Rebirth of the Capital Legend

"That's a pretty good late-day trend." Noticing the Shanghai Composite Index's continued upward push after breaking through 3100 points, Li Jinshi, one of the main speculators from the Fushan Group, chuckled. "This is a normal trend. It should be a relentless upward breakthrough."

"The smartphone industry chain has really taken off, gaining recognition from a large number of market investors." Hearing Li Jinshi's sigh, Chen Guiyun responded, "This trend is truly remarkable. The Lixun Precision stock you heavily invested in, Lao Liao, has also fully emerged. It feels like all the major funds are increasing their holdings in this stock. It feels like this stock has become the leading force in the entire smartphone industry chain. I have to say, Lao Liao has some real talent for stock selection. He was bold enough to continue buying Oriental Yuhong at a new high, and he also boldly bet heavily on Lixun Precision, a stock that everyone previously didn't think much of. He's truly impressive."

Liao Guoxiang chuckled and said, "This is just a stroke of luck. Of course, it's also because today's market trend is already quite good. If the index hadn't improved, I think the smartphone industry chain would have been in trouble. Now... it's indeed showing an increasingly strong trend."

"It's mainly the core leading stocks in the main lines of large-scale infrastructure and the new energy industry chain. There are currently no buying opportunities. Otherwise... it seems that a large number of major capital groups in the market will still converge on the main lines of large-scale infrastructure and the new energy industry chain." Li Jinshi said, "But this is also a good thing. The more widely the main lines of the market are distributed, the stronger the profit effect will be. The stronger the profit effect of the market, the stronger the follow-up effect of the retail capital group will be. Correspondingly, the trading tolerance rate of the market will be higher, and the market will be easier to do."

Chen Guiyun nodded and said, "That's right. This late-day trend is clearly the result of a large group of off-market investors, as well as relatively low-position investors on the market, rushing to buy stocks based on their full anticipation of tomorrow's trend. But no matter what... this is a sign of the market gradually improving and the trend gradually emerging."

"That's right." Li Jinshi nodded and said, "The main trends of the market are actually quite clear now. The major infrastructure and new energy industry chains are the core leading the market, responsible for opening up the market's hype. Other main lines include the smartphone industry chain, the emerging industry chain, and the main weighted sectors of the main board, such as liquor, white goods, pharmaceuticals, consumer goods, electricity, and finance. These serve as the rotation and supplementary sectors of the major market lines."

"The levels are quite clear," Chen Guiyun said. "But it's still a bit hard to make a move. The core leading stocks I want to buy are either at high prices or have hit the daily limit. Other relatively cheaper stocks don't have the same level of certainty or conceptual purity, or lack the expected excitement. I always feel like I'm stuck between a rock and a hard place, so it's really hard to open a position."

"Unless someone takes the initiative," Li Jinshi said, "we'll have to wait and see what happens in tomorrow's call auction."

"Well, it's like this," Chen Guiyun said. "Regarding tomorrow's call auction trend, I feel like after a slight overdraft in the closing market, the expectations for tomorrow's call auction and opening trends aren't very high. If the market opens too high tomorrow, I estimate there will be a lot of money dumping into the market."

"That's for sure," Li Jinshi said. "The massive amount of short-term profit-taking that accumulated last Friday won't be digested so easily. I feel that even though the Shanghai Composite Index broke through 3100 points today, the probability of further upward acceleration is still low, mainly because the volume is not strong enough to support it."

"Yes, I think so too." Chen Guiyun nodded and said, "The market's volume hasn't increased significantly compared to last Friday. Given the current volume, it's likely to remain constant. Even if the index doesn't develop in the most optimistic direction, the core market trends are still performing very well.

Especially in the afternoon market trend.

The weighty sectors include liquor, white goods, medicine, consumption, electricity, finance, petrochemicals, and the core branch sector of the smartphone industry chain.

The trend is really good, and it has indeed produced a lot of profit-making effects on the market.

Speaking of the institution "Huayi Capital", it still has a lot of investment in the two main areas of liquor and consumption. From the long-term trend, it feels that the two main consumer sectors of liquor and white appliances are the core of the market since the end of the last bull market.

These two major sectors have continued to move upward without any pullback at all.

Although these two major sectors seem to have stopped growing on the surface, we are still quite optimistic about their expected future performance.

And judging from the direction and participation of large funds.

The two core sectors of the market, liquor and white goods, remain the most popular main-line sectors for a large number of institutional funds in the market."

"That's true," Liao Guoxiang said. "If we extend the market trend cycle to six months or a year, the liquor and white goods sectors are indeed the most certain and the most stable. However, the old problem remains. The gains of these two main sectors are already quite large. Relatively speaking, they have already overdrawn a lot of future expectations. It is still relatively unknown how much money can be made by continuing to increase positions and go long at this position. In the short and medium term, liquor and white goods are not worth gambling on. The smartphone industry chain is still more cost-effective. Moreover, with Apple's new product launch conference coming up this month, the market has already chosen the smartphone industry chain.

So, I think this line will most likely become the core hotspot of the market in the near future and will receive continuous speculation from the on-site capital groups.

There is also this line. I remember that it was previously linked to the new energy industry chain.

Although the new energy industry chain has not yet shown any obvious opportunities for subsequent participation, no one can deny that this line is currently the strongest market main line.

Since the new energy industry chain has a strong trend and good sustainability.

Then, as the main linkage sector of this line, the smartphone industry chain line is facing a situation where a large amount of funds cannot be invested in the corresponding core leading stocks of the new energy industry chain line.

They will definitely switch between high and low, and intervene in the field of "smartphone industry chain" to hype it up."

