Rebirth of the Capital Legend

"From the overall market trend, that's indeed the case." Zheng Jinming didn't deny Zhang Xinlei's point of view; on the contrary, he quite agreed with it. Although his views on the trend of the 'emerging industrial chain' sector differed from the others, his views on the overall market trend were consistent with theirs. He also believed that at this level, as long as one held positions for a slightly longer period, it was highly unlikely that anyone would get trapped. "Not only has the K-line pattern of the ChiNext Index remained in a bullish pattern, but the K-line patterns of the Shanghai Composite Index and the Shenzhen Component Index are also in a healthy upward trend. Moreover, although the 'emerging industrial chain' sector saw a sharp pullback at the end of the day, the Shanghai Composite Index and the Shenzhen Component Index didn't actually fall much. Even the ChiNext Index only saw a 0.8% drop. Compared to the previous drops of two or three percentage points, this market performance is already very mild."

"Looking at the overall market index, it's true that you can't tell that the market is experiencing such severe losses," Lao Qian said. "The A50 index is still in positive territory right now. But if you look closely, the sectors that saw the most significant sell-off at the end of the day and the most obvious losses were the film and television media, internet software, and internet applications sectors, which had previously experienced a violent surge fueled by market news and policy changes, leading to excessive emotional reactions and over-speculation."

In addition to these three major sectors, there is also the electronic information sector, which belongs to the main area of ​​the 'emerging industrial chain'.

There are also two sub-sectors: the 'smartphone industry chain' and the 'new energy industry chain'.

The decline was relatively small, and the pullback was not severe. Of course, it was influenced by the film and television media, internet software, and internet applications sectors, but the downward trend shows that the adjustment was passive rather than proactive.

In other words, at this very moment, the market is still seeing a group of short-term profit-takers.

After adding a large number of historical free-float trapped positions.

The market was struggling to absorb the concentrated selling pressure, but it still showed resilience, with a considerable amount of funds passively absorbing the selling pressure.

Since the market still shows strong resilience in its trend.

What's lacking is only liquidity and the buying power to push prices up.

So, once the profit-taking and trapped positions from this wave of concentrated selling begin to clear out, the selling pressure will gradually decrease again as the stock price falls.

It is foreseeable that the market will demonstrate strong resilience.

The overall market trend will inevitably continue its original rebound and will most likely see a recovery.

Therefore, the panic selling at this time is indeed somewhat unnecessary. If you missed the short-term selling opportunity, just hold your positions and wait for the market to continue its rotation.

"Judging from what you're saying, Lao Qian, you're not planning to make any moves?" He Zhong asked. "Are you going to continue with the status quo?"

Old Qian chuckled and said, "My overall holdings are split 50/50 between 'Oriental Yuhong,' a stock in the 'major infrastructure' sector, and 'Huawen Online.' Although 'Huawen Online' performed poorly at the end of the day, 'Oriental Yuhong' is doing alright. Overall, my account net value hasn't changed much. And looking at the market trend, the two core leaders are indeed showing a seesaw effect. I think since the overall market direction is fine and it's not time for a trend reversal, it's highly likely that if I sell now, I'll have to buy back later. But how the two stocks will perform in the future, and whether I can buy them back at a lower price later, is completely uncertain. So... rather than trying to profit from this uncertainty, it's better to hold my positions and continue with the overall strategy."

It's worth noting that the funds from 'Fuxing Road' have been able to lock up their shares in 'Oriental Yuhong' for so long.

It takes so many days to form a pattern.

Then we should learn from that, to have a broader perspective and more patience.

"It seems that influenced by the funds from 'Fuxing Road,' your mindset is more stable than before," Zhang Xinlei praised. "Before, when I saw your positions, they were all allocated to the 'emerging industrial chain' theme. I thought... I didn't expect that you had already shifted your positions to 'Oriental Yuhong'."

However, regarding the "major infrastructure" theme, it seems that "Oriental Yuhong" bucked the trend and closed in positive territory today.

But I always feel that I'm not very proactive.

It seems to have been driven by the 'Huaxin Cement' stock offer.

