Rebirth of the Capital Legend

"Don't worry," Wang Shujie said with a smile. "Generally speaking, after a surge in stocks like the 'new energy industry chain' following a confirmed fundamental reversal, the market will experience a significant pullback after sentiment has settled and in order to further adjust and stabilize the structure of holdings. At that time, there will be ample opportunities to increase holdings on a large scale.

In the financial market, generally speaking, buying points and selling points are not scarce.

The buying point is often a range, and the selling point is also often a range.

There is no need to be obsessed with one point. As long as the general direction is correct and the trend is not misjudged, the relative high or low cost is actually not that important for the large-cycle market with extended time lines. On the contrary, if you are obsessed with the buying and selling points in a narrow range, you may easily miss big investment opportunities and be blinded by the tiny profits in front of you, and you may not be able to see the market pattern clearly.

Of course, this refers to the 'new energy industry chain'.

As for the 'new energy industry chain' line, due to the early misjudgments of a large number of institutions in the market, many institutional groups do not have many positions on this line, and many institutions have not even made any arrangements along this line.

This led to a sharp surge in market trends this afternoon despite the "new energy industry chain" line.

In fact, there are not many major institutions that actually get the chips. In other words, everyone’s starting line is basically the same at present.

Regarding the 'new energy industry chain', I have nothing to worry about.

What I am most worried about right now, and what I feel is the core market sector with the greatest uncertainty, is the 'big infrastructure' sector."

"The 'big infrastructure' sector?" Li Shangfeng was slightly taken aback and said, "Mr. Wang, isn't the 'big infrastructure' sector the one with the highest certainty and the most stable trend in the entire market right now? Furthermore, judging by the fundamentals, the underlying logic of the entire 'big infrastructure' sector is indeed strengthening, and there's still a lot of room for growth. Meanwhile, institutions like Fuxing Road and Huayi Capital are continuing to increase their long positions in this core sector. What's the problem with that? I feel that with the support of these two related seats, Fuxing Road and Huayi Capital, the 'big infrastructure' sector is likely to continue to soar."

"The influence of Fuxing Road and Huayi Capital is indeed profound for the market," said Wang Shujie. "But the influence of these two seats is far less stable than the combined force of the market. Currently, within the 'big infrastructure' sector, there are many profit-taking investors within the internal structure. With valuations largely restored and uncertainty surrounding the realization of future expectations, it will be difficult for these profit-taking investors to maintain stability."

Moreover, after a general doubling, the core leading stocks in the entire "big infrastructure" main line have all seen their prices rise.

The market capitalization is generally quite large.

At this position, when the internal chip structure gradually turns to divergence and the volume must be increased, the incremental funds required to continue moving upward are still relatively large.

That is to say...

The "big infrastructure" line needs to develop a second wave of continuous trends and continue to break upward.

The market must maintain very high transaction volume and volume conditions.

Otherwise, there would not be enough incremental buying to take over the selling power of the gradual profit-taking in the market.

But do you think the market can maintain today's volume for a long time?

I think it is quite difficult for the market to maintain a transaction volume of around 5500 billion to 6000 billion. After all, today's market trend and volume performance are due to the extreme volatility in the morning and the two major positive stimuli in the afternoon.

If there weren’t two major positive stimuli at noon.

I estimate that today's market transaction volume will most likely remain around 4000 billion to 4500 billion.

Also, even though the market volume increased today, a lot of active funds came in from the OTC market.

But can this part of active funds continue to stay in the market?

To retain these active capital groups, there needs to be a fundamental shift, a change in the market environment and support from the continued profitability of the market.

At present, it seems that the overall market ecology is far from being changed.

A bear-bull transition is unlikely at this point in time.

So, looking at it all...

I just said that if the "big infrastructure" line wants to continue to strengthen and develop a second wave of coherent trends, the probability is not very strong, and the market certainty is still somewhat insufficient.

Of course, apart from the "big infrastructure" line.

