Rebirth of the Capital Legend

"It's still difficult to expand further upwards, isn't it?" Li Jinshi said. "After rebounding by 100% from the bottom, it seems that compared to other stocks in the 'major infrastructure' sector, it no longer has any advantage. Moreover, many funds in the market have relatively high expectations for the future performance of this stock. In other words, even if the performance of this stock can be realized, it will be difficult to achieve an unexpected trend given the generally high market expectations, right?"

Moreover, given its high position and the fact that such expectations have been fully realized.

It's still hard to say whether the funds from 'Fuxing Road' are still in the market.

After all, the stock "Oriental Yuhong" hasn't appeared on the list of top-performing stocks in the two stock exchanges for a long time, so we can't be sure that the funds from "Fuxing Road" haven't left!

"I agree that the current valuation of 'Oriental Yuhong' is not advantageous, and the expectations have been largely realized," Chen Guiyun continued. "But I think it's unlikely that the funds from 'Fuxing Road' will leave quietly."

Moreover, if the funds from 'Fuxing Road' are to exit the 'Oriental Yuhong' stock...

I believe that Huayi Capital, as an institution, will not remain completely indifferent to its investments in other stocks related to the "major infrastructure" theme.

Currently, other stocks in the "major infrastructure" sector are also relevant.

In other words, the other stocks heavily invested in by 'Huayi Capital' have clearly not shown any movement at present.

All told, the entire 'Huayi Capital' institution must have held at least 20 billion yuan in the 'major infrastructure' sector, right? With such a large holding, and with the individual stocks being largely transparent, secretly dumping shares of 'Oriental Yuhong' is just shooting themselves in the foot. Not only does it damage 'Huayi Capital's' reputation, but if 'Oriental Yuhong' plummets, causing a sharp correction in the entire 'major infrastructure' sector, the profits 'Fuxing Road' made on 'Oriental Yuhong' will be completely insufficient to cover the profit losses 'Huayi Capital' has experienced in other stocks.

In other words, squandering the 'Oriental Yuhong' investment would be a case of penny-wise and pound-foolish.

Therefore, I dare say that someone as smart as the person in charge of 'Huayi Capital' and the holder of the 'Fuxing Road' seat would never do something so stupid.

Moreover, although the current expectations for 'Oriental Yuhong' are somewhat overdrawn.

However, its candlestick pattern trend.

Furthermore, the investment sentiment and fundamentals surrounding the entire "major infrastructure" theme are continuing to improve.

In other words, the overall trend of the "major infrastructure" initiative remains unchanged compared to before.

In this situation, Huayi Capital, which already has a cost advantage in holding its shares, and Fuxing Road Capital, have no need to reduce their holdings at all.

Just let the profits run and follow the trend.

Of course, as for how much excess market return can be obtained by continuing to buy 'Oriental Yuhong' stock, I think the probability is still relatively small.

In terms of short-term game dynamics...

The stock 'Oriental Yuhong' is likely to be significantly inferior to a large number of leading concept stocks such as 'Huaxin Cement', 'Beijiang Jiaojian', and 'Tianshan Cement'.

But in terms of certainty and the strength of the trend.

The 'Oriental Yuhong' check is clearly stronger.

I think there's nothing wrong with Lao Liao buying the 'Oriental Yuhong' check. As for the 'Lixun Precision' check, well, that's a matter of opinion.

"I think the 'Lixun Precision' check was a good buy, but I don't quite understand the 'Oriental Yuhong' check," Li Jinshi chuckled and said. "I didn't expect your opinion to be exactly the opposite of mine, Lao Chen. Lao Chen, what do you think is wrong with the 'Lixun Precision' check?"

Chen Guiyun smiled and said, "First of all, the market capitalization of 'Lixun Precision' is indeed quite large, with a circulating market capitalization of several hundred billion. It's really difficult to push it up further. Secondly, the expectations for this round of 'Apple's product launch' have already been heavily speculated on in advance. Compared to the current 'major infrastructure' theme, I think the core concept stocks in the 'Apple supply chain' are actually expected to be speculated on even higher. After all, in terms of the fundamental reversal and the certainty of these two themes, the 'Apple supply chain' theme is far inferior to the 'major infrastructure' theme."

Based on current market information...

Nationwide housing prices are still in a continuous upward trend.

