Rebirth of the Capital Legend

Among them, the main line of large-scale infrastructure, the main line of the new energy industry chain, and the main line of the smart phone industry chain, which have attracted great market attention, have once again attracted the concentrated takeover of the core main funds in the market and a large number of short-term fund groups after the market officially reopened.

Almost instantly...

During the lunch break, the most discussed stock, Beijiang Communications Construction, surged rapidly at the moment of opening and hit the daily limit.

At the same time, Oriental Yuhong also surged rapidly in volume.

In addition, stocks such as Dofluoro, Ganfeng Lithium, Tianqi Lithium, Goertek, OFILM, Lixun Precision, Changying Precision, and Xinwei Communication also surged in volume at this moment. At the same time, in the main areas of emerging industrial chains, such as film and television media, Internet software, and Internet applications, especially those that have been abandoned by short-term capital groups and have a large loss-making effect on the market, many core leading stocks, such as Huawen Online, Huawen Media, Huace Film and Television, Guangdong Media, LeTV, Quantong Education, Baofeng Technology, Maruda Film and Television, etc., all plunged in volume at this moment and continued to fall. The loss-making effect on the market was further expanded.

The main board's weighted sectors include liquor, white goods, medicine, consumption, electricity, finance, petrochemicals, etc.

At this moment, the market continues to fluctuate, with no obvious changes in volume, sentiment, or stock price performance.

Judging from the overall market trend...

The moment the market reopened, the market's differentiated situation still existed.

It still maintains the market pattern of the strong getting stronger.

"I told you so! The smartphone industry chain isn't going to be abandoned so easily by the market's investors." Noticing that the smartphone industry chain was rapidly gaining traction alongside major infrastructure and new energy sectors, Li Jinshi, one of the major speculators from the Fushan Group, who had already invested heavily in stocks like OFI Technology and Changying Precision, chuckled. "But it's true! After this morning's market volatility, this trend has strengthened again this afternoon."

"Well, it seems there's no need to worry too much," Chen Guiyun replied. "The market volume is increasing, and the trend is well-supported. In anticipation of Apple's new product launch, this trend should be similar to the major infrastructure and new energy industry chains. It will gain unanimous recognition from various capital groups in the market and will be able to develop a sustained trend."

"This trend is quite predictable," Liao Guoxiang said, not appearing overly surprised by the afternoon's renewed strength in the smartphone industry. He continued, "However, this early afternoon trend is likely due to the release of emotions that built up during the afternoon. Whether it can continue depends on the sustainability of the overall market trend after the initial sentiment subsides."

Li Jinshi said, "I don't think there's much of a problem. Right now, the core focus of the entire market, that is, the main focus of a large amount of major funds and active hot money, has been concentrated on the three main lines of the infrastructure, the smartphone industry chain, and the new energy industry chain. In the situation of relatively differentiated market trends, generally speaking, if the capital groups in the market reach a consensus on these three main lines, then these three main lines will only become stronger and stronger."

"I hope so." Chen Guiyun nodded slightly. "As long as the overall market volume doesn't decline too much and remains within this range, then I think it will be able to support the simultaneous growth of the major infrastructure, new energy industry chain, and smartphone industry chain."

"Also, the main line of the main weight of the main board must not rise, and the current trend should be maintained." Li Jinshi said, "If the market weight line rises rapidly, it will inevitably siphon liquidity from other main lines of the market, leading to more drastic divergence in the main lines of large-scale infrastructure, new energy industry chains, and smartphone industry chains. Therefore... the volume of the weight line should not be exaggerated."

Chen Guiyun said: "Looking at the trends of the main heavyweight sectors on the main board, sectors such as liquor, white goods, pharmaceuticals, consumer goods, electricity, finance, and petrochemicals are unlikely to escape the trend of volatile sideways trading for the time being, and there are no expectations of these main sectors being overly strong for the time being."

"That's true," Liao Guoxiang nodded slightly, saying, "If the leading stocks in the major industries of the main weighted sectors of the entire main board market are to see significant movement, they will need further support from expectations. And as for the current expectations for the overall weighted sector... well, the only thing we have is the third quarter earnings report."

"Yeah, I think so too." Li Jinshi nodded and continued, "The general disclosure of the third quarter report should be in November. In other words, there is an expectation vacuum period of almost two months from now until November.

During this period of expectation vacuum, the entire main board weighted main line area is not supported by overly strong logical expectations.

And in the absence of any new expected positive support.

It is basically unrealistic for this line to develop a stronger trend.

On the other hand, the three main areas of infrastructure, new energy industry chain, and smartphone industry chain are expected to continue to grow.

In addition to the rapid expansion of the offline real estate market and the increase in housing prices, the major infrastructure line has also led to the rapid expansion of the offline real estate market and the increase in housing prices.

There is also the emotional stimulation caused by the continued surge in a number of domestic real estate stocks in the Hong Kong stock market.

Looking at the current performance of domestic real estate stocks in the Hong Kong stock market, it is obvious that foreign institutional investors are relatively in agreement with the underlying logic of the large-scale infrastructure investment plan.

Also, look at the market trends of Hong Kong stocks.

The performance of domestic real estate stocks is much stronger than that of many core real estate stocks in the mainland.

Under this trend pattern, it is obvious that the core concept stocks related to the entire major infrastructure field in the domestic market should be driven up, forming a passive rising situation.

That is to say...

At least under the premise that the major infrastructure sector in the Hong Kong stock market continues to rise sharply.

The trend of large-scale infrastructure in the domestic market will not be too bad.

In addition to the large-scale infrastructure line and the new energy industry chain line, the expectations of various types of funds for this line are actually stronger than the current main line of large-scale infrastructure.

