Rebirth of the Capital Legend

"The new energy industry chain is the strongest trend in the market right now, without a doubt," said Old Wu. "The key is that market expectations for this trend are a bit too consistent. With such consistent expectations, it's unlikely that the divergence we expect will occur tomorrow. If this trend continues to rise, the potential for further growth will be further compressed."

Xu Qiao said, "There's a high probability that there will be divergence in the new energy industry chain tomorrow, right? After all, many of the core leading stocks in this line have seen increased trading volume today. This increased trading volume is a precursor to divergence, and it feels like the overall market trend tomorrow will also be more divergent. Today's market should have seen a volatile and divergent trend. However, due to the highly consistent expectations for the new energy industry chain and the sudden emergence of the 'smartphone industry chain' main line, the market has been supported, allowing the market to move upward for a while based on last Friday's trend. However, this kind of pullback adjustment will come sooner or later, and only after the pullback adjustment can the market move more steadily."

"Tomorrow's divergence in the new energy industry chain is in line with expectations," Lao Zhang said. "If the new energy industry chain successfully enters a divergence phase tomorrow, then this line will be a buying opportunity tomorrow. Of course... I feel that once the new energy industry chain enters a divergent phase, it will inevitably further siphon off buying funds from other main market sectors, thereby weakening buying in other main market sectors. Therefore... during the divergence phase of the new energy industry chain, the overall market trend is very likely not to be very good."

"Yeah, I agree," Old Wu said. "But if the market continues to adjust, it would be a good buying opportunity, because the overall upward rebound cycle of the market has not clearly reached its end."

Following the discussion among several core investors in the "Modu Ultra Short Gang" main speculator group...

At this moment, on the major stock investment exchange platforms where the vast majority of retail investors gather, countless retail investors are quite excited after reading today's data from the two stock market's Dragon and Tiger Lists, and most people continue to be firmly optimistic about the future market trend...

"Oriental Yuhong's stock is outrageous. So many institutions are still buying at this price."

"That's right. And President Su hasn't sold a single share of Fuxing Road even at this point."

"I have to say, President Su is really a man of vision."

"I feel like Oriental Yuhong's stock will continue to rise. It's the leading stock in both markets, and it's showing strong momentum!"

"It will definitely continue to rise. Haven't you seen this stock? Hasn't it increased in volume yet? Generally speaking, when a rising cycle begins to increase in volume significantly, it means it's the end."

"Based on past bull stock performance, this is indeed the case."

"It's really hard to participate at this point. I can only watch the stock continue to rise."

"If you continue to participate at this position, you don't have enough cost advantages, and it's really hard to hold on. You may lose your chips if there is a big pullback."

"The entire infrastructure sector is strong, right? If you don't want to buy Oriental Yuhong, you can buy other stocks!"

"Yes, I feel like if I buy leading stocks in other industries, the performance won't be much worse."

"Look at Conch Cement. It's also been performing quite strongly, though the growth has been a bit slower. But this stock has never stopped rising."

"It's true. It's rising slowly, but the trend is really stable."

"Isn't this the trend of blue-chip stocks?"

"In the short term, among the major infrastructure stocks, Beijiang Communications Construction should be the strongest, right? Huaxin Cement has fallen behind."

"It is true that Beijiang Communications Construction is the strongest stock."

"I feel like the entire cement sector is doing well, and Huaxin Building Materials is also performing strongly."

"As the real estate market recovers, demand for the cement industry continues to grow, and the performance of related companies is also continuing to grow. The trend is definitely good."

"Well, relatively speaking, the real estate sector, and a number of real estate stocks, haven't been that strong."

"That's because the performance of many real estate stocks lags significantly behind the industry's development. It will probably take another year for their performance to truly show."

"That's true, so when the company fails to deliver on its earnings, its stock price will definitely be weaker."

"From this perspective, the building decoration and building materials sectors are likely to perform more strongly."

