Rebirth of the Capital Legend

"Hey, the 'Huawen Online' check is surprisingly strong." Noticing the unusual movement of 'Huawen Online' on the market, and the resulting movements in the film and television media, internet software, and internet applications sectors, Li Jinshi, one of the main speculators of the 'Fushan Group', was visibly surprised. "Is this a sign of unity? Amazing! It's even hitting the daily limit."

"It's no surprise that Huawen Online is selling well," Chen Guiyun said, hearing Li Jinshi's sentimental words. "As a popular stock hitting new highs, Huawen Online's upward pressure wasn't great to begin with. Furthermore, judging by the trends in major infrastructure projects and the new energy industry chain, we can see that investment sentiment and confidence across the market are generally recovering.

At a time when the overall market investment sentiment and confidence have generally recovered.

The film and television media, Internet software, and Internet application sectors, which are already at a low level, will naturally have funds to invest in them.

As long as the funds are used to make these lines...

Well, as the most recognizable check among these lines, "Chinese Online" cannot be avoided, and the market will inevitably hype this check.

Therefore, this check has been favored by various short-term capital groups within the market at this moment.

It is also within a reasonable range.

I think since the 'Huawen Online' stock has been hyped up again by various short-term investors in the market and has now sold out, this position is still a good buying point."

Having said that, Chen Guiyun didn't wait for others to react.

He immediately used his own trading account to place several consecutive large buy orders of tens of thousands of lots on the "Chinese Online" checkboard.

And after he quickly placed a massive buy order of 10,000 hands...

The stock price of 'Huawen Online' is soaring at an increasingly faster rate.

In less than two or three minutes, the stock was grabbed by a large number of followers and bought at the daily limit.

At the moment when the check hit the daily limit, before other groups of followers took too long to react, there were large orders from the main blocker, which continuously placed more than 10 main buy orders, completely blocking the stock price at the daily limit, and after the large orders blocked the board.

Less than a minute.

Its daily limit orders quickly increased from more than 100,000 lots to more than 300,000 lots.

"Hehe...you're right." Li Jinshi finally responded after the 'Huawen Online' stock hit the daily limit. He smiled and said, "Since market sentiment and confidence have rebounded, further confirming last Friday's reversal trend, then 'Huawen Online', having hit a new high and freed up all the previously trapped shares, is indeed a good buying opportunity. I just followed the 4-lot buy order at the daily limit, acquiring over 5000 million chips. I hope this stock won't let me down tomorrow and give me a guaranteed premium."

Chen Guiyun said: "Fuck, you guy, it turns out that you were the one who was blocked by the forum owner just now. You directly took out 5000 million funds, which is really amazing. I only took 3 hands."

"Once you see the right opportunity, you have to go all out," Li Jinshi said. "I've thought about what you said. Besides the major infrastructure stocks that have already hit their daily limit, there are also several popular leading stocks in the new energy industry chain. In the current market, only 'Huawen Online' has the highest short-term betting odds. And after hitting a new high, with market sentiment rebounding and short-term speculation heating up again, there's no reason it shouldn't continue to rise.

In fact, after I ignited the main seal...

I found that the market acceptance of this check is really good, and the on-site funds have a high degree of recognition for this check.

Given the fact that the stock has once again turned its divergence into a consensus today, it's highly likely that it will see a good premium tomorrow, and it's not impossible for it to continue its daily limit rise, a second wave of consecutive limit-up activity. Anyway, since the stock has reached a new high today, the risk of a follow-up is not great."

"Yes, I think so too," Chen Guiyun said. "Moreover, it's obvious that the 'Huawen Online' check still has a driving effect on the entire film and television media, internet software, and internet application sectors. This can be seen from the fact that after the 'Huawen Online' check hit the daily limit, various capital groups within the market clearly concentrated their speculation on the film and television media, internet software, and internet application sectors.

And as long as the driving force still exists.

The market also recognizes that "Huawen Online" is the core leader of the entire "emerging industrial chain" main line, and its popularity and discussion heat will continue to remain high.

Then, there will be no shortage of follow-up buying for this stock.”

"Haha...that's true," Li Jinshi laughed. "Look at 'Huawen Media', 'Yue Media', 'Netspeed Technology', 'Maruda Films', 'LeTV', 'Quantong Education'...a large number of these stocks have already been driven up. I feel like the 'emerging industry chain' sector in the market today, while not performing very well at the beginning of the session, has actually become much lighter than the major heavyweight sectors on the main board after clearing out the numerous profit-taking positions from last Friday. There's momentum for continued upward breakthroughs and a foundation for continued strength in the subsequent trading hours."

"We can profitably arbitrage these two stocks, 'Huawen Media' and 'Yue Media,'" Liao Guoxiang said at this time. "As long as 'Huawen Online' holds its stock, the prices of these two stocks will rise, and there will definitely be capital to speculate on them."

"These two stocks are indeed following the trend of 'Huawen Online,'" Chen Guiyun said. "But I feel like their momentum isn't very strong. If there's any sign of trouble with 'Huawen Online,' these two stocks will likely react. I don't like buying trend-following stocks; it's more worry-free to buy leading stocks. Did Brother Liao just ignite these two stocks?"

Liao Guoxiang chuckled and said, "I bought some shares of these two stocks, but my main position is still concentrated in 'Lixun Precision'."

"The performance of Lixun Precision's check today is indeed not bad," Chen Guiyun nodded and said, "It's outperforming the market, and it seems to be getting stronger."

"Apple stocks shouldn't be doing too badly before this month's Apple event, right?" Li Jinshi said. "I have a feeling this Apple event will deliver some unexpected results. However, compared to the relatively oversold main sectors like film and television media, internet software, and internet applications, Apple stocks don't seem to have as much investor support and room for flexibility. However, their advantage is stable expectations. As long as the event doesn't take place, market funds will likely continue to hype this sector."

