Chapter 735: Follow the trend!(1/2)
"Awesome, the two major branch markets of the securities sector and the Internet financial sector cannot stop at all?"
At 9:17, in the main fund trading room of Zexi Investment Company in Shanghai, Zhou Kan, who was observing the market, saw that the securities sector and Internet financial sector indexes once again opened sharply higher at an increase of more than 1.5%, and the two major sectors
The internal core component stocks opened sharply higher. Active buying surged on the market, and they continued to bid up their stock prices. There was a look of surprise in his eyes, and he said with emotion: "The trend of these two major sectors.
, is it too strong? It feels like all the active funds in the entire market are converging on these two sectors.”
"Shouldn't we all converge on these two sectors?" Xu Xiang smiled and said, "When the market has reached this point, the entire investor group inside and outside the market is still skeptical about the market's 'bull market' pattern.
There shouldn’t be many left, right?
Now that the vast majority of investors have begun to agree with the bull market pattern of the market.
Well, in the past historical performance of the market, the "securities" sector has always been driven by the historical trend of leading the bull market as the pioneer sector.
A large number of active capital groups inside and outside the market are pouring into the securities sector.
This logic is very easy to understand.
As for the market trend of the "Internet Finance" sector, why is it stronger than the securities sector? The competition for chips in individual stocks is also more intense.
Mainly at the forefront of the explosion of ‘mobile Internet’.
It is obvious that online trading platform software companies such as Flush, Great Wisdom, and Oriental Fortune, which have the concept of "Internet brokers", have more convenient customer acquisition channels than traditional securities companies, and have huge advantages in gathering user groups. Their future prospects
The revenue scale explosion potential, and the corresponding performance explosion potential, are far greater than those of traditional securities companies.
This is the fundamental logic behind the trend of the ‘Internet Finance’ sector, which has always been far stronger than that of the securities sector.
Plus overall.
The concept stocks and growth stocks of these "Internet brokerages" are far smaller than traditional securities stocks in terms of market value and circulation, which is conducive to concentrated speculation by the main capital groups.
Therefore, its related chips have become scarcer than traditional securities stocks.
The natural market trend and market elasticity are higher and greater than those of the traditional securities sector."
After hearing Xu Xiang's words, Zhou Kan agreed with a smile: "I don't doubt that in the bull market, the expectations are becoming more and more certain, becoming more and more intense, and there will even be expectations of the central bank cutting interest rates and reserve requirement ratios, and the overall macroeconomic capital situation will change.
Under the favorable factors, the market trend of the core main line of 'big finance' will be discussed.
I just think that the continuous short squeeze in the market is a bit overdrafting the long power of the market.
Mr. Xu, didn’t you say that before...
Is the range between 3,000 and 3,500 points on the Shanghai Stock Index the index range with the heaviest accumulation of hold-up orders in the entire market history?
Such a heavy historical hold on the index range area.
If in this form, we continue to hold high and hit breakthroughs.
It is feared that the market sentiment is slightly exhausted, and many market benefits that everyone fully expected have not been fully realized, or the realization is somewhat lower than expected, the entire market will add a large number of unwinding solutions in the short term.
Under the combined pressure of large orders and a large accumulation of short-term profit orders.
I'm afraid the intensity and depth of the adjustment won't be low, right?
In other words, such an extreme and sustained surge will also bring about subsequent and sustained in-depth adjustments. Will this rapid rise and fall really contribute to the continued fermentation of the overall bull market and the continued development of the bull market? I
I don’t think it’s possible, right?
in market transactions.
Technical analysis may not be useful, but the return of market sentiment and the law of mean reversion still exist objectively, right?
Once the short- and medium-term expectations of the two core main lines of 'big finance' and 'big infrastructure' fall slightly, profit-taking and arbitrage for short-term substantial profits will come out in droves, and the major indexes have deviated from the downward trend.
The moving average support is too far away, and once it adjusts, it is very likely to have an avalanche effect like last Monday.
And the dramatic avalanche adjustment effect will have a huge impact on the market’s bullish sentiment.”
While listening to Zhou Kan's analysis of the market, Xu Xiang continued to observe the market with squinted eyes, and responded with a smile: "Your analysis is not wrong, but since the market shape has become like this, it has formed this continuous
If there is a continuous short squeeze situation, then all we can do is follow the market trend.
The subsequent possible expected recession and the resulting drastic market adjustment.
From an objective analysis, it is indeed very likely to happen.
But from the point of view of time, it is completely uncertain. We don’t know when the extreme market adjustment you analyzed will come or how it will come.
And before that, how far can the market reach in the continuous short squeeze situation?
Reach that index point range.
No one can accurately predict the vast investor base in the market.
What if the index continues to surge sharply amid various positive factors such as market turnover, incremental capital groups, and short- and medium-term long sentiment expectations, and directly breaks through 4,000 points in one fell swoop before ushering in an adjustment?
