Materials in the early trading session now expressed their helplessness.

"With this kind of volume, it will be good if it doesn't plunge later, and there is no hope that it will continue to rise."

“It’s not like there’s no chance. It feels like we’re just waiting for the turnover rate to go up and for further exchange of chips.”

"'Oriental Yuhong' has risen by more than 30% in just a few trading days. It feels like it's about right. It's not wise to chase it at this point. It's better to wait for a pullback and buy it."

"Today, in the main field of 'big infrastructure', the stocks that have seen significant changes and have made money are 'Shenhuo Shares', 'Pingmei Energy', 'Tianshan Cement', 'Beijiang Communications Construction', 'Capital Group', 'Yu Development', 'Bayi Steel', 'Linggang Shares'... these small-cap concept stocks."

"Today, there is a relative lack of active buying. The market caps of Oriental Yuhong, Gemdale Group, and Huaxin Building Materials are not small, so it is not easy to pull up funds. But wouldn't it be easier to pull up smaller market caps?"

"Will this check from 'Capital Group' help put the leader back in the lead position?"

"No way? The current market popularity is still topped by 'Oriental Yuhong'."

“Without the support of Fuxing Road, you still want to become the leader? That’s wishful thinking. At present, the core of the entire market and the core leader is obviously still Oriental Yuhong.”

"At this position, isn't it good to have a shrinking volume shock? Large volume usually indicates the top, and shrinking volume means it can still rise."

"I think so too. The shrinking volume at this position indicates that the chips are well locked, right?"

"Increase the volume and then reduce it, there is no problem!"

"The problem is not the volume, but the active buying. The rise in volume is still a relatively consistent performance, but the fluctuation in volume is not necessarily the case."

"That makes sense. At this position, both upward and downward directions are possible."

"It feels like a lot of major funds are waiting and watching today?"

"Isn't it just waiting and watching? The external market trend last Friday, the U.S. stock market suddenly had a big negative line. Now the U.S. stock market is at a historical high. Many major funds are also afraid that the U.S. stock market will suddenly peak and plummet. Therefore, they are relatively cautious in their actions today. You know, our A-share market has always followed the decline but not the rise."

"No wonder, the U.S. stock market does look shaky."

"We are the ones that are on the verge of collapse, right? I don't think the U.S. stock market will collapse. Maybe in a few days, it will reach new highs again."

"Oh, really...can't we have a little independent trend? As soon as there is a little disturbance in the external market, the country starts to panic."

"Independent trend? That's totally impossible."

"We are already in a bear market with a lack of liquidity. It is basically impossible for it to move independently."

"The external market trend has an impact, but more importantly, the domestic market itself lacks sustained positive stimulus, right?"

"There is no shortage of good news. Wasn't there a lot of news about real estate in major cities over the weekend? And wasn't the trend strong during the early trading session? If you ask me... it's just that this group of domestic institutions and speculative hot money are obviously not in a good position. It would be great if all the funds participating in the market were like President Su."

"Uh, are they all like Mr. Su's 'Fuxing Road'? That's not realistic."

"With today's market volume shrinking like this, we can guess without even looking at the after-market Dragon and Tiger List data that President Su has definitely not left, right?"

"Do we need to look at the Dragon and Tiger Ranking data? Mr. Su will definitely not sell out at this position, so you can rest assured."

“Then I will continue to increase my holdings.”

"I have to increase my holdings. Anyway, I have my eyes on Oriental Yuhong. I feel that this stock will definitely become a bull stock in the long run. As long as it dares to fall, I will dare to increase my holdings. Of course...if it rises too much, forget it. Mr. Su's Fuxing Road seat has a 20 to 30 percent premium, which is about right."

"Yes, these few checks are actually beyond the increase range of other core hot stocks, which is the premium for Mr. Su's seat."

"There must be some reason for the expected stimulus from fundamentals, right? After all, these three stocks are not like other pure concept stocks, which have expectations of explosive performance in the future."

"Anyway, I believe in Mr. Su's stock selection skills."

"The external markets were in a bad state last Friday, and the Hong Kong stock market will also be in deep water volatility tomorrow. From this perspective... the Shanghai Composite Index is still in the green, which I think is beyond expectations."

"Well, from this perspective, today's market trend is indeed strong."

“Hopefully we can hold on until the close.”

"Under the shrinking volume, the price can't go up, and it can't go down much either. I feel there is hope if I can hold on until the market turns red."

"The variables should come at the end of the trading day, right? I feel that today's trading day will either see a big dive or continue to break through and rise."

"The same story from last Friday happening again? Not likely, is it?"

"Haha...it would be great if we could do it again."

"Don't be anxious, don't be anxious. At this position, the probability of being bullish is higher than that of being bearish. In addition, the external market trend was bad last Friday. After two days of emotional brewing over the weekend, the market was able to trade sideways today with reduced volume. I think many major capital groups in the market are still in a state of locking up their shares. If large funds lock up their shares, it means that they are optimistic about the market trend in the future."

"Well, it seems... that's the truth."

Amid the fierce exchanges among countless retail investors, the market's long and short positions and changes in buy and sell orders remain rather tense.

The entire market trend, whether it is the core hot main line or the weak small-cap concept theme main line.

From 10 o'clock in the morning until the midday closing time.

Basically, it remains in a narrow range of sideways fluctuations with shrinking volume. It seems that the long and short forces in the market have stopped at this moment, waiting for further changes in market sentiment, or other positive or negative news to break the balance of the market.