Chapter 684 Selling Point, Buying Point?

At 11:30, when the two markets closed at noon.

The Shanghai Composite Index was set at a drop of 3.11%, and its point was only a few points away from 3,200 points, barely holding this point, while the Shenzhen Composite Index and the ChiNext Index also fell by more than 3%, and the half-day turnover of the two markets reached more than 440 billion.

As for the major core main line areas.

The main line of "big finance" is relatively resistant to declines, especially the two major industry sectors of banking and insurance, which have become the capital hedging sector under the weak market, and even the securities and Internet finance sectors that have retreated sharply, the overall performance is obviously better than several major core indexes.

The main line of "technology growth" is not as good as the main line of "big finance".

But it also obviously outperformed the market index, but the core sector, "film and television media", performed relatively weakly, and the sector index fell by 3.75% in half a day.

Other main line areas such as "big consumption", "non-ferrous cycle", and "petrochemical".

Basically in sync with the market trend.

The two core themes of "infrastructure" and "military industry", as well as the main themes of "Eurasian Economic Belt", "New Era Road, Maritime Silk Road", and "Reform and Restructuring of Central Enterprises and State-owned Enterprises" that continued to support the Shanghai Composite Index to break through the upward trend in the early stage, are still the main themes of the two markets leading the decline as of the midday closing. Their plummeting trend has not improved at all. Even the shrinking rebound near midday is relatively weak.

In addition to these core themes, at the midday closing, the only red market was the "new stocks" sector.

This sector has become an active short-term capital group in the market today, a sector area where risk aversion is concentrated, and the new stocks in recent periods have all gone out of the trend of rising against the trend, and the check like "Huake Shuguang" still maintains the form of a limit-up board with no volume, and is not affected by the market's plummeting trend at all. On its limit-up board, the orders for grabbing chips are still emerging in an endless stream.

Faced with such a situation at the midday closing of the two markets...

Investors inside and outside the market are more or less shocked.

And the main institutional investors inside and outside the market are also shocked, but... even if everyone is a little surprised by the sharp drop in today's market trend, the main funds that are really panic selling, or the main funds that are selling to take profits, are not many.

The real main selling chips are still mainly in this range, which are just untied.

"The drop of more than 3 points, it feels like the Shanghai Index hasn't seen such an extreme trend and intraday drop for a long time, right?" After the midday close, after a brief review, during the break, Yu Hang, in the main fund trading room of Minghui Capital Group, fund manager He Hong said with emotion, "Moreover... today's market volume performance, compared with yesterday and even the previous few days, has obviously reached a new level.

Such a market trend...

Even if it can't affect the overall 'bull market' pattern, it should also mean that the index is here and has entered a shock adjustment stage. It is unlikely to continue to hold high and continue to force shorts upward, right?"

Beside He Hong, Xu Zhongji, general manager of the company's asset management business, narrowed his eyes and said: "Although ...The index has indeed been rising for so many consecutive days, and it should return to the moving average and enter an adjustment cycle, but we still cannot hastily judge the future market trend based on the results of the half-day market.

We still have to wait until the afternoon market ends...

In fact, in the approximately 20 minutes before the midday closing, the two markets have already shrunk.

I feel that the extreme selling force of the entire market has basically been concentrated in the first hour or so of the trading. The afternoon market should not be as extreme as the morning market, if there is any clear good news on the news during the lunch break.

It is not impossible for the afternoon market to have a deep V trend.

There is also the market volume It can be so large, especially the volume in the first hour of the morning, but it can shrink back near noon.

This shows that the market's carrying power is much stronger than we thought.

At the same time, in this wave of market brought by "big finance", the Shanghai Composite Index has continued to squeeze out in just one or two weeks, soaring by almost 15% of the rising range. The number of profit-taking and unwinding orders accumulated is many times heavier than before.

Under the pressure of so many profit-taking and unwinding orders.

It is completely understandable that the market has adjusted slightly due to the negative news of "Chengfei Integration".

In short, although the market has fallen, we don't need to be pessimistic, let alone let the market's sharp drop affect our emotions and My own judgment.

I still firmly believe that the index will not have a big adjustment at this position.

At least it is unlikely to fall back to 3,000 points. "

"Why is it unlikely?" He Hong was a little puzzled and asked, "Logically speaking... after the index breaks through the 3,000-point barrier, facing the huge space oscillation platform from 2,000 to 3,000 points before, it should fall back to confirm the actual breakthrough. "

"In trading, the technical side is not unchanging." Xu Zhongji laughed, "You have to see clearly that this wave of index market is mainly driven by the main line of "big finance". Although the Shanghai Composite Index has been squeezed out in the past two weeks, it has risen by nearly 15%.

