Rebirth of the Capital Legend

"Sure enough, the main market trend is rotating. The market hype and the core of long sentiment have returned to the 'emerging industrial chain' line." As the market trend became clearer and the 'emerging industrial chain' was once again the core of speculation, Zhao Qiang, one of the main speculators of the 'Yuhang Group', said with emotion, "With the trend of the 'emerging industrial chain', the funds that liquidated their positions yesterday must be pissed off, right?"

"I think the rebound trend of the main line of 'emerging industrial chain' today is within expectations." Lao Qian in the group heard Zhao Qiang's sigh and responded, "Yesterday at the end of the trading session, after the market fluctuated violently, it finally chose to break upward. At that time, market sentiment and investment confidence reversed.

As long as the overall investment sentiment and investment confidence in the market continue to rise.

The corresponding concept sectors and core concept stocks of the main line of the "emerging industrial chain", which are still at low levels and have favorable policy support, are natural targets for capital speculation. Moreover, these stocks are also targets with naturally high elasticity when the overall market sentiment recovers.

What's more, the 'emerging industrial chain' line experienced huge fluctuations yesterday.

It also happened to clear out a large number of short-term profit-taking orders that had intervened in the speculation of this line in the early stage, which relatively reduced the selling pressure of today's counter-attack.

Therefore, at the opening of the market today, the overall bullish sentiment is still good, and no matter whether it is the main line of weight or the main line of "big infrastructure", there is no obvious negative feedback. It is natural and logical for the line of "emerging industrial chain" to reverse. "

"Old Qian, since you have long anticipated that the main line of 'emerging industrial chain' will form a reverse trend today, you should have bought a lot of chips during the call auction or just after the opening, right?" Zhao Qiang asked with a smile, "Have you already fully invested in the 'Huawen Online' check?"

Lao Qian responded with a smile: "No, although I am bullish on the 'emerging industrial chain' line, my main position is still on the 'big infrastructure' line. Although the overall trend of the market is upward, and it has also made a beautiful upward breakthrough trend.

But in terms of market volume, I feel that it is still slightly insufficient.

Logically speaking, as the Shanghai Composite Index breaks through 3000 points and market confidence generally recovers, trading volume should continue to expand and be able to reach at least 5000 billion.

But look at it now, even the huge fluctuations like yesterday.

There is still some room for the market volume to reach the 5000 billion mark.

Since the volume is insufficient, even if confidence is restored and emotional feedback is relatively good, the trend will not be smooth.

Look at the core lines on the market now...

Whether it is the weighted main line, the 'big infrastructure' main line, or the 'emerging industrial chain' main line, each has its own core hype logic.

If the volume is sufficient, supported by their respective core hype logic.

At least there will be a general rise in prices.

However, since the outbreak of this wave of market conditions, how many times have there been general increases? In the vast majority, even if the index fluctuates and rises, it is also a situation of rotation of the main line market.

The trend of the rotation of the main market and the market trends of individual stocks are the most difficult to grasp.

If you don’t do it well, it’s also the easiest to get slapped in the face.

For example, in today's market, there is the check "Chinese Online" which has a very high recognition and money-making effect. Is this check the core concept leader that everyone is paying attention to in today's market?

But look at its trend in the past two days.

Originally, this check should have accelerated its decline and hit the daily limit yesterday, but after opening close to the daily limit, it instantly hit the ceiling and floor, killing all the funds that were chasing highs.

Then, immediately afterwards, a large amount of funds that chased highs yesterday opened at a large low and stopped losses today.

It almost formed a ground-ceiling plate to reverse yesterday's trend.

There is also the check for 'Quantong Education', as well as core concept stocks such as 'Capital Group', 'North Frontier Communications Construction', 'Huaxin Cement', etc.

In terms of its trend, it is basically an upward trend pattern with great fluctuations.

If you cannot see the situation clearly, it is easy to be seriously disturbed by the market trend, chasing highs and selling lows, and incurring losses in this market where the main line of the market rotates very quickly.

So, instead of following the spread of market sentiment and constantly chasing hot spots.

It is better to hold on to the core leading stocks of a core main line, waiting for the market rotation and waiting for the wind to come.

Regardless of whether it is the main line of "big infrastructure", the main line of weight, or the main line of "emerging industrial chain", in fact, as long as you hold on to this position, you will not lack profits.

What we are afraid of is that today we will follow the main line of "emerging industrial chain" and tomorrow we will follow the main line of "big infrastructure".

The day after tomorrow, I will pursue the 'weight' main line.

