Rebirth of the Capital Legend

In such an emotional atmosphere, in the evening, the US stock market in the peripheral market continued to open high and close high, setting new highs, giving higher expectations for the subsequent trend of the domestic financial trading market.

And under the continued stimulation of the US stock market trend.

On the morning of September 9, Tuesday, before the market opened for trading, investment sentiment in the two cities had continued to rise and reached a hot state.

"Fuck, the U.S. stock market has hit another all-time high!"

"No need to mention it, the external market trend is indeed very strong, and it's a bit abnormal."

"That's right! When will our A-share market ever see such a grand occasion? Whenever there's an adjustment, it will inevitably recover and continue to set new highs after one or two trading days. It's incredible. It's been going on for more than ten years, right?"

"Since the bursting of the Internet bubble in 2001, the US stock market has been on a bull run until now."

"It's really amazing. The 08 financial crisis didn't cause much damage."

"It's more comfortable to invest in U.S. stocks. Just hold on to them."

"The main thing is, there's no need to worry about sourcing buying funds, right? This will naturally siphon funds from markets around the world. However, the valuation of the US stock market is actually quite reasonable, not particularly overvalued. Currently, everything... is still within a reasonable range."

"Of course it is. Otherwise, do you think that all the hedge funds in the world are just for show?"

"Those who dare to short the U.S. stock market are true warriors."

“Does anyone dare to short sell this?”

"Yes, some hedge funds will probably establish some short positions."

"But I just feel that the US stock market is always at risk of peaking. It looks like... it has all the characteristics of a peak."

“Someone said that before.”

"Some people said that last year and the year before, but those who actually dared to put their ideas into action...I'm afraid the grass is already several feet high over their graves."

"That's right. Actually, when it comes to US stocks, don't look at the K-line trends or the fundamentals."

"That's right, in one word, bullish, rising."

"Speaking of which, with the stimulus from last night's US stock market performance, how will the market perform today? Will it continue to rise, following yesterday's and last Friday's trends?"

"It will definitely continue to rise. Is there any doubt about that? With ample internal and external positive factors, there's no reason it shouldn't rise. Furthermore, the Shanghai Composite Index has already broken through 3100 points, clearly indicating an upward trend. With this trend, individual stocks and major core sectors will inevitably follow suit."

"I also think it will continue to rise sharply. In fact, it seems that our domestic market has entered a virtuous cycle."

"Well, that's pretty much it."

"If the Shanghai Composite Index continues to break through 3500 points, then the bull market will begin."

"You're thinking too far ahead. The market has just broken through 3100 points, and you're already thinking about 3500 points."

"There's not much room for the index to go up to 3500 points. It only took less than 20% to go up. It seems that it won't be difficult if the weight is increased."

"It's easier said than done, but I don't know how difficult it is to actually do it."

"It's easy to go from 2600 points to 3000 points, but it's probably going to be very difficult to break through the range of 3000 points to 3500 points."

"Let's wait and see what happens in the range. At this time, blind optimism is unacceptable."

"We can't say we're blindly optimistic. After careful analysis, I've discovered that many of the core themes of the market, based on fundamentals, do show signs of a reversal."

"For example..."

"For example, with the major infrastructure sector booming nationwide, haven't the fundamentals reversed? Look at how high housing prices have risen. For example, the liquor and white goods sectors are clearly showing signs of recovery as the real estate market recovers. Then there's the smartphone industry chain and the new energy industry chain. The industries related to these two main sectors are both emerging and incremental markets. The smartphone market isn't saturated yet, and sales figures from major retailers are still rising every year. Regarding the new energy industry chain... national subsidy policies are still increasing, and the intensity of subsidies is also increasing. With such policy support, the industry will definitely continue to develop and expand in scale."

"Yes, with the support of underlying logic and fundamental logic, these major sectors do seem to have the possibility of a trend reversal."

"Wine and white goods, isn't this a reversal? The infrastructure sector has generally doubled from its bottom, isn't this a reversal?"

