Rebirth of the Capital Legend

Most of the popular stocks in the market that attract much attention are on the list.

For example, Beijiang Communications Construction, Huaxin Cement, Huawen Online, Huace Film & TV, Changying Precision... these small and medium-sized concept stocks, as well as Oriental Yuhong and Lixun Precision, the two core leading stocks with weights in their respective main lines.

Among them, the Dragon and Tiger List of Beijiang Communications Construction Co., Ltd. shows that the hot money seats that intervened last Friday and Thursday continued to lock their positions and had no position; Huaxin Cement had a mixture of institutional seats and hot money seats, and the market divergence was still serious. There were institutional funds selling, but there were also institutional main funds buying; the stock of Huawen Online was purely a hot money relay.

There is also the stock of Changying Precision, whose market is also mainly dominated by hot money.

As for Oriental Yuhong and Lixun Precision, the market is completely dominated by institutional funds. The main buying seats of the two stocks are institutions, and there is basically no hot money.

With the main institutions continuing to buy.

The 'Fuxing Road' seat that everyone is paying attention to is still in a locked position, and not a single share has been sold.

"Looking at today's Dragon and Tiger List data, there are still very clear signs of institutional buying," said Xu Qiao, a member of the 'Magic City Ultra-Short Gang' of major speculators. "Both speculators and institutions are very enthusiastic about buying. This shows that at this point, the majority of investors in the market are still optimistic. Moreover, Brother Su's 'Fuxing Road' and its affiliated institutional seat 'Huayi Capital' have not sold a single share and are maintaining a locked position. This also shows his attitude towards the market, right?"

"Oriental Yuhong's stock is surprisingly still rising at this level, and most of the investors are institutional investors. This is really beyond our expectations," said Lao Zhang in the group. "I originally thought that at this level, institutional investors would reduce their holdings after making significant profits. Unexpectedly, not a single one is reducing their holdings. They are actually increasing their holdings. Furthermore, judging by the trading volume, this stock hasn't seen any significant increase yet. This shows that it has likely not peaked yet and will likely continue to rise."

Old Wu nodded and said, "The performance of Oriental Yuhong's stock has indeed exceeded expectations. However, the logic behind this stock's rise becomes clearer the further it goes. The current trend certainty is much higher than before. That's why many major institutional investors are daring to enter the market at this point and continue to go long."

"And there's Lixun Precision..." Xu Qiao paused, then continued, "Institutional funds bought quite a bit of this stock today. Of course, hot money is also buying in. The 'Fushan Group' has significantly increased their holdings in Lixun Precision today, with net purchases exceeding 5000 million. It's truly a massive investment. And why does the 'Fushan Group's' trading style seem different than before? Didn't they mainly invest in small and medium-cap concept stocks before? Why are they now moving into major heavyweight stocks?"

"The market is changing, and so are the thinking behind speculative capital. Isn't that normal?" Lao Zhang said. "It's clear that institutional investors are now the dominant force in today's market trends. So why can't we just follow the market trends? These days, pure speculation based on concepts is having a hard time resonating with the broader market, nor is it attracting a large number of follow-up investors."

Take the stock of Baofeng Technology for example...

How much hot money flowed into the market this morning? The stock price once hit the daily limit.

But the result was that when the market trend was better in the afternoon, the combined force of the market was much weaker and did not move in the direction that everyone expected.

This stock is a typical example of a concept with no future performance support.

And it is caused by good expectations of industry reversal.

If the industry reversal expectations for this stock can be better, it has good underlying logic, and its future performance expectations can be better.

Then, this stock would not have such a trend today.

Look at the Dragon and Tiger List data for this stock today.

The speculators who intervened this morning bought nearly 7000 million shares. This group of speculators, along with other small and medium-sized speculators who followed suit and went long, and the retail investors who followed suit, are likely to lose money tomorrow. Furthermore, the selling pressure on this stock will undoubtedly increase, making a rebound impossible.

