Rebirth of the Capital Legend

"During the morning market trend, the volume of this check was indeed quite good." Liang Jiucheng took over and said, "But whether it can return to the upper limit will depend on the afternoon market trend, the performance of the index, and the performance of the film and television media sub-sector.

In terms of market index performance, the trading volume stabilized in the morning.

However, the plunge near noon still had a great impact on market sentiment and the confidence of investors in the market.

I think the market trend in the afternoon will probably fluctuate.

As for the buying point for Baofeng Technology, I believe the only sure-fire buy point this afternoon is the moment the stock hits its daily limit. Other opportunities to buy are less certain.

"Yes, I agree with Lao Liang," Zhang Wei nodded in response. "The so-called divergence turning into consensus means that the market has to go from a state of volatile divergence to a consensus of limit-up. That's when it becomes a definitive buying point. Before Baofeng Technology hits its limit-up, there's no definitive buying point."

"However, judging by the market turnover rate this morning..." Zhao Zhiyuan said, "With such a high market turnover, if some capital took the initiative this afternoon, it would have been able to quickly reach the limit, right? After all, after the intense turnover this morning, the potential selling pressure on the market and the accumulated selling pressure at the limit are no longer very strong. Originally, this check...if the market index and major sectors hadn't shown a clear sell-off and decline near the closing time at noon, this check would have hit the limit long ago."

"In theory, that's true," Liang Jiucheng said. "However, as far as our trading itself is concerned, we still have to look at the specific market trends and then make a final decision."

"That's true." Zhao Zhiyuan pondered for a moment and continued, "We'll have to wait and see how the market reacts after it reopens, as well as the performance of Baofeng Technology. Regardless, considering the current market trends and the corresponding hot concept stocks, Baofeng Technology will undoubtedly take a high priority position in this afternoon's market as a target for future capital."

"I completely agree with that," Zhang Wei said with a smile. "Logically speaking, there's a high probability that Baofeng Technology's stock will hit the daily limit this afternoon. As for whether it can break through, that depends on the market's true reaction. However, we can't influence the so-called true market reaction. All we can do is make a logical judgment and wait for the logic to be verified."

Following the heated discussion among several core main speculators in the "Qilu Gang" main speculator group.

At this moment, on all major stock investment exchange platforms across the Internet, countless retail investor groups are also having very heated discussions. There are great differences of opinion on the major core trends of the market in the morning, as well as the trends of a number of popular concept stocks with relatively high market recognition.

"Why did the market suddenly plunge near the midday close when the trend was good?"

"It feels like potential buying, but it can't push the market up, right?"

"Isn't it due to excessive profit-taking? With the market trend last Friday, many short-term traders who entered the market on Friday saw profits exceeding 10%. With such a large profit margin, few short-term traders would be able to continue to hold onto their positions, right?"

"That's true, but looking at the market trends this morning, it's clear the intensity isn't very high."

"Yes, it feels like the market still hasn't gotten rid of the volatile pattern and can't form a unilateral upward breakthrough trend. The Shanghai Composite Index is at 3100 points and hasn't been able to hold steady."

"Don't look at the Shanghai Composite Index anymore. It seems a bit distorted now."

"I can't help but look at this, right? The market's plunge near noon today was because the Shanghai Composite Index fell below 3100 points. The market was worried it would fall back into its previous range, so it hesitated to push it up aggressively, leading to a rapid decline in buying power. I feel that if the market wants to break free of its previous range and continue its upward trajectory, the Shanghai Composite Index must gradually rise, actively forming a breakout trend. Only then will this be possible."

"Yes, although the Shanghai Composite Index's performance is somewhat distorted, if the entire market wants to continue to break upward, it really cannot do without the Shanghai Composite Index's assistance."

"I feel like the main line is still the weight, isn't it a bit of a drag?"