Even considering the current housing prices, the growth rate of the industry can be roughly calculated. In other words, the performance growth of the leading stocks in the entire real estate industry chain is at least doubled. Within this range, there is basically no risk.

But the 'Apple supply chain'...

Last year's new Apple products didn't sell well, but this year's expectations are very high.

In other words, even if Apple's new products sell better this year than last year, and the entire 'smartphone market' resumes growth, with expectations already high, it's unlikely that related stock prices will perform well.

Of course, but from the current fundamentals perspective...

'Lixun Precision' is a good stock and an excellent company in the Apple supply chain.

However, given the current industry fundamentals, it's highly unlikely that this stock will consistently outperform the market and generate excess returns.

"Taking advantage of emotions shouldn't be a big problem, right?" Li Jinshi said.

Chen Guiyun thought for a moment and said, "Taking advantage of the sentiment should be fine. However, judging from the market trend this afternoon, the entire 'smartphone industry chain' sub-sector only emerged after the 'new energy industry chain' sub-sector had generated extremely strong profit-making effects."

It seems to be the 'smartphone supply chain' line.

Like the follow-up sub-sectors of the 'new energy industry chain'.

I think that since the short-term speculative sentiment and market trend of the 'smartphone industry chain' are likely to depend on the performance of the 'new energy industry chain' sub-sector,

Why don't we just buy stocks in the 'new energy industry chain' sector?

It's often said that when investing in stocks, you should prioritize the leading stocks.

I think when choosing between main and side stories, we should prioritize the leading side story and the strongest main story, right?

“Old Chen is right,” Liao Guoxiang nodded and said, “I’ve said before that it was because my hand speed was too slow that I chose the middle path. Let’s see how the market performs tomorrow. If many of the core leading stocks in the ‘new energy industry chain’ show divergence in their performance tomorrow, I will move my position in ‘Lixun Precision’ to that stock.” “Brother Liao, do you think there will be significant divergence in the ‘new energy industry chain’ tomorrow?” Chen Guiyun paused and asked.

Liao Guoxiang thought for a moment and said, "I think it's still quite difficult. At least 'Shuguang Shares,' 'Tianci Materials,' 'Power Source,' 'Jiangte Motor'... these small and medium-sized concept stocks that performed the strongest in the market today will most likely continue their limit-up trend tomorrow. As for stocks like 'Changan Automobile,' 'Great Wall Motor,' 'JAC Motor,' 'Ganfeng Lithium,' 'Tianqi Lithium'... they will likely see some divergence in volume tomorrow. If you like these large and medium-sized heavyweight leading stocks, you can actually take advantage of the divergence in the market tomorrow to buy them."

After all, the government released this major positive news about 'new energy subsidies' at noon today.

This is a major positive development that could fundamentally change the domestic 'new energy industry' and the future 'new energy vehicles'.

This is a positive development with far-reaching implications.

Generally speaking, positive news like this is not something that is just a matter of hyping up emotions.

It is highly likely that a trend will emerge, fueled by sustained positive sentiment and portfolio adjustments by many medium- to long-term institutional investors.

Since it's a trending market, there's no need to rush.

This allows you to confidently add to your position or increase your holdings during the first or second instance of market divergence.

“That makes sense.” Chen Guiyun nodded. “My thoughts are pretty much the same as Brother Liao’s. You’re right. If there’s an opportunity tomorrow and the market shows some divergence, we should definitely prioritize increasing our holdings in the ‘new energy industry chain’ sector. Of course, if there’s no divergence and the entire ‘new energy industry chain’ sector continues to move in the same direction as it did today, then we’ll have to wait a bit longer.”

After speaking, Chen Guiyun turned his gaze back to the various stock investment forums in the market.

As time went by...

Throughout the market, discussions among numerous retail investors remain intense and highly enthusiastic.

"From hundreds of stocks hitting their daily limit down to hundreds of stocks hitting their daily limit up, today's market trend is truly bizarre, but I like it... Haha, it's rare to see a full position hitting the daily limit up!"

"Damn it, I had no choice but to cut my losses on a portion of my positions during the morning's trading."

"With the market trend this morning, it was hard not to sell at a loss, but at least I managed to hold on. In the afternoon, it finally exploded, haha... The feeling of hitting the daily limit is so exhilarating."

