Rebirth of the Capital Legend

"See, I said that the 'emerging industrial chain' line might not die, right? The 'Huawen Online' check is really strong. It actually opened at the daily limit. At 9:15, I saw that the check opened at the daily limit. I thought it was a false order, but I didn't expect it... It really reached the daily limit."

After the call auction of the two markets ends, there is a short trading break from 9:25 to 9:30.

Among the countless retail investors gathered on major stock investment exchange platforms across the Internet, there are retail investors who hold the check of "Huawen Online" and said excitedly.

"Oh, if I had known earlier, I should have bought some chips when the 'Chinese Online' check crashed yesterday afternoon."

"When the 'Chinese Online' check crashed, didn't many people say that the check would fall further today? Where are those bearish people now? Where have they gone?"

"Everyone is optimistic about Oriental Yuhong, but the call auction trend of Oriental Yuhong doesn't show any strength at all. It feels that the call auction trend and opening performance of Oriental Yuhong, the leader of the two markets, are obviously lower than pre-market expectations."

"With the opening performance of 'Huawen Online' today, it seems clear that it is the leader in the main field of 'emerging industrial chain', right?"

"Yes, the 'emerging industrial chain' line can be stronger and stronger in the call auction, all thanks to the promotion of the 'Huawen Online' check. Speaking of which, in today's call auction trend, the main funds of the 'Huawen Online' check on the top board feel really decisive, really awesome!"

"Alas, I saw the buy orders on the daily limit of 'Chinese Media' at 9:21, not decreasing but increasing, so I knew that this check was likely to shrink and accelerate. Unfortunately, the order placed at 9:22 was not executed."

"I know that the more people are optimistic about a certain main line, the less likely it is to succeed in that direction."

"Why is the call auction trend of the 'big infrastructure' line so weak? Wasn't it strong yesterday? And whether it was last night or before the market opened this morning, there was no bad news. Why did it suddenly weaken? I really don't understand."

"What's so hard to understand about this? It's just that the profit taking is too heavy."

"I don't think it's because of the heavy profit taking, right? If the profit taking is restricting the market, then is it possible that there was no profit taking selling pressure in yesterday's 'big infrastructure' trend?"

"Who knows? In the recent market trends, the rotation of several major lines is very fast."

"Yes, there is no continuity and continuity at all. The weight increased the day before yesterday, the main line of 'big infrastructure' increased yesterday, and the main line of 'emerging industrial chain' was hyped today. This rotation speed is really difficult to do. After taking over within a day, it is really hard to judge whether you can make money the next day."

“Yeah, that’s the trouble with T+1.”

"The 'big infrastructure' line has actually risen quite a bit in this wave. I think it's time for this main line to adjust, right?"

"Well, in this round of rebound, the main line of 'big infrastructure' has indeed risen a lot."

"Is the rotation market trend bad? I think it's good. On the contrary, it's not good to allow the main institutional funds in the market to continue to concentrate on speculating on one main line. Only with the rotation trend can everyone make money. Like before... the institutions all gathered on the weighted main line, which was a bad trend."

“Indeed, only when the main line rotates will the market have new hot spots and new hype opportunities.”

"From the call auction trend, today's sentiment has indeed returned to the main line of 'emerging industrial chain'. However, the market trend of stocks such as 'Oriental Yuhong', 'Huaxin Cement', 'Capital Group', and 'North Frontier Communications Construction' should not have finished, right?"

"I still think that as long as there is an adjustment in the stock price of Oriental Yuhong, it is an opportunity to buy it."

"Well, as long as Mr. Su's Fuxing Road continues to lock positions in the Oriental Yuhong stock, there will be no risk. And based on the current volume and the recent Dragon and Tiger List data, there is no doubt that Mr. Su's Fuxing Road is definitely still locking positions in it."

"Why do I feel that a small opening in the red or a flat opening for Oriental Yuhong will be more favorable for the subsequent trend? Originally, the stock was at a relatively high level. If it opened sharply higher, wouldn't the large number of new investors yesterday be able to sell stocks without hesitation to stop profits? Now that the expectation of a sharp opening has been dashed, these new investors will not have any desire to sell, and thus... it will be easier to lock positions, helping Oriental Yuhong to continue to create some space upwards."

"You can't say that. Below expectations is below expectations."

"Looking at the stock of 'Oriental Yuhong' alone, it is definitely impossible to judge the strength of the 'big infrastructure' main line. However, combined with the trend of many popular core stocks that performed well in the 'big infrastructure' main line yesterday, it can be clearly felt that the 'big infrastructure' line, today's call auction trend, and opening performance are not as good as expected, that is, not as strong as the 'emerging industrial chain' line."

