The investment era of rebirth

I saw that under the mood of the two cities at noon, as soon as the market opened, the Shanghai Stock Exchange, Shenzhen Stock Exchange Index and ChiNext Index fell rapidly. The main selling power on the market began to suppress the power of bulls.

At 1:01, in just one minute, the decline of the Shanghai Stock Exchange Index rapidly expanded to 1.67%. At the same time, the A50 Index fell to 2.69%. The three core main lines of 'big finance', 'big infrastructure' and 'military industry', Continued to be intensively sold by a large number of major selling capital groups, the corresponding industry sectors, concept sectors, and core weight stocks also continued to dive rapidly.

At 1:02, the decline of the Shenzhen Stock Exchange Index and the ChiNext Index also expanded to 1.5%.

At this time, in the morning market, the three core main lines of 'big consumption', 'mobile Internet' and 'smartphone industry chain', which once showed strong supporting effects, as well as the low-level and non-popular 'non-ferrous cycle' and 'petrochemical industry' , 'Coal'... and other main-line related industry sectors and concept sectors also fell rapidly, completely losing their strength in the morning session.

At 1:03, the intraday decline of 'Huaxin Securities' reached 3.83%, and the trading volume exceeded the 70 billion mark.

At 1:04, the stock prices of "Huashang Securities, Huatong Securities, Huatai Securities..." of several leading securities firms fell by more than 3%.

At 1:05, the 'Securities' sector index fell by 4% during the day.

At 1:06, under the influence of the sharp decline of the 'Securities' sector, the 'Internet Finance' sector also plummeted downwards. Among them, 'Flush' and 'Great Wisdom', two popular stocks within the sector, once again fell by as much as 7%, 'Oriental Fortune''s disk decline reached 5%.

At 1:07, the banking and insurance sector index fell by about 2.5% during the day.

At 1:08, the check of 'Harbin Investment Capital' suddenly fell by 8%, showing a trend of falling to the limit.

At 1:09, the check of 'Bluestone Heavy Equipment' suddenly went straight to the limit again. At the same time, the 'Military Industry' industry sector index expanded its decline rapidly, catching up with 'Securities' at lightning speed. The decline in the sector index, and within the sector, popular concept stocks such as 'Hongdu Aviation', 'Aerospace Development', 'China Airlines Heavy Machinery'... have also fallen by 5% to 7% during the day.

At 1:10, the 'steel' sector plummeted, ranking among the top three in the two cities and one industry sector's declining list. Among them, 'Bayi Steel', a popular stock within the sector, hit its limit.

At 1:11, commercial real estate development, architectural decoration, building materials... a number of industry sectors in the main field of "big infrastructure" are also rapidly following the trend. Among them, the "commercial real estate development" industry sector was once highly speculated in the early stage. The stock prices of China Fortune Land Development and Kumho Group experienced a flash crash.

At 1:12, in the main line of 'big consumption', the 'automobile' sector turned green.

At 1:13, the intra-day decline of 'Huaxin Securities' reached 4%, and the trading volume was still increasing rapidly, and selling was endless.

At 1:14, 'Blue Stone Reload' sealed the limit, and in just a few days, the retracement exceeded 25%.

At 1:15, the 'sub-new stocks' concept sector index fell 2.78% during the day. Among the near-end sub-new stocks, four stocks have sealed their daily limit.

At 1:16, the intraday decline of the two stocks of 'Hua Ke Financial' and 'Shanghai Steel Union' reached 7%.

At 1:17, the 'Internet Finance' sector index fell by 4% during the day. Within the sector, four stocks had reached their daily limit.

At 1:18, 'Beijiang Communications Construction', a monster stock that had been the main line of 'big infrastructure' in the early stage, plunged to the limit.

At 1:19, the intraday decline of the A50 index once again approached 3%.

At 1:20, the net outflow of main funds during the day in the three core main areas of 'big finance', 'big infrastructure' and 'military industry' reached a scale of 78.92 billion.

At 1:21, the Shanghai Stock Index fell 2% during the day and fell below 3600 points.

At 1:22, 'Western Securities' intraday decline reached 7%. In just three trading days, the retracement also exceeded 20%.

At 1:23, the stock price of 'Great Wisdom' reached its limit.

At 1:24, 'Great Wisdom' sealed the limit, and the entire 'Internet Finance' sector index suffered another heavy setback, with the intraday decline reaching 5%.

