Rebirth of the investment era

Wait until 11:30, when the two cities close at noon.

The Shanghai Index was set at an 11% drop position, which was only a few points away from 3200. It barely held on to this level, while the Shenzhen Stock Exchange and ChiNext Index also fell by more than 3%. The half-day turnover of the two cities reached more than 440 billion.

As for the major core main areas.

The main line of 'Big Finance' has been relatively resilient, especially the two major industry sectors of banking and insurance, which have become hedging sectors for funds under weak market conditions. Even the two major sectors of securities and Internet finance have retreated significantly, and the overall performance is also obvious. Outperforming several major core indexes.

Although the performance of the main line of ‘technological growth’ is not as good as that of the main line of ‘big finance’.

But it also clearly outperformed the market index. However, the core sector, 'Film and Television Media', performed relatively weakly. The sector index fell by 75% in half a day.

Other main areas include ‘big consumption’, ‘non-ferrous cycle’ and ‘petrochemical industry’.

Basically in sync with the broader market trend.

The two core themes of 'infrastructure' and 'military industry', as well as the 'Eurasian Economic Belt', 'New Era Road, Maritime Silk Road', and 'Reform and Reorganization of Central and State-owned Enterprises', which continued to support the Shanghai Stock Exchange Index's upward breakthrough in the early stage, As for the main line area, as of midday closing, it was still the main line area that led the decline in the two cities. Its plummeting trend has not improved at all. Even the shrinking rebound near midday has been relatively weak.

In addition to these core main lines, at the midday close, the only red market was the 'sub-new stocks' sector.

Today, this sector has become an active short-term capital group within the market, a sector that focuses on risk aversion and grouping. In recent times, new stocks have gone out of the trend of rising sharply against the trend, and like 'Huake Shuguang' The check still maintains the form of unlimited one-word daily limit, and has not been affected at all by the plummeting market trend. On its daily limit board, there are still endless orders rushing to raise funds.

Faced with this midday closing situation in the two cities...

The investor groups inside and outside the market are somewhat shocked.

The major institutional investors inside and outside the market were also shocked, but... Even if everyone was a little surprised by the plummeting form of today's market trend, the main funds that were really panic selling, or in other words, extreme take-profit selling. The main capital is not much.

The real main selling chip component is still based on this range, the unwinding market that has just been unwound.

"A drop of more than 3 points. It feels like the Shanghai Stock Index has not seen such an extreme trend and intraday drop for a long time, right?" After the market closed at noon, after a brief review, during the break, Yuhang, Minghui Capital Within the group, in the main fund trading room, fund manager He Hong said with emotion, "Moreover... Today's market volume performance, compared with yesterday, and even the past few days, has obviously reached a higher level.

This kind of market trend...

Even if it does not affect the overall "bull market" pattern, it should mean that the index is here and has entered the stage of shock adjustment. It is unlikely to continue to hold high and continue to short-squeeze upwards, right? "

Beside He Hong, Xu Zhongji, general manager of the company's asset management business, squinted his eyes and said: "Although... the index has indeed been trading high for so many days, it should return to the moving average and enter an adjustment cycle, but we still can't do it for half a day. The results of the market are used to rashly judge the direction of the market outlook.

We still have to wait until the market ends in the afternoon...

In fact, in the roughly 20 minutes before the midday close, the two cities had already shrunk.

I feel that the extreme selling power of the entire market has been basically concentrated for more than an hour at the beginning of the market. The market in the afternoon should not be as extreme as in the morning. If during the lunch break at this time, the news If any clear good news can appear on the Internet.

In the afternoon session, it is not impossible to see a deep V trend.

Also, the market volume can be so large, especially the volume can be so large for one hour in the morning, but the volume can be reduced near noon.

This shows that the market's ability to undertake is much stronger than we thought.

At the same time, in this wave of market conditions driven by "big finance", in just one or two weeks, the Shanghai Stock Exchange Index has continued to be short-sold, soaring by almost 15% of the rising range. The quantity is many times heavier than before.

The number of profit-taking and unwinding transactions is suppressed.

It is completely understandable for the market to make a slight adjustment based on the moderate bad news of "Chengfei Integration".

In short, although the market has fallen, we do not need to be pessimistic, let alone let the market drop affect our emotions and our judgment.

I still firmly believe that the index will not adjust significantly at this position.

It should be impossible to step back at least 3,000 points. "

"Why is it impossible?" He Hong asked, feeling a little puzzled, "Logically speaking... after the index breaks through the 3000 point mark, facing the huge space shock platform of 2000 points to 3000 points, it should return Stepping on it confirms a substantial breakthrough.”