"It's mainly due to the anticipation for Apple's new product launch this month," Li Jinshi said. "It seems that the smartphone industry chain is still dominated by short-term speculators, while long-term investors are still lacking in this sector. Relatively speaking, the accumulation of chips in this sector is not as good as in other core weighted sectors of the market."

"There's no need to analyze it so far ahead, right?" Chen Guiyun said, "I think shortening the time period to a week or two weeks would be best."

"Yeah, I think so too." Li Jinshi nodded.

"Speaking of which, is Baofeng Technology still a good stock to invest in?" Li Jinshi paused, then continued, "Originally, after Changying Precision hit its daily limit, it was a bit stuck in its position. But now that the market index has rebounded, with the Shanghai Composite Index breaking through 3100 points, the overall market sentiment and confidence have improved significantly. Under these circumstances... Baofeng Technology feels like it's back on the road again."

"Actually, you can light it and try it." Chen Guiyun said.

Li Jinshi responded: "I wanted to start a fire, but I was a little hesitant. I was afraid that after the stock price reached the upper limit, it would be smashed by the hidden capital in the market."

"I don't think it's a big problem," said Chen Guiyun. "So far, the turnover rate of Baofeng Technology has reached over 15%, which is the highest volume performance in recent months. With this kind of volume performance, the turnover in the market is actually quite sufficient, and the potential selling pressure is not great.

The key is how much premium there will be tomorrow after the daily limit?
My feeling is that today's market focus isn't primarily on emerging industrial chains. If the stock hits its daily limit and there's no positive sentiment after hours, it's unlikely to see any premium tomorrow.

Moreover, there are many other short-term speculative fund groups involved in the Storm Technology stock today.

There is still a great deal of uncertainty about how these short-term speculative capital groups that have already intervened will operate and make choices tomorrow.

If these funds continue to crash the market at the opening today, or if a stop loss is set.

Then I'm afraid that the performance of Storm Technology will be worse tomorrow.

In other words, do you think that the large number of short-term active funds in the market who intervened in the stock of Baofeng Technology today are likely to continue to lock in their positions and go long tomorrow?

If you think the concept is great, then you can definitely light it up and give it a try.

At present, there are not many popular core leading stocks in the main areas of the emerging industrial chain. If the stock of Storm Technology can reach the daily limit, its market recognition will still be relatively high.

As long as you have recognition, you will have a chance to come out.

In other words, as long as we determine that these speculative short-term capital groups involved in the Yijing market have the motivation to go long in the future, there will be no problem.

On the contrary, if you think about tomorrow’s market trend, it will be difficult for the index to perform well.

I also think that these short-term speculative funds that intervened today will most likely stop losses tomorrow, or sell off their chips.

Then there is no need to spend a lot of money to do this kind of closure.

On the contrary, I think compared with Baofeng Technology, Goertek and O-Film Technology, two stocks in the core smartphone industry chain, offer good value for money.”

"Yeah, I think so too." Liao Guoxiang nodded and continued, "Instead of gambling on Baofeng Technology, it's better to follow the market and go into the smartphone industry chain. Relatively speaking, it will be more stable, and the expectations for this line are relatively consistent.

There are also the two stocks that Lao Chen just mentioned, Ofilm Technology and Goertek.

In fact, in terms of the size of the circulating shares and the market value, it is still suitable for concentrated speculation by short-term capital groups.

Moreover, Changying Precision has already set an example in the smartphone industry chain. If subsequent stocks can perform well, the follow-up effect of the on-market capital group should be strong."

"Okay." Seeing that neither of them was optimistic about Baofeng Technology's stock, Li Jinshi pondered for a moment and quickly gave up on the plan to trade Baofeng Technology. He then decisively set his sights on the two stocks mentioned by the two others, O-Film Technology and Goertek. "Then I'll give it a try."

As he spoke, Li Jinshi quickly invested more than 1500 million yuan in the stock of OFI Technology.

Along with his huge investment.

When tens of thousands of large buying orders quickly swept across the market, the stock price rose sharply.

However, in an instant, the market popularity and market discussion of OFI Technology's stock soared to the top 20 in the two markets.

And at a time when its market popularity is soaring.

The share price of OFI Technology also soared from around 5% to the daily limit.

And the moment it hit the daily limit, it was blocked at the daily limit by a large number of following funds.

And after the stock of OFI Technology hit the daily limit.

The market heat and discussion heat of the entire "smartphone industry chain" line have also continued to soar, becoming the top three main sectors in the market. In addition, other related popular stocks within the sector, such as Xinwei Communication, Goertek, Lixun Precision, Suobei... and other stocks, have also gone out of the trend of continuous large-scale and rapid growth in an instant. Among them, Lixun Precision and Goertek Acoustics have soared by more than 7% in just one minute, and seem to have shown a trend of hitting the daily limit.

"As expected, the smartphone industry chain still has a stronger sense of investor recognition within the market." After Li Jinshi sparked the price of OFI Technology's stock to the upper limit, he saw a large number of follow-up investors rapidly flocking to the smartphone industry chain. He couldn't help but laugh happily and said, "It's a good thing I didn't invest in Baofeng Technology. Compared to the smartphone industry chain, the potential selling pressure on Baofeng Technology is still much greater. As expected... Lao Liao's vision is still unique."

"It's still market sentiment," Liao Guoxiang said. "The effect of Changying Precision earlier made a lot of funds willing to follow the trend at the daily limit. Otherwise, the pressure to close the limit would be quite large."

"I feel that Goertek's stock also has a trend of closing the upper limit." Chen Guiyun said.

Liao Guoxiang responded, "That's normal. After Lao Li successfully ignited OFILM's stock, other active short-term funds in the market will definitely follow suit. It's not surprising. However, for stocks that continue to rise to the daily limit, I'm afraid there won't be much of a premium after the market opens tomorrow." (End of this chapter)