"To judge the strength of a stock, a sector, or a main line in the call auction, you don't need to look at so many factors. Just look at the industry sector index related to the main line and the corresponding core concept leading stocks in the ten minutes before and after, whether they open high and close low, or open high and close high, or open low and close high. If they are strong, they will not open high and close low."

"That makes sense. It seems that the 'big infrastructure' line is likely to be adjusted again today."

"The trend of adjustment is not scary. The key is that the volume feedback should be healthy. Yesterday, the 'big infrastructure' line was relatively shrinking. If this line is to be adjusted today, it is benign to continue to shrink the volume. It can be regarded as an upward relay. If the volume suddenly increases significantly, I think it will be difficult for this line to continue to expand in the future."

"Yes, quantity comes before price."

"What if it continues to rise with shrinking volume like yesterday?"

"At this position, if the price continues to rise with shrinking volume, it is naturally a good thing, which shows that the chips are locked firmly. However, looking at the trend of the call auctions in the two markets today, with the opening of 'Huawen Online' exceeding expectations, the active short-term fund groups in the market have obviously been attracted again by the 'emerging industrial chain' line. In this case... the active fund flow in the market will definitely be dispersed, that is to say, the 'big infrastructure' line is unlikely to receive too much attention from the buying fund groups in the market today, so the probability of continuing to rise with shrinking volume is really small."

"It's not just unlikely, it's impossible. If the 'big infrastructure' line really follows the trend of shrinking volume and accelerating growth, it won't open in this pattern."

“But I always feel that in the call auction, the trends of the main lines of ‘big infrastructure’ and ‘emerging industrial chain’ changed too quickly. In addition, in the last few minutes, several popular core concept stocks in the field of the main line of ‘emerging industrial chain’ pulled up too quickly, instantly filling up the expected intraday upside space. It feels that it is not easy to enter the market.”

"If you want to enter the market, you can only buy at high prices."

"But in the context of a volatile market, chasing high prices is actually very risky. In recent days, many funds that chased high prices have been slapped in the face back and forth."

"Since you don't want to buy at a high price, you can only wait and see."

"Why is no one discussing the weight line? Do the industries such as liquor, white goods, medicine, consumption, electricity, and finance still have a future?" "I think the weight line currently plays a role in stabilizing the market."

"Yes, after the 'national team' and the main institutional funds in the industry have concentrated on locking positions, the current weighted industry sectors such as liquor, white appliances, medicine, consumption, electricity, and finance, especially the constituent stocks in the A50 index, are basically the stabilizers of the market. These stocks... have risen to relatively high levels and have fulfilled the expectations for the second half of this year. If they want to perform, they will only have a high probability of doing so when the market's bullish sentiment declines and the risk aversion sentiment in the market heats up."

"It takes too much money to pull up the weighted mainline stocks. I feel that the weighted mainline stocks will not have any eye-catching market performance in the near future. After all, although the overall market turnover is higher than before, the liquidity in the market is still relatively tight. Many funds in the market want to follow the trend and go long on a certain mainline. They can only sell the stocks of other mainlines and adjust their positions. The concentrated adjustment of funds has caused the rotation trend of the market mainline."

"Yes, that's true. Let's look at the 'emerging industrial chain' line today."

"If today's 'emerging industrial chain' line, especially the core industry sectors of film and television media, Internet software, Internet applications, and electronic information, is driven by hot sentiment and strong core concept leading stocks such as 'Huawen Online', 'Huaxin Media', 'Ren Zixing', and '2345', it still opens high and closes low, and the trend is almost the same as yesterday... Doesn't it mean that the 'emerging industrial chain' line is indeed not going to work out, and we can give up paying attention to it?"

"I don't think so. Among the three core themes of the current market, only the 'emerging industrial chain' is at a low level. With the overall recovery of market investment sentiment, what else can funds speculate on if not this theme? The 'big infrastructure' and 'weighted' themes are obviously not rising much at the moment."

"I feel that the 'emerging industrial chain' line should be rebounded. After all, the many small and medium-sized stocks and micro-cap growth stocks associated with this line have lagged far behind the Shanghai Composite Index in recent performance. In addition, judging from the current K-line patterns of the ChiNext Index, the China Securities 500 Index, and the All-China Securities 1000 Index, they should continue to rise!"

"Just look at the market feedback after the opening. Whether it is strong or weak, we can know it in just a few minutes at the beginning of the trading."

"Yes, by looking at the specific long and short positions at the opening, we can determine today's core hot spots and the bias of the main funds in trading."