“It’s a reversal, but it will take more major market reversals to drive up the index.”

"As long as the weight of the main line is reversed collectively, it will be fine."

"It still feels difficult. Aside from the obvious performance improvements in liquor and white goods, there aren't particularly clear signs of a turnaround in other key sectors. And it's hard to see a breakout in the trend. As for the ChiNext Index, the CSI 500 Index, and the All-China Securities 1000 Index, it feels even more difficult. The fundamentals of the film and television media, internet software, and internet applications sectors associated with these indices remain very poor. There's no clear sign of a recovery, and there's no sign of sustainability in the trend."

"I feel that if the overall market trend is to reverse, the key is not a reversal of the industry's fundamental logic, but whether there is a large amount of incremental capital entering the market. At present, it seems that the problem of incremental capital still exists on a macro level, and there is not enough incremental capital entering the market to take over the market."

“Didn’t the central bank say it would loosen liquidity?”

"The central bank said it might loosen liquidity in the future, but it didn't specify when."

"Even if the central bank releases liquidity into the market, I feel that this liquidity will most likely flow into the property market rather than the stock market."

"I also have this feeling."

"The current stock market, structurally, is still a little bit poor."

"What's the structural problem? It's actually just market confidence that's a little bit worse."

"Market confidence has rebounded significantly recently. I don't think market confidence is bad; it's the structure of the chips that's lacking. After all, the destructive effects of several rounds of stock market crashes over the past year were enormous, leading to a massive amount of trapped shares. Without massive amounts of incremental off-market funds, such a massive amount of trapped shares cannot be released, and it's difficult to truly loosen the market."

"First, the fundamentals need to reverse, performance improves, and valuations fall before they can attract off-market funds to enter. I feel like there's a causal relationship here."

"Well, that's right. We can't ask for incremental funds to enter the market first."

"That's right. First, there must be a profit effect in the market before incremental funds from outside the market will intervene. Otherwise, everything is just empty talk."

"If you want to create a profit effect in the market, doesn't that just encourage short-term capital speculation?"

"The market's profit-making effect doesn't necessarily have to be the profit-making effect of short-term speculation, right? Can't the profit-making effect of the main line of weighted stocks also be considered? For example, the liquor and white appliances in the past six months, and the major infrastructure main line in the past three months, can't these be considered the market's profit-making effect? ​​In fact, I think that as long as the trend of weighted stocks emerges, the final increase will not necessarily be much less than that of concept stocks."

"That's true. In fact, in the market, over the past six months, many stocks have quietly doubled in value."

"That's right, and many of them are large-cap stocks." "For example, Conch Cement, Wanhua Chemical, and Hikvision..."

"Fuck, it's true! These stocks are so stable, rising step by step against the trend, without any pullback at all."

"So, don't underestimate the power of a trend breakout in heavyweight stocks."

"And we need to add Lixun Precision stock. Lixun Precision's stock has almost doubled in value in the past six months."

"Yes, the Apple concept line seems to have unknowingly recovered from the deep pit of the stock market crash at the beginning of the year."

"A strong main trend always takes effect before the market trend."

"That's about right. After all, it's expected to be stronger than other main market trends."

"So, are there no opportunities for film and television media, internet software, and internet applications?"

"I feel that these lines are likely to be the weak main lines in the market. The trend should not be very proactive, and it is likely to fluctuate with the market index."

"I'm afraid it may not outperform the market index."

"In this sector, there's also the lone promising company, 'Huawen Online.' If it can continue to grow and further expand its market share, it should also drive breakthroughs in the film and television media, internet software, and internet applications sectors. However, it seems difficult!"

"It's probably going to be hard for a single child to make it on his own."

"Let's see how Huawen Online's stock moves after the market opens today. I feel there's a high probability that this stock will experience significant volatility and divergence today."

"In fact, this line includes not only Huawen Online but also Huace Film & TV."

"Yes, the stock of Huace Film & TV is not dead yet."

