Rebirth of the investment era

"Hey, the trend of the 'military industry' sector seems to be obviously abnormal!" Xu Xiang was slightly surprised when he noticed the changes in the 'military industry' sector. "In the case of the overall shrinkage of the market, this line has been continuing. The volume is high, and the trading situation is obviously more intense than other main lines of the market. Although the selling is heavy, the market is able to fully absorb it, which is really not easy!"

After hearing Xu Xiang's words, Zhou Kan also immediately looked at the 'military industry' sector in the market, which was undergoing intense trading.

I can only see this main line, and its related industry sector and concept sector indexes. From the index trend alone, compared with the coal and non-ferrous fields that are already the core targets of the main funds in the active market, the increase is not outstanding, and it can only turn red. But its volume performance is obviously much more intense than other main lines of the market.

In particular, the market performance of the core component stocks within the sectors such as Huaguo Heavy Industry, China Airlines Electromechanical, China Airlines Optoelectronics, Aviation Engine Power, China Great Wall, Aviation Technology, etc., all showed signs of continued heavy volume, and at the same time, the stock prices continued to sell off. , there has also been a relatively abnormal trend of rising instead of falling.

"It feels like this sector, compared to the entire market, does have a larger gap between long and short." After observing for a while, Zhou Kan responded, "There is heavy selling and heavy buying, which means there is some stagflation."

Xu Xiang said with a smile: "The selling was heavy because this line, stimulated by the positive news the day before, once led the market and absorbed a large amount of active speculation funds on the market. Moreover, after the market broke out briefly, this line did not continue to pick up. This created a sustainable market speculation space, which resulted in a large amount of active funds on the market. In the past two days, it continued on this line, and large-scale positions were cut and losses were stopped.”

"So, it is understandable that this line has heavier selling power than the entire market."

"But the point is..."

Xu Xiang paused for a moment and continued: "What this line shows now is the volume of buying orders received by the market, which is completely beyond expectations."

"According to the overall market performance of the entire market, since the 'military industry' line has not produced a sustained profit-making effect and failed to stimulate the relay of speculation from the active main funds flowing into this area, then there is no profit in the speculation funds from various channels. Figure, when the tide ebbs and exits on a large scale, the stock price should be weaker than the market and continue to decline.”

"But if you look at the market trend of this line now, it's not like this at all."

"On the market of many core component stocks in this line, it seems that there are no major buy orders, but no matter how many major sell orders there are on the market, the stock price cannot be suppressed. What does this mean? What does it say about the market? The ability to take over is far from being as weak as it appears on the surface. There should be main funds lurking under the surface of the market to carry out continuous buying operations."

"If it should be weak, it is strong. If it should be strong, it is weak."

"The strength and weakness of certain main lines in the market are not measured by the increase or decrease, but by the strength of long and short undertakings and the degree of exchange of chips on the market."

"Mr. Xu said... the 'military industry' line is actually the core line with the greatest potential for sustained market outbreaks and the strongest market trend in the current market?" Zhou Kan said with some surprise, "But before, the market Many active main funds have speculated, and there has been no splash at all. Even though the current news on this line is somewhat positive and potentially positive, in the context of the overall market investment risk gradually decreasing, that is, the market investment sentiment , still in a state of gradually becoming cautious, the 'military industry' line has inherent flaws in its logic, and it is difficult to hype it!"

In Zhou Kan's opinion...

The core of market speculation is that no matter how strong the main line expectations and logic are, the final landing point must be recognized by the majority of investors in the market.

Because only the majority of investors in the market agree with these expectations and logic.

Only then will there be continuous buying and relaying at various stages of market speculation, otherwise... it will be a castle in the air.

[A novel app that has been running stably for many years, comparable to the old book-chasing tool, used by all old bookworms.]

Stimulated by the good news the day before yesterday, the 'military industry' sector rose straight up and strengthened rapidly, leading the day's market gains. However, it did not open up a sustained market hype effect and continued room for making money. That is some important things related to this line. The expected logic is not generally recognized by the majority of investors in the market.

No one believes that the ‘military industry’ sector, which has a high valuation, can continue to make money beyond expectations.

If there is no continuous profit-making trend, then the stock chips in this line will not be scarce, and naturally there will be no continuous follow-up and relay support from various funds.

Similarly, without the continuous relay promotion of funds, it is naturally impossible for the market to occur.

