Rebirth of the Capital Legend

Furthermore, this occurred as many stocks in the market accelerated their gains in the final trading session.

The market's trading volume and intraday trading volume are also increasing dramatically.

At 2:40 PM, the combined trading volume of the two stock exchanges had already reached a new high in nearly five months, exceeding 5700 billion yuan. At the same time, the number of stocks hitting their daily limit in the two exchanges reached 121.

At 2:41, a large amount of funds that had overflowed from small-cap and micro-cap stocks began to flow into heavyweight stocks.

At 2:42 PM, the ChiNext index surged to around 2.25%, with an intraday volatility of nearly 7%. At this moment, all industry sectors and concept stocks in the entire market were also in positive territory.

At 2:43 PM, the number of stocks in positive territory in both Shanghai and Shenzhen markets reached over 2600.

At 2:44 PM, after hovering around a 7% gain for about 20 minutes, 'Huawen Media' launched a further attack on the daily limit, supported by a huge number of large buy orders. At the same time, other core concept stocks in the three major sectors of film and television media, internet software, and internet applications also attracted the attention and snap-up of a large number of active short-term funds in the market at this moment.

At 2:45 PM, 'Huawen Media' hit the daily limit up, becoming the second stock to reverse its downward trend and hit the daily limit up today.

At 2:46 PM, the moment Huawen Media's stock price hit the daily limit, Yue Media, a hot concept stock with major shareholder reduction in holdings, also saw a rapid rise, with its gains expanding to 7%. However, compared to the trading volume and buying power of Huawen Media, Yue Media was clearly much weaker and less proactive.

At 2:47 PM, Huawen Media hit its daily limit up, while Guangdong Media, after a surge, fluctuated and fell back due to a break in the bullish momentum. However, while Guangdong Media was fluctuating and falling back, Huawen Media's limit up triggered a rally in other stocks in the entire film and television media sector, such as Wanda Film & Television, Huace Film & Television, Baofeng Technology, LeTV, Quantong Education, and Yaoji Technology, all of which experienced rapid price increases with high trading volume.

At 2:48 PM, the gains of "Guangdong Media" fell back to 5%, while the gains of the three major sectors of film and television media, internet software, and internet applications continued to rise, with the film and television media sector rising by more than 3.5%.

At 2:49 PM, the ChiNext index rose by more than 2.5% during the day.

At 2:50 p.m., the combined turnover of the Shanghai and Shenzhen stock exchanges exceeded 6000 billion yuan, an increase of more than 1000 billion yuan compared with yesterday.

At 2:51 PM, with a host of small and mid-cap stocks surging and recovering the losses from the morning's pullback, other active funds began to flow into the market's lower-priced sectors, namely the restructuring and ST (Special Treatment) concept stocks, which are currently receiving little attention.

At 2:52, a large number of ST stocks surged.

At 2:53, many stocks in the restructuring concept sector also attracted a lot of attention from major buyers. Many stocks rose sharply, and several stocks even jumped directly from near the flat level to the daily limit.

At 2:54 PM, sectors related to the "major infrastructure" theme, as well as the main board heavyweight sectors such as liquor, white goods, pharmaceuticals, consumer goods, power, and finance, began to attract some capital attention. The liquor and white goods sectors, which had been showing a fluctuating downward trend in the afternoon session, rebounded in the last few minutes before the market closed.

At 2:55 PM, the Shanghai Composite Index rose by nearly 1.80% and returned to the 3080-point level.

At 2:56 PM, the number of stocks declining in the entire market narrowed further to 217, while approximately 2700 stocks in the market closed in positive territory.

At 2:57 PM, during the closing auction in Shenzhen, the Shanghai Composite Index surged to a 1.85% gain, while the ChiNext Index rose to a 2.75% gain. The number of stocks hitting their daily limit in both markets also broke through to 132.

Finally, at 3 p.m., the two stock exchanges closed.

The Shanghai Composite Index closed at a 1.83% gain, the Shenzhen Component Index closed at a 2.33% gain, and the ChiNext Index closed at a 2.71% gain.

The Huazheng 500 Index and the All-China 1000 Index represent the performance of a large number of small and mid-cap stocks in the market.

