Rebirth of the Capital Legend

Following the heated discussions among several core investors in the "Magic City Ultra-Short Gang" main speculator group, after the concentrated feedback of emotions during the lunch break was completed on the market trading board, the trends of major market indices and a number of popular concept stocks have slowed down again.

The Shanghai Composite Index fell slightly and was once again suppressed below 3100 points.

Although the growth of the Shenzhen Index and the ChiNext Index is significantly stronger than that of the Shanghai Index, it is not much stronger.

The CSI 500 Index and the QS 1000 Index followed the trend of the Shanghai Composite Index and fell slightly.

In addition to the index, the performance of major popular main lines...

The sectors related to the main line of major infrastructure, such as real estate, building decoration, building materials, nonferrous metals, steel, coal, etc., are still significantly stronger than the index performance, but the intraday volume performance on the market has not made any further progress, and has always maintained a sideways and fluctuating pattern, without showing a more active and proactive upward trend.

The new energy industry chain is still at an intraday high.

The corresponding popular stocks continue to hit the daily limit and have not shown any signs of increasing volume. The trend of funds on this line is still relatively consistent at present, and the divergence that everyone expected has not arrived.

The smartphone industry chain has seen relatively large volume, becoming the main area of ​​concentrated attack by multiple active capital groups in the market. Among them, related popular stocks such as Lixun Precision, Changying Precision, Goertek, and OFILM all showed obvious signs of large volume increases.

Among the main lines of the emerging industrial chain, there are film and television media, Internet software, and Internet applications.

The corresponding concept sector index, after a concentrated surge in the first few minutes of the afternoon opening, is now generally showing a downward trend.

Among them, the corresponding hot stocks.

The stock price of Huawen Online still hit the daily limit, while the stock price of Baofeng Technology, which has attracted soaring attention, rose briefly for a while and then returned to a state of sideways fluctuation at a high level. It was unable to hit the daily limit in one go, nor was it able to further gather popularity.

The main board sectors include liquor, white goods, medicine, consumption, electricity, finance, etc.

It continues to maintain a sideways trend with shrinking volume. There is no particularly outstanding performance, but there is no obvious loss effect either.

A lot of early holding funds are continuously selling these main-line stocks.

But at the same time, there are also many major institutional capital groups that continue to increase their holdings in this direction.

As this market trend continued, at 1:21 p.m., among the main speculators of the "Magic City Ultra-Short Gang", Xu Qiao looked at the stock "Changying Precision". After the volume was fully fed back, no one came to ignite the price to close the board. He couldn't help but chuckle, and directly and decisively increased his holdings and bought more than 3000 million yuan in his account directly and violently poured it onto the Changying Precision market.

When he placed consecutive large buy orders of tens of thousands of hands.

When several consecutive super large orders of tens of thousands of shares swept across the selling orders above the market, they appeared on the Changying Precision market.

Almost instantly.

The stock price of Changying Precision rose straight up, breaking through all the barriers and reaching the daily limit.

"Holy crap, was it you who just started the fire, Xiao Xu?" Old Zhang exclaimed, noticing the sudden limit-up trend of Changying Precision's stock. "Amazing! That fire was lit perfectly, just at the right time. From the looks of it, there's no doubt that Changying Precision's stock will hit the limit-up."

"Let me give you a hand." Old Wu said with a smile.

As he said that, Old Wu brazenly spent 1000 million yuan to assist in closing the game.

Under the combined efforts of the 1000 million yuan buying order initiated by Lao Wu and a large number of other follow-up buying funds that instantly gathered in droves.

At 1:23, Changying Precision completely hit the daily limit, with the daily limit orders reaching 29 lots.

After Changying Precision's strong limit-up, all concept stocks in the entire smartphone industry chain, as well as the entire Apple industry chain, all experienced unusual movements. Lixun Precision surged in volume, while OFILM Technology, Goertek, and Xinwei Communication also saw their volume surge.

In an instant, a large number of active funds in the market gathered rapidly.

There is also a huge group of short-term market followers who are also frantically buying shares.

At the same time, when Changying Precision hit the daily limit, it led the main line of the smartphone industry chain to achieve a certain profit effect.

The corresponding...

However, the price of Storm Technology's check plummeted rapidly.

Furthermore, the film and television media, internet software, and internet application sectors also experienced a synchronized plunge. "It seems that all the various capital groups in the market have chosen the 'smartphone industry chain' as their unified force." Noticing the obvious weakening of the film and television media, internet software, and internet application sectors, and the bleeding of many related popular stocks, Zhao Zhiyuan, a member of the "Shandong Gang" of major speculative investors, who had originally planned to buy back "Baofeng Technology" stock, sighed and had to abandon his previous trading idea. "Sure enough, expectations are just expectations; the reality depends on the specific direction of market forces and the actual market trend. It's obvious that 'Baofeng Technology' has been blocked by other stocks again, and it's highly unlikely that it will recover today."

"Yes," Zhang Wei replied, "It's obviously been blocked by the check from Changying Precision."

"Changying Precision's investment is impressive," Zhao Zhiyuan said. "It's really brought out the smartphone industry chain. In the subsequent market trends, a large number of investors in the market will likely focus on this sector. It seems that for many speculative investors right now, certainty of expectations is more important. Baofeng Technology's fundamentals are still too poor, and no one is willing to take the lead."

"Indeed." Zhang Wei nodded in response. "The overall market trend seems to be clearly leaning towards performance-oriented stocks."

"Not necessarily," Liang Jiucheng said. "If it were focused on performance-focused stocks, then the current performance of major sectors like liquor, white goods, pharmaceuticals, consumer goods, electricity, and finance wouldn't be so weak. I think it's all driven by expectations. Baofeng Technology's stock, aside from the trend-following sentiment, doesn't really have any clear expectations. Changying Precision, on the other hand, is clearly driven by strong expectations for future performance after entering the Apple supply chain. There's a clear gap between the two in terms of underlying logic and expectations."

