Rebirth of the Capital Legend

After a brief five-minute pause in the two markets, continuous bidding trading officially began.

The moment the market officially opened, several core themes that attracted much attention from the market, as well as their related concept sectors, industry sectors, and corresponding core leading stocks, all experienced violent turbulence in an instant.

9:31, just one minute.

After the announcement of the good news last Friday, the main line of the new energy industry chain, which showed differences for the first time, and industry sectors and concept sectors such as complete vehicles, auto parts, auto decoration, lithium batteries, and charging piles, siphoned off a large number of active speculative capital groups in the market. At the same time, with the concentrated follow-up of these short-term speculative capital groups and a large number of institutional main funds with insufficient positions, these industry sectors and concept sectors have all embarked on a sharp upward trend.

Among them, the lithium battery sector index stretched the market increase to more than 2% in an instant.

Such as the core leading stocks in this sector.

Stocks such as Ganfeng Lithium, Tianqi Lithium, Tianci Materials, and Dofluoro... all rose rapidly and continued their strong momentum.

At the same time, led by the stock of Sugon Shares.

The automobile sector index, automobile parts index, automobile decoration sector index, and charging pile sector index all achieved a rapid upward trend, and the sector's growth rate soon reached more than 1.5%.

And among these sectors, there are corresponding core leading stocks.

Changan Automobile, Great Wall Motor, BYD, Ankai Automobile, Fuyao Glass... and other industry-leading stocks also saw explosive growth with the follow-up of numerous buying orders, continuing their previous strong momentum.

Moreover, it can be clearly seen from the disk.

Compared with yesterday and even last Friday afternoon, the main line of the entire new energy industry chain has seen a huge increase.

At the moment when the main line of the new energy industry chain siphons the active short-term capital groups in the market, and siphons the liquidity of other main lines in the market.

At this time, the main line of large-scale infrastructure construction, although the trend strength of the corresponding sectors is not as strong as the main line of the new energy industry chain, it has basically stabilized.

Real estate, building decoration, and building materials did not fall sharply at the moment of opening.

Instead, it maintains a strong sideways fluctuation trend.

At the same time, the steel, coal and nonferrous metal sectors fell slightly, but the declines were not large.

And the core leading stocks in this line, as well as the corresponding concept leading stocks, have performed...

After a slightly higher opening, Oriental Yuhong chose to continue its upward breakthrough amidst the sudden surge in trading volume after the opening; Beijiang Communications Construction's share price fell slightly after the sudden surge in trading volume at the opening, but its market increase still maintained at around 7%, and it is very likely that it will continue to break through the board after sufficient turnover; Capital Group, Financial Street, Huaxin Cement, Tianshan Cement... and other stocks fell behind slightly, but compared with the trend in the call auction stage, their decline was also limited, and after their share prices fell, it was obvious that there was still strong buying funds to take over the market performance.

At this time, the performance of the main line of the smartphone industry chain is weaker than that of the main line of large infrastructure and the main line of the new energy industry chain.

The moment the market officially opens.

Changying Precision, the core leader in this main field, opened sharply higher and then quickly plunged lower, giving up most of the gains. However, the volume explosion of this stock during the retracement trend is still relatively optimistic, and when the stock price fell back to the intraday low, the subsequent buying was also relatively effective.

Although the market capitalization and circulating volume of Lixun Precision are much larger than those of Changying Precision.

But the current trend is obviously more stable than Changying Precision.

Despite the rapid surge in volume at the opening, this stock still maintains a high opening trend and has a good follow-up, and is likely to continue to maintain its strength and break upward.

Goertek, OFILM, and Sunway Communication...several relatively core Apple concept stocks.

While the opening showed a slight premium effect, the prices are now falling back rapidly, and the premium space is shrinking rapidly. At the same time, due to the rapid shrinkage of the premium space, the short-term speculation funds that took over these stocks yesterday are also retreating quickly to take profits.

Of course, at the moment when these short-term profit-making funds quickly leave the market.

It can be clearly seen that on the trading board of these stocks, there are still large orders occasionally.

It seems that many institutional capital groups that are optimistic about this line have not given up on this line, and many institutional funds are still continuing to buy.

