Rebirth of the Capital Legend

"Okay, no problem." Lu Xiangxiang said, "Before the market trend signals become clearer, there is no need to rush to adjust the position layout. We just need to understand the market trend and have a corresponding trading strategy plan in mind."

"Yeah." Yu Xiaolu responded and continued, "The 'emerging industrial chain' line does not have any underlying logic support, but it seems that the fundamentals of the two branch sectors of the 'emerging industrial chain' main line, 'consumer electronics' and 'security lenses', are indeed gradually improving. Moreover, although the short-term speculation sentiment and the heat of concentrated speculation by active capital groups in these two branches are not as strong as those in the film and television media, Internet software, and Internet applications sectors, the overall trend in the past two months is still stronger than these sectors."

"The trends of the industry sector and concept sector indexes of the two major branches, 'Consumer Electronics' and 'Security Lenses', seem to be different from the trends of other industry sectors and concept sectors in the main field of 'Emerging Industrial Chains' in the past two months." Lu Xiangxiang looked at the trends of the corresponding industry sector and concept sector indexes of the two major branches at the reminder of Yu Xiaolu, and continued, "From a fundamental perspective, these two branches do have some underlying logical support, and there are corresponding future expectations, especially for the 'Consumer Electronics' branch. If Apple's new product launch in September exceeds market expectations, I'm afraid its market will still be able to move forward, and it is also likely to attract the attention of some major institutional capital groups. These two lines...we can pay attention to them first and then see the subsequent trends.

If these two lines subsequently develop a trend that exceeds expectations, it is okay for us to allocate some appropriate positions to the buying point on the right.

As for now, there is still a lack of certainty.

At the same time, driven by the continued hype in the major industry sectors of "film and television media", "Internet software" and "Internet applications", a number of core stocks in the two major branch sectors of "consumer electronics" and "security lenses" have seen too much short-term growth. The internal chip structure has ample profit-taking and there is a huge risk of a pullback.

In other words, there are no corresponding buying points for these two major branches at present.”

"Well, okay." Yu Xiaolu continued to nod and said, "Then let's observe it for a while."

After saying that, she turned her gaze back to the two stock markets that had already been frozen, and continued to browse the hot topics that were being hotly discussed by many retail investor groups on major stock investment exchange platforms across the Internet, capturing the market's emotional focus and changes in market sentiment.

In her observation...

At this moment, in the hot topic area, the most discussed stocks and the most concerned core hot sectors are still concentrated on 'Huawen Online', 'Huawen Media', 'LeTV', 'Ren Zixing', 'Oriental Yuhong', 'Huaxin Cement'... a number of core leading stocks, as well as popular industry sectors and concept sectors such as film and television media, Internet software, Internet applications, online education, domestic software, network security, and Internet finance.

"Hey, is there anyone chasing the highs of Huaxin Cement in the early trading? This trend is really speechless!"

In the hot topic area, some retail investors who took over the check at a high price in the early trading session couldn't help but complain.

"I really don't understand the intraday trend of this check. The call auction trend was so strong, but I never expected that it would collapse immediately after the official opening. Where are all the major institutional buyers yesterday? Is there no one willing to maintain the market and stock price? Or were all the buyers yesterday fake institutions?"

“It’s unlikely to be a fake organization, right?”

“Even if the institutions are genuine, do they have to push up the stock price at this time? Is it possible that these institutions have not completed their positions? If the stock price falls and adjusts downward, wouldn’t it be easier to pick up cheap chips?”

"If we let the stock price fall, we can pick up cheap chips, but when the stock price collapses, the emotions are gone, people's hearts are scattered, and the team is hard to lead. It will be difficult to form a joint force and maintain such high market enthusiasm in the future. According to the trend of the early call auction, this check had the opportunity to become the main line leader of the market. It's a pity... No one is willing to maintain the stock price or the market trend."

“Is it a bit too much to think that you can take a position in Oriental Yuhong and become the core leader of the main line of ‘big infrastructure’?”

"That's really overthinking. Is there any hope for the check from 'Oriental Yuhong'?"

"I feel there is still hope. Although the Oriental Yuhong stock has been in a state of adjustment in the past few days and has not decisively hit a new high, the adjustment range is still relatively small. Moreover, even if it falls, there is no explosive volume. This shows that the internal chips are still well locked and there is no too serious selling pressure. I feel that as long as the market's hot spots return to the 'big infrastructure' line in the future, this stock can easily hit a new high."