"Yes, I bought 'Huaxin Cement' this morning, and by noon I thought it was all over. But I was surprised by the big surprise in the afternoon. I feel like 'Huaxin Cement' will go up tomorrow. Actually, when I thought about it later, if I hadn't been unable to sell after buying it today and my position was locked up, I probably wouldn't have been able to hold on to the market trend this morning and would have definitely sold it."

"Sigh, didn't I just sell 'Huawen Online' at the daily limit down price?"

"That's pretty bad. Today, 'Chinese Online' went from the bottom to the top, and it lost more than 20 points in one day?"

"Selling the plane would be fine, but the problem is I sold it at a loss, which is infuriating."

"Actually, if we had seen something was wrong, we should have taken it back."

"I hesitated for just one minute, and the 'Huawen Online' stock went from the limit down to positive territory. When I saw it turn positive, I didn't dare to buy it, afraid that it would fall back down at the end of the day. But who would have thought... it not only didn't fall back down at the end of the day, but instead went straight to the limit up."

"Isn't 'Huawen Online' the strongest stock in the market today?"

"Isn't it the 'Huaxin Cement' stock? It seems like this stock was the one that drove the market rally this afternoon!"

"Hey, isn't this 'Beijiang Jiaojian' stock? This stock has never hit the limit up since it hit the limit up this morning. It's the only stock in the two markets today that hasn't hit the limit up since it hit the limit up this morning."

"The leading stock isn't about who hits the daily limit first, but about its impact on the sector and the overall market!"

"In terms of driving force, I think 'Huaxin Cement' is indeed the strongest stock."

"Actually, the stock 'Oriental Yuhong' has a strong driving force, right? Today's limit-up of this stock directly led to the full-scale outbreak of the 'major infrastructure' theme. If it weren't for the limit-up of 'Oriental Yuhong', I feel that the trend of the 'major infrastructure' theme today would have been more volatile."

"No way, the stock 'Oriental Yuhong' hit the daily limit pretty late."

"The 'new energy industry chain' is still the strongest, especially the stock 'Shuguang Shares'. In the afternoon, it went from a 4% drop to the daily limit, and 1 million lots of main force buy orders locked the daily limit. It only took 100 second in total, and only more than 1000 million yuan of funds were traded. This shows that the internal chip structure of this stock is quite stable, and at the same time, there are few floating shares and the market is quite light."

"Shuguang Shares is indeed strong, but with such a limit-up without any volume, it's impossible to participate. I estimate that this stock will most likely open at the limit-up tomorrow, again with no volume. In that case... we retail investors will have even less chance to buy it, so there's no point in discussing it at all."

"That's not entirely true. Although we can't buy in, it's still a pretty good indicator of sentiment in the 'new energy industry chain' sector."

"Hmm, it's not bad, but I still prefer the 'Huaxin Cement' check."

"I think 'Huawen Online' has more room for growth and is more active. Its candlestick chart is also better, especially after today's dramatic reversal from limit down to limit up. It's simply beautiful. If it opens higher tomorrow, it will immediately reach a new high. At that time... if this stock continues to rise, it will be like a bird soaring in the sky and a fish leaping in the sea."

"Agreed, and today the stock 'Chinese Online' also drove the stock 'Chinese Media' to its daily limit up and down."

"Let's take a look at the list of top traders in the two markets before making any decisions. Let's see how the big players are operating on these hot stocks today, and see which big players have left and which have entered."

"Yes, let's see..."

Amidst the heated discussion among the crowd.

Soon, as time passed, 5 p.m. arrived, and the daily trading data for both Shanghai and Shenzhen stock exchanges was updated.

As everyone's attention turned to the updated list of top gainers and losers in the two stock exchanges, they were surprised to see that 'Fuxing Road,' which hadn't been on the list for a long time, had suddenly seen a large-scale buying spree today.

Moreover, it wasn't just that they increased their holdings in 'Oriental Yuhong', which they already owned.

Among the core stocks in the "new energy industry chain" that made the list, such as "Ganfeng Lithium" and "Tianqi Lithium," "Fuxing Road" surprisingly made a comeback, and with a single move, it added another one or two hundred million yuan to its holdings, all of which were in the top buying position for the three stocks. (End of this chapter)