Rebirth of the Capital Legend

As the market trends continue to improve, the smartphone industry chain is getting stronger and stronger. Corresponding core concept stocks, such as Lixun Precision, Changying Precision, Goertek, O-Film Technology, Xinwei Communication... and other stocks have shown a trend of daily limit increases across the board.

"It's amazing! The Apple industry chain is experiencing a surge in stocks."

Facing the late trading stage, the market continued to rise, and the main line of the Apple industry chain accelerated its upward trend. The sentiment of a large number of retail investors in the market also fell into a continued upward trend.

"I've said this long ago; it's the core trend of the market going forward. With Apple's press conference coming up, prices will definitely continue to rise!"

"That makes sense. Oh, what a shame! I had my eye on Lixun Precision this morning, but I didn't buy it. I bought Baofeng Technology instead. Now it seems... it's like heaven and earth."

"This check from Baofeng Technology is ruined. I feel like I can't get out of this."

"I also feel like I can't get out of this. Ever since the stock of Baofeng Technology was blocked by Changying Precision, it's finished. It's normal that it can't get out of this. In fact, after the smartphone industry chain has emerged, there is no hope for the film and television media, Internet software, and Internet applications lines to continue to strengthen."

"It feels like the market is still following the main rotation trend."

"Well, it is indeed a market rotation, but it is obviously much stronger than the previous rotation."

"That's true, but the strongest areas are still the major infrastructure projects and the new energy industry chain. Other market sectors are relatively weaker."

"Unfortunately, there aren't many good buying opportunities in the main infrastructure sector and the new energy industry chain."

"Core leading stocks generally don't offer very good buying opportunities."

"The film and television media sector's performance today has seriously fallen short of expectations. Analyzing from this perspective, I feel like Huawen Online's stock will also break even tomorrow, right?"

"Right now, it's still uncertain, right? After all, the overall market trend has rebounded today, and trading volume has increased compared to last Friday. Logically, when the market is in an upward phase, the core market leader's trend won't end so soon. At least, Huawen Online hasn't shown any signs of weakening yet."

"The turnover board won't end so easily, but it's definitely more difficult to continue holding the 'Huawen Online' stock tomorrow. The cost-effectiveness of the game is not good enough."

"Why are you still betting on Huawen Online tomorrow? Tomorrow, stocks like Sugon, Ganfeng Lithium, and Tianqi Lithium should all be delisted, right? There's a high probability that there will be market divergence in the new energy industry chain. The core leading stocks in this core sector will likely offer buying opportunities. So... why buy Huawen Online then? Currently, in the entire market, if we're talking about the strength of the core trend, the new energy industry chain is clearly the strongest, followed by the large-scale infrastructure sector."

"That makes sense. If the two core market themes, the new energy industry chain and the major infrastructure, can provide a relatively good buying opportunity, then Huawen Online's check will indeed have no value for money. This is also what I said before. Once other core market themes diverge and there is a buying opportunity, it is natural to abandon other market themes."

"Yeah, I think so too."

"Not necessarily. I feel that the current market volume and energy conditions can support two or more core market lines to continue to rise."

"In the past two trading days, the reason why several core themes have developed in parallel is that the core themes of the market, large-scale infrastructure, and the core themes of the new energy industry chain, have not yet reached the stage of large-scale volume expansion. When there is a huge divergence, if there is no significant increase in volume, it will not excessively siphon off the short-term active capital groups in the market. If there is a significant increase in volume... then these two core themes will inevitably siphon off active capital buying from other core sectors of the market. At that time, the other core themes of the market will naturally experience liquidity loss or outright liquidity shortage, making it difficult for the market to recover."

"Yes, that's true. With the current market volume, it's still quite difficult for multiple core market lines to reach the concentrated areas of trapped shares that resulted from previous stock market crashes. It's naturally not that easy to break through the internal areas of trapped shares."

"A market volume of 6000 billion yuan is clearly not enough."

"If the market is concentrated on one or two core main lines, there will be no problem with liquidity."

"It's unlikely to develop this way, right? After all, the major infrastructure sector is already at a relatively high level. At this point, there aren't many potential long-term investors who dare to continue entering the market and take on large-scale investments. This shows that the continued upward momentum and relative room for growth in the major infrastructure sector are definitely subject to huge uncertainty, and will inevitably require large-scale volume."

"Let's analyze the specific situation. The major infrastructure investment line is indeed relatively high, but the fundamentals are still changing, and there is a high probability that future performance explosions will be generally realized. In this case... I feel that the trend of this line is still very certain."

"Let's wait and see. At least for now, I don't dare to continue to take over the core leading stocks in the major infrastructure sector."

"Isn't it very difficult to continue the relay of this Dongfang Yuhong check?"

"Compared to Ganfeng Lithium and Tianqi Lithium, I feel that the core leading stocks in the new energy industry chain are more speculative or cost-effective for investment. If you want to gamble on the concept stocks held by Mr. Su... it is obvious that the relatively low-priced Ganfeng Lithium and Tianqi Lithium are better."

"That's right. Since the future prospects are better, we should go straight for the strongest core leader."

Amidst heated discussions among retail investors...

Soon, the market trading time came to 3: p.m., and the two markets closed.

After continuing to accelerate its rise in the late trading, the Shanghai Composite Index closed above 3100 points, and the Shenzhen Composite Index and the ChiNext Index continued to rise by more than 1.5% on the basis of the sharp rise last Friday. At the same time, the CSI 500 Index and the All-China Securities 1000 Index also achieved a sharp rise.

In addition to the index, the performance of major market lines.

