The investment era of rebirth

Chapter 721 Opportunities on the left and right!
"The main financial groups who are active in the market have differences on the advancement of the main market!"

At 2:10 pm, inside Minghui Capital Group, in the main fund trading room, Xu Zhongji, general manager of the company's asset management business, stared at the market and said with surprise: "Such as 'big consumption, non-ferrous metal cycle, petrochemical industry, coal, Pharmaceutical business...' These low-level main lines are still insufficient in the continuous acceptance of buying orders. As long as the selling orders on the corresponding stocks continue to increase and the upward pressure changes, various funds will instantly become hesitant to accept and follow the trend.

This shows that the main financial groups active in the market are still lacking in the logical expectations for these low main lines to make up for the increase, as well as the confidence in the market outlook.

Moreover, the selling pressure on this line, based on the market surface, is greater than many people expected.

The main financial groups who were originally active in the market have insufficient confidence in the logical expectation of this line to make up for the increase. If the pressure for an upward breakthrough is still great, then it is natural...the main financial groups who are active in all walks of life, The willingness to follow the trend will be greatly reduced.

In this way, the line of 'compensating for gains at low levels' may not be possible at the moment.

If the line of 'compensating for gains at low levels' cannot be overcome, the active capital groups in the market will definitely turn back to the popular core lines such as 'big finance, big infrastructure, military industry, and technological growth'. "

"I also feel that the line of 'compensating for gains at low levels' makes it difficult to make sustained money." Hearing Xu Zhongji's emotion, the fund product manager He Hong, who was standing next to Xu Zhongji, pondered for a moment and nodded slightly. He also added, “The main reason is that without new expected support, it is difficult to attract too many financial groups to decisively intervene by talking about valuation improvements.

In general...

It is the current low-level main areas such as "big consumption, nonferrous metal cycle, petrochemical industry, coal, pharmaceutical business...". Compared with the core main lines of "big infrastructure, big finance, military industry, and scientific and technological growth", the expectations are completely unequal. Investors have different expectations. The investment confidence and stock-holding confidence of the two are not at the same level at all.

In addition, the core lines of 'big infrastructure, big finance, military industry, and technological growth' are huge in size and can carry a very large group of funds.

Even though the current turnover of the two markets has already reached a capacity of close to 8000 billion.

Moreover, the balance of financing and financing has surged to more than 10000 trillion.

However, the capacity of this volume is not enough to fill the expectations of the core main lines of "big infrastructure, big finance, military industry, and technological growth" and overflow into the low-level main line areas in large quantities.

At the same time, the two future expectations and certainties are completely unequal.

It is necessary to make the active capital groups gathered in the main line fields of "big infrastructure, big finance, military industry, and science and technology growth" continue to flow out in large quantities and flow into the low-level main line fields such as "big consumption, non-ferrous metal cycle, petrochemical industry, pharmaceutical business..." , is also unrealistic.

After all, as long as investors continue to trade in the market for a period of time.

We all know the logical thinking of 'the strong will always be strong', and the probability of making money is still far greater than the probability of buying weak and low stocks and doing 'high-low switching'.

Since there are a number of core stocks and industry leading stocks in the low-level main line field.

The current investment performance-price ratio is not as good as core stocks and leading weight stocks in the main areas of 'big finance, big infrastructure, military industry, and technology growth'.

And the market’s capital preference, investment confidence, and money-making effect.

It is also the relatively high-level main line of 'big finance, big infrastructure, military industry, science and technology growth', which is significantly stronger than the low-level main line fields of 'big consumption, non-ferrous metal cycle, petrochemical industry, coal, pharmaceutical business...' and other main lines.

Then, there are many financial groups who actively lead the market.

It is obviously futile to try to guide the market's main line trend to the low main line area and make it form a 'high-low switching' situation.

Also, if you look at 'Big Finance', the most popular main line at the heart of the market in recent times, it has exploded.

Except for the unexpected day last Monday when the market generally plummeted, at other trading times, even if there are any long-short differences during the session, they usually end with intraday adjustments.

So I think……

When the development time of the 'high-low switching' line is not mature.