"Yes, that's right," Chen Guiyun said. "Also, it seems that the 'Apple concept' branch line and the 'new energy industry chain' line have a certain linkage. Judging from the previous trend of the 'new energy industry chain' line, it will affect the Apple industry chain line."

Liao Guoxiang said, "Previously, the linkage was closer. However, with the release of favorable policies and the fundamental reversal in the 'new energy industry chain,' the linkage between this line and the Apple industry chain is not as strong. The logic behind the 'Apple industry chain' now is fundamentally based on this month's Apple new product launch and the expected recovery of the smartphone industry chain's fundamentals." Li Jinshi said, "The certainty of the Apple industry chain's expectations is good, but currently, it doesn't seem to be the market's core focus or mainstream theme. Looking at the market's strength, although there has been continuous speculation, the heat and upside potential are not as great as the major infrastructure theme, the new energy industry chain theme, or the relatively oversold film and television media, internet software, and internet applications themes. I think that if we can focus on the core leading themes, we should prioritize those."

"That's true," Liao Guoxiang said. "But everything still depends on price/performance. If you don't have a good entry point, it's better to buy something with high certainty. The 'Apple industry chain' line, although compared with the main line of large-scale infrastructure and the new energy industry chain, and the film and television media, Internet software, and Internet applications that you just mentioned, the market performance is not strong enough, but compared with the core main line sectors in the main board direction, it still has a relatively high price/performance ratio. Moreover... if the subsequent Apple press conference exceeds expectations and the smartphone shipment data in the third quarter does rebound, verifying the relevant logic, then the elastic space of this line will be very large.

At that time, there will naturally be many major institutional capital groups coming in to grab shares and make arrangements.

There is also the check for 'Lixun Precision', which is excellent in all aspects. Even if it encounters extreme market fluctuations, I don't think it will fall much.

In terms of future expectations...

In fact, the "smartphone industry chain", which is relatively less optimistic at present, may cause a fundamental reversal in the current main field of the "new energy industry chain". Moreover, the "smartphone industry chain" is also the core driving force for the main line of the "emerging industry chain" in the entire market, especially the film and television media, Internet software, and Internet applications.

The decline is limited, the rise is unlimited.

At the same time, market expectations and certainty are increasing, and the number of capital groups flowing into the market is also increasing.

So, I don't think there's anything wrong with finding the right time to invest heavily and hold on. I think Lixun Precision has the potential to become the next Oriental Yuhong, and the probability is quite high. Of course, for Oriental Yuhong to achieve this kind of trend, it will take a gust of wind."

"Old Liao, it seems your current investment style is a bit different from before," Chen Guiyun said. "You rarely invested in mid-cap stocks like this before."

Liao Guoxiang chuckled and said, "As the size of funds grows, trading strategies must also change. I've studied the trading strategies and current trading styles of the 'Fuxing Road' fund in the market, and I feel that a shift in this direction seems to be a good path for the future.

Besides, didn’t you notice?

Although the market speculation on small and medium-sized stocks has been continuing recently.

However, from a long-term perspective, the performance of these small and medium-sized concept stocks in the market in the medium and long term is obviously far behind that of high-performing growth stocks and a number of heavyweight leaders in the main board direction.

I think the situation in the past where all kinds of market funds concentrated on speculating on small and poor-performing stocks is most likely gone forever.

Subsequent market pricing power...

If it has always been in the hands of a large number of major capital institutions in the market.

So, I think there is a high probability that the future market investment style and hype style will be more inclined towards high-performance growth stocks and industry-leading stocks with sufficiently high certainty.

It is said that our A-share market is under special circumstances among market participants.

It is a long-term pendulum effect.

I think this long-term pendulum effect not only refers to fluctuations in market sentiment, but may also refer to changes in the market's main investment style.

In the previous bull market, the market was heavily speculating on small, medium and micro-cap concept stocks.

It is very likely that the market conditions will recover in the future.

The overall hype style of the market will become another extreme.

In fact, this can be clearly seen from the fact that in the past six months, a number of small and medium-sized and micro-cap stocks in the market have generally underperformed the market's large-cap stocks and high-performance growth stocks. However, in recent trading days, various short-term capital groups in the market have continued to be active.

The fact that a large number of hot concept stocks have been created, such as 'Huaxin Cement', 'Huawen Online', 'Huawen Media', 'Quantong Education', 'Tianshan Cement', 'Beijiang Communications Construction', etc., has made everyone temporarily ignore this point, but I think the overall investment trend of the market has not changed.

Look at the current trends of the major capital groups in the market.

You think the more flexible sectors include film and television media, Internet software, and Internet applications, as well as many related small and medium-sized and micro-cap concept sectors.

We are still unable to attract the main capital groups and institutions in the market to participate.

Since institutions have never been able to participate, the chip structure in the market has been unable to truly settle.

If the chip structure cannot be settled, then the so-called sustainable market trend is likely to be empty talk and fantasy, like a castle in the air, which is difficult to become a reality!

"Old Liao, I admit there's some truth to what you said." After listening to Liao Guoxiang's analysis and pondering for a while, Li Jinshi said, "However, we're speculative capital, not institutional investors. We can't just buy and sell quickly. When it comes to fundamental research and industry trend analysis, we're no match for the major institutional investors in the market. So… it's better to play to our strengths and avoid our weaknesses, focusing solely on short-term trading. Personally, I think market visibility is more important than so-called fundamentals. Playing the game on the leading stocks of core concepts with the highest market visibility is much more satisfying and volatile than slowly holding onto low-volatility heavyweight leading stocks or so-called high-performing growth stocks." (End of Chapter)