At 1:25, the number of stocks that have dropped to their limit in the two cities has reached 73, and among these 73 stocks that have dropped to their limit, 70% of the stocks that have dropped to their limit come from 'big finance', 'big infrastructure', and 'military industry' , 'sub-new stocks' among the three main areas.

At 1:26, among the two cities, the 'Yuhang System Position Concept' sector index, which had been continuously pursued by major funds in the market for more than half a year and continued to hit new highs, fell by 5.65% during the day. At a position of %, it completely led the decline in the conceptual theme sector of the two cities with a strong momentum.

At 1:27, 'Oriental Fortune' fell 7% during the day.

At 1:28, the 'Internet Finance' sector fell 5% during the day, and 'Flush' stock price hit the limit.

At 1:29, the stock prices of the four major banks including 'China Bank' and 'Chinese Commercial Bank'... all fell by 2%.

At 1:30, after half an hour of sharp decline, the Shanghai Stock Index's intraday decline reached 2.33%, falling completely below 3600 points, falling below the 15-day line, and rapidly approaching the 20-day line.

At 1:31, all industry sectors and concept sectors in the two cities turned green.

However, in the absence of sector red stocks in the two cities, the industry sectors and concept sectors with strong correlations in the two main areas of 'big consumption' and 'pharmaceutical', as well as various weighted stocks, are still the main sources of funds from the two cities. Group, the first hedging choice and buying target.

At 1:32, the intra-day decline of 'Huaxin Securities' reached 5%. At the same time, the intra-day decline of the securities sector index also began to reach the 5% position.

At 1:33, the total net outflow of main funds from the two cities reached 200 billion.

At 1:34, in the field of 'Yuhang Concept Stocks', many small and medium-sized concept sectors with low liquidity began to set off a trend of falling to the limit.

At 1:35, the Shanghai Stock Index fell 2.5%.

At 1:36, the A50 index fell by more than 3.5% during the day. In three days, the retracement exceeded 10%, which caused a huge amount of funds to rush in under the favorable conditions of the central bank's interest rate cuts and reserve requirement ratio cuts. , all buried in the three core main areas of 'big finance', 'big infrastructure' and 'military industry'.

At 1:37, the stock price of Flush Check had no choice but to hit the limit after struggling for a while.

At the same time, due to the crazy decline of the 'Internet Finance' sector index, the indexes of the two major industry sectors of 'Internet Software' and 'Internet Application' have also suffered a decline of more than 3%, leading to a decline that was originally supported. A number of related concept sectors such as 'domestic software', 'network security', 'mobile payment', 'smart city'... have shown a clear trend of collapse and decline. At 1:38, the Shanghai Stock Index fell by 2.67%, reaching around 3585 points.

At 1:39, after the two markets plunged for more than half an hour in the early afternoon and fully vented their panic, thinking that the Shanghai Stock Index had a strong support base near 3500 to 3600 points, a large-scale influx finally began. Taking over the market, it drove the Shanghai Composite Index, Shenzhen Composite Index, and ChiNext Index to rebound in shock.

At 1:40, with the influx of market copycats, the intraday decline of 'Huaxin Securities' narrowed to less than 5%.

At 1:41, 'Flush' opened the limit.

At 1:43, 'Western Securities' stock price rebounded to within 7%.

At 1:44, in the field of 'big consumption', core weighted sectors such as white goods, automobiles, retail, food and beverages, etc., have all turned red, and led the rise of industry sectors and concept sectors in the two cities.

At 1:45, 'Hua Commercial Bank, Huaguo Bank, Huaxin Securities, Hua Commercial Securities, Huatong Securities, Huaguo Construction, Huaguo Railway Construction, Huaguo Communications Construction, Huagong International...' and many other names with the prefix "Hua" 'Stocks rebounded rapidly one after another, ushering in a relatively strong wave of buying from the market.

At 1:46, the industry sector indexes of 'Military Industry', 'Securities', and 'Steel', which led the market decline, narrowed their intraday declines to less than 5%.

At 1:47, the two major sectors of 'Pharmaceutical Business' and 'Gene Sequencing' moved higher.

At 1:48, the 'Film and Television Media' sector also followed the trend and quickly reduced the market decline. At the same time, the weighted stock within the sector, 'LeTV', quickly rose and became red.

At 1:49, the Shanghai Stock Index's intraday decline narrowed to about 2% and returned to 3600 points.

