Rebirth of the investment era

In the evening, following the release of the Dragon and Tiger ranking data, U.S. stocks opened sharply lower, dealing another fatal blow to the already fragile market.

The majority of investors in the current market, after a brief review, look at it, no matter the news, sentiment, capital... it is all negative.

Fortunately, this time, the regulatory authorities are no longer indifferent to the continuous unilateral plunge in the market.

On the next morning, May 22, before the market opened on Thursday, some news about the Shanghai-Hong Kong Stock Connect was revealed to the market, and it was expected that the Shanghai-Hong Kong Stock Connect would be officially launched at some stage in the second half of the year.

Affected by this good news, the market investment sentiment, which was originally extremely pessimistic before the market opened, has recovered somewhat.

Many desperate market investors, stimulated by the good news of the "Shanghai-Hong Kong Stock Connect", can't help but have a glimmer of hope for the market outlook.

With this glimmer of hope.

When the time comes at 9:15, the collective bidding in the two cities starts.

In the minds of the majority of investors, the market, which was originally expected to open lower across the board, finally received a bright light. The main "big financial" sector, such as "banking, securities, and insurance", opened higher across the board, rising by 8%. 25% points. However, the popular main lines such as 'infrastructure', 'state-owned enterprise reform', and 'Internet finance', which had suffered continuous declines in the previous period, have also stopped falling at this moment, and popular stocks in many fields have turned red and rose.

"The news of Shanghai-Hong Kong Stock Connect is coming. Today, 'Big Finance' will probably play the leading role, right?"

Seeing that the market slightly exceeded the expected initial call auction situation, at this moment, inside Yuhang, Yuhang Investment Company and the fund trading room, Li Meng observed the market and said with a smile: "It feels like the market has fallen here. Under the continuous news changes, , there is a slight signal to stop the decline.”

"The good news did come out quickly, a little beyond expectations." Su Yu replied, "But in terms of the trend of market adjustment, both time and space, it is still a bit behind. In terms of the market's long-short sentiment feedback, We are still far from the turning point.”

"As for the field of 'big finance'..."

Su Yu paused, pondered for a moment, and continued: "The news of the 'Shanghai-Hong Kong Stock Connect' is indeed a strong boost to this main line field, but this field needs to have a sustained market, and it will not be able to undertake The capital volume requirements are too high, and the current market, emotional and financial aspects are both in a recession cycle, and the overall market status quo is difficult to support the continued strength of the 'big finance' field."

"Furthermore, the fundamentals of the 'big finance' field have not yet reached an obvious turning point."

"News stimulus is useful, but it usually has to resonate with the turning point of fundamentals to generate a relatively large and sustainable mainline market."

"Obviously, the main line of 'big finance' does not currently have such conditions."

"I guess..." Su Yu said with a smile, "It would be good if the main line of 'big finance' can generally open higher and slightly outperform the index performance."

"It means that there is a high probability that there is nothing worth paying attention to in today's market?" Li Meng heard Su Yu's analysis and responded, "It feels like the two lines of 'infrastructure' and 'state-owned enterprise reform' have already corrected. Quite a few, but the chip structure has not been stabilized, and it is indeed unable to shoulder the important task of supporting the market index and re-creating the market's sustained money-making effect."

Su Yu thought for a while and said: "Although the market sentiment has not yet reached an inflection point, the attitude of the regulators has shown itself. Coupled with the continuous plummeting of the index in the early stage, profit-taking and meat-cutting orders have been issued on the market. It’s almost there, the downward momentum has been fully released, so at this stage, even if the main line market still cannot perform, there is a high probability that the index will not show the same plummeting trend as in the early stage.”

"Yeah!" Li Meng responded, "The inflection point of macro policies is often preceded by market sentiment and capital. At the current position of the index, the probability of continuing to plummet and adjust is indeed small."

"Since the market trend will most likely enter the second stage of 'shock adjustment', should we make slight adjustments to the trading strategy and appropriately increase the intensity of position building?" In the brief discussion between Su Yu and Li Meng During the discussion, Liu Yuan interjected, "Master, we have avoided the most severe plummeting trend of the index and avoided the most serious risk stage of the market. Now... facing the index touching around 2200 points again, we should appropriately Have you turned from defense to offense?"