Looking at today's market trend in the "major infrastructure" sector, it's clear that "Huaxin Cement" is the focal point of the entire sector's sentiment and the key to bullish momentum. I believe that at this level, it's more cost-effective to bet on "Huaxin Cement" than to continue speculating on "Oriental Yuhong."

"Old Zhang, you have a really sharp eye." Hearing Zhang Xinlei's words, especially when he mentioned the stock 'Huaxin Cement', Zheng Jinming chuckled, his eyes falling on the stock's trend. He instantly had the intention to increase his holdings and said, "I must say, looking at all the stocks in the 'major infrastructure' theme, 'Huaxin Cement' is indeed the most eye-catching, and its trend is the most proactive."

"However, this stock has already rebounded by about 10% from its intraday low today," He Zhong said. "There are quite a few profits accumulated during the day, so the selling pressure tomorrow will likely be significant. If we enter now, it's hard to say how much profit we can make tomorrow. Moreover, if 'Huawen Online' rebounds again in the final stages of the day, and 'Huaxin Cement' fails to hold its position, it will inevitably be abandoned by funds again. At that time... its performance tomorrow is unlikely to have a premium, and it is very likely to continue to open lower and fall, just like today."

I feel that the logic behind this check isn't actually that solid.

There was no market-leading speculative capital like that on Fuxing Road, only a few unknown institutional seats continuously buying in.

Generally speaking, it's unlikely that this kind of stock will become a core leader in the market.

In terms of certainty, I think 'Oriental Yuhong' is a better choice, and there's a high probability that funds will be willing to speculate on it. After all, the market is really hot for this stock. As long as the internal funds pull it up a little, it can quickly gather market attention and launch a strong offensive.

Moreover, the current valuation of 'Oriental Yuhong' should still be considered undervalued, right?
From a medium- to long-term perspective, this stock isn't bad either.

Unfortunately, given the market's continued rotation among leading sectors, most of my holdings are currently tied up in the stock 'Huawen Online,' and I can't adjust my portfolio accordingly.

"Both 'Oriental Yuhong' and 'Huaxin Cement' have their own advantages," Zheng Jinming said. "However, market funds have always preferred to speculate on new stocks rather than old ones. Although 'Oriental Yuhong' has the backing of the top-tier 'Fuxing Road' trading seat, which naturally gathers market enthusiasm for buying, its price has already risen significantly since its bottom. No matter how strong the 'Fuxing Road' trading seat is, it's hard to support a large number of short-term funds and retail investors blindly following the trend after the price has already doubled."
Moreover, there's the fact that 'Fuxing Road' is continuously holding onto this stock.

Therefore, at its current relatively high price, the exchange of shares in 'Oriental Yuhong' has not been very thorough.

Looking at these past few trading days, during the continuous adjustment trend, the total turnover rate is less than 100%, which is an extremely low turnover rate for a leading speculative stock.

However, the turnover rate is clearly insufficient...

This naturally leads to an internal asset structure that is difficult to effectively exchange and restructure.

When internal shares are difficult to exchange, it leads to the accumulation of profits, resulting in increasing potential selling pressure in the future.

Generally speaking, in this situation, for the stock price to continue to rise, it either needs to take advantage of the decline in market sentiment in the near future to experience a sharp sell-off with high volume to shake out weak hands, followed by a rapid V-shaped reversal, or it needs to continue to fluctuate in the current low-volume sideways trend, using time to create space.

Both of these trends... Regardless of which one occurs, it indicates that the stock 'Oriental Yuhong' is not yet at a true buying point.

The stock 'Huaxin Cement' has clearly just gone through a process of high-volume selling and shakeout. Don't be fooled by the fact that this stock has rebounded by more than 10 points from its bottom during the day, and don't be fooled by its large market capitalization of 120 billion.

You can check the transaction status of buy and sell orders on its real-time transaction interface.

The potential selling pressure on the market is not significant.

I dare say that if someone is willing to ignite a major attack on this stock right now, it will most likely hit the daily limit up very quickly, and it will also quickly attract a large number of followers to go long.

These are the leading stocks in the core concepts that are currently generating a lot of buzz in the market.