However, this increase space.

Among them, the main line of ‘big finance’ contributes at least 70% of the weight.

And the main line of ‘big finance’ has reversed in terms of future expectations and fundamentals.

Moreover, due to the serious expectation gap of everyone for the main line of ‘big finance’ before, everyone’s holding weight for this main line was not high before. Many large capital institutional groups, including banks, insurance, securities and other large institutional proprietary products, have seriously insufficient holding weight for the ‘big finance’ line.

In other words, even up to now...

There are still countless groups of funds that missed the opportunity on the ‘big finance’ line.

Many main capital groups that missed the opportunity are still waiting to grab chips and increase positions at low levels to further increase the chips and holding weight in the ‘big finance’ main line field.

In other words, under the influence of so many missed funds,

Under the current expectation, it is basically unrealistic for the "big finance" line to make a sharp downward correction, or fall back to the low level of one or two weeks ago, so that the main capital groups that missed the opportunity can get on board at a low level. This is also not allowed by the main capital groups that are gathered in the main line of "big finance" at this moment and have the advantage of holding costs.

This also means that there is basically no room for the "big finance" line to fall, at least under the current expectations and fundamental changes, there is no room for decline.

"Big finance" has no room for decline.

Other core market lines, such as "technology growth", "non-ferrous cycle", "petrochemical", "pharmaceutical business", "coal", "animal husbandry", "agriculture" and other market main lines, have not actually risen much in the past two weeks.

Since there is no increase.

At the same time, the overall investment sentiment, investment confidence, liquidity, incremental capital group effect, and a series of market factors in the entire market are obviously better than the period two weeks ago.

Then, these main lines, and even related concept and subject areas.

Even if it falls back to the starting point two weeks ago, how big will the impact on the index be?

Moreover, with the obvious improvement of various market factors and the overall bull market pattern of the market being recognized by more and more investor groups, these main concept stocks and component stocks will not fall back to the starting point.

At present...

The only thing worth worrying about and paying attention to is the two main lines of "infrastructure" and "military industry" that were a bit over-hyped in the early stage, as well as the concept stocks and component stocks that fluctuated around the major concept themes of "Eurasian Economic Belt", "New Era Road, Maritime Silk Road", and "Central Enterprises and State-owned Enterprises Reform and Restructuring".

These main line areas and concept theme areas should be the weakest areas in the market at present.

However, even so.

In fact, the room for decline in these main line areas is also very limited.

After all, these two core main lines, and even several major concept theme areas, had been adjusted for a period of time when General Su's "Yuhang System" funds withdrew on a large scale. In addition, after the subsequent market core main line market shifted to the "big finance" main line, the market continued to squeeze and rise.

The core component stocks and concept stocks in these main lines did not follow the sharp rise.

In other words, compared with other main lines and concept theme sectors in the entire market, it is obvious that the two main lines of "infrastructure" and "military industry", as well as the major concept theme fields of "Eurasian Economic Belt", "New Era Road, Maritime Silk Road", and "Central Enterprises and State-owned Enterprises Reform and Restructuring" have longer time and space for adjustment.

In other words, before the sharp drop in the market today.

These main line fields have already undergone sufficient chip exchange and adjustment, and have fully released their relatively high selling momentum.

What's more, from a macro perspective.

Whether it is the fundamentals of the two main lines of "infrastructure" and "military industry", or the future market policy expectations for the major concept theme main lines of "Eurasian Economic Belt", "New Era Road, Maritime Silk Road", and "Central Enterprises and State-owned Enterprises Reform and Restructuring", there is actually no change compared to before.

All expectations and signs of fundamental changes are still there.

Since these investment logics are still there and are still being strengthened, then...how far can these main lines fall?

In fact, think about it carefully..."

Xu Zhongji said here, looked at He Hong again, and smiled: "Can the news of the failure of the reorganization of 'Chengfei Integration', or the fact that this stock reorganization failed, affect the major policy direction of 'reform and reorganization of central enterprises and state-owned enterprises'? Can it affect the implementation of the two major macroeconomic development strategies of 'Eurasian Economic Belt' and 'New Era Road and Maritime Silk Road'? It will not have any impact at all.

In essence, the cheque of 'Chengfei Integration' still affects emotions.

And the reason why the market has gone out of the form of a sharp drop today is nothing more than the emotions affected by the cheque of 'Chengfei Integration', which resonates with the accumulated profit-taking and unwinding of the market.

