Rebirth of the Capital Legend

Then, stimulated by the continued hot trend in the external market.

Over the weekend, investment sentiment in the domestic market rose again, market confidence generally recovered, and the number of people paying attention to the stock market gradually increased.

After two days of emotional fermentation over the weekend, Monday, September 5th, arrived.

In the morning, before the market officially opened, the pre-market sentiment was already very high. Countless investors holding positions had high expectations, and some even shouted that many popular core leading stocks had hit their daily limit up at the opening.

However, when the market actually opened at 9:15 a.m., the opening trend was noticeably different from the pre-market sentiment.

"Except for the 'new energy industry chain,' which is still maintaining yesterday's strong momentum, with most core stocks opening at the daily limit and locking in..." At 9:16, after seeing the initial opening auction in both markets, Lao Zhang, a member of the "Shanghai Short-Term Trading Group," frowned slightly and said, "It feels like the performance of other main sectors in the market is somewhat below expectations."

The main area of ​​'major infrastructure'.

The three core sectors of real estate, construction and decoration, and building materials all opened only slightly higher. Among them, popular core stocks such as Huaxin Cement, Tianshan Cement, Beijiang Jiaojian, Shougang Group, Financial Street, and Oriental Yuhong... except for Huaxin Cement and Beijiang Jiaojian which hit the daily limit, the other stocks did not achieve the opening limit.

Furthermore, the stock 'Oriental Yuhong' only opened with a 5.5% increase during the initial call auction phase.

Logically speaking, given the influence of the Su brothers' "Fuxing Road" trading position, this stock should have opened at the daily limit. Opening at this level is somewhat below expectations, isn't it?

In addition to the three core sectors of real estate, architectural decoration, and building materials.

Other sectors such as steel, coal, and non-ferrous metals generally opened flat, with the core leading stocks within these sectors only showing a slight opening increase.

The opening status of the market indicates that many funds that bought at the bottom yesterday are still showing a strong desire to cash out today.

In addition to the 'major infrastructure' line, there is also the 'new energy industry chain' line.

Yesterday, the major sub-sectors of 'Film and Television Media', 'Internet Software', and 'Internet Applications', as well as the 'Smartphone Industry Chain' sub-sector, which also performed well, showed significantly weaker performance.

Within the 'smartphone supply chain' sector, stocks related to the 'Apple supply chain' have performed relatively well.

Other electronics and information technology stocks generally opened slightly lower, failing to continue yesterday's trend, which indicates strong profit-taking by bargain hunters.

The sectors include film and television media, internet software, and internet applications.

Although it was slightly stronger than the 'smartphone supply chain' sub-sector, it was basically flat at the open, with no sub-sector showing a strong opening and generating profits.

Moreover, among these three sectors, two core leading stocks, 'Huawen Online' and 'Huawen Media', achieved a dramatic reversal from limit down to limit up yesterday.

Today's initial opening auction price movement was somewhat below expectations.

The stock 'Huawen Online' opened at a 4.5% gain. Although this gain surpassed last week's high and set a new recent high, considering the current market enthusiasm and attention for this stock, opening at this level is clearly not appropriate.

As for the 'Chinese Media' stock, it not only did not have a premium, but instead opened at a low of 3.7%.

That's even more wrong.

Meanwhile, other core and popular stocks in the film and television media, internet software, and internet application sectors, such as LeTV, Baofeng Technology, Wanda Film & Television, Huace Film & Television, Guangdong Media Group, and Quantong Education, also opened lower.

This not only shows that the funds that bought at the bottom yesterday were strongly cashing out at the opening today.

This basically illustrates that the three major sectors of film and television media, internet applications, and internet software have probably been completely abandoned by the main funds and active speculative funds in the market.
On the contrary, unlike yesterday's extremely strong performance of these core market themes...

During the initial opening auction today, traditional heavyweight sectors such as liquor, white goods, pharmaceuticals, banking, petrochemicals, and power actually performed better than expected. These sector indices generally opened higher and seemed to have strong buying support.