I feel that among the stocks, 'Huaxin Cement' has the best chart pattern, the best trading volume, and the most proactive price movement.

"Old Zheng, how about you try to light this fire?" Zhang Xinlei said with a smile. "Among us, you have the lightest position and the most initiative."

Zheng Jinming stared intently at the 'Huaxin Cement' stock, which had already surged to around 7% in price. After pondering it for about 20 seconds, he replied, "It's worth a try."

After he finished speaking, he didn't wait for the others to respond.

He quickly clicked the keyboard and, using his trading account, placed a market order for 3000 lots of 'Huaxin Cement' stock on the real-time trading screen.

The system quickly submitted this buy order for 3000 lots.

On the real-time trading interface of 'Huaxin Cement', the order book above the price level of about 15 levels was instantly devoured by this main buy order of 3000 lots.

And the moment the order placed above it was taken.

Huaxin Cement's stock price also surged again, reaching a gain of 7.35%.

After Zheng Jinming's 3000-lot buy order was matched, he saw that the 'Huaxin Cement' stock price was facing upward resistance, just as he had expected, with no heavy selling pressure.

So, he gritted his teeth and made the decision to invest heavily in an instant.

Immediately afterward, before many people could react, and before other funds could rush in to buy, the price soared.

He then used a large sum of money from his trading account to place multiple orders at market price for 4000 lots, 6000 lots, 8000 lots, and 9999 lots.

This totals over 30000 lots, with buy orders amounting to tens of millions of yuan.

With the system's extremely fast matching and transaction processing.

It can be said that it swiftly and unexpectedly devoured all the sell orders above 'Huaxin Cement' up to the daily limit.

When the sell orders at the front are largely absorbed.

The intraday price movement of 'Huaxin Cement' also saw dramatic changes.

At 2:42 PM, its stock price surged again from a 7.42% gain to the daily limit.

Its stock price hit the daily limit up after Zheng Jinming's large buy order ignited the price.

Its market popularity and discussion level soared instantly, and countless retail investors quickly focused their attention on this hot stock.

And with its soaring market popularity and the explosion of discussion topics.

A large number of retail investors who had been observing the market, as well as major speculative funds, rushed in to buy shares at this moment, with a large number of buy orders flooding in.

All these large, trend-following buy orders were poured onto the 'Huaxin Cement' stock chart in an instant.

The 7.69 sell orders that were pinned at the limit-up price of 'Huaxin Cement' were completely absorbed by the combined buy orders following the lead of the main buyers in less than 10 seconds.

Immediately afterwards, the stock price of 'Huaxin Cement' hit the daily limit.

Then, before many people could react, more funds poured in, causing the limit-up order to surge from 10000 lots to over 1 lots in just a few seconds. In addition to the small orders of 20 lots that came first, there were large and super-large orders of 5000 lots, 8000 lots, 9999 lots, 1 lots and so on.

Seeing the 'Huaxin Cement' check disappear within a minute or two after I lit it.

This means completely sealing off the price limit.

Zheng Jinming's tense nerves finally relaxed slightly, and he breathed a sigh of relief, a happy smile appearing on his face.

"Holy crap, Lao Zheng, did you just start this fire?" Noticing that 'Huaxin Cement' had instantly hit its daily limit and successfully positioned itself against 'Huawen Online,' a previous leading stock, Zhang Xinlei was shocked. He quickly tagged Zheng Jinming in the group and said, "Lao Zheng, you're really something. You started this fire so easily, and you did it perfectly. You deserve to make this money."

Seeing that the buy orders for 'Huaxin Cement' had risen from 30 lots to 20 lots, and with less than 20 minutes left before the market officially closed, Zheng Jinming estimated that the stock was unlikely to crash at the close. He relaxed and turned his attention back to his internal group of major speculative investors from the 'Suzhou Group,' replying, "We must be consistent in our words and actions. I said that 'Huaxin Cement' had a very good intraday chart pattern and was likely to successfully establish a position. Sure enough… the buying power for this stock is much stronger than I expected. It seems that quite a few smart money investors are eyeing this stock." (End of Chapter)