Rebirth of the Capital Legend

"Good news that is leaked in advance or anticipated in advance is not considered good news." Hearing Li Jinshi's sigh, Chen Guiyun took over and said, "The concept theme of 'online education' has obviously overdrawn good news in the hype in the past few days. Now that the good news has really come, it is unlikely that the profit-making funds with the first-mover advantage will not reap the benefits. And through the trend observation of the past two days.

There is no doubt that the concept theme of "online education" is obviously the focus of the film and television media line.

The 'Film and Television Media' sector is basically the focus of the entire 'oversold rebound' main line. At the same time, the 'oversold rebound' line is strongly correlated with the trends of small and medium-sized and micro-cap stocks in the entire market.

That is to say...

If the 'online education' concept-themed sub-sector had developed a trend of positive cashing-in, then under the stimulus of the positive news last night, a more serious loss-making effect would have occurred, or the opening call auction trend would have been significantly lower than the expectations of investors inside and outside the market.

Then I think that the 'oversold rebound' line is also likely to fail.

Moreover, the rebound trend of a large number of small, medium and micro-cap stocks in the market will also be greatly affected.

Looking at the current market call auction trend, it is obvious that the 'online education' concept sector, led by the check 'Quantong Education', has basically shown a trend of favorable cashing. Even the check 'Huawen Online', which I originally thought had formed a positioning trend and might become the new market leader, is now in a call auction trend and its intensity is rapidly declining.

This means that the current call auction trend of the "online education" concept theme branch is moving in the direction I just mentioned.

In this case, it is highly likely that there will be no good market conditions for small, medium and micro-cap stocks today.

After all, if the concept theme sector, which is the most direct positive stimulus, cannot come out, it will be even more impossible for other branch concept theme sectors that do not have such strong positive effects to come out. "

"Well, Lao Chen's analysis makes sense." Liao Guoxiang also responded at this time, "Looking at the call auction trend in the past few minutes, we can see that the market is clearly opening high and closing low. The selling pressure facing the market today should be greater than yesterday, so it is not advisable to open new positions."

"I plan to take profit on half of my position at the opening." Li Jinshi said, "If there was no good news last night, if the market opened slightly lower today, many profit-taking orders that entered the market yesterday and the previous two days would leave calmly, then the market would still have room and hope to continue to rise and rebound.

After all, the overall sentiment is currently good and investment confidence is still recovering.

As a result, the good news was announced last night.

A large amount of funds guided the market to open higher in the call auction, which completely destroyed the intraday expectations, and the long positions at the opening would not have such a strong desire to take over. "

"Indeed." Liao Guoxiang said, "Not only is the 'oversold rebound' line being realized, but also the 'big infrastructure' line is seeing increasing profit-taking selling pressure. It is estimated that today's market will most likely test the 3000 point position again."

"More volatility here is not necessarily a bad thing." Chen Guiyun said, "In a hurry to break through, overdrawing the long position in the market will be a real bad thing."

"Haha...that's my opinion too." Li Jinshi laughed and nodded.

Following a brief discussion among the group members...

The market trading time at this moment has entered around 9:23.

The overall call auction trend of the market at this moment is still falling compared with that before 9:20, especially a number of popular core concept stocks in the market, such as "Quantong Education", "Netspeed Technology", "Baofeng Technology"... and other stocks, which have opened high and have fallen back to the 3% increase.

At the same time, these popular core concept stocks also fell.

The trends of a number of main sectors of emerging industrial chains, such as film and television media, Internet software, Internet applications, electronic information, etc., also showed a trend of a sharp decline.

At 9:24, there was only one minute left before the end of the call auction.

Many early-moving capital groups in the market who have noticed the excessive selling pressure in the market have begun to place orders to flee, and many potential buying capital groups that originally had a strong desire to increase their positions could not help but show hesitation again at this time, so... under the rapid changes in bullish and bearish sentiments, the bullish and bearish forces within the market have gradually begun to become unbalanced.