"In trading, technical aspects are not constant." Xu Zhongji chuckled, "You have to see clearly that this wave of index prices is mainly driven by the main line of 'big finance'. Although the Shanghai Stock Exchange Index has been in the past two Last week, the short squeeze continued, with a huge increase of nearly 15%.

However, this room for growth.

Among them, the main line of 'big finance' contributes at least 70% of the weight.

As for the main line of 'big finance', both future expectations and fundamentals have been reversed.

Moreover, due to the serious gap in expectations for the main line of 'big finance', everyone's previous position weights on this main line were not high. Many large financial institutions, including banks, insurance, securities and other large institutions have self-operated systems. Products, the position weight of the 'Big Finance' line is seriously insufficient.

In other words, even now...

There are still countless short-term capital groups in the "big finance" line.

Many major capital groups who have shorted the market are still waiting to grab funds and increase their positions at low levels to further increase their chips and position weight in the main line of 'big finance'.

In other words, under the influence of so much empty funds.

Under the current expectations, if the 'big finance' line wants to make a sharp downward correction, or fall back to the low level a week or two ago, it will basically be impossible for the main financial groups who have been short-term to get on the train at the low level one after another. Realistically, this is not allowed by the major financial groups that are currently gathering in the main line of 'big finance' and have the cost advantage of holding positions.

And this means that there is basically no room for decline in the line of 'big finance', at least with the current changes in expectations and fundamentals, there is no room for decline.

‘Big Finance’ has no room to fall.

As for other core market lines, such as 'technological growth', 'non-ferrous metal cycle', 'petrochemical industry', 'pharmaceutical business', 'coal', 'animal husbandry', 'agriculture', etc., in these two weeks Over time, it actually didn’t rise much.

Since it hasn't increased much.

At the same time, a series of market factors such as the overall investment sentiment, investment confidence, liquidity, incremental capital group effect, etc. of the entire market are significantly better than the period two weeks ago.

So, these main lines, and even related conceptual subject areas.

Even if it falls back to the original point two weeks ago, how big of an impact will it have on the index?

What's more, when various market factors have improved significantly and the overall bull market pattern of the market has been recognized by more and more investor groups, it is impossible for these mainline concept stocks and component stocks to fall back to their original point.

Currently...

The only things worth worrying about and paying attention to are the two main lines of 'infrastructure' and 'military industry' that were somewhat over-hyped in the early stage, as well as the issues surrounding the 'Eurasian Economic Belt', 'New Era Road, Maritime Silk Road', and 'Central and State-owned Enterprise Reform' The concept stocks and component stocks that have been shaken by several major conceptual themes have been reorganized.

These main areas and conceptual theme areas should be the most vulnerable areas in the market.

But, even so.

In fact, the room for decline in these main line areas is also very limited.

After all, these two core main lines, and even several major conceptual subject areas, had been adjusted for a period of time when Mr. Su's "Yu Hang Department" funds were withdrawn on a large scale. Coupled with the subsequent core main line market trends, they have been transferred to "Big After the financial 'main line, short squeeze rose as the market continued.

The core component stocks and concept stocks in these main line areas did not follow the sharp rise.

In other words, comparing other main lines of the entire market and conceptual theme sectors, it is obvious that the two main lines of 'infrastructure' and 'military industry', as well as the 'Eurasian Economic Belt', 'New Era Road, Maritime Silk Road', The reform and reorganization of central and state-owned enterprises will require longer time and space for adjustment in these major conceptual areas.

In other words, before the market fell sharply today.

These main line areas have already undergone sufficient exchange and adjustment of chips, and have fully released their relatively high selling momentum.

What's more, analyze it from a macro perspective.

Whether it is the fundamental situation of the two main lines of 'infrastructure' and 'military industry', or the main conceptual areas of the 'Eurasian Economic Belt', 'New Era Road, Maritime Silk Road', and 'reform and reorganization of central and state-owned enterprises' In fact, the policy expectations for the market outlook have not changed much compared to before.

All expectations and signs of fundamental changes are still there.

Since these investment logics are still there and continue to strengthen, then...where can these main lines fall?

Actually, if you think about it carefully..."

When Xu Zhongji said this, he glanced at He Hong again and said with a smile: "The news that the reorganization of 'Chengfei Integration' failed, or the fact that the reorganization of this stock failed, can affect the big policy of 'reform and reorganization of central and state-owned enterprises'" Direction? Can it affect the implementation of the two major macroeconomic development strategies of the 'Eurasian Economic Belt', the 'New Era Road, and the Maritime Silk Road'? It will not have any impact at all.

The essence of it is that the check of "Chengfei Integration" affects emotions.

The reason why the market has gone out of the plummeting state today is just because the emotions affected by the "Chengfei Integration" check resonated with the accumulated profits and unwinding of arbitrage in the market.

