Rebirth of the Capital Legend

"Well, short-term trading is important. The resonance between the sentiment of individual stocks and sectors, as well as the resonance between capital and sentiment, is very important." Zheng Jinming took over and said, "Judging from the comparison between Beijiang Communications Construction and Huawen Online, I think what Lao Zhang said is correct. In the current market trend, Beijiang Communications Construction is indeed the stock with the best shape and the best chance of success among the current short-term trading concept stocks in the market.

Moreover, the emotional basis of the major infrastructure sector is indeed much better than that of the film and television media sector.

Relying on the emotional foundation of the large-scale infrastructure line, the consensus expectations of various short-term capital groups in the market for the stock of Beijiang Communications Construction will be significantly stronger.

In addition, compared with the stock of Huawen Online, the circulating volume of the stock of Beijiang Communications Construction is even smaller, and the stock performance is also more active.

With these basic conditions, I think Beijiang Communications Construction is a good stock.

With sufficient turnover today, there is still a high probability that the stock will continue to rise and take over the shares of Huawen Online, thus opening up space for further rebounds in the market.

As for the future of this stock, whether it can surpass the hype level that Huawen Online has previously created, it remains to be seen.

It depends on the market sentiment in the afternoon, the market sentiment tomorrow and the day after tomorrow, and the overall attitude of funds towards the major infrastructure line.

However, I think that a number of domestic real estate stocks in the Hong Kong stock market are still rising at an accelerated pace.

It is obvious that foreign institutions are still buying heavily.

Stimulated by the aggressive performance of a number of domestic real estate stocks in the Hong Kong stock market, the major infrastructure sector in the domestic market is likely to continue to strengthen.

It is even possible that the trend will accelerate in the future.

Moreover, compared with the current internal chip structure of the new energy industry chain, this line is still not very stable.

The internal chip structure of the current large-scale infrastructure line can be said to be quite stable after the continuous rise and trend breakthrough in the past two or three months.

Within the current major infrastructure main line.

The major institutions have basically completed their positions, and the retail investors have also been almost cleared out along this main line.

Looking at this line, we can see that in the recent continuous rise, the volume is no longer increasing.

It can be clearly seen.

In this case, the chips within it tend to be stable, and there is no need for excessive volume to continue rising based on the force of trend inertia.

There is also stimulation from various trends in the over-the-counter Hong Kong stock market.

There is no reason to be bearish on the large-scale infrastructure line at present. At least the new energy industry chain line's siphoning effect on funds from other main lines of the market will not have a big impact on the large-scale infrastructure line. So... the trend of the large-scale infrastructure line is still good, and the subsequent trend expectations are still good.

The concentration of funds in speculating on Beijiang Communications Construction's stock creates an emotional basis for speculation.

In other words, if this stock performs well, it will most likely resonate with the sentiment of the sector.

When its trend resonates with the sector sentiment, its trend stability is very strong, which is simply incomparable to the original Huawen Online stock.

I didn't notice the buying point of this stock when it plunged at the beginning of the trading session this morning.

I'll see in the afternoon. If this stock can reach its upper limit as expected after sufficient turnover, I'll increase my holdings at the upper limit."

"Old Zheng is still decisive," said Lao Qian in the group, laughing. "As long as Oriental Yuhong's stock doesn't collapse, I feel Beijiang Communications Construction's stock will continue to rise. Overall, Oriental Yuhong is the key to the entire infrastructure pipeline."

He nodded in response, "That's for sure. Mr. Su's Fuxing Road seat has an unparalleled influence on the market. As long as Mr. Su Fuxing Road continues to lock in Oriental Yuhong's stock, I think the large number of retail investors and institutional investors who have followed suit will most likely not sell Oriental Yuhong in the short term."

Moreover, look at the current trend of this stock.

It is obvious that this stock is in a strong upward trend, and its K-line pattern is rising steadily.

Under this trend, there is absolutely no reason to sell. Even if I held a large position in Oriental Yuhong, I would not sell at this time.