Facing Liu Yuan's inquiry, Su Yu pondered for a moment and responded: "It is better to maintain the trading strategy of 'building positions slowly, watching more and moving less'. The market trend has entered the second stage, even if there is no chance of a sharp decline." There are risks, but there will still be no shortage of shock adjustments, especially when the market sentiment has not yet reached an inflection point, there is a high probability that some stocks that we have the intention to build positions will also experience sentiment killing."

"The market's trend, whether it's rising or falling, can't be changed at once."

"At this moment, there are some positive signals in terms of policy and news, but we... still have to be patient enough before the market turning point really comes."

"Okay!" Liu Yuan responded, then turned her attention back to the trading interface of the two cities.

"Mr. Su, the 'military industry' line doesn't seem to have any particularly obvious performance at the opening of the market today." Wang Can, who had been observing the market's collective bidding trend, paused and said, "This trend... I think it's a little obvious. If it’s not as good as expected, should we continue to increase our positions on this line?”

Su Yu nodded slightly and said: "Continue to slowly increase positions. Since the path of 'military industry reform' and 'military industry enterprise asset securitization' has been pointed out at the macro policy level, there will definitely be continued speculation value in this direction." , as for the trend has not changed significantly at this time, and the main market funds have not gathered in this direction on a large scale, that is because the market hype and capital situation at this moment are still in a bad situation, and the market risk appetite is still decreasing. , and the 'military industry' belongs to an area where future performance expectations are difficult to predict and information disclosure is very opaque. Naturally, at this time, various funds will appear to be too cautious in their attitudes towards this area."

"But when market sentiment and capital reach an inflection point..."

“The ‘military industry’ sector, which carries the two long-term positive expectations of ‘military industry reform’ and ‘military industry enterprise asset securitization’, will become an amplifier of market sentiment and usher in good speculation.”

"Indeed." Li Meng also said, "As long as the market's risk appetite and hype sentiment increase, the two major investment shortcomings of the 'military industry' sector's future performance expectations, which are difficult to figure out and confidence disclosure is very opaque, will be driven by positive factors. It becomes a huge advantage, providing room for market speculation and unlimited imagination.”

"As long as the macro policy direction of the 'military industry' line and the two positive expectations of 'military industry reform' and 'military industry enterprise securitization' do not materialize, then our position building strategy in the 'military industry' field will not change. "Su Yu emphasized, "For this line, at the current stage, feel free to open a position, as the same saying goes... Don't rush for chips, don't give up, buy as many chips as you can."

"Okay." Wang Can responded, and then turned his attention to the trading interface of the two cities again.

"Mr. Su, in terms of priority, is our 'Yuhang No. 3' fund's position building direction also focused on 'military industry'?" At this time, Zhang Guobing, the trading team leader in charge of the 'Yuhang No. 3' fund, also tolerated He kept asking, "Can our trading team intervene simultaneously in the two core directions of 'infrastructure' and 'state-owned enterprise reform', as well as the direction of 'Internet finance'?"

Su Yu thought for a while and responded: "With 'military industry' as the main direction of attack, as for the core main lines of 'infrastructure', 'state-owned enterprise reform', and 'Internet finance', maintain what I just said about 'slowly building positions, The rhythm of "watch more and move less" can also be appropriately intervened."

"Currently, the market correction is not over."

“So, whether it is Fund 1, Fund 2, or the new closed fund No. 3, it must be carried out according to the left-hand position building idea. While increasing the position, strictly control the position risks, do not take risks, but in Don’t hesitate when you see an opportunity.”

"Okay, I understand." Zhang Guobing responded and stopped talking.

As everyone briefly discussed, at this time, the market trading time had already entered 9:20.

I saw that after the first 5 minutes of market call auction, after a large number of false orders were canceled between 9:19 and 9:20, the market situation presented by the market was worse than when the call auction in the two cities started at 9:15. , obviously falling back.

Among them, the field of ‘big finance’.

