Rebirth of the Capital Legend

"Yeah, I think so too," Zhang Wei responded. "The smartphone industry chain is fueled by news of Apple's upcoming new product launch. Before the event begins, the hype surrounding this sector isn't likely to subside quickly. Therefore, as the core hype leader in this sector, Changying Precision's stock likely still has room for speculation and potential for speculation."

"However, as Apple's new product launch draws near, the large number of short-term investors speculating on this stock may exit early and take profits early, right?" Zhao Zhiyuan said. "Relatively speaking, the major infrastructure sector is more stable and has higher certainty. Beijiang Communications Construction's stock also offers a better speculative value."

Zhang Wei thought for a moment and continued, "Logically speaking, that's right. However, to be safe, buying some of both stocks would be a better trading strategy."

"I'm still more inclined to favor Beijiang Communications Construction," Zhao Zhiyuan said. "And comparing these two stocks, I think if Changying Precision performs better tomorrow, it will also drive Beijiang Communications Construction to continue to make money. In other words, a rise in Changying Precision will most likely drive Beijiang Communications Construction, while a sharp rise in Beijiang Communications Construction will probably have little direct impact on Changying Precision."

Following the discussion among several core investors in the Qilu Gang...

The market's time continues to move forward.

By the evening, the discussions among the countless investor groups gathered on major investment exchange platforms across the Internet became even more heated.

Late at night, the peripheral markets continued to open high and continue to set new historical highs.

The views of countless investor groups in the mainland market have gradually changed from a relatively pessimistic attitude to a generally optimistic attitude during discussions.

Then, after a night of emotional brewing.

When Wednesday, September 7, arrived, the two markets had not yet entered the official trading hours.

The confidence of the vast investor groups inside and outside the market, especially the large number of retail investors, in the market is obviously stronger than last night.

"Looking at the external market trends, there's a high probability that the market will continue to open higher today, right?"

"I don't think it's likely to open higher, right? After all, yesterday's market performance, especially in the late afternoon trading session, was quite strong. In particular, several hot concept sectors and market mainlines yesterday trapped a lot of high-chasing relay funds. Logically, these trapped short-term funds will most likely stop losses at the opening today. With these stop-loss orders and some profit-taking, it should be difficult for the market to show a strong performance at the opening time. As for whether it can eventually break out and complete the rebound of yesterday's trend, we still have to wait and see the specific market feedback after the call auction!"

"I don't think it's a big problem. Many main sectors, with the help of such hot external market sentiment, should be able to reverse yesterday's market trend, right?"

"Anyway, there's nothing wrong with being positive and bullish."

"It depends on how the two main sectors, the new energy industry chain and large-scale infrastructure, perform and open. If these two core market sectors both show a clear upward trend, then the trends of other sectors will likely not be bad. If these two main sectors both show a downward trend, then we must be cautious about the overall market trend today."

"Shouldn't we focus on how the film and television media, internet software, and internet applications sectors within the emerging industry chain perform during the call auction? Based on yesterday's overall market trends, these three core sectors are the weakest among the major main lines in the market. As long as these weakest lines can reverse and strengthen, then the overall market trend will naturally reverse, right?"

"Film and television media, internet software, and internet applications were the weakest sectors among the major market groups yesterday, and they were also the sectors that suffered the most losses during yesterday's trading. With such a clearly loosened market structure and no positive news before the opening, how could they reverse the trend and achieve a high opening? Why wouldn't I believe it?"

"In fact, the key is not the so-called emotional expression and emotional feedback, but the underlying logic."

"Right. Look at the direction that various fund groups in the market have been concentrating on recently. Isn't it the hot mainline sectors and weighted core leading stocks where industry fundamentals have reversed and the underlying logic is relatively strong?"

"To be precise, the only core sectors that were still worth watching in yesterday's trend were the major infrastructure sector, the new energy industry chain, the smartphone industry chain, and the two major sectors of liquor and white goods in the main board's weighted sectors."

"I think the key is the index. As long as the index can successfully pass 3100 points with large volume, there should be no problem with medium- and long-term investment strategies. If the index remains stuck at 3100 points and continues to fluctuate as before, then it's hard to predict."

"The trend of the index, especially the Shanghai Composite Index, seems to be very dependent on the performance of the weighted mainline sectors!"

"The performance of the market's weighted mainline sectors shouldn't be too surprising, right?"

"What kind of surprises could possibly happen? The market's weighted mainline sectors and their corresponding core leading stocks are inherently dominated by institutions. What kind of surprises could possibly happen?"

"The two core sectors, liquor and white goods, will definitely continue to strengthen, but it's hard to say for other core weighted sectors."

"I think there should be no problem."

"As long as the market's weighted main sectors maintain a relatively strong attitude, the Shanghai Composite Index is unlikely to adjust downwards."

"The two major sectors of liquor and white goods will definitely rise."

"The biggest uncertainty is indeed in the film and television media, internet software, and internet applications sectors. After all, these sectors suffered huge losses yesterday. If these sectors continue to open lower today, I'm afraid there will be even less buying capital."

"These major sectors are likely to open lower."

"A low opening is expected. I just hope that the low opening trend of these major sectors will not affect the other major hot concept main line sectors in the market."

"It's hard not to be affected, right? Yesterday's market trend, the entire market plunge in the afternoon, seemed to be driven by these sectors. Otherwise... at yesterday's close, the Shanghai Composite Index should have remained stable above 3100 points, and the ChiNext Index and its many small and medium-cap concept stocks wouldn't have experienced such a sharp plunge in the final ten minutes of trading."

"Regardless of whether the index opens high or low, the fluctuations should not be significant."