The new energy industry chain, encompassing sectors such as automobile manufacturing, auto parts, automotive electronics, auto accessories, lithium batteries, non-ferrous metals, and charging piles, maintained its leading position in the market, with corresponding sector indices all rising by more than 2%. Meanwhile, the infrastructure sector, including real estate, construction and decoration, building materials, non-ferrous metals, steel, and coal, along with related concept stocks, saw their closing indices slightly lag behind those of the new energy industry chain, but significantly outperformed other major market sectors, representing a strong second tier of the market's leading sectors.

The growth of related industry sectors such as electronic information, Apple concepts, 5G communications, etc. in the direction of the smartphone industry chain, as well as their concept sector indexes, are weaker than the main line of large-scale infrastructure and the main line of the new energy industry chain, but stronger than other major core main line sectors in the market.

After that, the core weight line of the market.

Sectors such as liquor, white goods, medicine, consumption, electricity, and finance are also relatively stronger than the index.

Finally, there was some performance during the trading session, but the film and television media, Internet software, Internet application sectors, which had huge fluctuations in the market trend, as well as some concept theme sectors related to the main line of the "emerging industrial chain", were significantly weaker than the market index performance.

Overall...

Today's market trend is a continuation of last Friday's strong momentum.

At the same time, the ability to withstand the massive profit-taking selling pressure last Friday and complete the chip exchange was mainly due to the good market sentiment and the recovery of investment confidence.

As for the performance of major popular leading stocks in the market other than a number of core main lines.

The overall loss-making effect of today's leading stocks is still very weak.

Basically, the core leading stocks that hit the daily limit in the morning did not explode in the afternoon, and there were no cases of large losses incurred by many following the trend.

"Looking at the market trends, they're still very strong," Li Jinshi, a member of the Fushan Group's main speculators, said after the market closed. "Whether it's the new energy industry chain, the infrastructure sector, or the smartphone industry chain, the core leading stocks haven't seen any losses today. Generally speaking... this situation indicates that the entire market's short-term ecology is continuing to recover, and investment confidence is continuing to rise. And based on today's market trends, these core leading stocks will likely open at a good premium tomorrow."

"Yeah, I think so too." Chen Guiyun nodded and said, "But if we're talking about market trends that exceeded expectations, then the 'smartphone industry chain' is indeed stronger. It's not that this line is the strongest core trend in the market today. It's mainly because before the market opened this morning, this line received relatively little attention, and many people bought relatively cheap core leading stocks."

"Indeed." Li Jinshi nodded and said, "This is undeniable. Brother Liao has a very accurate vision. He spotted the smartphone industry chain this morning, before it had completely changed. He was able to break out in today's market and decisively invested heavily in Lixun Precision. Now it seems... Brother Liao's vision is very admirable. I originally thought that the sectors most likely to break out and form market synergy in today's market would be film and television media, internet software, and internet applications. After all, last Friday, the daily limit trends of Huawen Online and Huawen Media were really beautiful. What's more, in the early trading, Huawen Online also decisively and quickly hit the daily limit, creating room for growth.

At the same time, there was the assist of Huace Film & TV's stock to hit the daily limit, and the core leading stock, Storm Technology, quickly increased in volume and hit the daily limit.

Under the circumstances at that time, there should have been many investor groups in the market, including a large number of retail investors and institutional investors.

Everyone thinks that the market will further spread towards small and medium-sized stocks and micro-cap stocks, that is, the main line of the "emerging industrial chain", right?
But who could have imagined that the smartphone industry chain would not perform so strongly in the early trading session.

As Changying Precision decisively took the place of Baofeng Technology and quickly hit the daily limit, and its logic of hitting the daily limit was recognized by a large number of investors in the market, the sentiment in the smartphone industry chain would ferment so quickly that it would directly produce a sector effect.

Even big-cap stocks like Lixun Precision hit their daily limit.

You know, the current market value of Lixun Precision's stock is almost 400 billion.

But if you think about it carefully, it seems understandable. After all, the expectations for the smartphone industry chain this month are indeed very clear. Apple's new products will be released. According to the market heat and the future development expectations of the entire mobile phone industry, it is impossible for funds in this line to be ignored.

However, as far as the hype of the entire smartphone industry chain is concerned.

I think that for this line, a large number of capital groups are still mainly engaged in short-term speculation, and the attitude of institutional main funds to lock up positions remains to be seen.

Of course, anyway...

Today, the smartphone industry chain has successfully positioned itself in the emerging industry chain.

In the subsequent market trading period, it is highly likely that the trend of the main stocks of the emerging industrial chains in the fields of film and television media, Internet software, and Internet applications will be weaker than that of the main stocks of the smartphone industry chain.

Haha... Fortunately, I listened to Lao Liao's ideas today and decisively increased my holdings of OFI Technology stock.

Now the market popularity of this stock has soared to the top 20 in the market. According to this market popularity, I feel that there will definitely be a lot of premium space for OFI Technology's check tomorrow.

Of course, the two stocks you heavily invested in, Lixun Precision and Goertek, are also good, Lao Liao, and Lao Chen, respectively. They are both core, leading stocks in the smartphone industry chain. As long as investment sentiment and confidence in the entire smartphone industry chain continue to strengthen, we should continue to invest in this direction."

"My heavy investment in Lixun Precision actually had a certain element of luck in it," Liao Guoxiang said with a smile after hearing Li Jinshi's words. "Before the smartphone industry chain emerged, no one knew how the market would develop or which core area would be the focus. It was just a matter of chance."

Chen Guiyun chuckled and said, "President Liao, there's no need to be modest. Luck is also part of ability. Your understanding of market trends is indeed deeper than mine and Lao Li's. Today, Lao Li and I initiated trading in O-Film Tech and Goertek entirely on your suggestion. Otherwise, we wouldn't have suddenly shifted our focus to the smartphone supply chain. Now it seems... this move to increase our holdings was just right." (End of Chapter)