Subsequently, when the Shanghai Stock Index returned to above 3600 points, the market followed suit and began to flood in more and more, and quickly took over the chips of major main lines.

"Oh...it's scary, but...it's finally stable."

At around 1:55, inside Yanjing Chenghua Public Fund Company, in the main fund trading room, fund manager Gong Tiancheng stared at the major indexes that had returned to the 3600 point mark and were gradually recovering from the market decline. He had been frowning before. Finally he relaxed a little and said with emotion: "This wave of decline was really violent. I almost thought the market was going to collapse completely, but fortunately... it finally recovered."

the last three trading days.

Because their fund products were heavily invested in the main line of 'big finance', and they failed to reduce their positions in a timely manner.

Therefore, the losses were extremely heavy.

The drawdown in the net value of fund products is also quite serious.

"The short-term influx of copycats took over the panic selling on the market." As Gong Tiancheng sighed, in the trading room, Zhou Qiang, an assistant to the fund manager and leader of the trading team, was still staring at the prices of the two markets. Immediately changing the situation, he replied, "But... Mr. Gong, I feel that it is still difficult for the market to stop falling at this position, and the core line of 'big finance' has completely withdrawn from the main force of 'Yu Hang Department'." After that, there was basically no strong support, and all major funds were reducing positions and taking profits.

If we continue to lock up positions in this main line area, or increase positions at low levels and buy bottoms to go long.

I'm afraid I will become more and more passive.

Therefore, I suggest that we take advantage of the market and come in. The market has temporarily gained support and liquidity. We have regained a little bit of blood, quickly reduced our positions, and temporarily stayed away from the core line of 'big finance', which is in the eye of the tornado. Reduce the drawdown of the net value of our fund products. "

"Do you think the logic of the core line of 'big finance' has changed?" Gong Tiancheng asked.

Zhou Qiang pondered for a while and replied: "There is nothing wrong with the fundamental logic. It is just that the chip structure has clearly shown signs of collapse, and the main force of the 'Yu Hang System' has an impact on the market. The impact on market sentiment and market sentiment is so great that we have to pay attention!”

"Since the fundamental logic has not changed, why should we reduce our positions?" Gong Tiancheng said, "Is it because of changes in market sentiment and the influence of so-called main funds? Xiao Zhou... I think we who invest and trade still can't It’s easy to be kidnapped by market sentiment!”

"Mr. Gong, I don't think this is kidnapping." Zhou Qiang thought for a while and tried his best to persuade, "Since we know that the short-term market adjustment has not ended, and the overall chip structure of the core line of 'big finance' has been loosened, we There are better buying opportunities at low levels, so why not leave first, reduce the net value retracement of fund products, and then wait until the market adjustment is over to regain chips at low levels?”

Gong Tiancheng looked at Zhou Qiang and said with a smile: "Theoretically, the trading strategy you mentioned is not wrong, but the short-term trend of the market and the short-term correction trend are so easy to grasp? What's more, we The opportunity has been lost. At this moment, the index has fallen to the position of 3600 points, and has quickly retraced more than 200 points in the short term. At this time... if we sell again, I am afraid that retail investors will be bearish and sell the stock.

Furthermore, since there is no problem with the fundamental logic of the bull market.

The main fundamental situation of the entire 'big finance' has also undergone drastic changes due to the central bank's monetary policy shift and the arrival of the bull market.

At the same time, due to the doubling of transaction volume in the two cities, there is also a rapid growth in the balance of financing.

It provides a very strong impetus for the performance of the "securities" sector in the main line of "big finance".

So, when these fundamental logic and performance expectations have not been fulfilled, it is still the same sentence...all declines are good opportunities to buy.

I don't know what the main motivation of the 'Yuhang Department' is.

Why choose to reduce positions and take profits on a large scale near this position?

However, as far as our trading strategy is concerned, before these fundamental logics change, I think there will be no problems with our investment strategy and trading strategy.

'Don't be afraid of clouds covering your eyes'!

We must look at the correctness of investment strategies from a medium- to long-term perspective. We must not be swayed by short-term market sentiment, nor can we be blinded by short-term emotional panic.

No matter what kind of drastic adjustment trend occurs in the market at this moment.

To put it bluntly, in the process of market trends developing and gradually reaching the top, there are just one or two stumbling blocks. If you endure it, it will pass! "(End of chapter)