"It's not just Baofeng Technology, is it?" Old Wu said. "Today, the entire film and television media, internet software, and internet application sectors are all quite weak. Admittedly, what Old Zhang said about the market logic shifting and institutional capital beginning to dominate market trends is true. But when it comes to individual stock performance and the major market trends, I think sentiment is also very important.

In this market, there are also industries with good expectations and good performance, but their valuations just can't go up.

It is impossible to form a unified collective behavior of the main institutional capital groups.

For example, the petrochemical sector, the current agricultural sector, and especially the pork sector. In fact, there are many high-quality growth stocks and high-performance stocks in these sectors.

But, look at these stocks, have they seen big increases?
How many have generally outperformed the market index recently?
Basically, among these sectors, only a small number of high-performing stocks that perform well in all aspects have outperformed the market index, while most of the other stocks have not outperformed the index.

How to explain this?
I think it is the dual stimulation of emotions and performance, as well as the increase in market attention and recognition.

Only then can it bring real incremental buying to a stock and enable a stock to embark on a sustained upward trend.

In other words, if it weren't for Mr. Su's seat at "Fuxing Road", could Oriental Yuhong's stock have risen to its current level?
I don't think so at all.

This applies to the current film and television media, Internet software, and Internet applications sectors.

The current outlook for these sectors is indeed not good, but as far as the industry is concerned, the prospects for these sectors are still very good, right? They are still emerging industries.

If subsequent 5G technology achieves comprehensive breakthroughs and is commercialized.

Then, the Internet sector will definitely see more growth.

By then, with huge incremental expectations, these industry sectors will have no essential difference from the current main sectors of the new energy industry chain and the current main sectors of large-scale infrastructure.

Therefore, I think whether the stock price rises or not has little to do with the market style.

The key lies in whether it can attract more active buying orders, generate sufficient profit effects, and attract off-site follow-up funds to enter the market.

As long as there is enough buying to take over, and the off-market follow-up funds follow suit in a timely manner, generating a sufficient profit effect, then the stock price feedback will naturally form a certain degree of benign feedback, thus forming a sustained upward trend.

You can see this by looking at the stock of Huawen Online.

From a fundamental analysis, is there any essential difference between the stock of Huawen Online and the stock of Baofeng Technology?

I don't feel that way.

The fundamentals of Huawen Online's stock are also very bad, and there is basically no expectation of any performance explosion in the future.

However, the recent stock price trend of this stock is obviously different from that of Storm Technology and the previous Quantong Education.

Analyze the reasons why the stock of Huawen Online was able to perform well.

Isn't it because this stock has generated enough profit in the past to attract enough followers to buy in? Of course, there is also the fact that this stock's circulating shares and market capitalization are smaller than those of Quantong Education and Baofeng Technology.

But this is not the decisive factor.

The most important factor is the money-making effect it creates and the positive feedback it creates on the market.

Regardless of the reason, as long as the shareholding structure on the market is well-locked, the stock price will naturally rise. In the long-term investment cycle, what determines the rise and fall of stock prices is the company's inherent growth capacity and performance improvement ability. However, in the short to medium term stock price trends and short to medium term speculative game cycles, the role played by the company's inherent growth capacity and performance explosion ability is often only a very small part.

The real big role...

It’s still a problem with the chip structure.

As long as the chip structure is settled and locked well, the pressure to pull up the market will not be too great.

This can be seen from the two checks of Oriental Yuhong and Huawen Online. From the perspective of chip structure, there is actually no difference between these two stocks.

The only difference is that for the Oriental Yuhong stock, a large number of institutional funds are locking their positions, while for the Huawen Online stock, it is the hot money that continues to take over, as well as the retail funds that follow the trend, who are locking their positions in the expectation that the market trend will get better and better.

There is also the stock of Beijiang Communications Construction, which is very elastic and has a smooth trend.

This is also because the stock's internal chip structure is very good, making it extremely easy for funds to pull up the price."

