Rebirth of the Capital Legend

"Although overall market sentiment has weakened compared to the past few days, the core sectors supporting the market index – whether it's the 'big consumption' sector (liquor, white goods, consumer electronics, and retail), the 'big infrastructure' sector (real estate, construction, and building materials), or the 'big finance' sector (banks and insurance) – all have maintained their core holdings." Hearing Xu Qiao's observation, Lao Zhang chimed in, "I feel that as long as these major sectors where the main funds are most concentrated don't experience significant losses, an extreme market correction is unlikely."

Looking at today's market trends and performance...

In reality, the biggest impact on sentiment was mainly due to the sharp declines in technology-related sectors such as film and television media, internet software, and internet applications.

However, these sectors have consistently seen net outflows of funds from major investors.

It was never the core theme of the current market, nor was it the area that everyone was most concerned about.

In other words, the decline in these main sectors, which were not expected to perform well to begin with, should have a relatively limited impact on the overall market trend.

Moreover, the stock 'Beijiang Jiaojian' is currently the target of short-term speculative sentiment in the market.

In fact, the current trend is still very stable.

Moreover, the willingness of various funds to follow suit and buy this stock has not diminished.

I believe that as long as this core leading stock doesn't collapse, the market's short-term speculative rally can still find some room to move upwards.

Of course, this refers to the stock performance of Shuguang Shares today.

It will definitely have some impact on the market over a day or two.

To be honest, I didn't expect the stock of Shuguang Co., Ltd. to have such a severe negative impact on the market today.

I initially thought that even if this stock hit its daily limit and then plummeted, its price movement would be quite mild. But I was wrong... it almost became a "sky-high to floor" pattern.

"Shuguang Shares should be the stock with the most severe losses in the entire market today, right?" Old Wu chimed in. "Given such severe intraday losses, coupled with the large number of lurking profit-taking investors and those who chased the market today and are now heavily trapped, it seems highly likely that this stock will open at the daily limit down tomorrow."

"The opening at the daily limit down was expected," Lao Zhang said. "As long as it doesn't close at the daily limit down, I don't think it will affect the short-term sentiment of the market. But if it closes at the daily limit down with large sell orders, and all the funds that bought in today are scrambling to escape at the daily limit down tomorrow... I'm afraid that the performance of a number of high-priced concept stocks and other related stocks in the new energy industry chain will probably not be very good tomorrow."

Brother Chen nodded and said, "After today's market trend, Shuguang Shares has indeed become a key point in the market sentiment feedback. If this key point has a problem, the market trend tomorrow will probably not be very optimistic."

"I feel that if Shuguang Shares opens at the daily limit down tomorrow, a lot of active short-term funds in the market will try to buy the dip and make a rebound," Lao Wu said. "After all, the stock has fallen a lot today. If it opens at the daily limit down again tomorrow morning, the pullback will be close to 30% in just two days. This pullback meets the criteria for an oversold rebound. Moreover, in general... the core theme of the new energy industry chain, although the internal shareholding structure is still relatively scattered, and a large number of short-term and medium-term funds that entered the market due to positive news have a strong need to take profits at this position, the underlying logic has not changed in terms of the expected changes in the industry's fundamentals and the expected performance of the leading stocks in the industry."

Moreover, in terms of the valuation of a number of core leading stocks in the entire new energy industry chain.

There is no obvious overvaluation, or valuation bubble.

In this situation, if a significant pullback occurs, there will definitely be speculative funds buying the dip.

"Hehe, Lao Wu is right." Xu Qiao chuckled and continued, "If Shuguang Shares really opens at the daily limit down tomorrow, I will definitely follow the trend and buy a few shares. After all, the market attention on this stock is still there, and it is one of the hottest stocks in the market today."

Generally speaking, such highly popular stocks are influenced by certain market sentiments.

Or perhaps it's due to being guided by so-called insider information.

