Rebirth of the Capital Legend

However, while the majority of retail investors in the market have begun to become more cautious about their expectations for the future market, a number of major institutional groups, internal groups of major institutions, and many institutional fund managers are still relatively optimistic about the future market.

Because at this stage...

The main infrastructure sector, which is the focus of the main institutional capital groups, as well as sectors such as liquor, white appliances, medicine, consumption, electricity, finance, petrochemicals, etc., which tend to be heavyweights on the main board, have all performed relatively well and there has been no obvious loss effect.

In the absence of the influence of the losing money effect, people will naturally not be alert.

What's more, the market actually does not have much room for growth since the last drastic adjustment, and the relative momentum for selling is insufficient.

This is also one of the main reasons why major institutions dare to continue to increase their holdings and follow up.

"Mr. Wang, I feel like the market is quite polarized right now, and with 3100 points still nowhere to be found, I have a feeling the market will undergo another drastic downward adjustment." While countless retail investors were heatedly discussing the Dragon and Tiger List data released by the two stock exchanges, Li Shangfeng, the trading team leader of the Blue Chip Hybrid Select Fund product within Nuoan Capital, briefly reviewed the market and took a look at the Dragon and Tiger List data released by the two stock exchanges. He then said, "Moreover, in today's Dragon and Tiger List data for the two stock exchanges, whether it's the major infrastructure sector or other main market sectors, the amount of institutional buying capital has weakened significantly for the stocks on the list.

It seems that many major institutional funds in the market are gradually turning to a cautious direction in their trading strategies.

Even in the area of ​​large-scale infrastructure, at its current position, the number of main capital groups that continue to increase their holdings and chase high prices is getting smaller and smaller, and the trend rate of many leading stocks in core industries in the entire large-scale infrastructure main line has also slowed down, and the market trend is not as smooth as before.

Only the two major sectors of liquor and white goods can still hold up.

However, this is also due to the fact that these two major sectors did not rise much in the early stage as the main line of large-scale infrastructure continued to soar, leaving a certain amount of room for expectation.

Also, it is almost time to disclose the third quarter performance report.

According to research reports from major institutions and industry analysis reports, based on macroeconomic data, the performance expectations of the two major sectors of liquor and white appliances should have the highest certainty. Therefore, when the overall market sentiment gradually became cautious, a large amount of funds re-gathered in these two sectors.

But anyway...

It is true that the overall investment sentiment in the market is gradually leaning towards caution.

It is also true that the capacity of the group of funds that dare to continue to take over at high levels is gradually weakening.

The weakening of the buying capacity will inevitably lead to insufficient buying on the market for many core leading stocks. This is coupled with the concentrated selling behavior of some profit-making short-term funds that gathered in the market and had not yet left the market after the release of several major positive news last Friday due to changes in sentiment.

So, it can be predicted that the market trend in the next few days will not be as optimistic as everyone expected.

I feel that at this position, the index cannot quickly break through 3100 points, and it will most likely accelerate downward adjustments, continue to quickly clear a wave of chips, and re-consolidate the chip structure.

Of course, it is also possible that the index will maintain this sideways trend with shrinking volume.

However, if we want to exchange time for space, the adjustment time will probably have to be extended a lot, which will erode the confidence and emotions of many investor groups in the market.

If the market's bullish sentiment and confidence continue to decline.

Then, it will be more difficult to continue to gather this bullish momentum in the future.”

After hearing Li Shangfeng's words, Wang Shujie, the product manager of the Blue Chip Hybrid Select fund, pondered for a moment and responded with a smile, "What you said makes some sense, but our holdings in the infrastructure sector, as well as the liquor and white goods sectors, already have some good profit margins, and the holding costs are not high. In this situation... it would be wrong to rashly increase or reduce holdings.

I think we still need to wait for the trend to become clearer.

The Shanghai Composite Index is currently around 3100 points and is indeed facing some pressure.

