Rebirth of the Capital Legend

"Alas, it still hasn't come out." Seeing the market quickly dive downward, especially the stocks corresponding to the main line of 'big infrastructure', the selling pressure on the market is rapidly increasing. At this moment, Jia Yongxiang, the trading team leader of the main fund product trading room of 'Hua Rui Excellent Growth No. 1' of Shanghai Hua Rui Fund Management Company, sighed and said, "I originally thought that the 'big infrastructure' line would continue to rise after fluctuating and digesting the profit chips intervened at the end of last Friday. I didn't expect... it directly dived downward. This shows that in addition to the relative lack of buying in the market, there are still some problems with investment confidence and bullish sentiment."

Hearing Jia Yongxiang's complaint, Song Shaopu, the main fund product manager of "Hua Rui Excellent Growth No. 1", responded: "Let's take a look at the trend at the end of the trading day. Before 2:30 p.m., the upward buying will definitely not be active. It will be difficult for the index and individual stocks to perform well."

"Indeed." Jia Yongxiang nodded, "Diving around 2 o'clock every day has become a routine."

"However, today the market was able to stay between positive and negative, and was not too affected by external trends, nor was it dragged into deep water by Hong Kong stocks. It is already considered strong." Song Shaopu said, "So, this dive is actually reasonable and expected."

"Yeah." Jia Yongxiang nodded and said, "Compared with the trend of Hong Kong stocks today, A shares are indeed quite strong."

Song Shaopu smiled and continued to respond: "So, as long as there is no panic plunge and the market is not completely interrupted, then there is no need to worry too much. Our layout on the main line of 'big infrastructure' and its market expectations... are not just for one or two trading days."

"That's true." Jia Yongxiang continued to nod and said, "After some fluctuations and adjustments at this position, there is a high probability that it will continue to break through in the future."

"There's nothing wrong with this trend of one step forward, two steps back." Compared with Jia Yongxiang's psychological changes, Song Shaopu is obviously more optimistic about the subsequent market trend. He said, "As long as the overall chip structure of the main line of 'big infrastructure' continues to settle, as long as its overall trend remains in a relatively strong upward trend, then we can just hold the shares with peace of mind. At this stage... it is actually a problem to increase the volume."

In his opinion, "big infrastructure" is the core theme.

Once the core stock chips are locked up by the main capital groups in the market, it will be difficult to release too much volume on the market.

A shrinking market pattern is sometimes not a bad thing.

Of course, he is more optimistic about the market trend of the "big infrastructure" line.

As for other main lines of the current market, especially the Internet software, electronic information, film and television media... and other main lines that have been severely oversold and have not been able to stage a decent and sustained rebound, we are still not optimistic.

There are also doubts about the subsequent rebound of the entire market index.

While the two were discussing, with the overall market diving, the views of countless retail investors in the stock investment exchange forum across the Internet were also undergoing drastic changes. At the same time, the market's bullish and bearish trends were also changing with this change in views, once again leaning towards the bearish direction.

"Fuck, this is so depressing. I should have sold it in the early trading stage, but... it fell back again."

"Alas, there really is no continuity at all."

"It's not even 2pm yet, and the market has already started to plunge. Will there be another big drop at 2pm?"

"In the past two days, the diving has been advanced."

"There was no volume in the rise, but there was a lot of volume in the fall. Does this mean that the market has weakened again?"

“Does this count as a drying up of buying?”

"Of course it counts. I'm saying that 2940 points is still difficult to break through effectively, right? It's really too difficult for the Shanghai Composite Index to reach 3000 points."

"3000 points was considered strong support before, right? Now... I never expected that 3000 points has become a strong pressure point."

"The 'big infrastructure' line has also stopped near the previous high point. If it cannot break through here effectively, it will have to return to the previous range of fluctuations. Once this fluctuation platform is truly formed, it feels like the market will have to return to the double-needle bottoming position of the previous few trading days."

“Based on this volume performance, does it look like a breakthrough trend?”

"And the Hong Kong stock market is also weak today, especially in the external market, the US stock index futures are still showing a downward trend."

"So, there's definitely no show today?"

"It's definitely hopeless. If the market doesn't close with a big drop, it will be considered a victory."

"Damn it, what should I do if I chase the highs this morning? The call auction clearly turned from weak to strong, but I didn't expect... it would end up like this."

"Alas, I was also deceived by the weak-to-strong trend in the early trading session."

"Looking at this trend, it's unlikely that there won't be a sell-off at the end of today's trading."

"The selling pressure on the market is getting heavier and heavier. It feels like it has indeed been pulled up. The selling pressure at the end of the trading day will only get heavier."