If you follow the market sentiment and keep chasing the market hot spots, you will be led by the hot spots and sentiments instead. "

"What Lao Qian said makes a lot of sense." After listening to Lao Qian's analysis, Sun Chengyu in the group responded, "In the rotation market trend pattern, the most taboo is to chase the rise and sell the fall. You can't chase whatever is rising well, and you can't decisively sell the stocks you hold when you can't outperform the market index, or when there is a temporary breakout trend.

As long as the overall market sentiment is reflected and the index trend is good, there won't be any big problems.

There are no extreme changes in volume feedback.

Then you should hold on to the individual stock positions in your hands and wait patiently for the market rotation and for the wind to come.

You can’t catch up with the market trend, you can only wait.”

"So... Brother Sun still holds a large amount of the Oriental Yuhong check in his hand, and he hasn't sold a single share?" Zhao Qiang asked. "Indeed, in the market rotation, it is better to wait for the wind than to chase it. However, if you switch immediately and grasp the buying and selling points, you can still create a lot of excess returns."

"What you call this instant switching..." said Lao Qian, "I'm afraid it's hard to grasp. Just like the 'Huawen Online' check, the better buying points today are almost all in an instant. One is the end of the call auction at 9:30, the first big order is rushed, the bidding goes straight up, the moment the stock price turns red, and the other is the moment when the check goes straight up and closes a few minutes after the opening.

The reaction time for these two buying points basically does not exceed 30 seconds.

If you miss these two buying points, the certainty of buying at other positions will not be so strong.

In just 30 seconds, I'm afraid that most of the investors in the market would not be able to react, or they couldn't make up their minds at that moment?

Relatively speaking, I think it seems better to stick to the main line of "big infrastructure".

Compared with many popular concept stocks in the 'emerging industrial chain' line, it seems that the core leading stocks in the 'big infrastructure' line have less flexibility at this position.

However, on this line, the main capital group is deeply involved.

In other words, its internal chip structure is stable enough.

Coupled with the extremely strong basic logic and the expected stimulation of continued drastic changes in fundamentals, the room for downward adjustment has basically been blocked.

In other words, we will focus on the "big infrastructure" line.

Even if the market sentiment is bad, it is not easy to lose money. As for how much you can earn, it depends on the changes in subsequent expectations and the recovery of the overall market sentiment.

But the line of 'emerging industrial chain' is different.

The basic logic of the 'emerging industrial chain' line is obviously weaker than that of the 'big infrastructure' line. It can be said that it is the weakest of the three core lines in the current market: the 'big infrastructure' main line, the weight main line, and the emerging industrial chain main line.

Furthermore, due to the continued sluggish performance of this core line in the previous six months, the trend continued to fall.

As a result, the main institutional capital groups that had invested in this main field in the early stage have already withdrawn.

In other words, the main capital group on this line currently basically has no positions, and the majority of those holding positions are still retail investors.

Without large holdings by the main institutional capital groups, it will be difficult to quickly lock in the chips on this line.

The chip structure cannot be locked, and the holding groups are mostly retail investors and market hot money.

This means that this line is destined to be greatly affected by market sentiment and investment confidence.

This can also be seen from the trend of this line in recent days. When market sentiment is good and investment risks continue to rise, active capital groups are trading more aggressively.

The money-making effect of this line will be very hot, and the corresponding popular concept stocks will generally hit the daily limit.

However, when market sentiment suddenly took a sharp turn for the worse.

This line has no strong underlying logic support and lacks strong expectations of future performance explosion, so its decline is quite scary.

In other words, this line is extremely uncertain due to the influence of market sentiment.

Of course, in the financial market, risks and profits coexist at all times.

If favorable policies continue to provide support, the "emerging industrial chain" line will eventually form a consensus expectation of a fundamental reversal.

Then, it is not impossible that its trend will repeat the development of the main line of "big infrastructure".

However, the probability of this happening is still very small at the moment.

Relatively speaking, among the three core market themes of large infrastructure, weighted main lines, and emerging industrial chains, in terms of investment profit and loss cost-effectiveness, I think the core leading stocks in the "large infrastructure" main line field are still stronger.

As for the weight line, judging from the chip structure, market expectations, and future expectations...

Certainty is also sufficient.

The weighted stocks have relatively large market caps and sizes, and with the current limited market liquidity, especially at this position, it is difficult to continue to surge.

In other words, there is sufficient stability, but insufficient foreseeable profit margin.

As I just said, the line of 'emerging industrial chains' has a lot of flexibility but lacks certainty. Once market sentiment takes a sharp turn for the worse, this line will definitely be the main area for on-site funds to sell off. Many stocks, lacking the support of underlying logic and the concentrated lock-up of major capital groups, will easily fall back to the starting point under the collapse of emotions. This is an investment area with huge profits and risks.