Therefore, the front foot of the 'military industry' sector was falsified by the market, and it did not have the logic of continuous speculation. The main active funds that had intervened in the early stage were retreating on a large scale on this line, and when they were cutting their positions to stop losses, Xu Xiang suddenly told him, The 'military industry' line is the core line with the strongest performance in the current market. For a moment, he obviously didn't understand it.

Seeing the confusion in Zhou Kan's eyes, Xu Xiang responded with a smile: "Expectations and logic are not static. The market is completely dynamic. The funds that were active in the market before and the failure of speculation on this line cannot determine the subsequent Hyping the market trend, at least... Judging from the current market performance, the 'military industry' line is relatively benign, regardless of the chip structure, the market's ability to take over, or the changes in news and policies."

"In a dynamic market, we cannot accurately predict the subsequent core market trend."

"But it can still be done by placing your bet in the direction with the highest probability."

"There is no doubt that judging from the current performance of the market, the 'military industry' line is the high-probability direction that can carry bets."

"Moreover..."

Xu Xiang thought for a while and continued: "Since in the 'military industry' line, the market prices of core component stocks such as Huaguo Heavy Industry, China Airlines Mechanical and Electrical, China Airlines Optoelectronics, Aviation Power, China Great Wall, Aviation Technology... etc. , there have been certain changes, which shows that the amount of funds currently involved in the 'military industry' field is of great significance, and it is by no means an ordinary hot money or institutional investment fund active in the market."

"Such a large-scale intervention..."

"In this way, before the overall market trend and the market's long-short sentiment reach a turning point, we can't wait to build large-scale positions in this area."

"No matter which angle or direction you analyze it from, the plan of this fund is by no means simple."

"Since the other party dares to place such a large bet on this field in advance, it must be holding on to something. We follow the trend, and the risk is not high."

"I hope so!" Zhou Kan saw that Xu Xiang was paying attention, so he said no more and asked, "How many chips does Mr. Xu plan to build a position on this line?"

Xu Xiang pondered for a moment and said: "Although there are many abnormal market performance conditions in this line, it is still unknown whether the market can eventually come out. And the funds we have observed on the market will be taken over in the future." How to do it and whether it can lift the market trend of this line is currently unknown. So... there is a probability of the market trend of this line, but the certainty is not yet determined, so let’s establish a 15% position first!”

"15% position!" Zhou Kan simply repeated, and then issued a buy order to the traders.

And as they buy in...

As for the main line of 'military industry', the market can't help but change again as the midday session approaches.

I saw that the entire 'military industry' industry sector index continued to climb upward with time-sharing trading volume continuing to expand. The increase exceeded 7%, ranking among the top three industry sector gains in the two cities. Among them, such as Huaguo Heavy Industry , China Airlines Mechanical and Electrical, China Airlines Optoelectronics, Aviation Power, Great Wall of China, Aviation Technology... A number of core component stocks with changes have ushered in a wave of relatively concentrated buying, and their stock prices have surged upward.

"Hey, the buying orders in the 'military industry' line today are obviously more aggressive than yesterday."

At 11:21, inside Yuhang and Yuhang Investment Company, in the main fund trading room, Li Meng could not help but observe the sudden advance of the industry sector in the 'military industry' line, as well as the concentrated buying highlighted on the market of related core component stocks. He frowned and said: "It feels like our trading strategy plan of continuing to get chips at low levels on this line and establishing sufficient positions in advance is going to go to waste!"

While Li Meng was talking, Su Yu also noticed the change in this direction, and couldn't help but sigh softly, and said: "Hey... Under the current situation where the market's total turnover is only 100 billion, with funds of our size, we want to completely It’s still too difficult to continue to gain chips on the board without anyone noticing!”

"What do you mean, today's trend in the 'military industry' sector is caused by ourselves?" Li Meng asked.

Su Yu nodded slightly and said, "About that. It's obvious that the funds that are concentrated on raising funds in the 'military industry' industry sector near noon are coming towards us."

"How do you know?" Li Meng asked again.

Su Yu smiled and continued: "Look at the stocks in the 'military industry' field that have suddenly exploded in buying orders. Do most of them coincide with our target stocks for building positions? This is the last time the other party decisively followed up the position after discovering our traces. Conspicuous traces, for smart market participation funds, it is still quite difficult to completely hide some of our actions.”

"Is the fund that was concentrated on buying this stock at midday the same fund that we found on the market yesterday?" Li Meng thought for a while and asked again.

Su Yu thought for a moment and responded: "Probably not."

"How do you say that?" Li Meng asked curiously.