"That's right, I really can't have any expectations."

"It's over. With this trend, I have to stop loss when the market opens tomorrow."

"Compared to the Hong Kong stock market, it is still strong, right? Among the main lines of 'big infrastructure', aren't several core popular leading stocks such as 'Oriental Yuhong', 'Huaxin Building Materials', 'Golden Land Group' etc. in the red? Why are people so pessimistic?"

"It's not pessimism, but the market trend is like this."

"After yesterday's experience, I think it's too early to say how the market will close."

"Does anyone still imagine that yesterday's market will continue? How is that possible? Yesterday was the end of the trading day, and the collective abnormal movement of Hong Kong-listed domestic real estate stocks created expectations, which ultimately led to a lot of funds concentrating on buying chips in the main line of 'big infrastructure' at the end of the trading day. What can we expect at the end of today's trading day?"

"Who can say for sure? I think if the market didn't fall any lower in the morning, it's unlikely to fall any lower in the closing period."

"Yes, I feel that the core hot stocks such as Oriental Yuhong, Huaxin Building Materials, and Gemdale Group are still relatively strong in terms of market support."

"I am not optimistic about the trend at the end of the trading day, so I will take profits first."

"Yes, today's shrinking volume doesn't look like a trend that can continue to break through. If it is really strong, with such a good opportunity for weakness to strength in the early trading, it should be independent of the Hong Kong stock market, and continue to break through upward."

"That's right. In fact, the reversal at the end of last Friday's trading looked a bit like a scam."

"Don't just look at the 'big infrastructure' line. Look at the trends of other main lines in the market. You will know that the market has obviously not deviated from the previous platform fluctuations. The 'big infrastructure' line is currently quite hot and there is still some funding. This is normal. Look at other main lines in the market, such as film and television media, Internet software, new energy industry chain, petrochemicals, consumer electronics... Basically, these main lines have weakened across the board."

"It's not just a simple weakening. Many non-core popular stocks are about to hit new lows."

"The stocks I hold have hit new lows."

“So, the market trend is obviously still problematic.”

"Fortunately, the banking sector did not buck the trend and rise today, otherwise the market trend would be even uglier."

"The banking sector must not rise, otherwise other stocks in the market will definitely collapse more severely."

"The trading volume has shrunk by almost 300 billion compared to yesterday. It feels like no one is trading anymore. Where have all the previously active main capital groups gone?"

“Will they all be locked up?”

"It is also possible that most of the positions are locked in liquor, white goods, medicine, consumption, finance, petrochemicals, and the main line of 'big infrastructure'."

“Isn’t it good to lock up large amounts of funds?”

“It can’t be said to be bad, but for the market to be good, there still needs to be a money-making effect.”

"Fuck, another wave of jumps..."

Amidst the discussions among the crowd, the market trading time continued.

When the trading time reached 2 o'clock in the afternoon, the plunge of the two markets became more fierce. Not only had the Shanghai Composite Index wiped out all the gains during the session and turned from rising to falling, the Shenzhen Composite Index and the Shanghai Composite Index had reduced the decline to around 1.2% in just ten minutes.

Among them, the CSI 500 Index and the QS 1000 Index represent the trends of small-cap and micro-cap stocks.

The market decline has even approached 2%.

The vast majority of stocks in the two markets showed a downward trend, the overall profit-making effect on the market became increasingly sluggish, and showed a downward trend with large volume.

Even though it is relatively resistant to declines, the main line of "big infrastructure" has attracted much attention from market funds.

At this moment, a number of industry sector indices related to real estate, construction decoration, building materials, nonferrous metals, steel, coal, etc. have wiped out all gains during the trading session and fell into a slight downward trend.

As for core popular leading stocks like 'HuaXin Building Materials', 'Gemdale Group', 'Oriental Yuhong'...

Relatively speaking, the disk acceptance is even better.

Although these stocks have also plunged a lot at this moment, it is obvious that the buying is more active. Every time the concentrated selling pushes the stock price down, there is active buying immediately afterwards, which quickly pulls the stock price back to the position of the intraday moving average. However, although the buying of these stocks is strong, the strength of the stock price to actively expand upward space is not enough, and it always maintains a fluctuating trend.

"There shouldn't be any miracles today, right?"

Seeing that all major market indexes showed a downward trend, Lao Zhang, a member of the main hot money group of "Magic City Ultra Short Gang", paid attention to the market trends of the main lines of major markets and said with a smile.

"The 'big infrastructure' line is still being taken over," Old Wu said, "but the performance of other main lines is quite poor."

