Rebirth of the Capital Legend

"Well, looking at the transaction volume and the outflow of large orders, especially the detailed intraday transaction records for these stocks, it certainly doesn't seem like a large-scale exit from the 'Fushan Group' to lock in profits." Zhao Qiang nodded and responded, "It seems that the smartphone industry chain deserves special attention.

However, Brother Sun, I think your judgment on the major infrastructure project is a bit too cautious, right?

It seems that in the Hong Kong stock market, as domestic real estate stocks have broken through previous highs and are forming a surge, the hype and capital accumulation in the entire infrastructure main line of the mainland market will most likely not decline, but will further intensify.

In addition, the new energy industry chain includes the lithium battery sector.

Sentiment in other industry sectors and concept sectors has indeed begun to ebb, and the trends of leading stocks in major popular industries are becoming increasingly divergent.

I am not saying that I am not optimistic about the new energy industry chain.

I feel that in the new energy industry chain, a large amount of short-term profit-taking has accumulated in the past three trading days.

At the same time, a large amount of funds are aggressively buying shares in the front. Its internal chip structure has not actually undergone any adjustment and consolidation after the sudden good news was announced last Friday. I think it is difficult to continue to hold it high. If this line wants to form a subsequent longer-term upward trend, it is likely to require further chip consolidation, that is, adjustment of the trend.

In fact, except for the most core lithium battery sector.

The various major capital groups in the market, especially the major institutional capital groups.

The expectations for the automobile, auto parts, auto decoration... and other industry sectors are not very high.

Although the sudden good news has made the future development prospects of the new energy industry chain brighter, it is still a long way off for its performance to explode.

In other words, the current new energy industry chain.

In fact, at the moment, it all comes down to emotional speculation.

Since it is emotional speculation, when the profit-making effect of the market gradually declines, the large number of profit-making funds that intervened at the beginning will begin to concentrate on taking profits and exiting the market.

Then, the money-making effect of this line of business is gradually lost.

This will inevitably lead to a large number of retail investors gathered in the market following the trend and selling, as well as a large number of retail investors who were trapped in the early stage to stop loss and leave the market.

I feel that the real entry point into the new energy industry chain has not yet arrived.

It is likely that we will have to wait for a decent adjustment before we can focus on intervening in positions.

As for the major infrastructure line, after the market has continued to perform for the past two or three months, the internal chip structure has become quite stable.

Most of the major institutional capital groups have also completed their layout.

In addition, as the major institutional groups continue to increase their holdings, the huge amount of trapped chips gathered in this line in the early stage has actually gradually loosened. In other words, the upward pressure on this line is actually not large. As long as the institutional holdings remain stable, there is no need for too much incremental funds and buying. Most of the leading stocks in the core industries of this line will be able to continue to rise.

Look at the stock trends of Anhui Conch Cement, Poly Real Estate, China Railway Construction, China Communications Construction, Huaxin Building Materials...

The development of its market trend remains as steady as an old dog.

With the guidance and trend development of these industry-leading stocks, there is still an expectation that the leading concept stocks in this line will continue to be hyped.

Moreover, although the stock of Beijiang Communications Construction has risen a lot in recent days.

In fact, compared with other core leading stocks in the large infrastructure line, the increase from the bottom is relatively lagging, that is, the increase is not large.

And then there’s the emotional feedback from the entire major infrastructure project…

In fact, this can be seen by looking at the stock trend and market feedback of Oriental Yuhong.

Judging from the current trend of Oriental Yuhong's stock, there is no sign of weakening trend or interruption of the buying capital group.

Even if this stock has undergone an adjustment today.

However, its market performance is still stronger than that of major core indexes in the market.

Moreover, from the trend of this stock, we can see that every time its stock price falls, the subsequent buying power is relatively strong, and it looks like it will not fall any further.

Since the stock of "Oriental Yuhong" is the focus of the overall sentiment of the infrastructure, the market trend has not ended.

Everyone is still optimistic about the future performance of this stock.

Then there is no reason to judge that the major infrastructure line has reached a point of emotional divergence and market adjustment.

In fact, the line of large-scale infrastructure has undergone several market adjustments in the continuous development of the trend. It has been constantly clearing out the increasing profit-taking and always maintaining the chip structure within the main line within a reasonable range. So at present... I think the line of large-scale infrastructure is still the most stable and relatively strong core main line in the current market.

And the stock of Beijiang Communications Construction.

It is currently the strongest core concept leader in the main field of large-scale infrastructure.

Previously, Huawen Online's stock, stimulated by the positive news about "online education", was able to achieve continuous gains at both ends and almost double its growth potential, even though there was no actual strong underlying logic support in the entire film and television media sector and the entire emerging industrial chain.

Today, there is a sufficiently strong underlying logic and the joint efforts of all sectors.

There is also the stimulus of continued favorable news.

It doesn't make sense that Beijiang Communications Construction, which has a smaller market capitalization than Huawen Online, a smaller circulating stock, more active stock performance, and higher capital participation, cannot reach the height space of Huawen Online?
The stock of Oriental Yuhong is blessed by Mr. Su's seat at "Fuxing Road".

In the past two or three months, the stock price has doubled in value and is still expanding. As a corresponding concept stock, the stock "Beijiang Communications Construction" should also have such a high growth space.

Therefore, comparing Tinci Materials and Changying Precision, I still firmly favor Beijiang Jiaojian. If this stock provides a good entry point tomorrow, I will continue to increase my position.

"I'm more optimistic about Tianci Materials," said Lao Qian in the group. "In terms of the relative market position, the lithium battery sector is clearly lower. And judging by the fact that Huayi Capital, headed by President Su, has been aggressively buying up shares of Ganfeng Lithium and Tianqi Lithium at their daily limit over the past two days, it's clear that... last Friday's unexpected positive news was quite sudden.