"Yesterday's bargain hunters have cashed out their profits, which is within expectations." As Lao Zhang analyzed the market trend in the early stages of the opening auction, Lao Wu echoed, "The divergence in the trends of the major market themes is also within expectations. I think the initial opening auction situation is within the normal range of expectations, after the emotional fermentation and everyone's crazy discussions over the weekend."

This is a general expectation that most investors have essentially formed.

That is the core leading theme of the market, and the core theme with the highest certainty should be the 'new energy industry chain'.

In last Friday's market movement...

The 'new energy industry chain' sector experienced explosive growth. Essentially, the core leading stocks were driven to their daily limit by major institutional investors the moment the market opened in the afternoon, with no further increase in trading volume afterward. Many investors who wanted to buy in were unable to do so.

Today, we'll focus on the main theme of the 'new energy industry chain,' including related industry sectors and concept sectors.

There are also a number of core leading stocks.

After last Friday's surge, today's market is bound to see differentiation and increased trading volume.

In such a situation, with relatively consistent expectations, most funds, both inside and outside the market, will inevitably sell other stocks and concentrate on the 'new energy industry chain' sub-sector.

Therefore, we can see that the core leading stocks in the 'new energy industry chain' are showing increasingly stronger performance, with more and more buy orders at the opening, which is a phenomenon caused by the concentration of funds in other main sectors.

The 'new energy industry chain' continues to attract funds from other main investment sectors.

Therefore, other major sectors of the market naturally wouldn't have as many active funds or major investors paying attention to and supporting them.

There isn't enough active capital and major capital groups to support this.

Therefore, its market trend is unlikely to exceed expectations.

Therefore, in my opinion, it is understandable that the internet software, internet applications, and film and television media sectors have performed relatively poorly.

However, the performance of the 'smartphone supply chain' was relatively weak.

This is also due to the fact that the 'new energy industry chain' has attracted a lot of active funds.

As for the 'major infrastructure' sector, I think it's in line with expectations. The main force behind this sector isn't speculative capital, but rather institutional investors who have locked up a large amount of their funds here.

Currently, the major institutional investors holding these locked-up positions generally share a similar expectation regarding the 'major infrastructure' sector, believing that this sector's growth is not yet complete.

In addition, the continued increase in holdings by Mr. Su in the "Revival Road" sector has a certain positive effect on the expectations for this sector, which naturally leads to this sector being slightly stronger compared to other main sectors.

And then there's the check for 'Oriental Yuhong'...

I think that the fact that 'Oriental Yuhong' opened more than 5% higher in the initial call auction today is already very strong.

After all, this stock has already seen a significant increase in value.

In addition, there was the selling of profits by investors.

Being able to directly reach a new high is a very strong performance.

Actually, I think that the current consolidation phase after reaching a new high presents a good short-term buying opportunity for 'Oriental Yuhong'.

I feel that Brother Su's "Fuxing Road" has bought so many chips on the "Oriental Yuhong" check.

Their expectations for this stock are likely not as simple as short-term market trends.

The previous market rumors that this check would be the ticket to a future market value of hundreds of billions are, in my opinion, entirely possible, given the current booming domestic infrastructure market and the continued upward trend in housing prices.

Of course……

Sectors such as liquor, white goods, pharmaceuticals, consumer goods, power, and finance generally opened higher and strengthened during the initial pre-market auction today, which was indeed somewhat unexpected. It was initially thought that after the weekend's emotional build-up, active funds from various market participants, especially short-term speculators, would further concentrate on smaller-cap and micro-cap stocks in sectors like film and media, internet software, internet applications, electronic information, the new energy industry chain, and the smartphone industry chain. However, surprisingly… the main heavyweight sectors did not experience any net outflow of funds.