"It's not really a drag. In fact, after the overall market investment sentiment and confidence have recovered, the group of funds that are aggressively manipulating the market will inevitably converge on the small and medium-sized, micro-cap concept stocks, and a number of concept theme sectors. When the market is risk-averse, most funds will flock to the main stocks with heavyweights. When the market risk aversion decreases, most funds will naturally choose concept stocks with higher market elasticity for speculation. This is the inevitable development law of the market, so I think this change should be normal. I think the main reason for the market plunge at the close of today's midday market is the excessive profit-taking in the market."

"The two core themes of 'big infrastructure' and 'new energy industry chain' are not a big problem, but the other sub-themes of the market are performing somewhat below expectations."

"The 'smartphone industry chain' line should be okay, right?"

"Well, it seems like the 'Lixun Precision' check is really going strong."

"The performance of the Lixun Precision stock is indeed good, but I think the Changying Precision stock is better. It has more room for flexibility and the concept is also very pure."

"Both are good. In fact, the trends of the two stocks are highly correlated. I feel that as long as you are investing in the 'smartphone industry chain', there is not much difference no matter which of these two stocks you buy."

"That's true, but I think given the current market trends, the 'emerging industrial chain', dominated by film and television media, internet software, and internet applications... has more potential and room for flexibility. Looking at the recent speculation by many short-term capital groups in the market, it seems that many short-term capital groups in the market are also quite fond of speculating on this main line."

"This main line is located at a very low position. If short-term funds switch between high and low, this line is indeed unavoidable."

"As a follow-up investment, this line is indeed good, but in terms of growth, it is obviously not as good as the main line of 'big infrastructure' and the line of 'new energy industry chain'."

"Isn't that nonsense? The logic behind the two is actually different."

“It’s not just the logic that’s different, but the capital composition of the main groups of funds guiding these main lines is also completely different.”

"Yes, the main sectors of the 'emerging industrial chain', such as 'film and television media,' 'internet software,' and 'internet applications', are primarily driven by short-term investors actively manipulating sentiment and thus driving speculation. Meanwhile, the concept sectors within the 'major infrastructure' and 'new energy industry chains,' along with their corresponding popular stocks and leading industry stocks, are essentially being hyped by institutional investors with a certain long-term investment mindset. The nature of the capital involved in the two sectors is completely different, so they cannot be compared."

"Yes, it's true that the main institutional investors are more involved in the 'new energy industry chain' and 'major infrastructure' sectors."

"Previously, there wasn't much institutional investment in the 'new energy industry chain' sector." "The situation before and the situation now is quite clear, isn't it? Before the national subsidy policy for next year was implemented, frankly, the 'new energy industry chain' sector didn't offer much investment value. At that time, many people believed that many stocks in this sector had already overdrawn long-term expectations. However, now that the national subsidy policy has been released, and next year's subsidies are not only not decreasing but actually increasing, it's obvious that the fundamentals of the 'new energy industry chain' sector have been further strengthened by the national subsidy policy. Since the fundamentals have undergone a huge change, future expectations have naturally also changed significantly. Therefore, it's understandable that a large number of institutional investors have intervened, engaging in speculative trading or rushing to acquire shares."

"Yes, compared to future expectations, given the dramatic changes in the fundamentals of the 'new energy industry chain,' many stocks in this sector are still quite undervalued. Otherwise...Huayi Capital, headed by President Su, wouldn't have rushed to buy stocks and build positions on such a large scale at the daily limit."

"Yes, that's true. However, while the 'new energy industry chain' line has strong certainty, the core leading stocks have basically been blocked at the daily limit by a large amount of funds rushing to buy. As a follow-up fund, there is no way to participate at all, and even if you want to buy, you can't. As for the remaining concept stocks in this line, they have no core underlying logic to support them, nor sufficient future expectations to support them. It is really difficult to buy them. How do you say it? It's better to buy the leading stocks at a higher price than to buy cheap follow-up stocks with no active trend."