They then settled at increases of 2.51% and 2.49% respectively.

Based on the performance of major indices, it can be seen that today's market saw a broad-based rally with a deep V-shaped reversal. All industry sectors and concept sectors in both Shanghai and Shenzhen markets rose, and the more popular industry sectors and concept sectors all experienced significant gains.

Besides the performance of the index...

Performance of major core themes in both Shanghai and Shenzhen stock exchanges.

Sectors related to the "major infrastructure" theme, such as real estate, construction and decoration, building materials, non-ferrous metals, steel, and coal, all closed with gains of over 2.5%. Among them, the real estate, construction and decoration, and building materials sector indices all closed with gains of nearly 3%.

And a number of core popular stocks in the 'major infrastructure' sector.

Stocks such as Beijiang Jiaojian, Huaxin Cement, Shougang Group, Tianshan Cement, Financial Street, Chongqing Development, Shenhuo Shares, Oriental Yuhong, and Bayi Steel all closed at their daily limit. Meanwhile, heavyweight leading stocks such as Huaguo Construction, Conch Cement, Huaguo Railway Construction, Huaguo Jiaojian, Poly Real Estate, China Merchants Shekou, and Gemdale Group generally saw gains of over 3%. Only some related concept stocks and sector constituent stocks with relatively poor fundamentals and lower market recognition failed to outperform the market index.

Of course, this is a major trending topic in the market.

Several stocks in the "major infrastructure" sector were hit by negative news, including those with negative news about share reductions. Although they rebounded sharply at the end of the day, they still closed lower.

The main areas of the 'emerging industrial chain'...

The 'new energy industry chain' sub-sector was arguably the strongest market sub-sector in the afternoon. Related industry sectors, such as automobile manufacturing and minor metals, all surged by more than 5%. Among the core concept sectors, such as the 'lithium battery' sector, almost all related 'lithium battery' stocks saw basic gains of more than 7%, and dozens of stocks in the entire sub-sector hit their daily limit.

The 'smartphone supply chain' sub-sector was also one of the core sub-sectors that the main buying funds in the market focused on during the afternoon's trading.

The related industry sectors and concept sector indices also saw gains far exceeding those of major market indices.

Among them, stocks such as 'Lixun Precision', 'Changying Precision', 'Goertek', and 'O-Film Tech' all closed at the daily limit.

As for the core sectors of 'film and television media', 'internet software', and 'internet applications'...

Although these core sectors did not perform well in the early afternoon trading session, their sustained surge in the closing phase propelled them to the forefront of gains among all industry sectors in both Shanghai and Shenzhen stock exchanges. The "Film and Media" sector, in particular, benefited from the incredible turnaround performance of "Huawen Online" and "Huawen Media," ultimately closing with a gain of 3.83%. Within the sector, the number of stocks hitting their daily limit also exceeded 10.

Moreover, the closing market discussion surrounding the stocks 'Huawen Online' and 'Huawen Media' was intense.

They all surged into the top five of all stocks in the market.

As for other sectors besides these core themes... such as the heavyweight sectors on the main board, including liquor, white goods, pharmaceuticals, retail, power, finance, and petrochemicals...

These sectors, except for liquor and white goods which were slightly weaker and completely underperformed the index, were all below the overall index performance.

Most other sector indices followed a similar trend to the Shanghai Composite Index.

They didn't have any particularly eye-catching performances, but they also didn't exhibit any behaviors that dragged the team down.

Besides the performance of these main sectors and their corresponding popular concept stocks, the most noteworthy aspect today is the market's trading volume.

This marks the first time in five months that the market has returned to the 600 billion yuan trading volume mark.

Although this trading volume was mainly stimulated by two major positive news events at noon, and it occurred during a period of significant market correction and extreme pessimism in the morning, it is not representative of the general market trend.

But whatever the reason...

Ultimately, it attracted some of the funds that were waiting on the sidelines.

As long as the funds that have been attracted to the market do not rush to leave.

With such a large trading volume, the market trend, even if it gets worse, won't be too bad.

Moreover, besides the performance in terms of trading volume...