But this pressure is actually not that great. It only takes a little bit of wear and tear. After the good news was released last Friday, the large-scale speculative capital group that intervened will continue to reduce their positions and take profits. With the good chip structure of several major main lines, it will not require too much volume support to exceed 3100 points.

Overall, we cannot be overly optimistic about the current market situation.

But there is no need to be pessimistic.

It is not yet time to be cautious in the market.

We just need to continue holding stocks, maintain our original trading strategies, and continue observing the market.

Of course, the current large-scale infrastructure line is indeed at a high level after the previous period of growth, but overall, the main capital groups of major institutions in the industry are obviously still forming large-scale clusters in this field, and the real estate market has been under a hot speculation sentiment for more than half a year.

When the fundamentals of the entire major infrastructure industry have completely changed.

It can be foreseen that even in the main field of large-scale infrastructure, many industry-leading stocks have not yet reached the time to realize their performance, but their overall performance will not be bad.

In other words, this line is not yet the time for expectations to be fulfilled and profits to be realized.

Moreover, looking at the overall market trend of this line and the chip structure, it is still obviously relatively stable at present, with no signs of dispersion.

At the same time, the number of institutional investors who dare to continue to chase high prices and build positions has indeed decreased compared to before.

But, there are still some.

In addition, other institutions that hold positions in this field currently have strong confidence in their holdings and are also quite confident about the future.

Since the chip structure is well locked, there is no huge selling pressure for the time being.

At the same time, the offline property market is still maintaining a hot momentum, and the scale of real estate market development in various places continues to increase.

In this case, it is estimated that good news will continue to appear in the future.

So, under the influence of these factors, the probability of the stock price adjusting downward is actually relatively low.

Looking at the indexes again, the major market indexes, especially the Shanghai Composite Index, actually have no room for downward adjustment, and there is no momentum for a sell-off.

So, what is there to worry about?"

"The major infrastructure sector, as well as a number of other weighted sectors in the market, will naturally not have any problems with their chip structure and willingness to take over capital for the time being." Li Shangfeng continued after listening to Wang Shujie's analysis, "But the market is more than just these few major sectors. Looking at today's market trends and the Dragon and Tiger List trading data of the two markets, whether it's the new energy industry chain, the smartphone industry chain, or film and television media, internet software, internet applications...these sectors in the main areas of the emerging industry chains are actually experiencing serious market divergence, and the willingness of various funds to go long in these areas is also declining.

I am worried that these main sectors and corresponding concept sectors will continue to adjust.

It will affect the trend of major infrastructure.

After all, the market is a whole. Even if the logic of the large-scale infrastructure line is very strong, it is unlikely to continue to strengthen independently in the process of continued downward adjustment of other sectors due to the influence of emotions, and it is even more impossible to completely break away from the trend of other main sectors.

Therefore, I think it is necessary to take profit on a small portion of the position.

Then, after the market trend becomes clear again, should we rearrange our positions or add back our positions?

After all, many of the stocks we have invested in the major infrastructure sector have actually made quite a bit of profit. Moreover, the third quarter results will be released soon, and the industry’s fund performance ranking assessment is also coming.

Our current performance is considered to be relatively outstanding among the fund performance in the industry.

There's no need to take risks at this time, right?

Therefore, I think it would be better to choose a relatively safe approach and adopt a relatively conservative trading strategy.

Of course, there is nothing wrong with what Mr. Wang just analyzed.

In the medium- to long-term market situation, the current trend has not been disrupted. Based on the medium- to long-term logic, there should be no problem for the Shanghai Composite Index to break through 3100 points in the future.

Wang Shujie smiled and continued, "Old Li, I know the fund's performance ranking is related to the entire team's performance bonus, but we can't choose a conservative trading strategy just for the bonus. There are currently no major risks in the market, and our key holdings haven't seen any obvious negative impact. The trend is good and the upward trend is still strong.

In this situation, once you reduce your holdings, it will not be easy to get your chips back later.

Moreover, we cannot adopt trading strategies that are not in line with the current market trends just because of performance.