We! No matter when, we still have to see the essence through the phenomenon.

We are not one of the many retail investors active in the market, and we cannot be blindly led by the short-term emotions of the market and forget the fundamental general trend.

Understand these...

See the fundamental reason for today's market crash.

Then you can see that today's crash is not a selling point, but a good buying point! "

After listening to Xu Zhongji's analysis of today's market trend, especially the last sentence, He Hong's eyes, which were originally a little worried, suddenly brightened up, and it was like a flash of lightning flashed through his mind. After thinking about it carefully for a while, he finally understood it. He laughed twice, stared at Xu Zhongji with great admiration and said: "Xu Lao, you are still amazing. You can see through the essential trend of the market at a glance."

Xu Zhongji waved his hand and said: "Haha, you... don't flatter me. The so-called bear market has a sharp rise and the bull market has a sharp fall. As long as the general direction logic has not changed and the fundamental investment expectations supporting the market have not changed, then the short-term extreme fluctuations are just a blind spot. Don't worry too much about it. We... since we have already bet on the main line of "big finance".

Firmly judged that this is a wave of "big bull market".

Then, there should still be people like the "Yuhang system" The same kind of holding power, when the Shanghai Composite Index broke through 3,000 points before, it left such a long gap.

When the market volume can still maintain 600 to 700 billion.

I don’t believe that the market index will turn back so quickly, and I don’t believe that the upward trend and bull market atmosphere that have been hard to hit will be extinguished.

After all, don’t forget, it’s not just us...

The regulatory authorities above us, as well as the "national team" group, have been looking forward to the "bull market" for a long time. "

"That’s right." He Hong nodded, and he deeply agreed with Xu Zhongji’s judgment in his heart. The original worry in his heart also completely dissipated, and he smiled and said, "It seems that the funds sold at a loss today will most likely regret it later and become potential long funds in the future. "

Xu Zhongji smiled and said: "The bulls and bears inside and outside the market are originally interchangeable. "

After speaking, Xu Zhongji turned his eyes back to the two markets.

During the rest time of this stage, the regulators seemed to be afraid that the market would panic and fall directly, forming a situation of being unable to recover. They symbolically released some positive news and updated some details of the subsequent "pension" entering the market.

Under the influence of these insignificant good news.

Half an hour later, when the time came to 1 o'clock in the afternoon again, the two markets reopened for trading.

After an hour and a half of emotional brewing and good news, the Shanghai Index, Shenzhen Index, and ChiNext Index finally ushered in a decent rebound.

And the main line of "big finance" has once again been scrambled by many main funds.

For example, a number of popular core stocks such as "Western Securities, Oriental Securities, Hengsheng Electronics, Jinzheng Technology, Changliang Technology, Tonghuashun, Panda Financial Holdings, Huatou Capital..." have all ushered in a huge amount of active buying in the early afternoon trading, and the stock price has also risen rapidly along with the rise of the index.

At 1:05, ‘Western Securities’ rebounded by nearly 5 points, reducing the market decline to less than 1%.

At 1:10, ‘Tonghuashun’ rebounded and turned positive.

At 1:15, when the intraday turnover of ‘Huaxin Securities’ once again exceeded the 7 billion mark, it also rebounded and turned positive. At the same time, the main line of ‘big finance’ became the obvious leading line of the two markets. The banking sector index and the insurance sector index both successfully turned positive and rose.

At 1:20, ‘Lanshi Heavy Equipment and China Airlines Heavy Machinery’, which had originally hit the limit down, opened the limit down.

At 1:25, the main lines of "infrastructure" and "military industry" that had fallen across the board in the morning also began to receive a large amount of funds to buy the bottom, and rebounded across the board. Among them, the "mechanical equipment" sector, as well as the core stocks of the "high-speed rail" and "public transportation" sectors, such as "China Railway, China South Locomotive, China North Locomotive, Sany Heavy Industry, Xugong Machinery..." and other stocks, ushered in a large wave of bottom-fishing funds.

At 1:30, the intraday decline of the Shanghai Composite Index narrowed to 2%.

At this moment, seeing the market rebound with volume in the afternoon, many core main lines, core stocks, and leading concept stocks in the market rebounded rapidly, ushering in a large number of funds to buy the bottom.

The retail investor groups gathered in the discussion areas of major stock trading platforms on the Internet, as well as stock investment forums and communities.

And the large hot money groups gathered in major internal groups.

Finally, a glimmer of light appeared in their eyes, and they regained their confidence in the deep V reversal of the market, and in their firm holdings and buying! (End of this chapter)