"Yeah, I think so too. Actually... I think at this stage, it would be safer to focus less on the index and more on individual stocks."

"It's easier said than done to focus on individual stocks than on the index."

"Yes, it's hard to choose the real core leaders, and the market index trend is uncertain. If you chase highs, you might end up buying at the top of the correction phase. And if you try to buy relatively low-priced concept stocks, you might feel like these stocks haven't fallen through at all."

"The strongest core stocks in the market right now should be Beijiang Communications Construction, Changying Precision, and Tianci Materials, right?"

“Yeah, I think it’s these three stocks.”

"Relatively speaking, Beijiang Communications Construction should be the strongest stock, right?"

"Not necessarily. I feel that the current investor expectations for Beijiang Transportation Construction stock are too uniform, and highly uniform expectations are often difficult to realize." "I don't think there's anything wrong with the stock's performance."

"Yesterday's trend in the major infrastructure sector didn't seem to be very proactive enough. If this sector is to continue its strong performance today, it will likely depend on the performance of the Hong Kong stock market."

"Looking at the Hong Kong stock market? Not really, right?"

"As for the major infrastructure projects, the Hong Kong stock market is currently performing better than the A-share market."

"I think there's a high possibility of adjustments in the major infrastructure sector today. Relatively speaking, isn't the new energy industry chain more secure?"

"About the same. Yesterday's market trends showed considerable divergence within the new energy industry chain."

"But Tianci Materials' stock performance yesterday was indeed stronger. It was the first to hit the daily limit, and even during the afternoon market plunge, this stock's daily limit didn't show any signs of loosening. It seems that the combined force of various capital groups is the strongest in this stock. In addition to the participation of hot money, the Dragon and Tiger List trading data released yesterday also showed that institutional funds were buying this stock."

"In any case, Changying Precision is definitely the weakest performer among the three core leading stocks."

"I won't touch the target stocks of the 'Fushan Group' capital-dominated group."

"What about Huawen Online? Is this stock completely finished?"

"My advice is to avoid the film and television media sector, as well as the concept stocks in the three major sectors of internet software and internet applications, for the time being. With large numbers of short-term funds withdrawing from these three sectors, the internal chip structure of these sectors has fallen into chaos. Many of these concept stocks have not fallen through, and it is difficult to reverse the trend in a short period of time. I estimate that regardless of whether the market rises or falls today, these major sector indices and their corresponding concept stocks will mostly continue to adjust."

"That's right, in a weak market, don't try to buy at the bottom."

"Chasing highs isn't safe, and neither is buying lows. So if we want to ensure certainty, what should we do?"

"If you want certainty, then you should definitely buy stocks in the main-line sectors of the main board, such as the relevant component stocks that Mr. Su holds heavily."

"Qianzhou Moutai? Gree Electric Appliances? Are they that kind of stock?"

"To be honest, if you want to hold them for the long term, these two stocks are still good."

"Well, overall, the current valuations of these two core blue-chip stocks are not overvalued, and they are indeed worth buying."

"These types of stocks tend to rise very slowly, and I feel there's not much excitement about buying them."

"I think so too. It's likely that only institutional investors with large capital volumes would buy these core weighted stocks, right? For retail investors like us who only have 10,000 or 20,000 yuan, or even tens of thousands of yuan, there's no need to buy these core weighted stocks."

"According to the current share price of Qianzhou Moutai, all my money combined wouldn't even be enough to buy one lot."

"Haha...me too."

"It's still more exciting to chase the absolute core leaders of the market and continue to take over such concept leaders. One day is either the limit up or the limit down."

“Frequent adjustments and changes to positions are actually not good.”

"Everyone knows this, but sometimes, when you see your stocks weakening, significantly underperforming the broader market index, you have to adjust your holdings and switch stocks."

“Yes, sometimes stock picking is more important than timing.”

"In fact, when the market trend is not a general rise, there are only a few core leading stocks. I don't think stock selection is difficult. The key is the timing of intervention. I think timing is more important. Which limit-up can be hit and which limit-up cannot be hit? When to take over and when not to take over? The knowledge involved is much more profound than stock selection."

"That's true. Sometimes, you make money during the day, but the market opens lower the next day and you lose it all."

"Take the recent performance of Huawen Online and Beijiang Communications Construction... Everyone should be able to predict that Beijiang Communications Construction will likely open higher today and continue to rise. However, whether it's a good time to continue buying or participating is hard to say. After all, funds invested in buying today can't be sold until tomorrow. If there's too much divergence in the market today, it's not impossible for the stock to open lower tomorrow and then sell off."

"That's true, so certainty is very important when it comes to stock selection and timing."

"When you're doing short-term trading, sometimes you're just betting on probability. In the financial trading market, there's no such thing as absolute certainty."

Along with the heated discussions among countless retail investors gathered on major stock investment exchange platforms across the Internet...

In the spotlight.

Soon, the market time came to 9:15, and the two markets ushered in the initial call auction.

As everyone's attention was focused, the stagnant stock markets of the two cities began to move again.

And then, it changed rapidly.

When the clock hands moved to 9:16, we could see the overall situation of the two markets. Stimulated by the external market trends last night and the general bullish sentiment of the majority of retail investors, they all showed a trend of slightly higher opening.

Among them, there are several popular core themes that the majority of investors focus on.

Whether it is the main line of large-scale infrastructure, the main line of the new energy industry chain, or the main line of the smart phone industry chain, the relevant industry sector indexes, concept sector indexes, and many core component stocks of the highly-watched sectors, at this moment, most of them have opened high in the red.

Overall, the initial opening auction trend was slightly more optimistic than most people had anticipated. (End of Chapter)