The 'big infrastructure' line is relatively safe.

Compared with the previous bottom position, the current "big infrastructure" line is certainly not very cheap, but compared with the expected future performance explosion, it can only be said that it is not expensive. The overall valuation is still in a reasonable range that is slightly underestimated, and under the power of the trend, there is still a lot of room for upward movement.

Therefore, on the whole, we should bet on the core leading stocks in the main field of "big infrastructure".

The price/performance ratio is the best at the moment.”

"Well, Lao Qian's analysis is very thorough." Sun Chengyu nodded in response after listening to Lao Qian's analysis, "And this is also the reason why the Oriental Yuhong stock can continue to be strong even though it has risen so much, and why many major capital groups continue to increase their holdings at high levels."

"I am a little surprised that you two have such strong confidence in the trend of 'big infrastructure'," Zhao Qiang said. "But I think...under the premise that the market has not clearly changed from a bear market to a bull market, even if the 'big infrastructure' line has strong underlying logic and strong future expectation logic support, it is still difficult to continue to open up space under the premise that it has generally doubled from the bottom.

In the overall bear market situation...

No matter how strong the underlying logic and future expectations are, if the price rises too much, it will be a sin.

After all, as long as the bear market pattern does not change, everyone always believes that this wave of market trend is a rebound rather than a reversal of the general trend.

Therefore, the fear of heights and difficulties among many capital groups in the market will always exist.

In other words, as the "big infrastructure" line continues to fluctuate upward, the selling pressure from profit-taking will definitely become heavier.

Besides, Lao Qian just said it.

Due to the continued popularity of the off-market real estate market and the tightness of overall macro liquidity, there are not so many active capital groups that can enter the financial market to trade in the short and medium term. In other words, it is basically impossible for the market's volume performance to further expand, especially to reach 5000 billion, 6000 billion, or stabilize at the level of billion or billion.

The lack of liquidity...

As the main line of "big infrastructure" fluctuates upward, the selling pressure from profit-taking is becoming increasingly heavy.

The funds for buying are definitely not enough.

In other words, I believe that no matter how strong the underlying logic of the "big infrastructure" line is, no matter how strong the medium- and long-term expectations are, at this position, it is probably not far from the mid-term adjustment position.

As for the line of 'emerging industrial chain'...

Due to various biases in the early stage, as well as excessive capital clustering in weighted stocks, there is also the buying siphon effect caused by the main line stocks of "big infrastructure".

This resulted in a serious oversell of the 'emerging industrial chain' line.

Now, although the 'emerging industrial chain' line has rebounded violently for a few days, in terms of the relative positions of the three main lines, compared with the 'big infrastructure' line and the weighted main line, the concept sectors and industry sectors related to the 'emerging industrial chain' main line, as well as most of the small and medium-sized stocks and micro-cap stocks in the market, are still near historical lows, right? You two can't deny this, right?

Moreover, we are simply analyzing from the index trend.

Now that the Shanghai Composite Index has already broken out, are the ChiNext Index, CSI 500 Index and CSI 1000 Index just beginning to complete the bottoming process and pattern?

In other words, compare the positions of the Shanghai Composite Index and the A50 Index.

It is obvious that the ChiNext Index, CSI 500 Index and CSI 1000 Index need to make up for the losses.

If the index needs to make up for the losses, then the 'emerging industrial chain', which is the most strongly related of these major main areas, cannot but make up for the losses.

Furthermore, this line currently has favorable policy support.

Even if it is emotional speculation, this emotion will continue for a period of time if the K-line trend pattern is reversed, right? As long as the temporary emotion can be stabilized, it will be quite easy to create a space. Naturally, it is currently focusing on the layout of the "emerging industrial chain" main line, following the emotional speculation, and grabbing some excess profits. This is a very correct trading idea.

Of course, there is nothing wrong with what you two just said.

Judging from the market trend, although the upward elasticity of the "big infrastructure" line is temporarily insufficient, it is obviously still fine if it stabilizes sideways. "

As several people had heated discussions and their opinions diverged...

The market's trading hours continue to move forward.

This is almost verifying Zhao Qiang's point of view. As the market trading time continues to advance, the main line of "emerging industrial chain", related industry sectors, concept sector indexes, and a number of popular concept stocks are still rising sharply under the concentrated speculation of the continued active buying funds group. The hype sentiment of the entire main line and the money-making effect of the market are still expanding.