"Not only is it not dead, I also feel that Huace Film & TV's stock has the potential to take over the position of Huawen Online's stock."

"That shouldn't be the case, right? Can Long Er block the leader?"

"It's not something that can't happen. For example, didn't the Beijiang Communications Construction stock derail Huaxin Cement's leading position?"

"That's different. Huaxin Cement's circulating shares and market capitalization are both too large."

"Huace Film & TV and Huawen Online are two different stocks. Even at the current position, Huawen Online's chip structure, circulating shares, and market capitalization are smaller."

“I also think this is basically impossible to achieve.”

"Regardless of the situation, the current performance of the film and television media, internet software, and internet applications sectors is indeed weaker than the overall market and weaker than everyone expected. If you want to choose a trading direction, you definitely cannot choose these sectors as your main focus."

"So which direction should we choose for the main attack?"

"Definitely choose the major infrastructure and new energy industry chains. Are there any sectors in the current market that are stronger than these two?"

"The position of the major infrastructure sector is quite high, and the positions of the major leaders are also quite high. It seems that it is a bit difficult to take over. As for the new energy industry chain sector, there was no increase in volume yesterday, and last Friday it was in a state of collective shrinkage. I feel that if the volume increases today, it will be a concentrated divergence situation, and it will be very difficult to participate."

“Aren’t disagreements a buying point?”

"It's hard to say. It depends on the specific situation of the market."

"It also depends on the performance of individual stocks. At present, Sugon shares will definitely continue to hit the daily limit."

"I also feel that Sugon shares will not open today."

"What about Ganfeng Lithium and Tianqi Lithium? If these two stocks start trading today, can I buy them? Is it possible to buy them?"

"That's definitely possible, right? The cost of this stock is only one daily limit away from President Su's large-scale involvement. In other words, if I buy in now, the difference between my holding cost and President Su's is only one daily limit away. I think this cost difference is completely acceptable."

"Yes, I think so too. As long as the cost difference between stocks that President Su has heavily invested in is not too big, then it's definitely a no-brainer to buy them. Just like Oriental Yuhong, Qianzhou Moutai, Luzhou Laojiao, Jincheng Fenjiu, Wuliangye, Wanhua Chemical, Conch Cement... and many other stocks, it's basically difficult to lose money if you buy them. So, in the current market, no matter how the market goes, there is always a hidden thread, and that is President Su's holdings of concept stocks."

"Haha, it seems there really is such a hidden thread."

"If this is a hidden market trend, then this trend should be the strongest trend in the current market, right?"

"Of course. The question now is whether Mr. Su has made any large-scale investments in the smartphone industry chain."

"I think there should be. Looking at the trend of Lixun Precision's stock, it looks very much like the trend of stocks that Mr. Su is manipulating."

"You know what, it really does look a bit like her. She feels a bit like the previous Dongfang Yuhong."

"But I don't see Mr. Su's seat on Lixun Precision's Dragon and Tiger List."

"Is it possible that Lixun Precision has only been on the list today in the past month or so, and hasn't been on the list before? During the time it wasn't on the list, no one knows the specific capital involved. We can only judge whether Mr. Su has bought this stock based on the market trends."

"I think so. Anyway, I think Lixun Precision's stock is worth buying at the moment."

"Haha...I agree, I think so too."

"The stocks that are currently being focused on and worth investing in are actually these core leading stocks. As for the other stocks... I feel like the performance is still lacking."

"Well, let's focus on these core leaders first."

As everyone continued to discuss, the market trading time soon arrived at 9:15.

Just see everyone's attention.

The stagnant markets of the two markets began to change rapidly.

Afterwards, at 9:16, after rapid changes, the two markets showed a market trend that, as everyone expected, formed a generally high opening trend.

And in this high opening trend.

The most attention-grabbing sectors, including major infrastructure projects, the new energy industry chain, and the smartphone industry chain, along with related leading stocks, all opened higher by more than 1.5%, demonstrating a positive trend and creating a strong profit-making effect in the market. (End of Chapter)