"That's for sure. The performance of many growth stocks in these two sectors will be more evident, and the realization period of performance will also be brought forward."

"No wonder. I thought these two sectors were stronger than other sectors in the main infrastructure sector. I didn't expect this to be the reason."

"Steel, coal and nonferrous metals are relatively weak."

"In fact, the performance of the steel sector has also clearly shown signs of reversal, but it is estimated that the sustainability is not very good. Therefore, the funds in the market have not given high expectations and valuations to this sector. And the valuation of the entire sector cannot rise. Therefore, even if the performance explodes, the room for its stock price to rise is very limited."

"That's the truth. So, when buying stocks, you should relatively avoid these sectors."

"To expand infrastructure, you need to focus on buying the strongest sectors."

"Speaking of the new energy industry chain, which sector should I focus on, including complete vehicles, auto parts, auto parts, lithium batteries, and charging stations?"

"Then I'd definitely buy the lithium battery sector. They're all talking about new energy, so isn't the battery sector the core?"

"If it's lithium batteries, then buying Ganfeng Lithium and Tianqi Lithium would be enough, right?"

"The core is definitely these two stocks, but neither of them is easy to buy. With President Su's support, neither of these two stocks will provide a very comfortable buying position."

"Core leading stocks generally don't have very good buying points, so just buy them anyway. As long as the industry trend is like this, there's a high probability that you won't lose much money."

"Haha, I think so too. As long as the cost difference of the stocks Mr. Su buys is not particularly large, then just follow the trend and buy them."

"I hope that Ganfeng Lithium and Tianqi Lithium will open tomorrow and provide a comfortable buying position."

"Of course they will. The market capitalizations of these two stocks are not small, so it makes no sense for them to continue hitting the daily limit. The future trends of these two stocks will most likely be like the trend of Oriental Yuhong, which is a gradual increase."

"It's good to follow the trend, but it's not good to rise too fast."

"It's not a concept stock, it won't rise too fast."

"However, if these two stocks want to develop a long-term bull market, they still need subsequent performance support, right?"

"That's without a doubt, but the future performance of these two stocks is likely to be good." "Yeah, I think so too. I've already freed up some funds, and if these two stocks give me an opportunity tomorrow, I'll buy them without hesitation."

"What about the complete vehicle sector? Everyone says that Sugon shares are expected to undergo restructuring. Is it worth lining up to buy them?"

"I think it's not good enough. This stock is more hype-driven."

"This stock is a typical concept-driven stock. I think its performance...is definitely not as stable as Ganfeng Lithium and Tianqi Lithium."

"I feel the same way. Everyone says this stock is the leader in the entire new energy industry chain, but I'm really confused by what they say."

"Just because it's a leader means it's a leader? A leader has to be proven by the market."

"For example, Beijiang Communications Construction has repeatedly blocked Huaxin Cement's position. Oriental Yuhong has undergone several drastic adjustments and rebounded to new highs. And Huawen Online has rebounded several times, then hit the limit down, then rebounded to the upper limit, and then continued to rebound. This is the trend of core leading stocks. The trend must be resilient and have strong market synergy. I think these are the characteristics of leading stocks. Other market trends are mostly not so good. What I consider to be a leading stock is not just a number of consecutive rebounds. It also depends on the stock's driving force for the entire sector and the entire market."

"That's right. A leader is determined by its market-driving power. If it can drive the entire market, then it's a core leader. Otherwise... it's just a hot stock with no sustainability."

"From this perspective, should the core leader in the smartphone industry chain be Changying Precision?"

"Whether Changying Precision can become a core leader in the smartphone industry chain remains to be seen. However, Lixun Precision has emerged and is showing signs of becoming a core leader in the smartphone industry chain. Lixun Precision's stock has driven profits in the smartphone industry chain, leading to Changying Precision's subsequent limit-up trend."

"The market trend of Lixun Precision's stock shows that the capital force is indeed strong."