"Then how do you explain this check from Huawen Online?" Zhao Zhiyuan said.

Liang Jiucheng responded, "The Huawen Online check is naturally driven by sentiment, but market sentiment generally only supports one or two core stocks. Relatively speaking, small and medium-sized stocks with underlying logic and clear performance expectations are more favored by various fund groups in the market."

"Now that Baofeng Technology's stock has been locked in, there's less need for further attention, right?" Zhang Wei said. "Since the market has chosen the smartphone industry chain as the primary path for a breakthrough, we should focus on its direction. Regarding Lixun Precision, I think it's worth increasing our long position."

"Yes, I've already placed an order," Zhao Zhiyuan said. "It seems that Lixun Precision has indeed become the core leader in the entire smartphone industry chain."

"It seems that within the main emerging industry chain, across the entire film and television media, internet software, and internet application sectors, only Huawen Online has performed well. If other stocks don't follow suit, I'm afraid the emerging industry chain won't reach new heights," said Zhang Wei. "Once this line doesn't reach new heights, the market trend of favoring small, medium-sized, and micro-cap stocks will be unlikely to materialize."

"It's not just the Huawen Online check, right?" Zhao Zhiyuan said. "Isn't Huace Film & TV's stock really strong today? There are also several gaming-focused stocks in the internet software sector that are performing quite strongly. For example, Xunyou Technology's stock is clearly trending well."

"But overall, there's still no obvious sector effect." Zhang Wei said, "It feels like the priority of the emerging industrial chain in the minds of major capital groups in the market has obviously decreased compared to before. Next... it depends on how high the Huawen Online stock can eventually reach. If Huawen Online can hit a high space far higher than everyone's psychological expectations, similar to reaching a space height three to five times higher, then, driven by this check, the emerging industrial chain line is likely to have hope of recovery. If this wave of three or four consecutive daily limit increases ends directly, then I'm afraid it will be really difficult for the emerging industrial chain line to continue to strengthen.

After all, if the trends of a number of core leading stocks in the new energy industry chain diverge in the future.

It will also siphon off many active capital groups within the market, as well as other major institutional investment groups.

By then, the funds that can flow into other core market lines such as the emerging industrial chain main line, the smartphone industrial chain main line, and the large infrastructure main line... will definitely be less and less than now.

Of course, if the off-market capital group in the market shows signs of continued increase in entry.

The market's volume performance can continue to increase.

So, under the premise of continued growth in volume and with the support of incremental funds, the market trend may be better.”

"Let's take it one step at a time," Liang Jiucheng said, taking over. "As for the current market volume, although there are some signs of continued involvement from the OTC fund group, this increased volume is still unable to support the continued upward trend of the entire market. It is also difficult to support the divergence and deepening of multiple market main lines at the same time. Therefore... expectations in this regard cannot be too high. I think the divergence of the various main market lines is likely to be inevitable in the subsequent market development.

Since the market trends are differentiated, the rotation of the main lines is likely to be inevitable.

Then, there is no need to always focus on one main line of the market to make transactions.

Just follow whichever main trend is strong. In short-term trading, while you can't be completely driven by emotions, you still need to pay attention to the direction of emotional development. Since you know that the major main trends in the market are likely to rotate, there's no need to chase high prices too much. If you miss an opportunity, just wait patiently for the next one to come."

"Old Liang is right," Zhao Zhiyuan nodded. "Although market sentiment has improved significantly recently, and the loss effect isn't as pronounced, there's still a clear risk of losing money if you rashly chase high prices. Furthermore, it seems... today's market is not very proactive. It seems the short-term profit-taking accumulated last Friday is too strong, leading to excessive selling pressure. With this level of market volume, it's difficult for the market to continue its strong momentum."

"Yeah, I feel the same way," Zhang Wei said. "It seems that there's still a long way to go before the index breaks through 3100 points and starts to rise. I feel like the time for the market to break out upwards is still not ripe. We have to wait patiently."

"Let's wait. Isn't 90% of market trading just about waiting?" Liang Jiucheng said with a smile. "Anyway, before the Shanghai Composite Index completely breaks through 3100 points, I will only trade halfway and not fully. At this point, although the K-line trend has reversed after last Friday's bottoming out and the temporary downside risk is not great, the risk of a pullback after chasing highs is still quite severe."

"For the time being, let's focus on the 'smartphone industry chain'," Zhao Zhiyuan said. "There are no other buying opportunities today. The major infrastructure and new energy industry chains have already fully reflected their expectations. I estimate that these two lines will diverge during the early trading session tomorrow, and a clear buying opportunity will emerge."

"Within the smartphone industry chain, it feels like there aren't many buying opportunities now, right? After Changying Precision's limit-up, there are only small opportunities for arbitrage, not large ones for speculation. After all, all stocks that should have hit their limit have already done so, and those that haven't, without strong expectations driving the market, are unlikely to see any strong performance in the afternoon, given the shrinking market volume."

"I agree with this," Liang Jiucheng nodded and said, "Many hot stocks in the market right now have already reflected market expectations. At the same time, there haven't been any other major news releases. Under these circumstances, it's difficult for the market's overall direction and core trends to change. So... it might be better to wait and see, save some funds, and wait for better opportunities when tomorrow's market opens."

After Liang Jiuchen said this, the other two nodded and expressed their deep agreement.

Of course, they are not the only two who think so.

At this moment in the trading market, many other speculative funds and short-term trading groups also harbored similar thoughts. (End of Chapter)