The funds that had previously aggressively pursued these low-level mainline core stocks and industry leading stocks during the session must have quickly returned to the core mainline of 'big finance' when they found that the pressure on the market was too great and the market lacked the ability to follow suit. Correct your trading strategy. "

"So... you want to continue to increase your holdings of core stocks and industry-leading stocks in the main line of 'big finance' from this position?" Xu Zhongji turned his head and glanced at He Hong, with a smile on his face, and he immediately understood He Hong. He laughed and said, "But the position of the main fund product you are responsible for is already full."

He Hong responded with a smile: "Since we know that the market's 'high-low switching' path will not work, and the breakthrough of the market's core market conditions will still return to the core popular main line of 'big finance', then... why not take this opportunity, What if we reduce some of the bargaining chips we still hold in the low-end main line fields such as "big consumption, non-ferrous metal cycle, petrochemical industry, coal, and pharmaceutical business" and concentrate the funds on the main line of "big finance"?
If the line of 'big finance' cannot fall, it will only rise.

Moreover, under the current market situation, bull market expectations are still fermenting rapidly inside and outside the market, and they are getting stronger and stronger.

There is a strong bull market logic.

Judging from the current valuation level of the main line of 'big finance', it is still extremely underestimated, right?
There are also several major benefits of the listing and trading of "Shanghai-Hong Kong Stock Connect", "China Securities 500 Index Futures" and "A50 Index Futures", although they have been realized today.

However, expectations for greater benefits in the future still exist.

And, most likely, it will become stronger and clearer. "

"Are you talking about the positive expectations that many institutions in the market expect that the central bank will cut interest rates and reserve requirement ratios in the future?" Xu Zhongji squinted his eyes, thought for a moment, and said, "There is such a saying in the market, but the central bank There is no clear statement. I wonder if the macro monetary policy will really be reversed?
And... even if the market's expectations are becoming more and more obvious.

But what about the timeline?

If the central bank keeps dragging its feet and only cuts interest rates and reserve requirement ratios next year, and changes its monetary policy, it will not be a strong positive stimulus for the current trend of the main line of 'big finance'. "

He Hong pondered for a moment and responded: "What Mr. Xu said is indeed the uncertainty, but when we look at the entire market... Mr. Xu feels that in the current entire market, there are more problems than 'big finance' For this line, the expectations are clearer. Is it the core main line with stronger investment confidence and general money-making effects, and better investment performance-price ratio, or a branch sector? There should be no main line stronger and more suitable for investment than 'big finance', right?
Of course, under the strong expectations of the bull market.

The current signs of hot speculation in the 'sub-new stock' sector are indeed hot and very sustainable, with big sub-new stocks such as 'Blue Stone Heavy Equipment and Huake Dawn' emerging one after another.

At the same time, the bargaining chips of 'sub-new stocks' are also relatively clean, and there is no historical hold-up as an obstacle to the upward movement of stock prices.

However, this branch line has an inherent flaw...

That is, the amount of funds that can be accommodated is very limited, and the stock price fluctuates extremely drastically.

Such side market speculation and emotional speculation are naturally only suitable for hot money groups with extremely high risk appetite in the market, and are not suitable for institutional groups with short- and medium-term positions.As for the main lines of 'infrastructure' and 'military industry' which continued to surge from June to October in the second half of this year.

It is true that the current expectations for these two core main lines are still strong, and under the macroeconomic strategy of "New Era Road, Maritime Silk Road" and the "reform and reorganization of central and state-owned enterprises", a major internal enterprise reform measure, there is room for subsequent imagination. , it’s still big and interesting.

But in terms of the expected results of short- and medium-term positions...

The current valuation level of the two main lines of 'infrastructure' and 'military industry' clearly exceeds the core line of 'big finance'.

Moreover, the surge has just continued in the past, and corresponding core stocks and industry leading stocks have almost doubled their gains.

In addition, the two main lines are still obviously lacking in terms of technology, time and space for adjustment. Relatively speaking, neither the flexibility space nor the valuation advantages are as good as the currently equally popular 'Big Finance' 'Core thread.

So, I think we are at this time.