For the 'new energy industry chain' line, the fundamentals have reversed after the release of major positive news. Even if the subsequent trend fluctuates, it will definitely not be a big problem.

If there is a significant correction in the subsequent 'new energy industry chain' line.

I think we can adjust some positions appropriately and focus on the layout.”

"So, according to what you mean, Mr. Wang..." Li Shangfeng said, "Should we gradually reduce our holdings in the 'Big Infrastructure' sector and gradually take profits?"

Wang Shujie thought for a moment and said, "Let's see how sentiment and market trends react to the 'big infrastructure' sector after the two major related positions, Fuxing Road and Huayi Capital, continue to increase their holdings. If the trend isn't bad and sentiment remains aggressive, then we can wait a little longer."

Although I am not optimistic about the "big infrastructure" line at the current time and position.

How much room can be created to continue to move upwards?

However, from the perspective of short-term speculation, the influence of the two major seats, "Fuxing Road" and "Huayi Capital", on the current market, the vast number of retail investors, and a number of other institutional investment groups cannot be underestimated. These two seats can bring short-term speculation space and also create some short-term speculation opportunities.

However, overall...

The strategy on "big infrastructure" remains unchanged.

That is, you can sell more as the price rises, and gradually transfer the freed-up positions after selling chips to the main line of the 'new energy industry chain'."

"Well, okay," Li Shangfeng responded, paused, and then continued, "Then, Mr. Wang, what do you think of the main sectors on the main board, such as liquor, white goods, pharmaceuticals, consumer goods, electricity, petrochemicals, and finance? Especially in the liquor and white goods sectors, which are also heavily invested by Huayi Capital, judging by today's market trends, after the overall market investment sentiment has rebounded, these two sectors have actually weakened somewhat.

If it weren't for the end of the trading day, a large number of small, medium and micro-cap stocks would have risen across the board.

Subsequent funds cannot chase high prices to buy, so they have to flow back to the main line of the main board's weight.

I'm afraid that the two major sectors, liquor and white goods, may still be in a downward trend at the close of today's market.

But no matter what, in terms of today's market performance, the liquor and white goods sectors are indeed the weakest performing main sectors in the entire market.

Our fund currently also has a number of holdings in these two main sectors.

I was thinking, what if these two major sectors can’t get out of this?

In other words, the market may continue to underperform the broader market in the near future. So, do we need to optimize our holdings and continue to reduce our holdings in the liquor and white goods sectors to lock in profits?

Wang Shujie responded: "The liquor and white goods sectors, in addition to being stable consumer sectors, actually also show a certain positive correlation with the recovery of the real estate market. The current fundamentals of these two sectors have not changed compared to before. Not only have they not changed, but they are gradually and continuously developing in a positive direction.

Since the fundamentals have not changed, the underlying logic has not changed.

Then, there is no need to be so anxious about optimizing the holding structure.

In addition, I think the performance of the liquor and white goods sectors, in terms of certainty, is much higher than that of a number of stocks in the main field of "big infrastructure".

Moreover, the industry fundamentals sentiment and trend continuity are also much better.

Looking at the next few years, or even the next ten years, people's pursuit of a better life and a quality life will not change.

Moreover, as people's income increases, their desire to consume also increases.

The liquor and white goods markets will both be continuous incremental markets.

Since it is an incremental market, the market size is constantly expanding, and at the same time, the market concentration is also constantly concentrating towards giants.

Then, we should continue to be steadfast in buying leading stocks in the liquor and white appliance industries, or firmly hold core leading stocks in the liquor and white appliance industries.

It is the most correct trading strategy.

In fact, on this point, I quite admire the institutions "Fuxing Road" and "Huayi Capital".

This guy saw this at the beginning of the year and decisively bought a large number of core leading stocks in liquor and white goods during the stock market crash. He has not sold a single share to date.

