Rebirth of the investment era

"However, looking at the performance of major main lines and industry sectors in the market, there is no obvious vitality main line or industry sector." Li Meng responded, "Almost the whole line is falling and collapsing, and there are new market opportunities and market hopes. , I’m afraid it’s still very far away!”

Su Yu smiled and said: "Everything has a process, and changes in market trends and emotions also have inertia. We only need to understand what kind of trend the market is currently in, and then wait for the market trends and trends step by step. Just hit the point where the mood changes.”

"Again……"

Su Yu paused and continued: "Before discovering a clear investment opportunity, patience and waiting are the most important and most appropriate trading strategies in market transactions."

"That's true!" Li Meng smiled and nodded, "In market transactions, 90% of the time is so-called garbage time. The real market development time only accounts for 10% of the entire transaction process. This is It means we spend 90% of the time waiting."

"It only takes 10 seconds to make a trading decision." Su Yu said, "But it often takes a long time to judge the market buying and selling points. In the trading market, we traders are like hunters. The funds in it are bullets, the entire market is a forest, and the investment opportunities for buying and selling are the prey we are ultimately waiting for.”

"A successful hunter can always hold a shotgun and patiently wait for the prey to slowly approach within shooting range before pulling the trigger in his hand."

"The same goes for a successful trader."

"You must also have this kind of patience, waiting for investment opportunities in market transactions to be truly exposed, and then decisively invest the funds in your hands."

"besides……"

Su Yu paused and continued: "The opportunities in the market are unlimited, but the investment funds in each of our hands are limited, which means that whenever we make investment strategies, choose investment opportunities, and invest When it comes to funding, when you choose an opportunity, you are also giving up some opportunities.”

"It's like one person can't sit on two chairs at the same time."

"When we are trading, we cannot think about wanting, wanting, and wanting. Once we are too greedy and want to seize every opportunity in the market, we will most likely get nothing."

"You need to be patient and know how to choose opportunities. Is this what Master means?" Liu Yuan heard Su Yu's analysis of trading mentality, thought about it, and then said, "With the current market situation, Master is telling us You should watch more and move less. If you are not sure, you would rather miss the short-term rebound opportunity than go against the trend that has reversed."

Su Yu smiled and said, "Don't think too much about it, I just said it casually."

"You are just saying this casually." Li Meng chuckled, "You are clearly bearish on the market at this stage, and remind everyone to operate with caution and switch from aggressive operating strategies to conservative strategies."

"After 2300 points fell below, when everyone realized that the market had no obvious support here, the market should further accelerate its decline, right?" At this time, Wang Can also added, "I feel that if the Shanghai Index can be strong at 2200 points, If you hold on, the index will most likely form a head and shoulders bottom pattern!"

"That would be perfect." Zhu Tianyang, who was behind Wang Can, responded, "I'm afraid that after the market sentiment turns bearish, the Shanghai Stock Index will not be able to hold on to 2200. In that case... the index will fall back to the large box of 2000 to 2200 points. It is within the limit, and this means that the breakthrough market trend created by our company by instigating the two core market lines of 'infrastructure' and 'state-owned enterprise reform' has completely come to an end."

"It should not fall back to the original point." Zhao Lijun pondered for a moment and responded, "The investment expectations for major main lines such as 'infrastructure', 'state-owned enterprise reform', 'Internet finance', and 'Shanghai Free Trade Zone' are in line with the previous In comparison, it has obviously changed a lot, and the fundamentals of several major main lines are gradually improving. It is estimated that when the semi-annual report is released, the performance of the core component stocks related to these major main lines will not be too great. Bad, so... Even if the bullish sentiment in the market declines severely and the market valuation level falls back to the original point, the stock prices of these core components of the main line will not be able to return to before the launch."

"Indeed, I think so too." Zhang Guobing, the third trading team leader of the trading room, nodded. "You can be pessimistic in the short term, but in the long term, you are definitely still optimistic."

During the brief discussion, everyone...

At this time, the market trading time has reached 9:25, and the call auction in the two cities has ended.

After a total of 10 minutes of call auction, the Shanghai Stock Index finally opened lower at 35 points, down 12%, while the Shenzhen Stock Exchange Index and ChiNext Index fell 09% and 17% respectively. The entire call auction volume was lower than yesterday. As well as in many previous trading days, there have been decreases.

In addition to the major indexes that opened sharply lower, the main lines of market industry sectors and concepts performed.

They were also significantly lower than market investor expectations.

Among them, the early popular main lines such as 'Infrastructure', 'State-owned Enterprise Reform', 'Internet Finance', and 'Shanghai Free Trade Zone' all opened significantly lower. The core industry sectors in the main line areas, such as 'Building Materials, Building Decoration, Cement, The steel, real estate, film and television media' and other industry sector indexes opened lower than the Shanghai Index, showing an overall trend of leading the decline in the two cities' industry sectors, and their performance was extremely weak.