There is no problem in continuing to adjust the position structure, concentrating shareholdings, and further focusing the main direction of investment on the main line of 'big finance'. "

After hearing He Hong's analysis, Xu Zhongji looked at him again and said with a rare chuckle: "Old He, I remember when the Shanghai Stock Exchange Index just broke through 3000 points, not long after the 'Big Finance' line was launched. I asked you to adjust the fund's main investment direction to the line of 'big finance', especially the two major sectors of securities and Internet finance. You are obviously very hesitant at the moment.

Why now, the entire main line of 'big finance' has been rising continuously for more than half a month.

And the two popular sector indexes, such as securities and Internet finance, have almost doubled from their positions half a month ago.

Your investment views on the core line of 'big finance' have become more firm and intense than before? "

Facing Xu Zhongji’s question, He Hong responded with a smile: “Aren’t many trends in the market becoming clearer and clearer as time goes by?

I remember Mr. Xu said before...

When we invest, we should not focus on the current market situation, but should focus on the future market situation.

At present, from the perspective of future expectations, it is true that the expectations of the 'big finance' line are the strongest and the market certainty is the highest. In this case... then we should choose this way, concentrate our positions, and do the most certain market. Yeah.

As for before, when the Shanghai Stock Index just broke through 3000 points.

At that time I was hesitant.

It was because in the market conditions at that time, the continuous upward trend of the two core main lines of 'infrastructure' and 'military industry' had not ended, and a large number of main capital groups had not withdrawn from these two core main lines. .

There is also the line of 'technological growth' at that time.

Major sectors such as 'film and television media', 'Internet software', and 'Internet applications' are also going very strong, and they are also continuing to absorb funds that have been withdrawn from the main areas of 'infrastructure' and 'military industry'.

Judging from the market shape at that time, although the 'big financial' line bravely took the lead when the Shanghai Stock Exchange broke through the 3000-point mark, the specific main line market trend and in which direction is actually certain. It's not that intense.

Also, at that time, the market's call for a 'bull market' was not as high as it is now.

The turnover of the two cities is still around 4000 to [-] billion.

Who would have thought that in just half a month, the market turnover would soar and nearly double?
In general, the position that Mr. Xu mentioned at the time should be regarded as a higher-risk investment opportunity on the left side, but now the main investment opportunities of 'big finance' have completely come to the right side.

Of course, judging from the final result...

There is no doubt that Mr. Xu’s proposal and judgment of the market at that time were very precise and correct. "

"Haha, don't bring me the high hat." After hearing He Hong's explanation, Xu Zhongji smiled and continued, "After half a month, comparing the two, it is indeed the difference between the opportunities on the left and the opportunities on the right. In fact... my thoughts are basically consistent with the thoughts and judgments you just mentioned. Now that you are fully aware of this opportunity, then adjust positions according to your thoughts!"

"Okay!" He Hong responded.

Immediately, without waiting for Xu Zhongji to say anything else.

He turned around and immediately issued new trading orders to the traders behind him.

Prepare to further reduce holdings or clear out the fund's stock holdings in low-level main areas such as 'big consumption, non-ferrous metal cycle, petrochemical industry, coal, pharmaceutical business...' in the late trading stage, and then take advantage of the 'big financial' line , just completed the adjustment within the day, and further concentrated on increasing positions in related stocks.

As Minghui Capital Group's related main fund products continue to adjust and increase positions.

at the same time……

Realizing that the market's "high-low switching" market change idea has a high probability of failure, other institutional investor groups are also doing the same operation.

And when these trading operations are carried out, they are reflected on the broader market of the two cities.

It can be seen that after the trading time of the two cities jumped past 2:30, the main lines of "big finance, big infrastructure, military industry, and scientific and technological growth" that were originally strong and weak were different from "big consumption, non-ferrous metal cycle, petrochemical industry, coal, and pharmaceutical business" Waiting for the main line, the trend has completely reversed.

Among them, securities and Internet finance are two popular sectors.

At this time, it pulled back instantly and quickly recovered all the lost ground in the session with concentrated explosive force.

In particular, 'Flush', 'Huazhong Capital', 'Western Securities' and 'Oriental Fortune' are the most popular stocks in the two major sectors that attract the most attention from investors.

They all concentrated on explosive volume, and for a while, there was another straight-line upward trend!

(End of this chapter)