It's easy for it to be hyped up again, especially since the underlying logic of this stock is not bad. Although the restructuring is just a rumor, the logic has not been disproven. What if it really does restructure later? As long as the underlying logic of the hype has not been disproven, as long as there is a little emotional support, it can continue to be hyped.

Of course, this is in contrast to the popularity of the large-scale infrastructure project.

The new energy industry chain and the stock of Shuguang Co., Ltd. are definitely less popular.

"It should be fine for very short-term trading, like a day or two."

"The stock of Shuguang Shares has accumulated too many shares, especially profitable ones, from the previous consecutive limit-up days. It's a complete gap in the shareholding structure," Lao Zhang said. "Logically speaking, I would rather continue to buy shares of Dongfang Yuhong and Beijiang Jiaojian at higher prices than try to profit from the oversold rebound of this stock."

Indeed, according to the logic of short-term trends...

After a rapid drop of nearly 30%, there is a high probability of a rebound.

But haven't you noticed? The current market investment environment and the logic behind speculative trading are significantly more mature than before.

In this situation, the expected rebound after a sharp drop may not necessarily occur.

It's quite possible that it will evolve from the form of A-kill, which is also plausible.

Conversely, both Beijiang Jiaojian and Oriental Yuhong, despite their current high stock prices and their annual highs, are performing well.

But whether it's emotions or internal bargaining chips, they're all locked in very well.

Moreover, considering the underlying logic of the large-scale infrastructure sector and the herd mentality among the vast number of retail investors in the market, it's not something that Shuguang Shares can easily exploit.

Therefore, if you really want to trade in the market for the very short term...

I think it's more important to focus on the stock trends of Beijiang Jiaojian and Dongfang Yuhong. I also believe that betting on the future of these two stocks is more predictable and safer than trying to buy the dip in Shuguang Shares for a rebound.

"While Beijiang Jiaojian and Oriental Yuhong are currently the two most watched stocks in the market, and also the two stocks with the greatest short-term upside potential in the major infrastructure sector,..." Chen Ge thought for a moment and continued, "In the process of visibly declining market sentiment, the upside potential in the short term is probably not very high. I think... instead of continuing to speculate on these two stocks, it would be better to make a short-term switch within the core major infrastructure sector. What do you think?"

"Switching between high and low positions in the major infrastructure sector?" Xu Qiao paused for a moment, then said, "It's not impossible." Old Zhang chuckled and replied, "I think Brother Chen makes a lot of sense. Indeed, switching between high and low positions in the major infrastructure sector is a good choice. As it stands... it seems that there's not much room for further upward movement in the stock of Beijiang Jiaojian."

"Is the stock of Beijiang Jiaojian not yet in a completely uniform acceleration phase?" Lao Wu said. "Judging from the short-term K-line pattern, I think this stock should have two or three more limit-up days ahead. I just don't know whether the height of these two or three limit-up days will be achieved directly through continuous limit-up days like before, or whether it will fluctuate and adjust at this position before quickly reaching the top."

Old Zhang said, "I think we should still go all out and finish it. We've come this far, and everyone's expectations for this stock are so consistent. If we can't continue to rise to the daily limit and further open up space and stimulate market sentiment, once we relax, a large number of profit-taking funds within the Beijiang Jiaojian stock will take profits and flee."

These large amounts of profitable funds were then withdrawn and sold off.

This will inevitably lead to a massive exodus of other speculative funds.

If this continues, the market will collapse.

Of course, compared to the stock of Beijiang Jiaojian, the trend of Oriental Yuhong is completely different in my opinion, especially in terms of the stability of its trend.

It is obvious that Oriental Yuhong stock is much better than Beijiang Jiaojian stock.

Moreover, I prefer the stock price movement of Oriental Yuhong. Its gradual, incremental upward trend, with occasional bursts of speed, is more stable, and before a sustained surge in volume, pullbacks are relatively limited, requiring less worry.

"What about Taihe Shares?" Brother Chen paused, then asked, "What do you all think of this stock?"