After all, policies continue to be tilted and subsidies continue to increase.

This indicates that the future new energy industry chain will remain an unchangeable main direction under the continued guidance of national policies. Furthermore, this is especially true with the increasing力度 of subsidy policies.

Even within the new energy industry chain, many technologies are still immature.

However, with the support of policies, this line will definitely become the core and important force in the development of market conditions in the future.

Moreover, continuous policy guidance.

In the development of the entire industrial chain, more and more capital will be attracted to invest in this direction.

In general, after the country released new major favorable policies, there is no doubt that the underlying logic of the new energy industry chain will be reversed. The expected explosive performance of these core leading stocks in the future will most likely be fulfilled. There will even be no major surprises in the future performance of these stocks.

So, for now.

The expectations for this line of the new energy industry chain should still be the strongest in the entire market.

However, after the good news was released, this line did not get a decent trend adjustment amid the continuous short squeeze of funds. At this time, continuing to buy high is a bit too much, and the market volume has not shown any obvious expansion compared with the previous two trading days.

This casts a shadow on the subsequent market trend.

There may be a relatively large adjustment trend in the new energy industry chain, but in the subsequent medium and long-term time periods, the market of this line will definitely continue to fluctuate upward.

As for the smartphone industry chain...

Current expectations are still supported by the anticipation of Apple's new product launch conference, but in the medium and long term, it is still foreseeable that the fundamentals of the entire smartphone industry chain will reverse, and global smartphone shipments will return to growth. This is also worth looking forward to.

Therefore, the mid- and long-term underlying logic of the smartphone industry chain actually exists.

It’s just that the current market popularity of this line and the attention of the general investor group are not as high as the main line of large-scale infrastructure and the new energy industry chain.

But this is only temporary...

I believe that with the release of Apple's new product conference and the resumption of global smartphone shipments.

Therefore, the expectations and market trends of the smartphone industry chain will most likely become stronger and stronger, and the corresponding individual stock trends will also become stronger and stronger.

In general, the underlying logic and future expectation logic of the smartphone industry chain.

It is not weaker than the main line of major infrastructure and the new energy industry chain.

Moreover, looking at the market trends, the three core sectors, namely the large-scale infrastructure main line, the new energy industry chain main line, and the smart phone industry chain main line, have obviously shown a linked trend.

Under this linkage trend, the basic rise and fall will be relatively consistent.

Therefore, for now, we should focus on the trend of major infrastructure and the sentiment feedback of the new energy industry chain. As long as the trends of these two lines are correct, then the trend of the smartphone industry chain will definitely be fine, and we can continue to hold a long position without wavering.

"Haha..." Chen Guiyun responded, "That's right. Right now, in the entire market, only these three main sectors have the best future forecast logic, and the investors in the market are relatively the most supportive. As for the other main sectors... they feel a bit lackluster, especially the film and television media, internet software, and internet applications sectors. I originally thought that after adjustments, given their low stock prices, these sectors would be able to generate a sustained oversold rebound. I didn't expect... I was overthinking it. Judging from the market trends, it seems that these sectors have been completely abandoned by the short-term investors."

"Well, after the collapse of Huawen Online, the entire film and television media sector, as well as the two major sectors of internet applications and internet software, also collapsed," Li Jinshi said. "Furthermore, the limited liquidity in this sector has been completely absorbed by other stocks. Without sufficient liquidity support, with sentiment in this sector rapidly cooling and the corresponding core leading stocks entering a phase of concentrated selling and profit-taking, its market trend is basically unlikely to recover."

"Well, the impact on Huawen Online's stock today is indeed significant," Liao Guoxiang said. "This stock's performance today not only inhibits the upward momentum of other short-term core leading stocks, but also directly affects the overall market sentiment due to the loss-making effect."

Chen Guiyun nodded, his eyes glancing at the still-diving Huawen Online stock. He said, "Old Liao, looking at the trend of Huawen Online, I feel like there's a risk of it hitting the lower limit as the market continues to trade this afternoon."

"It shouldn't hit the limit down." Li Jinshi said.

Liao Guoxiang pondered for a moment and responded, "You know what, I feel the same way. I feel that Huawen Online's stock is indeed at risk of hitting the limit down today."

"If this stock hits the limit down..." Li Jinshi took over, "then the entire market will have to be more cautious in the closing period. Because if Huawen Online hits the limit down, it means that the logic of countless small and medium-cap concept stocks in the market will collapse. This will cause other small and medium-cap concept stocks to follow suit and further drag down the overall market sentiment. At that time, sentiment will quickly decline. Even if the main lines of large-scale infrastructure, new energy industry chain, and smartphone industry chain can still maintain their relative strength, I am afraid they will have to switch from their current offensive posture to a conservative one, right?"

Chen Guiyun nodded and said, "I think so too. So this afternoon, although the core leading stocks in the major infrastructure, new energy industry chain, and smartphone industry chain sectors, as well as the bullish sentiment in the sectors, have rebounded, but considering the relatively large amount of profit-taking and the callback pressure in the film and television media, internet software, and internet application sectors, it is still not advisable to increase long positions at this point in time. It is only suitable to hold positions and wait and see the next market developments and the development of the major main lines before deciding whether to stay or go."

"Yes, that makes sense," Liao Guoxiang continued. "From a sentiment perspective, aside from the inherent reasons in the film and television media, internet software, and internet applications sectors, the strongest market trend currently, with the strongest bullish sentiment and the most significant follow-up buying, is the new energy industry chain. After three consecutive days of strong gains, there's also substantial profit-taking, necessitating a brief correction to further consolidate the market's position. In other words, if the market enters a correction phase, it's logically sound, and such an expectation exists." (End of Chapter)