The banking sector index has fallen back to around 5% from an increase of 85% at the initial stage of call auction; the securities and insurance sector indexes have fallen back to less than 1% from an increase of around 25% at the initial stage of call auction, and several major In the industry sector, the buying power of relevant core component stocks is not strong, and there is still a trend risk of continued decline.

‘Infrastructure’, ‘state-owned enterprise reform’, ‘Internet finance’ and other core main lines that continued to plummet and adjust in the early stage.

The performance at this moment, although the growth rate lags much behind that of 'big finance', the buying power of relevant core component stocks on the market is obviously much stronger than that of some core component stocks in the 'big finance' field, and this For several core main lines, as the market trading hours progress, the growth rate of their related sector indexes is still rising slowly.

The main lines of 'consumption' and 'pharmaceuticals' have shown performance several times in the previous market's continued decline.

At this moment, the performance of these two main lines appears to be very ordinary in the context of the obvious rebound of the market. Their related industry sector indexes are basically maintained near the flat market. There is neither obvious buying attention from the main funds nor obvious signs of buying. The main funds were suppressed by selling.

As for the 'military industry' field that Su Yu is very optimistic about.

After experiencing a relatively strong performance yesterday, this main line opened today. In the call auction, the performance was not very good. Not only did the sector index lag behind the average market performance, but within its sector, some component stocks that performed particularly strongly yesterday even There are obvious signs that the main funds are selling to suppress the market.

“The ‘big finance’ field, which was stimulated by direct positive benefits, is going...obviously less than expected!”

Seeing the real call auction situation in the market, Yu Hang, inside Minghui Capital, in the fund trading room, He Hong, the fund manager of Minghui No. 2, frowned slightly and said to Xu Zhongji standing aside: "Mr. Xu, 'Big Regarding the financial line, I think we should intervene cautiously!"

"Why?" Xu Zhongji asked, "The announcement of the 'Shanghai-Hong Kong Stock Connect' will have a direct stimulating effect on stocks in the financial sector, and it will take a long time to realize the benefits. The market has sufficient room for speculation and Time, coupled with the valuation in the 'financial' field, has indeed been suppressed miserably. This wave of loosening chips, if valuation expectations increase, can bring about sustained market expectations."

"At the same time, market indexes have continued to adjust after this period..."

"At this moment, it has fallen to around 2200 points. The risks of the early speculation market focusing on 'infrastructure' and 'state-owned enterprise reform' have been fully released. I feel that no matter what... we should not continue to be at this position. The pessimism has gone down.”

"But the trend reflected in today's market call auction is obviously different from what we expected before the market opened!" He Hong said, "I suggest that we still have to respect the actual trend reaction of the market. At this time... we really shouldn't be too pessimistic. But I think it’s wrong to be too optimistic.”

"Just looking at the performance of each main line in the market call auction..."

He Hong paused, thought for a moment, and then continued: "After continuous adjustments in the early stage, several major lines such as 'infrastructure', 'state-owned enterprise reform', and 'Internet finance' have experienced sharp declines. Their related industry sectors and concepts For stocks that are core components of the sector, it is obvious that the market buying orders are stronger."

After hearing He Hong's analysis, Xu Zhongji stared closely at the trading charts of the two cities for about half a minute before responding: "Judging from the actual trend of the market, it seems that this is indeed the case."

"In that case..."

Xu Zhongji thought for a moment and said: "Let's wait until the market officially opens and see how much commitment there will be in the 'big finance' field. If the main funds from all parties in the market agree with the market logic in this direction, then after the official opening, the 'big finance' sector will The intensity of funding in this field should be getting stronger and stronger.”

"You're right." Xu Zhongji smiled and continued, "At this stage, we should not be overly pessimistic, nor should we be overly optimistic. As for 'infrastructure', 'state-owned enterprise reform', and 'Internet finance', which are the main lines of early market speculation, You can pay attention, but you still have to be more cautious when it comes to intervention.”

Seeing that Xu Zhongji agreed with his analysis and judgment, He Hong couldn't help but breathed a sigh of relief, and then turned his attention back to the trading board again.

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At this time, following the brief discussion between the two, the market trading time had reached 9:25, the collective bidding in the two cities ended, and the market trading interface was reset.