"As long as 'Fuxing Road' does not leave the market, the market enthusiasm of 'Oriental Yuhong' will not drop significantly. As long as the market enthusiasm remains relatively high, there will definitely be opportunities."

"Generally speaking, if a core leader like this stops falling, there will definitely be another wave of market movement."

"'Fuxing Road' has been quiet for a long time. It's hard to say whether it's still there."

"Although there is no corresponding Dragon and Tiger List data for the Oriental Yuhong check recently, your guess underestimates the funds of Fuxing Road. If this fund is about to leave the market, the performance of the Oriental Yuhong check will definitely have a huge abnormal trend, at least a large increase in volume. So... based on the current volume reflected by the Oriental Yuhong check, I am sure that the funds of Fuxing Road have definitely not left the market yet."

"I also feel that 'Fuxing Road' has not left the market, otherwise the trend of this check would not be so stable."

"From the perspective of the chip structure, is there no one paying attention to the underlying logic of this stock? Could it be that the stock price of Oriental Yuhong can double rapidly in such a short period of time, and at the current high level, it still maintains a relatively strong adjustment trend, and potential buying is still continuous, just because of the support of Fuxing Road, or the leading contribution of Huayi Capital? I don't think so. The core logic of the reason why Oriental Yuhong can stand out and become the leader of the "big infrastructure" line is that the fundamentals of this stock are excellent enough, and the certainty of future performance explosion is strong enough!"

"Yes, only when the underlying logic is strong enough can it truly arouse the resonance of long positions among various funds in the market."

"Look at the core leading stocks such as Beijing Capital Group, Beijing North Construction, and Tianshan Cement, which rose in tandem with Oriental Yuhong, and most of the other stocks have fallen back by more than 20% in the past few days. Even Beijing Capital Group is almost wiping out the gains of the second wave of the main line of "big infrastructure"."

"Indeed, haha... So there is a common saying in the market, when buying stocks, you should buy the real leaders. Generally speaking, during the adjustment phase, only the leaders can stabilize."

"We have to admit that the check from 'Oriental Yuhong' is indeed strong."

“Even if the current Oriental Yuhong check has a strong feedback from the market trend, it is not suitable to continue the relay, right? I feel that the current market focus is not on the "big infrastructure" line at all. As the saying goes, "a past leader is worse than a dog." Even if there is still strong future expectations for the Oriental Yuhong check, I am afraid it will be difficult to continue to rise in the short term. At least this wave of correction will have to wait until the 20-day line to have hope of reversing, right?”

"Yeah, I think so too."

"The current core market focus and the direction of active capital groups' concentrated trading have shifted to the main line of 'emerging industrial chains', right?"

"It's not just the main line of 'emerging industrial chains'. It should be said that the investment trend of the market has completely changed compared with the past, from the previous trend dominated by large-cap stocks to the trend dominated by small-cap and micro-cap growth stocks."

“It feels like the market situation in 14 is happening again.”

"Indeed, the trends of the film and television media, Internet software, and Internet applications sectors are simply too strong."

"Originally, these sectors had already shown some divergence during the early call auction, but I didn't expect that after the official opening, funds would form a unified long position again."

"This rapid transformation from disagreement to consensus was mainly driven by the check from Chinese Online, right?"

"Yes, it was driven by the check from 'Chinese Online'."

"This check from 'Huawen Online' should now undoubtedly be the leader of the 'emerging industry chain', right?"

"Yes, it's true that the leader has no top. I originally thought that the check of 'Huawen Online' would fluctuate at the fifth board height today, but I didn't expect it to hit the board in the second after opening."

"Yeah, what a pity. After the morning session officially opened, I didn't even have time to place an order to buy."

"The price rose too fast, and I didn't have time to place an order." "I placed an order after the price rose, and it hasn't been traded yet. I guess there won't be much hope of a trade before the market closes this afternoon."

"Based on the trend of the early call auction of 'Huawen Online', not many people would dare to invest heavily, right?"

"Oh, stop talking. I saw that the call auction price of the check was not as expected, so I sold it decisively. Now it seems... I obviously sold it too fast and got washed out."

"The check from 'Chinese Online' is expected to reach 7 boards."

"Yes, this check has been rising all the way, with basically no flat lines, and there are changes every day. It is indeed very strong."

"What a pity. I sold it when it was on the second board. At that time, I felt that the Quantong Education check was the leader. Now looking back, the Quantong Education check is really weak."