Finally, when 9:25 arrived, the collective bidding in the two cities ended.

After 10 minutes of call auction, major market indices only opened slightly higher within 0.45%. Among them, the Shanghai Composite Index opened slightly higher by 0.23%, the Shenzhen Composite Index and the ChiNext Index opened higher at around 0.35%, and the CSI 500 Index and the CSI 1000 Index were slightly stronger, opening higher at 0.42% and 0.45% respectively.

As for the A50 index, it still showed a slightly lower opening trend, opening down 0.13%.

In addition to the major market indices...

In terms of the industry sector indices of the two markets, only the main sector of the 'emerging industrial chain' where small and medium-sized and micro-cap stocks are concentrated performed strongly yesterday and once showed a trend of daily limit surges, as well as the film and television media, Internet software, Internet applications, electronic information... and other industry sector indices, although they have fallen a lot compared to the initial call auction before 9:20, they still maintain the trend of leading the two markets.

Among them, the film and television media sector index opened high at an increase of 0.89%.

The three major industry sector indices of Internet software, Internet applications, and electronic information basically opened higher at around 0.5%, which was significantly stronger than the market index performance.

As for the traditional industry sector indices related to the equally popular "big infrastructure" main line, such as real estate, building decoration, building materials, nonferrous metals, steel, coal, etc., most of them showed a flat opening or a slightly lower opening due to the suppression of profit-taking and the obvious siphoning of buying orders by the main sectors of emerging industrial chains such as film and television media, Internet software, Internet applications, electronic information, etc. in the call auction trend, which were weaker than the market index performance.

And some of the core hot stocks...

'Oriental Yuhong' showed a flat opening trend, while popular concept stocks such as 'Capital Group', 'North Frontier Communications Construction', 'Huaxin Cement', 'Golden Land Group', 'Huaxin Building Materials', 'Financial Street', etc. opened sharply lower by 3% to 5%, clearly showing a weak attitude.

In sharp contrast to these popular stocks in the main line of "big infrastructure" are a number of popular concept stocks in the main field of "emerging industrial chains", which were directly stimulated by last night's positive news and the spread of emotions.

Stocks such as 'QuanTong Education', 'Huawen Online', 'Huawen Media', 'Netspeed Technology', 'LeTV', 'Baofeng Technology', 'Maruda Films', etc., although these stocks opened high and gradually declined during the entire call auction process, but the final opening results, the high opening trend and the high opening range of these stocks were still significantly stronger than other stocks in the market, and also significantly stronger than the market index performance.

This shows that these stocks are attracting the attention of many investors.

Although there was severe selling by first-hand profit-taking funds in the market, the buying power of funds willing to take over was still relatively strong.

As for the weighted main line... overall it still shows a shrinking trend during the entire call auction process.

There is not much active selling pressure, but at the same time, there is not much active buying attention.

"Fuck, this situation... doesn't look good. The hot stocks and call auction trends have all fallen so much. It seems that there are no stocks that are exceeding expectations!"

After the call auctions in the two markets ended, among the large number of retail investors gathered on major stock investment exchange platforms across the Internet, some people clearly noticed the weak side of the high-opening market and couldn't help but sigh.

"The check for 'Chinese Online' has not been able to close the trend, alas..."

"I do feel that this high opening trend is a little below expectations!"

"I think it's okay too. A small opening higher will lead to an upward trend. There was a sell-off at the end of yesterday. If it opens sharply higher today, it will be dangerous."

“That’s right, it feels like the buying was not very active during the entire call auction.”

"It's not that the buying is not active, but the selling pressure from the profit-taking is large. If you compare the market volume performance of the entire call auction, it is basically the largest volume performance in the recent call auction trend. This shows that at this position, there is a big divergence between long and short positions, but there is definitely a follow-up. I think as long as there is follow-up and volume, there is nothing to worry about. At this position, even if it doesn't rise, it won't fall much."

"Yes, overall, the volume has indeed increased."