"Yes, that's right." Zhang Xinlei nodded and said, "For the entire infrastructure project, Oriental Yuhong's stock is naturally very important. In fact, in addition to Oriental Yuhong, another stock that has a relatively large impact on Beijiang Communications Construction is Conch Cement."

"Anhui Conch Cement?" Old Qian was slightly taken aback. "This heavyweight leading stock seems to have a completely different logic in its price movement and the strength of the dominant capital group compared to Beijiang Transportation Construction, right? They're not even based on the same speculative logic. How can they influence each other?" Zhang Xinlei chimed in, "Beijiang Transportation Construction, relatively speaking, also belongs to the cement concept sector, right? The overall valuation increase of Anhui Conch Cement is clearly beneficial to the valuation increase of the entire major infrastructure theme. As long as the valuation of the entire major infrastructure theme increases, everyone's speculative sentiment towards this theme will also increase. And after the sentiment increases, the market's risk appetite for following the trend in short-term trading stocks will naturally rise. From this perspective... it definitely has a significant impact on the price movement of Beijiang Transportation Construction."

Also, based on the stock trend of Anhui Conch Cement.

Currently, many of the core leading stocks related to the major infrastructure lines in the market are basically linked to the trend of this stock.

In other words, the performance of Conch Cement's stock is affecting the overall sentiment of the infrastructure sector."

"Old Zhang's analysis is correct," Zheng Jinming said. "The reason the major infrastructure sector is currently performing so steadily is mainly because the core industry leaders are performing steadily. On the other hand, the leading small and medium-cap stocks in the major infrastructure sector, with the exception of Oriental Yuhong, are basically in constant adjustment."

"Yeah." He nodded and said, "Before, the stock of Capital Group was performing quite well, but now it's obviously fallen behind."

"There is also the stock of Shenhuo Shares, which has performed well in the early stages." Lao Qian added.

Zheng Jinming said, "Shenhuo shares shouldn't be considered a concept stock for major infrastructure projects, right? I remember Huaguo MCC's stock was performing well before, but it's a shame... it's fallen behind now."

"Is MCC China a blue chip stock?" Lao Qian asked. "The circulating volume of MCC China is really too large. It seems that it can't move out, which is understandable. This stock follows the trend of China Construction, and the two stocks are highly correlated."

"It's not just China Construction and MCC that have a high correlation," Zheng Jinming said. "China Construction, China Railway Construction, China Communications Construction, China Construction, MCC... these large numbers of construction stocks with "Hua" in their names all have relatively consistent trends. However, these stocks do have excessively large market capitalizations and circulating shares, making them very limited in their flexibility. While they may have a significant impact on the trends of major infrastructure projects, they're not suitable for speculation."

"Aside from the major infrastructure investment…" Old Qian paused and continued, "In fact, the smartphone industry chain is really strong. I feel that this line… has great potential at the current time point. Stocks such as Lixun Precision, Changying Precision, OFILM Technology, Goertek, Xinwei Communication, and Micro-Body… after experiencing sharp fluctuations in the morning, have shown signs of regaining strength near the midday close. Furthermore, Apple's new product launch will be in the second half of the month, with less than 15 days left. Over the next two weeks, corresponding expectations will likely become stronger, and the capital's follow-up sentiment will likely also become stronger. I think this line… is worth focusing on at the moment, and it's worth investing in it."

"The smartphone industry chain is certainly a good area," Zheng Jinming said. "But in terms of priority, it still doesn't seem as high as major infrastructure."

"If you don't like Beijiang Communications Construction..." Zhang Xinlei said, "speculating on Changying Precision is indeed a good choice. Apart from the new energy industry chain, the two main lines of speculation in the market are only the large-scale infrastructure line and the smartphone industry chain. Of these two main lines, at the current time point, there is no doubt that Beijiang Communications Construction is the core speculation leader of the large-scale infrastructure line, and Changying Precision is clearly the core speculation leader of the smartphone industry chain. This can be clearly seen from its market trends and its impact on the trends of other stocks."

"It's better to buy a little of both stocks." Lao Qian smiled and said, "That way, no matter which direction the market chooses to focus on next, you shouldn't be left behind. You won't make the wrong choice between the two, right?"

