Rebirth of the Capital Legend

"Sure enough, after the market's bullish sentiment emerged, the elasticity of small and medium-cap and micro-cap oversold stocks emerged." Noting the situation of the initial call auction in the two markets, Li Jinshi, one of the main speculators of the 'Fushan system' at this moment, said with a smile, "It turns out that the high opening range of the major sectors of Internet software, film and television media, and Internet applications, as well as a number of popular concept stocks with the main line of 'oversold rebound', are generally stronger than the related hot stocks with the main line of 'big infrastructure', and there are more active buying orders on the market!

It seems that the market's 'oversold rebound' line can be sustained.

Moreover, when emotions rise, the market's investment risk appetite increases, and there will be more flexibility in capital choices, gradually giving up certainty.

At the same time, the "big infrastructure" line has indeed been rising for several days in a row, which has somewhat overdrawn the short-term gains.

Even if the buying can still be sustained, it seems unlikely that it can continue to accelerate.

In the future development of the market... I am afraid that small and medium-sized stocks and micro-cap stocks will indeed lead the way. After all, these stocks did fall badly in the early stage, and the trend in the past one or two months has also lagged behind the index. With the overall recovery of sentiment, they should be able to recover. "

"The 'oversold rebound' line has also rebounded for two consecutive days, right?" Chen Guiyun took over and said, "I don't think the 'oversold rebound' line can still produce the general rise and limit-up surge like yesterday and the day before yesterday. After all, today, a number of stocks on this main line, after opening sharply higher, continued to attack and gradually began to touch the heavy historical locked-in chips above.

Although the overall bullish sentiment in the market has clearly warmed up and the trend has gradually improved.

However, in terms of the overall pattern.

The market has never escaped from the bear market pattern.

Under this situation, a large number of retail investors who were trapped in these small and medium-sized and micro-cap concept stocks in the early stage, as well as some major institutional funds that did not cut their positions before, are very likely to take advantage of this rebound and sell off to stop losses at the high point of sentiment.

In other words, if the 'oversold rebound' line continues to rise, the selling pressure will increase rapidly.

And through the market trends of yesterday and the day before yesterday, we can clearly see that this line has been showing a shrinking volume pattern during its continuous surge.

This line must be used to truly create a sustainable and reversal upward trend.

Then, it must withstand the test of a wave of large volume.

Only after the volume divergence, if the buying can still support the market, then this line will have the possibility of breaking away from the long-term downward trend and moving into a sustained upward trend.

Similar to yesterday's main trend of "big infrastructure".

It is obvious that today's 'oversold rebound' line, after a sharp high opening, will most likely be tested by large volume.

Therefore, for this line, the consistent expectations of the opening and the excessively high opening, I do not think are necessarily good things, because after a sharp high opening, it will be relatively difficult to continue.

At the same time, the 'big infrastructure' line is likely to continue to increase in volume today.

If the 'big infrastructure' line continues to increase in volume today, then the 'oversold rebound' line will probably be even more difficult to break out of.

Because the current market is still in a stock game.

There is no obvious sign of off-market capital groups entering the market to go long. At least I think that before the Shanghai Composite Index breaks through the 3000-point pressure, the off-market capital groups will most likely continue to wait and see and hesitate.

Another reason is the skyrocketing housing prices in major cities and the continued hot real estate market.

Much of the active liquidity in the market has been attracted to real estate.

As a result, there is not much liquidity that can actually flow into the stock market, and the improvement in liquidity, at least in the short term, is not as expected.

So, think in the medium to long term.

It is highly likely that the market will be in a volume performance of a number of stock games for a long time to come.

In a market where stock is the main focus, it is difficult to maintain the trend of multiple main lines breaking through with large volumes at the same time. In the end... it is highly likely that the market will continue to rotate.

In general, at this position, we should neither be too optimistic nor too pessimistic.

My suggestion is to take it one step at a time. If the market sentiment is too consistent, if the ChiNext Index opens higher by more than 1% today, or if the "oversold rebound" line, several core hot concept stocks all open sharply higher by more than 5%...

I might consider reducing some of my positions first and wait for the profit taking and stop loss selling.”