Us! No matter when, you still have to look through the phenomenon to see the essence.

We are not a large group of retail investors active in the market, nor can we be led blindly by the short-term sentiment of the market and forget the fundamental general trend.

Got this...

I understand the essential reason for today’s market crash.

It can be seen that today's sharp decline is not a selling point, but a good buying point! "

After He Hong listened to Xu Zhongji's entire analysis of today's market trends, especially after hearing Xu Zhongji's last words, He Hong's eyes, which were still a little worried, suddenly lit up. It was like a flash of lightning flashed through his mind, and he thought about it carefully for a while. , finally understood, laughed twice, stared at Xu Zhongji with great admiration and said: "Mr. Xu, you are still amazing, you can see through the essential trend of the market at a glance."

Xu Zhongji waved his hand and said: "Haha, you... don't give me a high hat. The so-called bear market may rise sharply, and the bull market may plummet. As long as the general direction logic does not change, and the fundamental investment expectations that support the market do not change, Such short-term extreme fluctuations are just a blinder, so don't pay too much attention to it, since we... have already placed large bets on the main line of 'big finance'.

We firmly judge that this is a wave of "big bull market".

Then, we should still have the determination to hold positions like the "Yu Hang System". When the Shanghai Stock Index broke through 3,000 points, it left such a long gap.

As long as the market volume can still maintain 600 to 700 billion.

I never believed that the market index would turn around so quickly. I didn't believe that the upward trend and bull market atmosphere that was finally created would be wiped out just like that.

After all, don’t forget, it’s not just us…

The regulatory authorities above us, as well as the "national team" group, have been looking forward to a "bull market" for a long time. "

"That's true." He Hong nodded, and he deeply agreed with Xu Zhongji's judgment. The trace of worry in his heart completely dissipated, and he said with a smile, "It seems that I sold at a low price today. The funds will most likely be regretted later and become potential long funds in the future.”

Xu Zhongji said with a smile: "The longs and shorts inside and outside the market are inherently interchangeable."

After saying that, Xu Zhongji turned his attention back to the two markets.

I saw that during the break at this stage, in terms of market news, the regulators still seemed to be afraid that the market would just panic and fall, forming a crumbling situation. They symbolically released some good news and updated the follow-up 'pension plan'. Some details on entering the market.

Under the influence of these indifferent good news.

Half an hour later, when the time came to 1 o'clock in the afternoon again, the two markets reopened for trading.

After an hour and a half of emotional brewing and good news, the Shanghai Stock Exchange, Shenzhen Stock Exchange Index, and ChiNext Index finally ushered in a decent rebound.

Moreover, the main line of "big finance" has once again been scrambled by many major funds.

A number of popular core stocks such as 'Western Securities, Orient Securities, Hengsheng Electronics, Jinzheng Technology, Changliang Technology, Flush, Panda Financial Holdings, Huazhong Capital...' have received huge amounts of trading at the beginning of the afternoon. Active buying, the stock price rises rapidly along with the rise in the index.

At 1:05, 'Western Securities' rebounded by nearly 5 points, reducing the market decline to less than 1%.

At 1:10, ‘Flush’ rebounded and turned red.

At 1:15, when the intraday turnover once again exceeded the 7 billion mark, 'Huaxin Securities' also rebounded and turned red. At the same time, the main line of 'Big Finance' became the obvious main line leading the gains in the two cities. The banking sector index , insurance sector index, all successfully turned red and rose.

At 1:20, Bluestone Heavy Equipment and China Airlines Heavy Machinery, which had originally dropped to their daily limit, opened their lower limit.

At 1:25, the main lines of 'infrastructure' and 'military industry', which had all fallen in early trading, also began to receive a large amount of funds to buy the bottom, and rebounded across the board. Among them, the 'machinery and equipment' sector, as well as the core of the 'high-speed rail' and 'public transport' sectors Stocks such as 'China Railway, China South Locomotive \u0026 Rolling Stock Corporation, China North Locomotive \u0026 Rolling Stock Corporation, Sany Heavy Industry, Xugong Machinery...' and other stocks have ushered in a large wave of bargain-hunting funds.

At 1:30, the Shanghai Stock Index's intraday decline shrunk to 2%.

At this moment, seeing the market rebound with volume in the afternoon, many core main lines of the market, core stocks, and leading concept stocks rebounded rapidly, ushering in a large amount of funds to buy the bottom.

Retail investors gather in the discussion areas of major online stock trading platforms, as well as stock investment forums and communities.

As well as large hot money groups gathered in major internal groups.

Finally, there was a glimmer of light in the eyes, and confidence in the market's deep V reversal, firm holding of shares, and firm buying re-emerged! (End of chapter)