Compare the main lines of large-scale infrastructure and new energy industry chains, as well as the main lines of the smartphone industry chain.

The main line of the emerging industrial chain at this moment.

Especially in the core sectors of film and television media, Internet software, and Internet applications, the trend is obviously weak.

When the liquidity of short-term funds in its major sectors is siphoned off by the new energy industry chain.

After the opening of these major sectors, they all chose to adjust downward.

Among them, film and television media became the sector with the largest market retracement at this time. In just one minute after the opening, it fell by nearly one point.

And at the moment when the decline in its stock price rapidly expanded.

The trends of some popular concept stocks in this sector, as well as industry-leading stocks that have attracted much market attention, are not optimistic at all.

Huawen Online, a core concept leading stock, quickly fell to a 3% drop.

The stock of Huace Film & TV quickly fell to a 4% drop.

Stocks such as Huawen Media, Guangdong Media, Baofeng Technology, and Quantong Education all saw their declines widen to around 4%. Even industry leaders and heavyweight stocks like LeTV and Maruta Pictures...

At this time, the market decline has also expanded to about 2%.

At the moment when the film and television media sector was rapidly falling and pulling back, the Internet software and Internet application sectors, which were highly correlated with its trend, also saw their market declines rapidly expand.

At the same time, it was affected by the rapid decline of these sectors.

The entire market's small and medium-sized, and micro-cap concept stock sector was also significantly dragged down.

Both the CSI 500 Index and the QS 1000 Index experienced a rapid decline and correction the moment they officially opened for trading.

It also dragged the ChiNext Index down rapidly.

It’s just that due to the rapid growth of the new energy industry chain, the index has some hedge in this regard.

This has resulted in the overall loss-making effect on the market not expanding further compared to the call auction.

In the market, the concept stocks of small and medium-sized stocks as well as micro-cap stocks have cooled down again and have been sold off by many short-term profit-takers.

The main line area of ​​the main board at this moment.

This time, the liquor, white goods, pharmaceutical, consumer, electricity, finance, and petrochemical sectors were unable to strengthen independently, forming a style trend of capital switching between large and small caps, or even switching between high and low caps.

The corresponding sector index trends in these sectors have maintained a sideways trend.

Among them, liquor and white appliances performed relatively strongly, although the relative positions of these two sectors were significantly higher than other main weight sectors.

However, it is obvious that the main capital groups in the market are more inclined to follow the trend of these two major sectors.

And the willingness to follow suit and continue the relay is much stronger.

"Sure enough..." Observing the market's official opening and the performance of the major main lines, Xu Qiao, a member of the 'Magic City Ultra-Short Gang', exclaimed with emotion, "The market's active capital flows have indeed been drawn to the strongest sector, the new energy industry chain. This has directly led to insufficient buying power in other key market sectors, resulting in a plunge in the early trading session."

"Yeah." Old Zhang nodded and said, "It's an expected trend."

"It seems today's market trends are destined to diverge," said Old Wu. "The new energy industry chain seems to be the only strong sector. The large-scale infrastructure sector hasn't shown much momentum, but the loss effect is not significant either. It's unlikely that other major market sectors will have any opportunities today."

Old Zhang nodded slightly and said, "Today marks the first divergence in the new energy industry chain. Profits are flowing out, and subsequent funds are fully taking over. The volume is huge, and the chip structure will be reshaped. The market trend will be volatile and divergent, and the situation will definitely be more serious than before."

"From a volume perspective, I think there shouldn't be any problems," Xu Qiao said. "Ganfeng Lithium and Tianqi Lithium are both performing strongly, both continuing to break upward. This should be conducive to the continued strength of the new energy industry chain and continue to attract long-term capital groups both inside and outside the market. Of course...it will also drive the strength of other concept stocks held by Mr. Su in the market."

Old Wu nodded and said, "Indeed, there's always been a hidden thread in the current market, and that's the concept stocks that President Su holds. Looking at the specific strong mainline sectors, the new energy industry chain, the major infrastructure, the smartphone industry chain, liquor, and white goods, they're basically all areas where President Su has made a big investment."