Do we have to change our trading strategy here because of the inevitable extreme adjustment in the market, and miss the 600-point upward market space?
Moreover, in the extreme short squeeze market trend.
The growth rates of individual stocks are also extremely exaggerated, and chips for corresponding core stocks will become increasingly scarce.
If we do not follow the general trend of the market when making orders, we are very likely to completely lose our core stock chips that still have a certain cost advantage.
In other words, in market transactions, profits and losses often come from the same source.
This chapter is not over, please click on the next page to continue reading! If we want to perfectly avoid the decline, it is very likely that we will also be able to perfectly avoid the continued sharp rise of the market.
If the entire A-share market is a huge casino, only if you have chips in your hands can you be qualified to gamble here and obtain excess returns.
What’s more, the market turnover has continued to expand to more than 800 billion.
Any unilateral market movement of the main funds can no longer shake the objective trend of the market. Whether it is the legendary main funds of the 'Yu Hang Group' or us, we can only respect the market trend, go along with it, and follow the trend of the market.
Trend is the correct trading method that truly fits the development of the current market conditions.
Furthermore, in a bull market, even if there are any extreme adjustments.
As long as the market's investment confidence and investment risk appetite remain in a radical state, and the continued money-making effect has not disappeared, then no matter how drastic the adjustment is, there is a high probability that it can be quickly repaired in the short to medium term.
In general, at this stage, maintain an aggressive position position and trading strategy.
It is far more appropriate than maintaining a conservative position position and trading strategy.”
"Okay!" Zhou Kan saw that Xu Xiang's investment views on the market were very firm in his words, so he couldn't help but nodded, and once again suppressed the urge in his heart that he wanted to reduce his position and stop his profits at this stage, and settle down.
thought, and said, "Then according to Mr. Xu's idea, let's take a look..."
After saying that, he turned his attention back to the trading boards of the two markets.
At this time, the market trading time has reached 9:20.
After just five minutes of initial call auction time, after a large number of false orders were canceled before 9:20, the real layout of the two markets was revealed. Compared with the initial stage of call auction, its layering became more obvious.
There has been some reduction, and the volume of transaction orders planned to be matched on the market of major popular stocks has been reduced.
Through overall disk performance...
It can be seen that the two major sectors of securities and Internet finance still maintain the trend of leading the industry sector and concept sector of the two cities.
It's just that the increase in the indexes of these two major sectors is compared at 9:15.
It has fallen back somewhat.
From the initial call auction price of about 1.50%, it has fallen back to between 1.20% and 1.30%.
Among them, 'Flush, Great Wisdom, and Oriental Fortune', three popular stocks that have attracted great attention from market investors, still opened higher by more than 3.5%, and 'Great Wisdom' opened significantly higher due to the logical need to make up for the increase.
At the position of 5.22%, the amount of buying funds that followed the trend on the market not only did not decrease compared to 9:15, but also continued to skyrocket.
As for the securities sector...
The high opening range of the stock price of 'Huaxin Securities', a weighted core stock, has basically fallen back to around the 1% increase mark; other stocks that also have the logic of low-level compensatory gains are 'Huaxin Securities, Pacific Securities, Southwest Securities, and Xiangcai
Securities...' and other component stocks still opened higher with an increase of more than 2%.
In addition to securities, Internet finance are two popular sectors.
The bank and insurance sector indexes, which are both in the core line of "big finance", have also fallen back compared to the beginning of the call auction, and "China Commercial Bank, Huaguo Bank, Huanong Bank, Huajian Bank, China Commercial Bank, Minsheng Bank"
, Ping An Bank, Shanghai Pudong Development Bank, Industrial Bank, China Pacific Insurance, Xinhua Insurance, Ping An Insurance...' and other popular heavyweight stocks in the sector, the proposed matching transaction orders on the market also significantly increased when the gains fell.
increase.
As for 'big infrastructure', 'technological growth', 'mobile Internet', 'military industry' and other core main areas that performed equally well in the initial collective bidding stage.
Corresponding industry sectors, concept sectors, as well as many component stocks and popular leading stocks.
At this moment, the overall growth rate has also declined.
There are also relatively low main line areas such as 'consumption, medicine, non-ferrous metals, coal, petrochemicals...', and their growth rates have also declined.
In general, after the time enters 9:20.
The overall market pattern, that is, the market performance of each main line, has not changed significantly. However, the extreme bullish sentiment gathered before the market has subsided. On the market of each stock, there are active high-level pursuits and a large number of buying funds.
, has decreased, while the number of active selling groups has increased, causing the stock prices of many stocks to come under pressure during the call auction stage.
However, even the share prices of many stocks have come under pressure.
The overall high opening situation of the entire market has not changed much.
To be continued...