As for the popular stocks in these main lines, it is even more terrible.

For example, Beixin Road and Bridge, the most popular leader in the two cities, opened directly at the lower limit. The entire call auction transaction exceeded 11 million, and the number of orders closed at the lower limit reached more than 130,000; the "Shanghai Free Trade Zone" concept leader Shanghai Steel Two popular stocks, Lianhe and Sanmao on the Shanghai Stock Exchange, both opened lower at a decline of around 7%, and selling was also seen in an endless stream; the stocks of the real estate duo China Fortune Land Development and Kumho Group opened lower at a decline of around 5%. , and the net outflow of main funds just after the market opened reached more than 5 million.

There are also a series of popular stocks such as Beijiang Communications Construction, Oriental Fortune, Huayi Brothers, Chongqing Development, Shanghai Construction Engineering, Huaguo MCC, Shibei High-tech, Waigaoqiao... and so on.

They have lost any strong status in the early stage and have significantly underperformed the broader market index.

Moreover, the performance of buying and selling orders on each stock's market showed that selling orders were completely suppressed.

This shows that when the bullish sentiment in the market has completely declined, the market speculation has completely subsided, and the market risk appetite has dropped sharply, the main funds are desperately reducing their positions and fleeing from these stocks that are at relatively high levels in the market. Judging from the changes in market volume, , most of the funds that lightened up and escaped from these relatively high stocks did not flow into relatively low-risk stocks with lower risks, but completely flowed out of the market and chose to wait and see with short positions.

"This opening is really lower than expected."

Seeing the opening situation of the market, in the Shenzhen market at this moment, inside Xiniu Fund Company, in the main fund trading room, the trading team leader Mou Zhengxing stared at the temporarily stagnant market, couldn't help but sigh, and said: "Look at this situation, It is estimated that the market, induced by the overall bearish sentiment, will enter a stage of accelerated decline. At least the two core popular main lines of 'infrastructure' and 'state-owned enterprise reform' are completely dead."

Hearing Mou Zhengxing's words, fund manager Fang Xinsheng responded: "Market investor confidence collapsed and hopes were dashed. In addition, after the regulators announced the resumption of IPOs, they did not announce any new good market news for two days in a row for hedging purposes. The negative news about the restart of IPO has caused the market's trust in regulators to maintain the market to also drop significantly. In this way...the resonance of market news and sentiment, coupled with the "Yu Hang Group" funds continue to make large sums on the Dragon and Tiger List. Sell, it is even more difficult for the index to stabilize at 2,300 points."

"If 2300 points cannot be held, everyone's expectations will naturally fall to 2200 points."

"Market investors are expecting the index to fall back to 2,200 points. Once this expected consensus is reached, it will be quite logical for the index to enter an accelerated downward channel."

"Once the trend is reversed, market confidence collapses so quickly!" Liu Xin, general manager of Xiniu Fund Company, standing next to Fang Xinsheng and looking at the big screens of the two cities' market conditions, sighed with emotion, "Fortunately, we changed our trading strategy in time. Otherwise, based on today’s situation, it will be difficult to complete large-scale position reduction operations.”

"Indeed." Mou Zhengxing responded, "Once the market's expected consensus is formed, regardless of whether it rises or falls, the trend will accelerate and become faster and faster."

"Look at the check from Beixin Road Bridge..."

"I really didn't expect that this popular stock would hit the limit at the opening today."

"This kind of straight up and down trend can't be stopped even if the stock price is cut in half. And this stock's decline will not stop. It is estimated that the two core market trends of 'infrastructure' and 'state-owned enterprise reform' will hardly turn around."

Fang Xinsheng smiled softly and stared at the temporarily frozen disks of the two cities, but he had a different idea and said: "I think it is not a bad thing that the market's expected consensus has emerged and the index has entered an accelerated downward channel."

"What should I say?" Liu Xin asked hurriedly.

Fang Xinsheng pondered for a moment and responded: "In the A-share market, due to the special structure and distribution of investors participating in the market, the long and short performance is actually greatly affected by emotions, and they often like to go to extremes. The rise will be excessive, and the fall will be too much. If you fall too far, it’s like a pendulum that has to swing from one extreme to the other before it swings back again.”

"And the market swings from one extreme to the other."

"Emotional overreaction and accelerated decline of the index will help the other extreme to come quickly."

"In other words, this kind of extreme emotional reaction will help the market to quickly generate trends in the next stage. This is also the fundamental reason why we usually say in trading that 'continuous plummeting is better than continuous negative decline'" and The underlying logic.”

