Rebirth of the Capital Legend

"Film and television media, internet software, and internet applications are indeed not the hottest sectors in the market right now," Zhang Wei said. "However, looking at the market trends this morning, after the market volume stabilized, especially after 10:30 a.m., there was a clear trend of active investors concentrating on speculating in small and medium-sized stocks. I believe that as long as active investors continue to concentrate on these stocks, I think the market will continue to focus on these stocks."

So, the short-term ecology of the market will be affected when the overall market investment sentiment and investment confidence recover.

There is no problem at all.

We cannot directly compare the trend strength of these lines with the main lines of "big infrastructure" and "new energy industry chain" in the core hot areas of the market.

Instead, we need to see how strong these lines were before and how strong they are now.

Judging from the early morning trend...

Obviously, today's market hotspots are not on the main lines of "emerging industrial chains" such as film and television media, Internet software, Internet applications, electronic information, etc.

However, after the market officially opened, these major main lines, while the overall market sentiment was not bad, showed a clear recovery and rebound trend. This shows that these lines actually have a large number of capital groups entering the market to buy at the bottom, and they are still the main areas worth gambling on.

At least I think that compared with the current "big infrastructure" main line, there is also the "new energy industry chain" main line.

The overall trend of the market sub-sectors led by film and television media, Internet software, and Internet applications is still stronger than the market index performance, and their relatively low positions have strong gaming value.

The two lines of 'big infrastructure' and 'new energy industry chain' do have strong market trends.

However, the positions of the industry-leading stocks within these two lines, as well as the leading stocks of related popular concepts, are also not low.

Look at the check for 'Oriental Yuhong', it has risen by nearly 130% from the bottom.

Given this increase, it is still difficult to say how much room there will be for further speculation and how high the performance will be.

Let’s look at ‘Huaxin Cement’, ‘Beijiang Communications Construction’, ‘Tianshan Cement’... these relatively popular concept stocks are basically in very high positions at present.

Not to mention the 'new energy industry chain' line.

Currently, many leading stocks in the "new energy industry chain," as well as stocks with hot concepts, are largely continuing their trend from last Friday, hitting their daily limit. In this situation, how can one buy and speculate? Looking at the entire market, there's actually room for speculation, with relatively favorable market positions, in the main "emerging industry chain" sector, led by film and television media, internet software, and internet applications, and the main "smartphone industry chain."

The main line of the "smartphone industry chain" is due to its size.

Except for a few stocks, there is a high probability that they will develop independent trends.

It is still difficult for other stocks to attract strong attention from the short-term market capital groups. In other words, it is difficult for this line to form a certain sustained sector effect under the current situation.

So, in the case that the "smartphone industry chain" line cannot form a sector effect for the time being.

The main areas where the short-term capital groups in the market can concentrate on trading and are willing to concentrate on gambling are basically the "emerging industrial chain" mainly composed of film and television media, Internet software, and Internet applications.

In fact, according to the market trend...

A large number of short-term capital groups in the market are also following this logic."

"But the major main and branch lines of the market are developing like this..." Zhao Zhiyuan paused and said, "If the market volume does not increase further, it will be difficult to support the simultaneous development of several main lines. I feel that once the market volume can no longer be maintained,

Then, the trends of these current popular market main sectors are bound to further diverge.

Looking at the current market's major core sectors, it's clear that the "emerging industry chain" sectors, led by film and television media, internet software, and internet applications, are essentially the weakest. If market volume can't keep up, will the market experience a period of weakening and diverging, with this core sector and its related concept sectors lagging behind the majority?
not to mention……

The main sectors of the "emerging industrial chain" are film and television media, Internet software, and Internet applications.

At the current time, the underlying logic of its fundamentals is far inferior to that of the main lines of "large-scale infrastructure" and the "new energy industry chain." Without the support of underlying logic, it is probably difficult to continuously form a synergistic force of funds and maintain a sustainable trend.