The market sentiment today is completely reversed compared to this morning.

Despite the market just closing, the afternoon's extreme profit-making effect has already created a very hot market sentiment, and investors' confidence is quite high.

"Today's market performance was truly explosive!" After the two markets closed, Xu Qiao couldn't help but exclaim in the 'Shanghai Short-Term Trading Group's' main speculative trading group, "It was a real reversal! Looking at the market trend this morning, I really thought the market had completely collapsed and the Shanghai Composite Index would definitely test the support level of 3000 points again. I didn't expect... such a big positive news came out at noon, and I didn't expect that the market would generate such a strong profit-making effect in the afternoon driven by the positive news."

Today, at least five or six hundred stocks experienced fluctuations exceeding 10%, right?

This means that there are at least 500 stocks today with a 10% profit margin.

This profit-making effect is absolutely phenomenal.

Moreover, to some surprise, trading volume surged today.

With such a closing result and such a tremendous profit-making effect, as long as the performance of overseas markets is not particularly bad today, the market trend tomorrow will most likely continue today's profit-making effect.

Of course, there will still be some pressure from profit-taking in tomorrow's market.

But as long as the market sentiment is right, I think the market can fully absorb this pressure.

Therefore, all things considered, today's market movement can be seen as a significant turning point, marking a reversal in the index's trend and a further upward move.

"Yes, that's true." Old Zhang nodded slightly and said, "It's been a long time since we've seen such a refreshing deep V-shaped trend, hasn't it? Today's trend was really exhilarating to watch, sweeping away the gloom in the market. I feel much more clear-headed. With this kind of trend, there will definitely be a short-term surge."

"After today's sharp V-shaped rebound, there will definitely be short-term market activity," Old Wu chimed in. "However, it's hard to say about the core themes. Today, after the morning's sharp decline and adjustment, the major themes are at relatively low levels, and the internal shares have already undergone a major cleanup. There won't be much pressure for a rally in the afternoon. So, after the positive news at noon, the major hot themes in the market could dance together in the afternoon. But in the subsequent market trend... it's unlikely to develop that way."

After all, a market size of 6000 billion is still not enough to support the parallel development of multiple main lines.

We still need to prioritize certain aspects.

I feel that there are still many uncertainties regarding the main themes that major funds will focus on in the future.

In other words, the market trend tomorrow is expected to be highly differentiated. It remains unclear which main theme, or even which two, will emerge and continue to attract concentrated buying interest from active investors.

"As for the main theme, we should choose from the two main areas of 'major infrastructure' and 'emerging industrial chains', right?" Lao Zhang said. "In my opinion, the most difficult part is choosing the sub-themes. Today, the strongest sub-theme in the market is the 'new energy industrial chain,' and the second strongest sub-themes are the 'smartphone industrial chain' and the three interconnected sub-themes of real estate, building decoration, and building materials in the 'major infrastructure' main theme."

However, the 'new energy industry chain' sub-sector has not seen a significant change of hands today.

There will likely be significant disagreements tomorrow.

However, the 'smartphone industry chain' sub-sector has the disadvantage of being significantly smaller in scale, making it difficult for many large investors to get involved.

The main sectors under the "major infrastructure" theme include real estate, building decoration, and building materials.

It is indeed a suitable place for various capital groups to concentrate their speculation.

However, because these major sectors have already risen significantly in the previous period, and the current correction has been relatively insufficient, their positions are relatively high, making their cost-effectiveness slightly less attractive.

"So, according to you..." Old Wu chimed in, "are only the film and television media, internet software, and internet applications sectors within the 'emerging industry chain' main line worth betting on? I don't think so. I think the 'new energy industry chain' main line, which has clearly been stimulated by a lot of positive news in this round, still has room for growth, and is obviously bigger than other main lines."

Moreover, as you just mentioned, the 'new energy industry chain' sub-sector is experiencing insufficient turnover today.

The reason for insufficient turnover is simply because the positive news is too great, and the funds are rushing to buy.
I don't think this is a bad thing; on the contrary, it shows that the internal structure of the 'new energy industry chain' is stable enough around this point. (End of Chapter)