When it comes to trading, you must focus on the target. Other factors can be considered, but you should not become restricted by them.

Also, in terms of performance, it is actually like rowing against the current.

Being too obsessed with performance rankings will make it less likely that the fund will perform well.

There is currently no problem with the trading strategy. If there are any new changes in the subsequent market trends, then it will not be too late to consider changing the trading strategy."

"Okay." Li Shangfeng insisted. After thinking for a moment, he decided not to say anything more. After all, he wasn't the one making the trading decisions for this fund product. Since Wang Shujie didn't want to change the current trading strategy, then no matter how much he said, it would be useless. "Then I'll stick to the previous trading strategy."

After saying that, Li Shangfeng turned his attention back to the Dragon and Tiger list data interface disclosed by the two markets.

While the two were arguing about the market performance, speculating on the subsequent market trends, and had obvious differences in trading strategies.

At the same moment, inside Huarui Fund Management Company.

In the trading room of the Huarui Excellent Growth Fund No. 1, Jia Yongxiang, the trading team leader for this fund, reviewed the intraday trends and checked the trading data from the two stock exchanges' Dragon and Tiger Lists. After a moment's reflection, he said to Song Shaopu, the fund manager of this fund, "Manager Song, it seems that market sentiment has indeed begun to decline again. I don't think the market trends in the next few days will be very good."

Song Shaopu nodded slightly and responded, "I've also sensed the market sentiment, but the market attention and discussion surrounding the core concept leading stocks of the major themes are much more intense than when Huawen Online led the market."

"That's indeed the case," Jia Yongxiang said. "I have a feeling that after last Friday's major positive news, there are significantly more active short-term investors in the market, and their activity is much higher than before. Of course, market volatility has also increased significantly."

"Hehe..." Song Shaopu laughed and continued, "This shows that after several major positive news last Friday, the continued hot money-making effect in the past few days has indeed attracted a group of short-term speculators. Unfortunately... these funds find it difficult to truly settle in the market. If they can't settle, then when the market's money-making effect declines and some concept leading stocks can no longer further expand the market's high level of speculation, these funds will withdraw very quickly."

"There should still be some funds that will settle down," Jia Yongxiang said. "I feel that the current market has gradually formed an investment style and overall speculation atmosphere that is performance-oriented and fundamentals-oriented. Pure concept-themed stocks are not currently subject to strong market consensus. I think this is an improvement compared to the past atmosphere where active short-term funds in the market tended to focus on speculating on small and poorly performing stocks.

And this style continues...

I feel that there are a large number of growth stocks that have good subsequent performance and strong expectations of explosive performance in the future.

Whether it is the main line of large-scale infrastructure, or the sectors in the weighted areas of liquor, white goods, medicine, consumption, electricity, finance, petrochemicals... these are the sectors in the main board.

There should be an opportunity for re-evaluation of value.

I think the future market trend will no longer be dominated by concept speculation.

Instead, it mainly focuses on performance speculation.

I feel that the next round of bear-bull transition will most likely be performance-oriented, with industry leaders and growth leaders as the market trend.

In the past, there was pure concept speculation, those stocks that have been obsessed with telling stories but have extremely poor historical performance.

There probably won't be a good tomorrow.

And if the subsequent regulatory measures of the regulatory authorities gradually become stricter.

As a result, many junk stocks that are purely conceptual and have no performance are expected to face a large number of delistings.”

"If it's really as you said..." Song Shaopu continued to laugh and said, "If the market begins to generally form a performance-oriented investment approach and gradually forms a consensus, then it is naturally a good thing, and it will also improve the entire A-share ecosystem. Moreover, once it continues to develop in this direction and forms a long bull trend in the future, then it will be more promising. However, for now, I feel that the probability of forming such a market investment consensus is still very small. Although a lot of speculative funds in the market are now converging on stocks with good performance expectations, they should not have reached a consensus yet, or have not yet formed a consensus. I think this speculation idea will be a major speculation direction in the future."