"The underlying logic is indeed somewhat lacking," Zhang Wei said. "Otherwise, would the entire 'emerging industry chain,' headed by film and television media, internet software, and internet applications, be so low in its current position? This is all relative. Where the underlying logic is strong, the position is relatively high, and there is little room for maneuvering. Where the underlying logic is slightly weaker, the position is relatively low, and market expectations are generally low, so there is naturally more room for maneuvering."

"Let's follow the market trends and make our own decisions," Liang Jiucheng interjected. "We should follow market trends and not let our own minds fantasize about the actual market trends. It's true that the film and television media, internet software, internet applications, and other sub-sectors, as well as the entire 'emerging industry chain', are weaker than the overall market. However, it's also true that they offer a certain level of value for money. At least for 'Huawen Online' and 'Huace Film and Television', their market recognition is sufficient today and they're fully capable of carrying the torch. As for other stocks... the relative certainty is lower."

"I think the check from 'Chinese Media' won't come out," Zhao Zhiyuan said.

Liang Jiucheng nodded and responded, "I don't think I can get out of this. This check has obviously been reserved by Huace Film and Television."

"Actually, to be honest, the 'smartphone supply chain' is actually quite promising." Zhang Wei paused for a moment, then added, "With the anticipated Apple product launch in late September, coupled with the recovery in smartphone sales this year, it feels like the future potential of the 'smartphone supply chain' is no weaker than the 'major infrastructure' and 'new energy supply chain' lines."

Especially the stocks including 'Lixun Precision', 'Goertek', 'Ofilm Technology', 'Changying Precision'...

Looking at the performance of these stocks in recent trading days, they are far stronger than the market index.

Moreover, this line seems to have received a lot of institutional attention. For example, the net buying funds of the main institutions in the market for the check "Lixun Precision" basically rank among the top stocks in the two markets.

This line compares the main line of 'big infrastructure' and the main line of 'new energy industry chain'.

Relatively speaking, the market attention and popularity are relatively small.

However, I believe that with the added factors of Apple's new product launch and the expectation of a future recovery in smartphone sales, this line has considerable potential for future growth.

Although Apple is not as popular now as it was when the 4S was released.

However, global attention remains high, and the potential demand in the global smartphone market is still substantial. I believe the Apple supply chain is a promising long-term investment.

Moreover, since there is not much discussion about this line in the market and it is not very popular, people tend to have strong expectations about the future trend of this line.

Given this expectation gap, there is a high probability that the stock price will outperform expectations."

"The smartphone industry chain is indeed quite good," Liang Jiucheng said. "It's just that the market caps of a few popular core stocks are relatively large. In addition, these stocks were hyped during the last bull market, and their current relative positions are not low. Stocks like Lixun Precision, Goertek, and OFI Technology are still halfway up the mountain.

Compared with other small, medium and micro-cap stocks in the entire market that have fallen through.

The share prices of these popular leading stocks in the main line of Apple's industrial chain are at this level. This is the final result after the market has anticipated their excellent performance and some expected performance of Apple's new product launch conference in the second half of the month.

Following this logic...

I feel that as the time for Apple's new product launch conference approaches.

It is highly likely that the stocks in the main line of the entire Apple industry chain will not continue to attack upward, but will very likely move in the direction of fulfilling expectations.

If the expectations are fulfilled, its stock price will probably not have a brilliant performance in the near future.

In addition, the market enthusiasm and discussion are not high, and it is difficult for a large amount of funds to continue to gather on the main line of large-scale infrastructure and the main line of the new energy industry chain.

A large amount of it is concentrated on the 'Apple industry chain' line.

I think that in the current market performance, if we value certainty, it would be more appropriate to focus on the main line of "big infrastructure" and the main line of "new energy industry chain".

If you want to take advantage of the expected gap and flexibility, you can certainly bet on the core hot stocks in related sectors such as film and television media, internet software, and internet applications. However, no matter which line you choose, it is not a good idea to intervene when the market trend in the morning has fully reflected it.