As they spoke, many people's eyes were once again focused on the two stock markets.

And as more and more investors focus on it.

Under the watchful eyes of the crowd, 9:30 arrived soon. After a brief 5-minute pause, the two markets once again ushered in formal continuous bidding transactions.

At 9:30, the stock markets of both markets just started to fluctuate.

Under the influence of the accelerated trend of 'Huawen Online', the leading stock of the core concept of 'emerging industrial chain', which directly shrank in volume and rose to the daily limit, the film and television media sector, Internet software sector, and Internet application sector were all hit by a large number of follow-up buying funds in an instant, causing their industry sector indexes to rise in a straight line.

And at the moment when the indices of major industry sectors are rising straight up.

The stock of 'Chinese Media' also rose in a straight line, rising by nearly 7 points in an instant, and hit the daily limit in just 20 seconds.

Immediately afterwards, at 9:31, the two markets officially opened for only one minute.

The core weighted sectors in the three main areas of the "emerging industrial chain" - film and television media, Internet software, and Internet applications - have seen their industry sector indexes rise by more than 1.5%, leading the two markets.

At 9:32, the number of daily limit orders for the stock "Huawen Online" reached more than 30 lots, and in the first two minutes of the trading, only chips worth less than 1500 million were traded on the market. This shows that after the formation of a consensus of accelerated shrinking volume, the group of investors holding positions in this stock have become more reluctant to sell.

At the same time, the daily limit orders on "Huawen Online" were further expanded.

Core component stocks of the ChiNext Index, such as 'LeTV', 'Netspeed Technology', 'Baofeng Technology', etc., which belong to the main line of 'emerging industrial chain', have also risen rapidly, attracting the attention of a large number of follow-up buying funds, as well as the acceptance of many active buying forces.

And benefited from the rapid rise of these core component stocks.

The ChiNext Index, CSI 500 Index and CSI 1000 Index also rose in an instant, expanding the gains on the market.

At 9:33, the market's small and medium-sized cap and micro-cap stocks were making rapid progress at the beginning of the trading session.

The main line of "big infrastructure" and the main area of ​​weight, whether it is concept leading stocks such as "Oriental Yuhong", "Capital Group", "Huaxin Cement"..., or industry weight leading stocks such as "Anhui Conch Cement", "Poly Real Estate", "China Construction", "China Railway Construction"..., their trends are relatively weak.

The trends of these stocks and the trends of the industry sectors related to them.

Although there was no sharp drop, the follow-up buying was not active, and the intraday volume on the market also showed a gradually decreasing trend, and it fell back into the pattern of shrinking volume adjustment.

At 9:34, LeTV's stock price rose rapidly, up more than 5%, reversing the sharp drop at the end of yesterday's trading.

At 9:35, Oriental Yuhong's share price fell by 1%, and trading volume continued to decrease.

At 9:36, the Shanghai Composite Index maintained flat fluctuations, the Shenzhen Composite Index rose by 0.5%, and the ChiNext Index's increase quickly expanded to around 1%.

At 9:37, the share price of Quantong Education was also driven to rise sharply, up more than 3%.

At 9:38, the film, television and media sector index rose by more than 2%, leading all industry sector indexes in the two cities.

At 9:39, a number of small and medium-sized caps, micro-cap concept stocks, and a number of small-cap growth stocks continued to expand their gains. The core leading stocks with relatively large market capitalization in the main weight and large infrastructure areas, as well as the A50 index component stocks, all fell into a trend of adjustment with shrinking volume. The buying funds in these areas began to be siphoned off in large quantities by small and medium-sized caps, micro-cap stocks.

At 9:40, as 'Huawen Online' completely hit the daily limit, opening up room for upward speculation, the short-term speculation sentiment in the entire market quickly warmed up again. Many low-priced, oversold small-cap concept stocks with a market value of less than 50 billion were concentratedly bought by speculative buying funds, and stock prices also showed many abnormal movements.

"Look at the market trend..." Noticing the market trend and the speculation bias of funds, Yu Xiaolu, the trading team leader, stared at the changes in the market in the trading room of the main fund product of 'Jufeng Future Growth' of Jufeng Asset Management Company in Shanghai, and reported to Lu Xiangxiang beside her, "Boss Lu, it seems that after the market speculation sentiment has risen, the investment bias of the active funds in the market has returned to the small and medium-sized and micro-cap sectors. The continued rise in speculation sentiment has caused the core industry leading stocks of the 'big infrastructure' main line and the weight main line to lose blood. I am worried... the market investment style will really change!" (End of this chapter)