"Although the overall opening was a little below expectations, fortunately there was no loss of money, so I feel that we can still be optimistic about the follow-up."

"This slightly higher opening is an obvious buying point. After all, there were so many positive news last night, and the external market trend is also extremely strong. Anyway... I don't think it will fall at this point. It is a hard truth to continue to increase positions and go long. The 'emerging industrial chain' line didn't rise much anyway."

"After the market opens, we will see the trend of Quantong Education and Oriental Yuhong. If these two stocks can continue to rise in an instant, then there is a high probability that the market will continue to move upward today. If these two stocks fall sharply at the opening and go directly into deep water, then we must be careful."

"Isn't it the check from 'Chinese Online'?"

"The check of 'Huawen Online' has no market position. If you ask me... just focus on the check of 'Oriental Yuhong'. If the market wants to continue to perform well, this core leader cannot have too serious a loss effect. Of course... a slight adjustment and sideways fluctuation is understandable."

"Today's 'big infrastructure' line doesn't feel very good!"

"Indeed, the entire 'big infrastructure' theme and the call auction trend were somewhat lower than expected."

"Compared with stocks like Beijing Capital Group, Beijing North Frontier Communications Construction, Huaxin Cement, and Huaxin Building Materials, I feel that Oriental Yuhong is already quite strong."

"Of course. After all, the strength of the receiving force is not on the same level."

"I feel that today it is definitely the 'emerging industrial chain' that will take the lead. I think the market's focus on long positions is still in the small and medium-sized stocks and micro-cap stocks."

"The weighted main line, looking at the call auction trend, is also the weakest area in the entire market!"

"The good news released last night was all about emerging industrial chains. The 'big infrastructure' line can be said to be a fundamental reversal. The national real estate market has exploded rapidly, and the expectations brought about by the skyrocketing housing prices are relatively certain, and the overall position is also very low. The current weight line... that is really not low, the valuation is not low, and there is no investment cost-effectiveness at all. At this time... who would buy these high-weighted large-cap stocks for no reason?"

"Well said, I won't buy it anyway."

"Let the institutions hold on to these heavyweight main lines until they die, and no one should take over for them."

"If we want the overall bullish sentiment of the entire market to continue to pick up, and even the investment confidence of the entire market to continue to rise, we must start with small-cap and micro-cap stocks, because small-cap and micro-cap stocks have the largest number of retail investors and are the easiest to stimulate popularity. Pulling the main line of weight stocks like before will only bring down the market, and everyone will not make any money at all."

"For stocks that pull the weight of the main line, not only will people not make any money, but they will lose money instead."

"That's right. Once the weight increases, it will absorb all the active liquidity in the entire market."

"Don't worry, looking at this situation, the main line of weight will definitely not be able to get out."

"Haha... I think so too. Today's market sentiment is definitely still on small and medium-cap stocks."

"After yesterday's late-day plunge, the Shanghai Composite Index opened above 3000 points today, which I think is a strong performance."

"Yes, the fact that the Shanghai Composite Index did not break through 3000 points at the opening indicates a substantial breakthrough."

“I hope we can continue to create space during today’s session.”

Along with heated discussions among many retail investor groups…

The market's brief 5-minute suspension was fleeting, and soon, at 9:30, the two markets entered the formal continuous bidding trading period.

I saw that the clock hand just passed 9:30.

The stagnant market conditions of the two markets began to change rapidly under the fierce trading of long and short capital groups.

After a brief 5-minute trading halt during which emotions brewed, as soon as the market opened, large amounts of profit-taking orders began to pour out.

Almost in an instant, all major indexes changed from opening slightly higher to falling.

At the same time, the hot core stocks that attracted much attention from investors in the market, such as Quantong Education, Oriental Yuhong, Netspeed Technology, Huawen Media, Capital Group, Huaxin Building Materials, Gemdale Group, etc., were all hit by profit-taking in an instant and fell into deep water. (End of this chapter)