"Old Chen is right. At this point, we still need to remain absolutely calm. We should not be too optimistic or too pessimistic." Liao Guoxiang also took over the conversation at this time and said, "Although the two lines of 'oversold rebound' and 'large infrastructure' formed a general rise yesterday, as long as the volume is slightly increased, the trend will definitely fall into a divergent state. After all, the market currently does not have so much buying and so much funds to support the continued breakthrough of these two main lines. In the absence of a significant improvement in the market volume, the rotation trend of the main lines... is indeed highly likely."

"Rotational trends are also good." Li Jinshi said, "Anyway, the main lines that have the strongest consistency in the current market funds going long and the strongest willingness of retail investors to follow suit should be the 'oversold rebound' line and the 'big infrastructure' line, right? I have arranged 50% of the positions in each of the two main lines, so that no matter which main line forms a continuous upward breakthrough trend and forms a further siphoning of buying from other main lines in the market, I will not miss out."

"It doesn't mean that if the market breaks upward, all funds have to follow suit and buy the main line of 'big infrastructure' or 'oversold rebound', right?" Chen Guiyun said, "It is entirely possible that the main institutional funds in the market will continue to focus on speculating on liquor, white appliances, medicine, consumption, electricity, finance... these weighted main line sectors, and pull the weighted core leaders to tackle the index!"

"No way? How could the weighted mainline sector rise at this time?" Li Jinshi said in surprise, "Obviously, the internal chip structure of many stocks in the weighted mainline sector has loosened, and the rapid rise in short-term market sentiment will also cause many short-term risk-averse funds that were previously deposited in the weighted mainline sector to quickly sell off the weighted mainline stocks and pour into small and medium-sized stocks with higher elasticity. In short... I don't think that at this time, when the sentiment continues to be hot and the investment risk preference of the entire market has increased significantly, various funds will turn to the corresponding stocks in the weighted mainline sector to form a group."

"It can only be said that the possibility of such a trend is very small, but it is not impossible." Chen Guiyun said, "In fact, in the trend of the past two days, although small and medium-sized stocks and micro-cap stocks rebounded strongly, in the absence of obvious increase in volume, the main institutional funds that can lock positions in a pattern basically did not follow up and increase their positions. During this period, most of the people who traded the 'oversold rebound' line were short-term speculative funds."

"Isn't this normal?" Li Jinshi said, "More than a month ago, the 'big infrastructure' line began to explode rapidly. When it went out of the continuous upward trend, wasn't it the same? Before the main line market started, didn't it gradually change from rebound to reversal? And the initial stage is generally dominated by short-term funds.

After all, in terms of emotions and the perception of certain news.

Short-term funds are obviously more sensitive and flexible than institutional funds.

I think as long as the active buying is gradually increasing, the nature of the funds participating in the market is not very important.

If sentiment is really strong, buying will be very strong.

Well, even if there is no big capital involved in this stock, it is possible for it to come out relying solely on retail investors.

Refer to some famous big monster stocks in history. Which stock has been locked by medium and long-term funds? As long as the sentiment and the expectation of making money support it, then... relying on the trend inertia and sentiment progression, as well as relatively good chip institutions, it can also come out.

Anyway, the 'oversold rebound' line.

The entire severely oversold small and micro-cap stock sector cannot be bearish at this position and with this K-line pattern.”

"Let's wait until the call auction is over and the market really shows an opening situation." Liao Guoxiang thought for a moment and responded, "At this time, whether it is the main line of 'big infrastructure' or the main line of 'oversold rebound', there should be a lot of false orders. The market situation presented is not necessarily the true situation of the combined efforts of various funds."

"Old Liao is right." Chen Guiyun said, "I think at this point, the market's bullish force has been exhausted after the consumption in the previous two days. I think it is unlikely that the bullish force, which has already reached the end of its strength, will break through the resistance of 3000 points in one fell swoop and continue to play a big positive line.

Of course, if the market can increase volume divergence today and stabilize near the opening point, it will form a doji of rising relay.

That is actually a very good thing, as it is equivalent to accumulating bullish momentum again.

