Rebirth of the Capital Legend

"Yes, Lao Liao is right," Chen Guiyun nodded in response. "Under normal market liquidity conditions, not only are there diverging trends within the major core market lines, but there are also significant diverging trends within these core lines, between major sectors, and even between stocks with similar concepts within each sector. If you want to grasp the pulse of the market, you have to understand this."

"We need to focus on the active buying of various fund groups and select a few core leading stocks with the strongest combined capital," said Li Jinshi. "When market liquidity is average, funds can generally only focus on a few core leading stocks and cannot take care of all the stocks in the core market."

"Among the core leading stocks, it's still important to consider the cost-effectiveness of the game." Chen Guiyun took over and continued, "At present, the most cost-effective short-term game should be the new energy industry chain line, Ganfeng Lithium, Tianqi Lithium, Tianci Materials, Pioneer Intelligent, Dofluoro, Power Source... this group of stocks. Since the core leading sector of the new energy industry chain has been determined to be the lithium battery sector, then... even if you want to follow the market, you have to choose from some of the core leading stocks in this line."

"Tinci Materials is no longer a stock to buy," Li Jinshi said. "I remember last October, before the third stock market crash, when the market first hyped the new energy industry chain, the performance of Dofluoro was highly correlated with that of Tianci Materials, right? I'm wondering... now that Tianci Materials has performed well, is it okay to speculate on Dofluoro? I feel like with the strong correlation between these two stocks in the past, there will definitely be money invested in this stock. If Tianci Materials subsequently becomes the core leader of the lithium battery sector, then...

These two stocks are somewhat similar to the situation of the two stocks, Huawen Online and Huawen Media, in the previous film and television media sector.

At that time, Chinese Online continued to break through.

Although the stock of Huawen Media did not form a strong financial synergy because its circulating volume and market value were much larger than those of Huawen Online, it at least achieved two daily limit increases under the influence of Huawen Online.

The current Dofluoro stock is very similar to the original Huawen Online stock.

Moreover, after the continuous decline in the previous six months, the current market value of Dofluoro stock is not much larger than that of Tianci Materials stock.

The specific main businesses of the two stocks are basically the same.

The logic behind its fundamental reversal and the expected logic behind its future performance explosion should not be significantly different.

In the main line of the entire new energy industry chain, due to the favorable subsidies released in advance by the state, a reversal of industry fundamentals has been formed among the vast investor groups inside and outside the market, and expectations are that future performance will explode.

I feel that this stock has a high probability of performing well.

As for whether they can form such a strong linkage trend like Ganfeng Lithium and Tianqi Lithium stocks and strengthen simultaneously.

We will then have to wait and see how investors react to this stock and the subsequent market feedback.”

"Well, I think there's nothing wrong with Lao Li's idea." Liao Guoxiang pondered for a moment when Li Jinshi suddenly mentioned Dofluoro. He then nodded and said, "In the past, these two stocks were indeed closely linked, and their main businesses are also relatively consistent, with the same underlying logic.

In this way, as Tianci Materials' stock price rises and its valuation is repaired.

Then, it will inevitably stimulate the stock price performance of Dofluoro.

Also, I remember that when this stock rose sharply last year, Mr. Su’s Fuxing Road was the main driver.

If market capital has memory, then if Tianci Materials generates significant profits and even threatens to become a core leader in the lithium battery sector, there will undoubtedly be speculation in this stock. However, given its fully tradable nature and a market capitalization exceeding 100 billion, its market volatility and potential for price manipulation are likely to be significantly lower than that of Tianci Materials.

"The hype and stock price volatility are lower than those of Tianci Materials, but I don't think it's a big deal." Li Jinshi paused and continued, "I'm using this stock as a substitute for Tianci Materials if I can't buy it right now. If I could buy Tianci Materials, it would definitely be safer to invest heavily in the core leader, and the certainty would be higher."