"Mr. Su is also following the trend," Lao Zhang said. "I think what's more important is the underlying logic driving the continued strength of these main sectors, or the changes in industry fundamentals and specific changes in future expectations. Grasping this point is the key."

"That's natural," Old Wu said, "but I'm analyzing it from the perspective of market sentiment."

"All the active liquidity in the market is flowing into the new energy industry chain..." Xu Qiao thought for a moment and said, "So, when other market trends adjust, will there be a good left-side buying opportunity?"

"As for the smartphone industry chain..." Lao Zhang said, "Xiao Xu, I think your point still exists."

"Relatively speaking, a better buying opportunity would be to follow the new energy industry chain. There's more certainty, right?" Old Wu said. "Ganfeng Lithium and Tianqi Lithium, two core leading stocks, have high enough future certainty and room for growth. Since these two stocks offer a buying opportunity, just buy them. I'm a bit put off by other stocks on the market right now."

"In fact, looking at the market over the next few years, I feel that the new energy industry chain is likely to be the core and main line that will continue to develop." Brother Chen then continued, "Based on this underlying logic, our understanding and perspective of the current market situation must be more broadly understood."

"The new energy industry chain is very likely to be the core market trend in the next few years," said Lao Zhang. "However, I feel that the industry's development and the long-term market sentiment will be highly volatile, and the trend may not be sudden. Who knows, the stock price may fall back to its starting point before a complete explosion. I think for those of us who are short-term traders, it's better to focus on swing trading. It's meaningless to consider the long term."

Xu Qiao responded and said, "I think so too. From a swing trading perspective, judging by the current trends of Ganfeng Lithium and Tianqi Lithium, given their large circulating shares and market capitalization, I don't think their explosive power will be that strong. Relatively speaking, small and medium-sized stocks are more suitable. For example, within the new energy industry chain, perhaps Tianci Materials and Power Source have greater room for flexibility."

"Tianci Materials is a good stock," said Old Wu. "I feel it has the potential to become a leading stock in the new energy industry chain. And the expectation of explosive performance in the future... the probability of this stock's future performance explosion is also very high!"

"That's right." Xu Qiao nodded.

Lao Zhang said, "I think so too. I can give Tianci Materials a try by increasing my position a bit."

"Haha, I've already bought 500 million in chips." Xu Qiao laughed and said, "This stock has also exploded in volume today. It seems like there's been a lot of turnover."

Old Wu said, "At this time, the more chips are traded, the better."

"Huawen Online's stock performance today must have been significantly below expectations, right?" Xu Qiao paused, then continued, "After a large amount of active buying capital was siphoned off by the core new energy industry chain, it seems that the film and television media sector, and its related emerging industry chain, is struggling to recover. Furthermore, the performance of Huawen Online, this core leading stock, seems to have come to a sudden halt."

"Huawen Online's market performance today is definitely below expectations," Old Wu said. "I had originally hoped this stock would continue to hit its daily limit, further expanding its potential within the short-term market speculation ecosystem. Now it seems... that's unlikely. Overall, though, this stock has room to nearly double since its bottoming out. I think it's about right now."

"Well, there is almost room to double it." Xu Qiao nodded slightly.

Old Zhang paused and continued, "Actually, Huawen Online's stock performance yesterday and today's opening pattern were actually quite good. It's just that there weren't other concept stocks following suit, meaning there weren't any other small players to assist, which made it difficult for this stock to support itself. Originally, Huace Film and Television was meant to follow suit, but unexpectedly, Baofeng Technology brought the entire film and television media sector crashing down."

"There's nothing we can do about it," Old Wu said. "If the new energy industry chain hadn't shown such a significant divergence in its trend today, and hadn't so violently siphoned off the buying power of a large group of active funds in the market, then the film and television media sector, as well as the emerging industry chain sector, would have retained a sliver of opportunity to continue its upward breakout. But now... since there are core leading stocks in the new energy industry chain with stronger profit potential that can be bought at will, who would still buy into the film and television media sector, which has clearly weakened and hasn't generated any profit potential, or the entire emerging industry chain sector and its corresponding leading concept stocks? Wouldn't that just be asking for trouble?" (End of Chapter)