"Understood!" Liu Xin nodded, "Indeed, a sharp decline is better than a negative fall. A continued sharp decline will prompt investors who are trapped in the market to quickly cut their flesh, while a continued negative decline will only make those trapped in the market lose their flesh. Investors continue to hold on to a glimmer of hope, and then are completely trapped. In other words...continuous plummets can quickly adjust the chip structure on the market, but continued negative declines cannot achieve this."

"That's right." Fang Xinsheng said with a smile, "Once the chip structure in the market is re-adjusted, it will not be far from the emergence of a new market. On the contrary... the negative decline pattern of blunt knife cutting will only extend the market indefinitely. Adjusting time and space is also the most serious erosion of the confidence and emotions of market investors. Simply put, it is a rapid plummet mode, which can make the market collapse quickly, but a sustained downward trend cannot do this at all. .”

"Hehe... After Mr. Fang's explanation, I suddenly feel that the future seems quite optimistic." Mou Zhengxing said, "Maybe the market will really pick up again next month."

Fang Xinsheng thought for a while and said, "I'm not that optimistic. I guess that if the market situation wants to reverse, we have to wait until the bad news of restarting the IPO is completely realized."

"You mean, the first batch of new shares to be listed, right?" Liu Xin asked.

Fang Xinsheng nodded and responded: "Yes, when the IPO is restarted and the real blood-draining effect of the market is reflected, it should be almost the same."

"It seems... it's time to compete for patience." Liu Xin smiled and said.

Mou Zhengxing responded: "Since we have to wait for new stocks to be listed after the new regulations before the market trend is likely to reverse, then we may have to continue to reduce our positions and avoid risks!"

"Continue to reduce!" Fang Xinsheng said, "Even if 2200 points are used as the final support point, the Shanghai Stock Index will still have a decline of at least 5 or 6 points. Such a decline is placed on individual stocks, especially those that have been temporarily eliminated by the market. The main areas of 'infrastructure' and 'state-owned enterprise reform' that have been abandoned by the main funds of all parties still have at least 10% room for decline. Our current positions are still relatively heavy and have not reached the safe position area. We will continue to reduce some. We will take the initiative in the future. Sex will make you stronger."

"Okay!" After hearing Fang Xinsheng's instructions, Mou Zhengxing nodded hurriedly in response.

Then, he quickly issued trading orders to many traders in the trading room.

As his trading order was issued, by this time, the market time had slid to 9:30, and the trading market in the two cities, which had been stagnant for 5 minutes, started to beat again under the short-term emotional brewing.

I saw that under the huge time-sharing changes, the Shanghai Stock Exchange, Shenzhen Stock Exchange Index, and ChiNext Index quickly fell further and the decline expanded instantly. At the same time... the corresponding "infrastructure", "state-owned enterprise reform", and "internet finance" ', 'Shanghai Free Trade Zone', several core popular main areas, a number of related industry sector indexes, and their component stocks also fell rapidly, and were completely abandoned by the main funds in the market.

At 9:31, the Shanghai Stock Index's decline expanded to 2%, and Beixin Road and Bridge and the Shanghai Stock Exchange fell by the 30-cent limit.

At 9:32, the Shanghai Stock Exchange Index's decline expanded to 3%, the GEM Index's decline was close to 5%, and the declines of Beijiang Communications Construction and Oriental Fortune expanded to 7%.

At 9:33, the decline in the indexes of the three core 'infrastructure' industries of real estate, building decoration, and building materials all expanded to more than 2%. Among them, core component stocks such as Huaguo Construction, Huaguo MCC, and Huaxin Cement , Conch Cement, Gemdale Group, Poly Real Estate and other stocks fell rapidly, and at the same time, they were also continuously sold off by thousands of large orders on the trading market.

At 9:34, the banking sector index in the 'big finance' field turned red, but the decline in the Shanghai Stock Exchange Index was still expanding.

At 9:35, the top ten most popular stocks in the market's attention all showed a downward trend. The core "infrastructure" industry sectors of 'real estate', 'steel', 'building materials', and 'building decoration' were the main sources of funds. The total net outflow reached 1 billion, and as the trading time went by, the outflow continued to accelerate.

at this time……

After the market opened sharply lower, it continued to decline rapidly.

The vast number of investors inside and outside the market have completely collapsed in their hearts. Various pessimistic voices of "cutting off positions, stopping losses, and clearing positions" instantly flooded the discussion areas of major trading platforms, major stock investment exchange forums, and major investment institutions. Every corner of the community.

As if overnight, the 'extreme bear market' that frightened most investors has returned.

The 'bull market' that once made the majority of investors excited and had countless expectations has once again drifted away and quickly disappeared from the minds of investors.