Su Yu replied: "The styles are different. The following funds we found on the market yesterday should have the same ideas as ours, but today's funds are obviously much more profitable in terms of operating style. Of course... this It is also a conclusion drawn from the preliminary judgment on the market. Whether it is the same fund cannot actually be proved and can only be guessed.”

"Whether it's the same fund or not," Li Meng said, "this shows that we have competitors. At least in the 'military industry' line, there should be major funds that agree with us."

"Not necessarily!" Su Yu responded in a deep voice with sharp eyes.

"Not necessarily?" Li Meng was a little confused.

Su Yu nodded and continued: "In terms of the latest news in the current market, there are no unusual changes in the 'military industry' line. Its expectations and logic remain relatively consistent with before. In other words, The previous hype in the 'military industry' line has been debunked by the market."

"The current chip structure of this line is still relatively chaotic."

"At the same time, market hype, risk appetite and other manifestations are still in the process of declining."

"It is difficult for the line of 'military industry' to be widely recognized by the main funds active in the market so quickly. Judging from the market trend and the market trading situation of each core component stock, whether it was yesterday or today, these two stocks The main funds that obviously had an impact on the market discovered the traces of our position opening and followed the trend."

"So, it's not really a competitor at all."

"I estimate that the funds following the market of these two stocks are not sure about the market trend of this line at present, and they are just following the trend to test positions."

"Is that so?" Li Meng asked with obvious hesitation, "Then what should we do next? Continue to let it go and continue to build positions at our own pace, or... follow up and place orders and buy at market prices. , and rush to raise money simultaneously with these two funds?”

Su Yu responded with a smile: "No need, just give up buying for now."

"Abandon buying?" Li Meng was stunned and didn't understand at all.

Su Yu explained with a smile: "Yes, I have temporarily given up buying. Since these two funds have followed the trend, they have no independent opinions and ideas for building positions. In other words, they are also hesitant about the 'military industry' The stronger the trend of the line, the more confidence it can enhance in their hearts, thus supporting them to continue to increase their positions and buy on this line.”

"As for the 'military industry' line, the trend is still very weak."

"Then the initial hesitation in their hearts will continue to worsen, thus restricting their ideas for building a position, making them afraid to proceed at all."

"The current situation..."

"The more we keep pace with them, the more motivated they will be and the more intense the competition will be."

"But if we give up buying for the time being, the 'military industry' sector will lose the amount of funds we can absorb. Regardless of the volume, performance, or trend strength, it should go to the next level."

"And these two funds suddenly lost our trace and found that we no longer continued to buy."

"As hesitation intensifies, it is estimated that the buying intensity will be reduced and the previous cautious attitude will continue."

"In this way, we will have another opportunity to build a position at a low level."

"What if more funds flow in while we temporarily give up buying?" Li Meng said, "Then we will lose the initiative to build positions at low cost, and the positions will be insufficient by then. After losing the initiative, we can only passively pursue highs and continue to raise funds.”

Su Yu replied: "Don't forget the current overall trend of the market. Before the market's downward adjustment trend reaches an inflection point, the logic of continued speculation in the 'military industry' line has been falsified by the market, and the majority of retail investors in the market have When the group's following trend is obviously not high, this line will only be the unpopular main line of the market and will not be so hot. Naturally, there will not be so many active main funds in the market to flood into this valuation. The risk appetite is relatively high. Stronger sector sector speculation.”

"In fact, this can also be seen from the current significantly heavier selling pressure in the 'military industry' sector compared to the entire market."

"It can be expected..."

"After our three main funds temporarily gave up buying in this sector."

"There is a high probability that the market trend of this line will have a significant decline."

"Okay!" Li Meng asked all the doubts in his heart. Seeing that Su Yu was determined in his heart and had a confident expression on his face, he couldn't help but nodded. Then he turned around and issued the latest information to the three groups of fund traders behind him. Trading instructions and related trading strategies.

As her order was issued, a group of traders strictly implemented the trading strategy.

At 11:25, just before the midday closing, there were only five minutes left. The 'military industry' industry sector, which had been experiencing frequent changes, and which was among the top three gainers in the two cities, and its concept sector, instantly became discouraged. Like a rubber ball, it lost its support, quickly pulled up, and then quickly retraced its downward trend.

Finally, at 11:30, the market closed at noon.

The 'Military Industry' industry sector index retreated to 43%, falling from the third position in the two cities' industry sector growth lists to the sixth position, basically the same as the Shanghai Stock Index's increase.