"That's true," Zhang Wei nodded slightly and said, "This morning's market trends have fully reflected all the major trends. If you want to intervene in the afternoon, you either have to chase the highs or bet on divergences. Divergent trends often represent uncertainty, so the afternoon market should be more difficult to trade."

"Yeah, I think so too." Zhao Zhiyuan nodded and continued, "As for the 'big infrastructure' and 'new energy industry chain' lines, it's obvious that the morning's trends have already fully reflected them. There's basically not much difference in expectations, and there are no suitable stocks to intervene in. These two lines are not easy to buy in the afternoon. As for the 'Apple industry chain' line, as Lao Liang just said, the value-to-risk ratio is not high enough, and it's difficult to attract the unanimous attention of the main capital groups in the market. As for the rest, basically, we can only choose target stocks in the main line of 'emerging industry chains' in related sectors such as film and television media, Internet software, and Internet applications, and make corresponding transactions.

And in the line of 'emerging industrial chain'.

The sector that can be considered strong at present and has formed a certain degree of capital following and gathering effect is basically the branch of film and television media. Among the core target stocks, "Huawen Online" and "Huace Film and Television" have hit the daily limit early, and large orders have blocked the daily limit. There is definitely no good opportunity to intervene. Even if you place an order now, it is estimated that there will be little chance to buy before the closing.

The remaining stocks that are worth noting are "Chinese Media", "Guangdong Media" and "Baofeng Technology".

The check for 'Huawen Media' was blocked by the check for 'Huace Film & TV' in the morning, and it is estimated that it will be difficult to move forward in the afternoon.

Although the check of "Guangdong Media" showed a strong counter-trend in the morning and was pulled up from the limit down board.

However, its market strength is not even as strong as that of 'Chinese Media', let alone its ability to strengthen independently and be compared with the two stocks 'Chinese Online' and 'Huace Film and Television'.

Then, the only thing left is the check from "Storm Technology".

Although the fundamentals of "Baofeng Technology" are very bad and the entire company actually has no great value, the story it tells is good.

Moreover, the stock price is really low compared to the height of the previous bull market.

Compared with the height of the last bull market, it has fallen by 90%.

In this case, the core concentrated trapped shares are gathered relatively far away, and the internal near-term chip structure is relatively dispersed. There is not much pressure within the 30% space in the short term. In this situation, as long as the funds are willing to trade, the probability of a sustained strong rebound is still very high.

Judging from the market trend of this check this morning...

It is obvious that there is capital in the market to make this check, and the amount of buying funds that actively intervened today is not small.

It was only because of the overall correction of the entire market index at the end of the noon trading session that the check was ultimately unable to block the daily limit under the main attack of a large number of follow-up funds, resulting in a situation of a board explosion.

However, considering the current K-line pattern of this check and the initiative of funds in trading.

I think there is a high probability that the disagreement will turn into consensus for this check this afternoon. If the disagreement can turn into consensus, then this check will have a relatively certain premium tomorrow, and it is likely to quickly gather the market's heat and discussion topic heat, and become one of the market's hottest stocks.

After all, this check created a myth of consecutive gains in the last bull market.

This check has always been very popular and hotly discussed in the current market.

If the stock can hit the daily limit with strong volume, it is likely to quickly attract the attention of some retail investors and other short-term speculative capital groups in the market.

In this way, under the pressure from above which was not too heavy to begin with.

Naturally, there is great hope of breaking the trend of consecutive gains.

So, comprehensively speaking, if we want to focus on the 'emerging industry chain' as the main line and the film and television media as the branch line, at the current time point, 'Baofeng Technology' is undoubtedly a good choice."

"Yes, I agree with that point." Zhang Wei nodded and continued, "In the morning trading session, Baofeng Technology saw a significant increase in trading volume compared to the same period last year, and the net inflow of large funds was also among the highest in the market. I feel that the short-term trapped shares above this stock have loosened, and it is indeed possible to make a move from divergence to consensus." (End of Chapter)