"Well, I completely agree with what Old Wu said about the advantages of the stock chip structure." Brother Chen smiled after listening to Old Wu's analysis and took over the conversation, "Indeed, the reason why the stock price can rise is because there are more buy orders than sell orders, and the chips are well locked, which is equivalent to locking up a large number of sell orders. Then, when a large number of sell orders are locked up, naturally, less buy orders are needed than for other stocks to push up the stock price.

The reason why the stock of Storm Technology failed to perform well today.

It is true that the internal chip structure is too scattered.

If the internal chip structure of this stock was slightly better, just like the situation in the early trading session, the group of buying funds that actively took over would have collectively grabbed more than 100 million yuan, and the stock would have hit the daily limit early on.

And the stock of Chinese Media...

In fact, today this stock was able to instantly occupy the position of Huawen Media and Guangdong Media, becoming the only follower leading stock of Huawen Online in the field of film and television media. This is mainly because the internal chip structure of this stock is well locked and there is a lot of locked funds inside.

Similarly, there is a similar situation with Changying Precision stock.

Of course, it is undeniable that in the current market trend, the overall capital trading preference is indeed shifting from the previous preference for small and medium-sized and micro-cap concept stocks to performance-driven high-quality growth stocks, as well as industry-leading weighted stocks with greater certainty.

This was before the good news was announced last Friday.

This has already been clearly demonstrated in the market.

Therefore, if you want to engage in speculative trading in the speculative market, then you should naturally gamble in the main sectors that have more attention from major funds and are more popular in the market. It is still difficult for unpopular main sectors to generate excess returns.

At present, the market's popularity is at its core.

There are also core themes that a large number of capital groups are paying attention to, namely the large-scale infrastructure theme, the new energy industry chain theme, and the smartphone industry chain theme that emerged today.

If you want to reap excess returns from the market.

I suggest that it is better to start with these three main sectors.

Especially the new energy industry chain...

The market was very pessimistic about this line before, which led to the line going against the market for a long time after Mr. Su's "Huayi Capital" made large-scale portfolio adjustments. At one point, there were obvious signs of oversold.

Now, new market benefits have been announced and next year’s subsidy policy will be implemented.

This line is an obvious expectation of industry reversal.

Mr. Su's "Huayi Capital" decisively bought shares at the daily limit as soon as the good news was released, because he saw this point.

In other words, the main sector of the current new energy industry chain.

It should be the core sector with the largest expectation gap in the current market.

Moreover, since the good news was announced extremely suddenly, there is no disagreement among the core stocks in this sector as a whole.

That is, after the first disagreement.

After drastic turnover and chip exchanges, these core leading stocks will definitely be replaced by other major capital groups to hype up the stocks.

When these stocks diverge, take over.

I think the winning rate of this line is at least 80%, not to mention the reversal of fundamentals and emotional expectations.

Mr. Su's institution, Huayi Capital, has once again covered its positions on a large scale.

It will also create a certain degree of short squeeze on this line.

After all, this time, everyone is on the same starting line. Everyone wants to buy together with Huayi Capital, at least there should not be a huge cost difference.

There are several key factors at this level.

The new energy industry chain cannot stop at its current position.

The reason why several other core market lines are performing well today is that under this volume, there is no capital disagreement in the new energy industry chain. Many short-term capital groups cannot buy stocks and can only settle for the next best thing.

Once the subsequent new energy industry chain has a significant increase in volume and divergence.

Then the other main lines of the market will inevitably be siphoned off buying funds, and at that time there will be a high probability of adjustment. This is also the reason why the core main line leaders will always be strong. "

"Yes, Brother Chen is right." Xu Qiao nodded with a smile upon hearing this, and said, "I also think that the new energy industry chain is currently the strongest core theme in the market. For now, relying on this theme to trade should be a safe bet, regardless of whether the index breaks through this level effectively." (End of Chapter)