"The performance of these core leading stocks, such as Oriental Yuhong, Huaxin Building Materials, and Gemdale Group, is indeed remarkable, and it seems that they have not fallen much." Xu Qiao took over the conversation and said, "But... relying solely on this main line, it can no longer drive other main lines in the market under this situation, right?"

"Don't even mention driving it." Lao Zhang responded, "It's good enough if it doesn't continue to siphon liquidity from other main markets."

"It feels like the market has entered a strange trend cycle." Xu Qiao paused and continued, "If the market is to move forward, the funds in the market must pull the main line of 'big infrastructure', which has the best current expectations, the best chip structure, and the strongest retail follow-up effect, to guide the market.

Let’s talk about the “big infrastructure” line.

This line will siphon the buying liquidity of other main lines in the market, causing the buying of other main lines to dry up instantly, and the selling to continue without an effective follow-up effect.

The other main lines can't start...

The bullish sentiment on the "big infrastructure" line will be affected by the stocks related to these main lines.

That is, a situation where one person cannot support the whole thing will occur.

In this way, without an overall money-making effect, the "big infrastructure" line cannot drive other market main lines, and the overall market rebound seems to be unable to emerge.

This has resulted in the current situation where, without the 'big infrastructure' line, the market will not even have the slightest money-making effect and there is no hope of getting out of it. Once the 'big infrastructure' line is pulled, there will be huge differences in market sentiment, and individual stock trends will be extremely torn apart, and it seems that there will be no way out of the market.

How to solve this paradox? I feel like there is no solution at the moment! "

"Although the 'big infrastructure' line will cause the buying liquidity of other main lines of the market to continue to converge on the 'big infrastructure' line, it is better than pulling the white goods, liquor, consumption, medicine, and financial sectors, right?" Lao Zhang said, "At least the 'big infrastructure' line can create some profit-making effects and warm up market sentiment. The current trend is not smooth, and the key is that the volume is not enough, and there is not enough incremental funds coming in. If incremental funds can be attracted... there is no reason why the market will not move forward."

"It's not that easy to attract off-market funds into the market," said Old Wu.

"Actually, it's not impossible to have a shrinking volume." Brother Chen thought for a while and responded, "Judging from today's trend, the 'big infrastructure' line has obviously weakened the buying siphon effect on other market main lines, and the market trend has clearly shown a shrinking volume. I don't think this is a bad thing, but a sign of the last wash before the market is about to break through."

"Brother Chen, are you so optimistic?" Xu Qiao was obviously a little surprised when he heard what Brother Chen said, and said, "I feel like there will be a little more optimism before it goes back down!"

Brother Chen smiled and said firmly: "It should not fall back to clean up the market. Previously, whether it was the index or the core theme of "big infrastructure", once it touched the current position, it basically encountered extremely strong selling pressure, and the large-scale selling pressure pushed it back.

Look at today's trend...

The market is facing the negative impact of Hong Kong stocks and the extremely negative expectation gap of the plummeting trend in the periphery.

The market continued to decline in a shrinking volume until around 2 o'clock in the afternoon, when it turned from rising to falling. The declines were all small, and there was no panic selling trend with large volume.

This shows that a large number of liquid chips have been locked at the top of the previous oscillation platform.

The chips available for selling, or the chips that people are willing to sell, have been greatly reduced compared to the previous two times when this position was touched.

Doesn’t this mean that the pressure at this location has basically been cleared?

In fact, a truly effective breakthrough does not necessarily require a large volume. If the current high-level selling pressure has been mostly released, and a large number of chips are locked up, a reduction in volume can also be achieved.

Moreover, I personally think that the effect of reducing volume is better than increasing volume.

And... I can assert that at the end of today's trading, not only the 'big infrastructure' line, but also other market main lines, should not fall sharply and pull back."

"Really?" Xu Qiao was obviously skeptical.

Just when he was hesitant and skeptical, the market trading time continued.

At 2:18, the stock price of 'Oriental Yuhong', which had been fluctuating strongly above and below the intraday moving average, was suddenly pulled up again by a large buy order of 5 shares. The stock price rushed to the intraday high again at lightning speed, and the market increase broke through the % increase in a flash.

At the same time, there were unusual movements in 'Oriental Yuhong', a popular stock that attracted the whole market's attention.

Other popular stocks in the "big infrastructure" main line also moved suddenly, and once again attracted a large number of major buying funds to actively buy them.

And thanks to the rapid rise of these stocks.

A large number of retail investors who followed the trend also gathered together, which directly led to a rapid reversal of market sentiment, resulting in more and more individual stocks and more and more other main sectors beginning to usher in strong follow-up buying.

At this point, it seems that the same situation as at the end of last Friday's trading session is quickly unfolding in both markets.