This is also because the majority of institutional investors in the market generally expect subsidies to decline next year.

Therefore, the psychological expectations for the lithium battery sector are relatively low.

As a result, when the expected value was reshaped after the announcement of major positive news, major institutional capital groups did not have sufficient positions.

In other words, the lithium battery sector is the strongest and expected to be the strongest in the future.

At present, the main capital groups of major institutions have a very strong desire to increase their holdings, and even have a very strong desire to grab shares.

When a large number of major institutions do not have enough holdings and want to continue to increase their holdings.

I think the market trend of the core sector of lithium batteries cannot be bad, and it is unlikely to provide a buying point for a deep adjustment.

After all, there are still a lot of institutional funds waiting to intervene and grab shares.

Once the lithium battery sector and the corresponding core industry leading stocks show a certain degree of pullback trend, these funds will intervene quickly and decisively.

From this perspective...

The subsequent lithium battery sector has a strong logic behind it, which is that it will independently strengthen and continue to be stronger than other main sectors in the market.

As for Tianci Materials, as a leading stock in the industry with the strongest financial synergy in this line and sufficient hard-core logic, its current market value is too underestimated compared with the expected future development. Its future growth space still has very large and very high expectations.

I feel that this stock will most likely become the new leader in the lithium battery sector.

Also, this stock has such a small market capitalization and circulating shares, but looking at today's Dragon and Tiger List data, it actually has the participation of major institutional funds.

This shows that for the lithium battery sector.

The desire and urgency of institutional main funds to continue increasing their holdings are indeed as I said.

It also shows that the lithium battery sector is not a concept sector dominated by short-term market speculation funds, but a main sector with hard-core logical support, huge growth space, and subsequent huge performance explosion potential.

The expected growth of this sector and the subsequent performance of the corresponding core stocks.

I think it is much clearer and more specific than the main line of major infrastructure and the smartphone industry chain.

Of course, the smartphone industry chain that Brother Sun just mentioned cannot be ignored. In the current smartphone industry chain market, although global smartphone shipments have stagnated, the market size is still expanding, and the market share is actually gradually gathering towards the leading mobile phone manufacturers.

Most likely, the future smartphone market.

There may be only four or five players in the world, and the growth space and growth certainty of companies involved in the industrial chains of these four or five players are actually very high.

I think this is also one of the reasons why stocks such as Lixun Precision, O-Film Technology, Goertek, and Xinwei Communication are performing so strongly.

Because for many major capital groups involved in these stocks.

These stocks are the core leading stocks of Apple's industrial chain.

As we all know, Apple has very strict management over its suppliers. Since these companies can manufacture Apple products, can they also manufacture for domestic mobile phone manufacturers in the future?

I think there is actually a logic of domestic substitution in the smartphone industry chain.

If this logic is taken into account, the expected hype space and even the subsequent growth space of these companies can continue to be viewed with a higher regard.

At least the stock of Lixun Precision can reach a scale of 1000 billion.”

"Old Qian, you have quite an appetite." Zhao Qiang smiled upon hearing Old Qian's thoughts on the potential growth of Lixun Precision's stock and said, "It's always a hundred billion scale. That threshold isn't easy to cross. Of course, the logic you just stated makes sense if you think about it carefully. But specifically... whether the global smartphone market has re-entered the recovery channel still needs to wait for the market feedback and sales feedback after Apple's new product launch to truly prove it, right?"

Lao Qian nodded and said, "That's for sure."

"Right now, the market's clearest trends are the three main sectors: infrastructure, the new energy industry chain, and the smartphone industry chain." Amidst the debate, Sun Chengyu paused and added, "Whether you're optimistic about Changying Precision, Beijiang Communications Construction, or Tianci Materials, I think at this point in time, if you want to speculate, you should start with these three areas."

Zhao Qiang nodded and said, "That's for sure. Apart from these three main sections, the other main sections seem to have some problems to some extent."

"The worst hit sector is probably the emerging industrial chain, right?" Lao Qian said. "We originally thought the emerging industrial chain would see a general rebound from its oversold state, but unexpectedly, overall market sentiment has reversed, and this sector has seen little investment. Right now, most stocks in the market are closing higher today than they were when the major positive news was released last Friday, right? Only the emerging industrial chain sector, particularly those in the film and television media, internet software, and internet applications sectors, have essentially lost all of their gains from the previous two days."

Zhao Qiang nodded and said, "That's indeed the case. This trend must have disappointed many investors and short-term traders who were following this trend, especially Huawen Online. Yesterday, the stock's trend was actually very strong. I never expected that this stock would open so low and continue to fall today, hitting the lower limit and causing such a serious loss of money on the market."

"Honestly, I didn't expect that," Zhao Qiang responded. "Luckily, when the stock opened this morning, I saw something was wrong and sold all my money. Otherwise... I'm afraid I'd be stuck in the market. Actually, the main reason for the collapse of the emerging industry chain today wasn't due to the stock price of Huawen Online, but the extreme trend of Baofeng Technology, which brought down the entire main trend."

Sun Chengyu nodded and said, "That's true. The extreme loss-making trend of Baofeng Technology's stock, coupled with the siphoning effect of funds from other major sectors in the market, has directly led to the direct collapse of the emerging industrial chain today.

However, I think this line has not risen much in the first place, and its position is already very low.

Today, many stocks in this line have fallen to the level before the start last Friday, no matter how bad the market sentiment becomes in the future.

It is estimated that it will be difficult to continue to fall sharply.

Actually, if this line could be broken through sharply in one go, it's not impossible for a rebound to occur. (End of Chapter)