"The 'new energy industry chain' trend today has diverged significantly from last Friday's. However, significant opportunities to enter some core leading stocks may not emerge until tomorrow. Comparatively, the 'major infrastructure' sector is performing much better."

"The performance of the core real estate, building decoration, and building materials sectors within the 'big infrastructure' sector isn't that different from the core sectors within the 'new energy industry chain' sector. The corresponding leading stocks are still a bit difficult to invest in. I was thinking of buying Oriental Yuhong this morning, but it opened so high that I hesitated and didn't dare to buy. I didn't expect it to remain so strong after already rising so much earlier. It's incredible... The title of the two market leaders isn't given for nothing!"

"Are you still hesitating about buying Oriental Yuhong? As long as Mr. Su's Fuxing Road stock is still around, you can just buy it blindly. Even if the current cost is too high, you can gradually reduce it through continuous T-trading. If you keep waiting... there will basically be no good entry opportunities. So-called good stocks usually don't offer very comfortable buying positions. Anyway, I bought Oriental Yuhong a while ago and have been holding on to it ever since. I've never thought of selling it, and now I've made almost 50% profit."

"Fuck, this is so awesome, he's already made 50% profit?"

"I've discovered that holding still feels better than moving around randomly."

"Yeah, it's true. It seems that frequent trading makes it difficult to make stable profits. Even if I make 20% on one trade, I'll lose it all on the next one."

"Yeah, that hits the nail on the head. It's really hard to make stable and continuous profits."

"Then buy core leading stocks and don't sell them easily."

"The key is the trend of core leading stocks. Generally speaking, they are extremely volatile. Under extreme volatility, it is usually impossible to hold on to them. For example, the recent trend of 'Huawen Online' last Thursday and Friday, who can hold on to the chips?"

"This check from 'Huawen Online' is truly outrageous."

"It has become a core monster stock in the market. I feel that this check has a high probability of continuing to break through the board in the future."

"Haha, I felt the same way. What a shame... I was a bit slow to react today. I didn't dare to buy into 'Huawen Online' when it saw its stock price rapidly rise after the initial wash-out."

"To be honest, although I can see that this check has a high probability of rising, it is still very difficult to continue to increase my position at this point."

"That's right. Often, people don't dare to buy core leading stocks, and the junk stocks they buy at low prices never rise."

"To overcome this mentality, I feel that when doing short-term trading, you can't be afraid of heights."

"When investing long-term, you can't be afraid of high prices. Just look at Oriental Yuhong. It's clearly the strongest core leading stock in the current market, and how many people have made money on it? It's just that it keeps rising, making it difficult to find an opportunity to buy. In fact, I think... for the market's true core leading stocks, don't worry about the cost disadvantage. Get in first. That's more important than anything else."

"Haha, that's the truth. I'm gradually changing my mindset towards this."

"It's easier said than done."

"Combining knowledge and action is inherently difficult, but if you want to achieve stable profits in the stock market and make money over the long term, you really have to overcome this."

"At present, the overall market trend is actually quite good."

"Yes, as to whether the market can ferment further, we have to wait and see the market trends in the afternoon."

"I think the market trend in the afternoon is likely to be fine. After all, the volume is there. As long as the volume is maintained, the market will not be too bad at all."

"I hope so. I still hope to make more profits by taking advantage of this market rebound."

"I think the Shanghai Composite Index needs to successfully cross 3100 points and break out of the platform before it can move forward. The current market trend has not yet escaped the pattern of a volatile platform."

Amidst the heated discussions among retail investors...

Soon, the midday break passed in a flash.

Amidst the attention of the public and the mixed market sentiments, at 1 p.m., the two markets ushered in the official afternoon trading session.

I saw it in the midst of many gazes.

The market had just opened, and several hotly debated stocks from the midday trading session instantly attracted the attention of a large influx of short-term investors, resulting in a sudden surge in their prices. (End of Chapter)