"Haha..." Zheng Jinming laughed, "Old Qian, you're such a cunning fellow!"

Old Qian chuckled and said, "This isn't called being cunning, this is called risk sharing."

He Zhong said, "Relatively speaking, I'm more optimistic about the major infrastructure sector. Currently, the Hong Kong stock market is only seeing some linkage with the mainland market in this sector. Regarding the rest of the smartphone industry chain, I don't see much movement in the Hong Kong stock market. Sunny Optical Technology's stock hasn't moved much either. I feel like the continued surge in Apple-related stocks should have already reflected expectations. Also... based on past historical trends, when there's a clear positive outlook at a certain point in time, various market funds are often hyping it up in advance, waiting until everyone feels the outlook is positive and consensus is building. Then, stock prices often stop rising and begin to adjust generally. Generally speaking... the expectations for major infrastructure are stronger, and are more widely recognized by both on- and off-market funds, right? In that case... when it comes to prioritizing market making, we should prioritize the core leading stocks in the major infrastructure sector."

"There's nothing wrong with Lao He's analysis and approach," Zhang Xinlei said. "Although I'm also optimistic about the smartphone industry chain, the current core leading stocks in this sector, such as Changying Precision, Lixun Precision, O-Film Technology, and Goertek... are all dominated by hot money from the 'Fushan Group.' The structure of this 'Fushan Group' capital is quite ordinary. With so many chips invested on a large scale by this group, it's unknown how much you can earn by buying in at this high point of sentiment. However, if sentiment quickly subsides and the market enters a period of adjustment, you'll lose a lot of money.

In general, a large number of core leading stocks in the smartphone industry chain are involved in speculation.

I always feel that the cost-effectiveness is not very high and the profit and loss ratio is a bit low.

Relatively speaking, the combined strength of various internal funds for Beijiang Communications Construction's stock is better."

"That's right." Zheng Jinming nodded and said, "Based on the Dragon and Tiger List data for the past two or three trading days, it can be seen that there are no strong, large speculators involved in the Beijiang Communications Construction stock. It is mostly small and medium-sized funds that continue to hold the baton."

"Generally speaking, the market's carrying capacity for small-cap stocks like these is very limited," Zhang Xinlei said. "The fact that there's no big speculators getting involved is actually a good thing."

Zheng Jinming continued to nod and said, "I think so too."

"Because of the small circulating market capitalization, even if we judge that Beijiang Communications Construction has a high probability of performing well, we won't be able to increase our holdings much," He Zhong said. "However, the circulating market capitalization of the core leading stocks in the smartphone industry chain is different. I feel that these core leading stocks can accommodate a larger amount of major hot money. Although there is a sense of a single dominant player right now, judging by today's turnover, the 'Fushan Group' funds have likely reduced their holdings significantly. I don't think it will be a big problem."

"Then let's go with Lao Qian's method..." Zhang Xinlei said, "Each position should be half and half. This way, we won't make the wrong purchase and we won't miss out."

He nodded and said with a smile: "To be honest, I think so too."

"Let's wait and see how market sentiment reacts after the market opens this afternoon," Zheng Jinming said. "If overall sentiment isn't positive, I don't think there's any need to rush into opening a position. After all, even if the market stabilizes slightly today, the pressure on the new energy industry chain to continue rising tomorrow will be immense. This means the probability of a market correction tomorrow will be much greater than it was today."

"What if..." He Zhong asked, "I mean, if the new energy industry chain adjusts, and the short-term profit-taking investors who have gathered here, after selling off their stocks, are likely to invest in other main areas and speculate?"

Zhang Xinlei said, "That's possible. Generally speaking, funds tend to switch between high and low levels when sentiment ebbs. However, there's a lot of uncertainty about which low-level trend they'll cross. I think it's unwise to bet on a high-low switch when you know the market is likely to adjust. Relatively speaking... at this time, it might be more appropriate to hold a short position and wait."

"Yes," Zheng Jinming agreed, "A necessary period of waiting with no open positions is very necessary." (End of Chapter)