"Funds are tired of old things and love new things. The concept leaders of the last bull market are unlikely to become the concept leaders of this round."

"Indeed, in this round of small and medium-sized stocks and micro-cap stocks, the strongest performers are basically not the same as the concept leaders in the previous round of bull market."

"However, the cheque for 'QuanTong Education' is also going strong today, right?"

"The reason why this check is strong is that 'Huawen Online' has achieved a market performance that exceeded expectations, and the funds for speculation have overflowed, not because of real strength."

"Yes, it is following the trend of 'Huawen Online' and its price is rising."

"If we're talking about following the trend, Long Er should be the check for 'Chinese Media', right?"

"Of course, the 'Chinese Media' check is the closest, but the fundamentals of this check are really good. It feels like a long-term target!"

"Well, I feel that the fundamentals of the check 'Huawen Online' are similar to the check 'Oriental Yuhong'. What do you think... Will the check 'Huawen Media' eventually take the place of the check 'Huawen Online' and become the real leader of the core theme of 'emerging industrial chain'? Just like the relationship between the two checks 'Capital Group' and 'Oriental Yuhong' before, in the beginning, 'Capital Group' also went up all the way and was unprecedentedly popular. Everyone thought that the check 'Capital Group' would be the core leader of the 'big infrastructure' theme, but unexpectedly, the stock 'Oriental Yuhong' came out on top."

“There are certain similarities, but we can’t simply draw such an analogy.”

"If the funds from Fuxing Road can help Huawen Media with its check, it will be possible to replicate the development path of Oriental Yuhong."

"Is this possible? I feel like the current style of doing business on Fuxing Road is completely different from before."

"It is indeed completely different. It has been a long time since we have seen funds like 'Fuxing Road' participating in the speculation of conceptual themes."

"You can't say that. The 'big infrastructure' line is actually just a concept hype. After all, there is no performance to be realized yet."

"In terms of underlying logic, I feel that the lines of 'film and television media' and 'online education' are still somewhat inferior to the main line of 'big infrastructure', right?"

"It's a little worse, but the rise and fall of stock prices have little to do with fundamentals."

"It should be said that the short-term rise and fall of stock prices has little to do with fundamentals, but the long-term stock price trend is still related to fundamentals."

“I’m talking about short-term stock price performance.”

"The short-term stock price performance is more related to sentiment. As long as the market sentiment is good and funds are willing to continue to go long, the stock price will rise."

"I feel that in the morning's market trend, the 'emerging industrial chain' line has almost reacted to expectations, right? Can the corresponding concept sector stocks continue to rise in the afternoon?"

"It depends on the feedback from the volume. If there is volume, the price will continue to rise."

“But the feedback on the energy situation doesn’t feel good!”

"It's not bad, but compared to yesterday's market turnover, there is no improvement."

"The weighted sectors such as liquor, white goods, medicine, consumption, electricity, and finance in the main line of 'big infrastructure' and the main board have generally shrunk in volume, while the main line of 'emerging industrial chain', taken out separately, still shows a slightly increased trend. I think this volume performance is still healthy and can continue to be bullish."

"If you compare it this way, it does make sense."

"As long as a number of core leading stocks, such as 'Huawen Online' and 'Huawen Media', can continue to hit the daily limit in the afternoon's trend, I think the risk points of the market will not be great, and the hot spots will most likely be concentrated in the main field of 'emerging industrial chains'."

"I hope so. At present, all my positions are concentrated in the main field of 'emerging industrial chain'."

"I always feel that funds cannot be concentrated in the fields of film and television media, Internet software, and Internet application sectors. They still need to spread deeper and invade more concept sectors to make the market last longer."

"It all depends on the choices of the main investors in the market. At least for now... it is not advisable to be bearish."

“It’s definitely wrong to be bearish.”

"In fact, the increase is not that much. I feel there is still room. At this position, there is no need to worry too much."

"The key is the off-site funds. Only by attracting off-site funds to enter the market can the market continue to rise. Otherwise, it will always be the on-site funds that are playing the game, and it always feels unstable."

"Well, it seems that off-market funds are also slowly entering the market, right?"

Along with the major stock investment exchange platforms across the Internet, posts in a number of hot topic discussion areas are refreshed and the popularity continues.

The lunch break passed quickly.

Soon, with many investors focusing on the market, at 1 p.m., the two markets resumed their formal continuous auction trading period. (End of this chapter)