"Huayi Capital's investment vision and strategy are undoubtedly exceptional," Li Shangfeng nodded, adding, "We'll maintain our holdings in liquor and white goods. We'll reduce our holdings in the 'big infrastructure' sector, which is rising steadily, and wait for a pullback to increase our holdings in the 'new energy industry chain.' So, Mr. Wang, what are your thoughts on the 'emerging industry chain' sectors, including film and television media, internet software, and internet applications, as well as the 'smartphone industry chain,' and particularly the 'Apple industry chain'?"

Wang Shujie chuckled and said, "For the time being, I don't think we need to look at the film and television media, internet software, and internet applications sectors. The fundamentals of these sub-sectors don't show any hope of a reversal, at least not for the time being. Since the fundamentals are not optimistic, it means that these sectors, as they currently exist, are only opportunities for short-term speculation.

The short-term market speculation...

There are a group of active speculators in the market to dominate, which has little to do with us.

Moreover, short-term market trends are difficult to grasp and are extremely volatile. In addition, in the fields of film and television media, Internet software, and Internet applications, the vast majority of constituent stocks are small, medium-sized, and micro-cap stocks. It is not easy for large funds to enter and exit, and they simply cannot react as quickly as hot money.

Therefore, these sectors can basically be ignored and abandoned directly.

As for the "Apple industry chain" branch, the fundamentals have actually improved slightly.

However, before Apple's new product launch conference, no one knows how well this year's new Apple products will sell in the end, and whether they will meet market expectations.

And in the context of inherent uncertainty expectations.

The market has already hyped up a number of related stocks in the entire "Apple industry chain" in accordance with the attitude of meeting or exceeding expectations.

In other words, the fundamentals have not yet fully reversed.

Market expectations have been shattered.

In this case, it means that if Apple's subsequent press conference exceeds expectations and the products sell well, the corresponding Apple industry chain stocks will not see much growth.

On the contrary, if this year's Apple new product launch conference fails to meet expectations like last year.

Then, it is very likely that there will be a wave of fierce selling of stocks related to the "Apple industry chain".

In general……

I believe that the current investment cost-effectiveness of the "Apple industry chain" line is not high and the certainty is insufficient. Even if calculated according to the most ideal expectations, the profit space of the investment is relatively limited.

So, since there is insufficient certainty, the investment cost-effectiveness is not high.

There is no need to spend more time and energy on this line at this point in time."

"Well, okay." Li Shangfeng nodded and said, "From this perspective, the core themes of the market should be the liquor and white goods sectors, as well as the 'big infrastructure' and 'new energy industry chain' sectors. Of these, the 'new energy industry chain' sector should be given priority, followed by the liquor and white goods sectors, and then the 'big infrastructure' sector."

"That's about right." Wang Shujie also nodded and said, "Some main lines may seem lively, but in reality, there's no major capital involved. Other main lines may seem average and lack initiative, but over the long term, they can outperform 90% of the stocks in the market. Let the speculators handle the short-term speculation. We just need to stick to our own trading strategies and operate according to our own ideas."

"Okay." Li Shangfeng continued to respond.

Inside the trading room of the 'Blue Chip Mixed Select' fund at 'Nuoan Capital', the two core figures in charge of the fund products were having a heated discussion on the current market trends and the performance of the major market lines, and were making subsequent trading strategies in a timely manner.

At the same time...

At this moment, in the trading room of Huarui Fund Management Company's main fund product, 'Huarui Performance Growth No. 1', fund manager Song Shaopu browsed the data of the two stock market's Dragon and Tiger Lists and found a number of stocks that Huayi Capital had significantly increased its holdings in today. He couldn't help but chuckle, "It's rare to see Huayi Capital increase its holdings so aggressively. It seems that after the positive market news released at noon, facing the lack of chips in the 'new energy industry chain' sub-sector, they are starting to get anxious."

"It's hard not to be anxious," said Jia Yongxiang, the trading team leader standing beside Song Shaopu. "After all, after the big news announcement at noon, everyone knows the fundamentals of the 'new energy industry chain' have completely reversed. With such a clear investment opportunity, who wouldn't want to grab some shares among the major institutional investors who are short of chips?"