Chen Guiyun paused and said, "In fact, I think that the two stocks of Tianci Materials and Dofluoro, although seemingly different in their main businesses and the different valuation conditions given by the market, are actually relatively accurate. Although the main business of these two stocks is lithium hexafluorophosphate, in addition to this, Dofluoro also has several other major products. Generally speaking, the more diverse the main business, the more difficult it is to value, and the more difficult it is to get a relatively high valuation.

I analyzed that the current performance of Dofluoro's stock is far weaker than that of Tianci Materials.

The specific main business is too diverse. Lithium hexafluorophosphate, which everyone expects to contribute a lot of profits in the future, does not account for a particularly high proportion in the entire main business. Even if this product ushers in a big boom in the future, its improvement on the overall performance will be relatively limited.

But this is different for Tianci Materials stock.

If demand for its core products explodes, its performance will be far more explosive than that of Dofluoro. I believe this is also a fundamental reason why funds are concentratedly speculating on this stock and why its performance is far stronger than that of Dofluoro.

"I know that in terms of fundamental expectations, the underlying logic and expected upward trend of Dofluoro are weaker than those of Tianci Materials," Li Jinshi said. "But this is a medium- to long-term trend, and I'm talking about the short-term potential for speculation.

If we focus on the short-term game...

In fact, as long as the stock of Tianci Materials continues to rise sharply and hits the daily limit continuously, it will be able to drive the stock of Dofluoro.

As long as this is confirmed, the stock of Dofluoro is at this position at present.

You can enter the market for arbitrage.

Similar to Huawen Online and Huawen Media before, before Huawen Online's first peak, didn't Huawen Media also hit two consecutive limit-up days? "

Chen Guiyun thought for a moment and said, "Based on your line of thought, that's certainly true. However, I don't think the certainty is that high. Relatively speaking, the rate of return from continuing to speculate on Ganfeng Lithium and Tianqi Lithium at this time should not be much less than speculating on Duofluoro, and the certainty will be even higher. So... from the perspective of short-term speculative cost-effectiveness, I think it would be safer to continue to go long on Ganfeng Lithium and Tianqi Lithium rather than Duofluoro."

"Old Chen is right," Liao Guoxiang responded. "But I don't think it would be a big problem to take a small position in Duofuduo."

As he spoke, he turned his attention back to the two markets that were still trading fiercely.

At this moment, in the stock forum where major investor groups from all over the Internet gather, countless retail investor groups are also having heated discussions about the current market trends and the performance of the major core trends in the market.

"The new energy industry chain is too strong!" "Yes, it's basically not showing any loss effect on the market. Whether it's Ganfeng Lithium, Tianqi Lithium, Shuguang Shares, Power Source... and a bunch of other stocks, they are all still hitting new highs. And looking at Ganfeng Lithium and Tianqi Lithium, after the violent fluctuations at the beginning of the trading day, they have now hit new highs. I feel that the stock price will rise further in the afternoon, and maybe it will continue to hit the limit up."

"It's unlikely that the stock will continue to hit the daily limit, but it's entirely possible that it will continue to rise sharply."

"Boss Su is truly amazing! Any stocks he discovers, any stocks he invests heavily in, are all great stocks!"

"That's right. If you don't look at the stocks that Mr. Su has traded in the past, you will find that Mr. Su has the best vision in the entire market right now."

"Indeed, it's safest to follow Mr. Su in stock trading."

"Haha, you can say that, but it's not easy to follow. Continuing to chase high prices is quite risky."

"Today's market index is showing signs of adjustment. I feel that even if the new energy industry chain continues to rise sharply today, it will have to adjust tomorrow, right?"

"That's not certain. Maybe tomorrow this core trend will continue to rise."

"It's also possible. Look at the previous large-scale infrastructure line. When it first broke out, it was squeezed out and rose continuously. It was also squeezed out and rose to a certain height before gradually slowing down. The new energy industry chain line lagged behind the market growth too much in the early stage. Although it has risen very rapidly in the past two or three trading days, many concept stocks have directly risen for two consecutive days. But compared with the large-scale infrastructure line and the main main-line sectors of the main board that have been heavily supported by institutional main funds, I think the relative position is still very low, and we can continue to take over with confidence."