"Yes, the list shows that many institutions are buying. Moreover, the 'Fushan Group' has made a huge investment in the smartphone industry chain today, buying up a lot of related stocks."

"Indeed, several stocks including Lixun Precision, OFILM Technology, and Goertek were bought in large quantities."

"Looking at today's market trends, the film and television media, internet software, and internet applications sectors, as well as the performance of all the core leading stocks, have the core investors in the market basically given up on them? At the close, except for Huawen Online and Huace Film and Television, which hit their daily limit, the performance of the other stocks was not very good. In particular, Baofeng Technology, Huawen Media, and Yue Media have shown a clear negative feedback."

"Well, when Guangdong Media closed, it unexpectedly plummeted again. I'm speechless."

"The stock has been severely depressed by the negative impact of share reduction."

"It's completely ruined. Also, Huawen Media was following the trend of Dragon II, but after Huace Film & TV took over, its trend was ruined. At the close, a lot of people were trapped. Originally, before Huace Film & TV took over, this stock had a chance to follow the trend of Huawen Online and hit the daily limit."

"The stock of Baofeng Technology is in a terrible state. A lot of short-term funds were trapped in it today."

"In short, the funds invested in film and television media, internet software, and internet applications have not gained any benefits today."

"Tomorrow, the core leading stock of Huawen Online will also face risks in its trend."

"Indeed, if Huawen Online stock faces another trend risk tomorrow, the losses of these popular stocks that didn't perform well today will be even greater."

"That's right, eh..."

"In that case, tomorrow's overall market trend doesn't seem as optimistic as everyone expected."

"I don't think it's very optimistic either, but it shouldn't fall too much."

"Let's see tomorrow's market feedback from the new energy industry chain and major infrastructure. If the market feedback from these two sectors is not good, then tomorrow's market trend will be difficult. If the market feedback from these two core sectors is OK and can continue to strengthen, then there is no need to worry too much about tomorrow's market trend. After all, the current overall market trend cycle is still in a clear rebound cycle."

"Well, we can only wait and see how these two core storylines perform tomorrow."

"Speaking of the liquor and white goods sectors, as well as the banking and petrochemical sectors, is no one paying attention? I feel like the core leading stocks in these sectors are also performing quite strongly. Qianzhou Moutai, Wuliangye, Luzhou Laojiao... these stocks, as well as the three giants Gree Electric, Midea, and Haier, feel like their share prices are about to reach new highs. Note... record highs. This strength is truly a bit abnormal."

"These stocks are all well-known blue-chip stocks. Their trends are stable enough, but the volatility seems to be relatively low."

“It feels like a lot of patience to hold onto these stocks.”

"That's right. You need an investment cycle of more than a year to hold on to these stocks and make a profit."

"Indeed, you need a lot of patience to buy these stocks. Buying these stocks is not suitable for us who watch the market every day."

"I have to watch it. I feel anxious if I don't."

"Haha, same thing. I feel like this thing is a bit addictive."

"Short-term trading is more exciting. Every day, the price goes up or down. There's really no excitement in buying these big blue-chip stocks."

“These are the areas where institutions hold heavy holdings, right?”

"It's not that I don't have the patience to hold on to my shares, it's mainly because there aren't many good buying opportunities for these blue-chip stocks right now."

"Indeed, during the stock market crash at the beginning of the year, these blue-chip stocks would have been the best buy. But now... the price-performance ratio isn't very high."

"There's no such thing as a great price-performance ratio. I don't think these stocks will necessarily outperform the market in the future."

"However, Huayi Capital, the institution headed by President Su, continues to hold a large position in the liquor and white goods sectors, and hasn't reduced its holdings at all."

"That's because Mr. Su got involved very early. The dividend rate is already quite high, so there's no need to reduce holdings at all."

"In that respect, it is true."

Amidst the heated discussions among countless retail investors across the internet...

Market sentiment remains high, and numerous institutions on major financial media websites continue to be bullish and optimistic about the market outlook. (End of Chapter)