On the contrary, if we continue to play high and high without replenishing the volume, and rashly force the impact of 3000 points, it will not be very optimistic. "

This was accompanied by a discussion among the three people, and slightly different opinions among them.

The market's trading time was advancing rapidly, and soon it was 9:20.

After many false orders were cancelled, the market situation was slightly lower than the high opening at 9:16.

At the same time, a number of popular concept stocks that had performed very strongly at 9:16, including 'Quantong Education', 'Huawen Online', 'Huace Film and Television', 'LeTV', 'Netspeed Technology', 'Ren Zixing', etc., gradually saw selling pressure on the market, and their high opening gains began to decline one by one.

Similarly, it is not just the 'oversold rebound' line.

It's not just the small and micro-cap stocks in the market.

As the main driver of this round of rebound, the 'big infrastructure' theme, including the three major industry sector indexes of real estate development, building decoration and building materials, saw a significant drop in its market growth at 9:20 compared to 9:16.

As for the popular core leading stocks in the main line of "big infrastructure", such as Oriental Yuhong, Huaxin Building Materials, Gemdale Group, Capital Group, Northern Frontier Communications Construction, Huaxin Cement, etc., their market trends also show an increasing selling volume, and the high opening gains are gradually declining over time.

"Eh...why do I feel like the selling pressure on the two main lines of 'big infrastructure' and 'oversold rebound', which performed extremely strongly yesterday, and their related hot concept stocks, is increasing." Seeing the market opening sharply higher and gradually falling, and at the same time, the selling pressure on many hot concept leading stocks is increasing, Zhao Zhiyuan, who is among the main speculators of the 'Qilu Gang', exclaimed in surprise, "It doesn't make sense. With such a strong market bullish sentiment, why is there still such a strong selling pressure? Some people are selling?"

"The two main themes of 'big infrastructure' and 'oversold rebound', a number of core leading concept stocks, have seen significant short-term gains." Zhang Wei took over and said, "and the two main themes showed a consistent rise in volume yesterday. Today, the selling pressure increased and profit-taking was sold, which is also normal. On the contrary, I think that at this time, the divergence should not open too high, leaving some expected space for the subsequent intraday trend, which will be more conducive to the index's upward impact of 3000 points.

If the volume continues to shrink consistently, it will open significantly higher.

Then, when the time comes, the accumulated profits in the market over the past few days will be concentrated and smashed, and it will be difficult for the subsequent follow-up funds to take over.

Today's market divergence and large volume were within expectations.

I think the trend of this call auction is in line with expectations. The sentiment is good and the slightly higher opening is conducive to accumulating strength to continue the upward attack during the session. "

"Old Zhang is right." Liang Jiucheng responded, "It has been a strong upward attack for two consecutive days. Today, it opened sharply higher. Many short-term fund groups could not help but buy, while the off-market fund groups have not yet entered the market. Under the stock game, the concentrated selling of profit-taking plates and other active funds in the market who followed the trend to buy were difficult to take over for a while, especially after the sharp opening. Many funds that originally wanted to follow the trend are likely to be unwilling to chase high prices.

Once the market opens sharply higher and then falls sharply, the losing effect will spread.

It will quickly hit the bullish sentiment in the market.

As a result, funds that were originally willing to take over quickly turned to a wait-and-see attitude, which further reduced the buying volume.

Therefore, a slightly higher opening will reduce the selling pressure from profit-taking.

It will increase the willingness of those who dare to take the lead in buying.

In terms of long and short forces, it is indeed more conducive to the further fermentation of long forces and the further enhancement of the profit-making effect of the market."

"In fact, as long as it can open higher and don't show a loss effect, it is in line with expectations." Zhang Wei continued, "Without sufficient volume support, a rash and sharp opening will cause profit-taking funds in the market to crash the market. Before 9:20, I was a little worried, but now... I think we can continue to be optimistic and bullish. As long as the popular concept stocks of the two lines of 'big infrastructure' and 'oversold rebound' do not fall significantly below the opening price within 10 minutes after the market officially opens, and the bulls can take over the profit-taking orders, then the market will most likely reach 3000 points today."