"Hey, I decisively bought all my stocks the moment the market opened today. It's just that I bought a little too early. I should have waited until the opening to buy Ganfeng Lithium and Tianqi Lithium when the stocks plummeted. But... for long-term holdings, this little cost difference doesn't matter."

"Yes, in the long run, this cost difference can be ignored."

"Shuguang shares are really good. There are still millions of orders blocked today. It really doesn't give me any chance to buy."

"Isn't the main reason for this stock's trend driven by expectations of restructuring?"

"It's the expectation of restructuring, otherwise why would it keep hitting the daily limit?"

"Tianci Materials is the stock with the highest turnover and highest limit-up in the new energy industry chain today. I feel like the market enthusiasm for this stock is rising rapidly, and it's about to become the core concept leader in the entire new energy industry chain. Alas... I actually had many opportunities to follow the trend and buy this stock this morning, but unfortunately... I obviously hesitated at the time."

"Same thing, I watched this stock soar straight up to the daily limit."

"The performance of the complete vehicle sector seems a bit weak, not as good as the growth of the real estate, building decoration, and building materials sectors that are the main focus of major infrastructure projects."

"The stocks in the complete vehicle sector are all large, heavyweight stocks, so it's difficult for them to rise as quickly as some stocks in the lithium battery sector. After all, for many of the heavyweight stocks in this sector to continue to rise sharply, they need a huge amount of buying capital to actively take over and push up the stock price. Without this overly consistent and strong capital force, the stock price will not rise much."

"Yes, look at Changan Automobile's stock. The current trading volume is almost 15 billion. It's really exaggerated."

"While the new energy industry chain is trending strongly today, there's also significant profit-taking pressure. It feels like a lot of profit-taking funds are selling off their holdings today."

"Isn't this normal? In the past two trading days, most of the potential funds have already earned 20%. With a 20% profit margin, can you hold on to it?"

"If I want to invest long-term, I can hold on to the 20% profit margin."

"It's a bit too early to talk about long-term prospects now, isn't it? After all, whether the new energy industry chain can form a stronger market capital synergy remains to be seen."

"That's true, but today's trend in the 'big infrastructure' sector seems a bit too conventional."

"Well, apart from the three core sectors of real estate, building decoration, and building materials, which continue to perform strongly, the trends of other related sectors have fallen behind."

"How are the core leading stocks performing? After the early morning volatility, isn't Oriental Yuhong's stock now rising again and hitting a new high?"

"Oriental Yuhong's stock is a special case and no longer represents the entire infrastructure sector."

"What about Beijiang Communications Construction? It's also trending strongly right now. And the core leading stocks like Conch Cement, Huaxin Building Materials, China Construction, and China Railway Construction...are also performing well. Even though some of these core leading stocks haven't seen price increases yet, they're all trading relatively strongly sideways. I think the infrastructure sector isn't done yet, and there's a good chance there's still some room for further growth."

"I think so too. Actually, there's no need to pay too much attention. Just look at Oriental Yuhong's stock. When will it peak? When will President Su exit Fuxing Road? Then let's talk about the peak of the main line of large-scale infrastructure. And as far as the real estate industry chain is concerned, it feels like the Hong Kong stock market is more powerful than our mainland market."

"That's right. Look at many of the mainland real estate stocks listed on the Hong Kong stock market. Their performance... is incredibly strong."

"So, there's no need to worry about these minor adjustments at the moment."

With the heated discussions among countless retail investors on major stock investment exchange platforms...

Market trading hours continue to advance.

As market sentiment shifts, the divergence among the major market themes and related sectors is becoming increasingly apparent, and the underlying trends are becoming clearer. (End of Chapter)