"Judging from the situation, the market will most likely see some adjustments today." After the two analyzed the situation, Xu Qiao pondered for a moment and said, "Apart from the 'new energy industry chain' and 'major infrastructure' sectors, other main sectors should face considerable pressure today. Yesterday's market volatility was extreme, and a lot of profits were accumulated. Many of these short-term profit-taking funds are expected to realize their gains today. In addition, after the explosive trading volume of 6000 billion, the subsequent market's ability to absorb new funds will definitely weaken. This indicates that it will be difficult for the market to continue its upward momentum today."

"Profit-taking is normal," Chen Ge replied at this time. "Whether the market trend is strong or not is not yet clear. We need to see how the market holds up after it officially opens. However, overall, although the market performance is somewhat inconsistent with the market sentiment over the weekend, rationally speaking, the opening situation is basically in line with expectations, and the hierarchy of the major market themes has also emerged."

I think this kind of layered presentation is better than various groups of funds in the market simultaneously focusing on a few main themes.

The central bank has stated that it will release new market liquidity in the future.

However, this positive development will have a very limited impact on current market liquidity.

Given the continued boom in the off-exchange real estate market and the ongoing surge in housing prices in many cities, it is somewhat unrealistic to expect funds to flow from the real estate market into the stock market.

Therefore, despite the significant increase in market volume last Friday.

However, we must remain clear-headed and understand that the current market structure is still a zero-sum game, and we cannot expect too much from liquidity.

However, as long as the market is a zero-sum game, there will be no continuous large-scale intervention of off-market funds.

Therefore, a market trend characterized by differentiation and rotation of main themes is bound to be the mainstream and the correct choice for the market.

In a market characterized by zero-sum game, widespread price increases are occasional, not the norm.

If the market tries to focus on several main themes at the same time, it will inevitably face the problem of insufficient support. In that case, the main themes may not be able to maintain a sustained profit-making effect and the market may never stabilize.

Therefore, the divergence in market trends is both inevitable and the best option for the current stable market trend.

The 'new energy industry chain' has seen a significant turnaround in its fundamentals thanks to direct and substantial policy support, with continued positive expectations for the future. Naturally, it has become a focal point for various funds in the market, which is a clear speculative and investment logic that is not difficult to understand.

Moreover, the 'new energy industry chain' is directly stimulated by significant positive factors.

After the fundamentals reversed, a situation was formed that was agreed upon by both institutional investors and speculative funds in the market, which I personally believe is the best direction for the market to move in concert.

Therefore, as you can see at the beginning of today's market opening auction.

The 'new energy industry chain' sector has directly attracted concentrated buying from major funds in the market, which is understandable.

Besides the 'new energy industry chain'...

Currently, the market has a core theme supported by strong underlying logic, and future expectations continue to improve.

Basically, these are the main sectors that major institutional investors and their funds have been focusing on in the market, such as the "major infrastructure" theme, as well as traditional consumer and energy sectors with long-term growth potential, such as liquor, white goods, pharmaceuticals, consumer goods, power, finance, and petrochemicals.

These sectors offer high certainty, although their potential for growth may be limited.

However, it will still be the primary choice and trading direction for institutional investors.

As long as the "major infrastructure" sector and the "new energy industry chain" sector can continue to generate profits and attract funds to continuously expand upwards, I think there won't be any major problems with the overall market trend, and we can continue to maintain a relatively optimistic outlook.

As for film and television media, internet software, internet applications, etc., these are some of the sub-sectors.

Lacking underlying logic and continuous entry of core institutional funds, its internal shareholding structure remains difficult to solidify.

Since the internal structure of the chips is inherently difficult to solidify, it is difficult for them to settle down.

Therefore, the corresponding sector index trends and individual stock trends are unlikely to be sustainable, and their trends will be greatly affected by market sentiment.

These sub-sectors are suitable for intraday or even overnight trading.

However, it is quite difficult to obtain significant excess returns from the market.

"Yes, Brother Chen is right." Old Zhang nodded, paused, and smiled, "Judging from the initial opening auction, the core focus for the day should indeed be the 'major infrastructure' sector, as well as the related sub-sectors of the 'new energy industry chain,' which has the strongest market consensus on buying, and its corresponding leading stocks." (End of Chapter)