Old Wu glanced at the recent K-line trend of Taihe Shares and its intraday trend today, and replied, "I think we need to observe Taihe Shares further. It's too early to say that this stock will replace Beijiang Jiaojian's market position."

“Yes, I think so too.” Xu Qiao nodded and said, “Let’s wait until this stock breaks through the three-day limit-up range before we talk about it. Generally speaking, only after breaking through the three-day limit-up range can it be considered a market leader. Otherwise… it’s just an ordinary follower stock.”

"Three consecutive limit-up days shouldn't be too difficult for Taihe Shares, right?" Old Wu said. "Leaving aside any positive news, given the current market enthusiasm and the level of discussion surrounding this stock, driven by the continued rise of 'Beijiang Jiaojian' and 'Dongfang Yuhong,' and also by the surge in Hong Kong-listed mainland property stocks, I think it's entirely possible for this stock to go up two more limit-up days."

Furthermore, if the market sentiment is positive after it opens tomorrow.

Meanwhile, a number of mainland property stocks in the Hong Kong stock market continue to surge.

As for Taihe Shares, it is highly likely that it will open significantly higher, possibly even approaching the daily limit up.

Moreover, this stock has a relatively small market capitalization and circulating shares, meaning there is still significant potential for speculation within the entire real estate sector.

The discussion continued among several core members of the Shanghai-based short-term speculative trading group.

unknowingly.

It was already 5 p.m. at the market.

At this moment, amidst the attention of countless investors both inside and outside the market, the list of top gainers and losers in the two stock exchanges was updated on schedule.

Among the top-performing stocks on the two stock exchanges, popular stocks that have attracted much attention, such as Beijiang Jiaojian, Shuguang Shares, Baofeng Technology, Taihe Shares, and Tianci Materials, all saw increases.

Among them, Shuguang Co., Ltd. ranked among the top in the two markets due to its intraday volatility.

Baofeng Technology was listed as hitting the daily limit down.

Beijiang Jiaojian and Taihe Shares were listed with their shares hitting the daily limit; Tianci Materials was listed due to its high turnover rate, ranking among the top in both markets.

Among these popular stocks on the list, the net purchase amount of the main funds in the buy and sell positions of Beijiang Jiaojian was more than 360 million.

Compared to the previous few limit-up days, the net purchase amount has clearly decreased.

However, overall, at this position, there is still a net buying trend from major funds, which is slightly beyond many people's expectations.

The stock of Taihe Co., Ltd. is among the buy and sell seats.

The total net purchase amount reached over 1100 million, making it the stock with the highest net purchase amount among these popular stocks today.

Among the disclosed buying and selling positions of Shuguang Shares, the net selling amount by major funds was more than 4800 million yuan, ranking first in the net selling amount list of the two stock exchanges. The net selling amount of major funds for Baofeng Technology was more than 3600 million yuan, second only to Shuguang Shares.

As for Tinci Materials stock...

Despite the extremely high turnover rate of this stock today.

However, judging from the disclosed buying and selling positions, the amount of buying and selling by major funds is basically in a state of equilibrium. This indicates that at the current stock price level, although people's expectations are not so strong, the support is still relatively strong.

Besides these popular stocks.

Most of the other listed stocks also showed a net outflow of funds from major investors.

Furthermore, across the entire list of stocks on the Dragon and Tiger List, the total amount of funds flowing out from major investors still showed a net outflow.

This indicates that, overall, the short-term active funds in the market today are gradually withdrawing, or reducing their positions and taking profits.

"Huh, the stock of Beijiang Jiaojian is still showing net buying by major funds in today's trading data. This is a bit unexpected. And Tianci Materials, with such a high turnover rate, the trading volume and buying volume of major funds are basically balanced. This kind of divergence... generally speaking, it's not a standard for the end of a market trend." Noticing the trading data of the two stock exchanges, Zhao Zhiyuan in the 'Qilu Gang' major speculative capital group stared at the trading data of Beijiang Jiaojian and Tianci Materials, his eyes clearly showing some surprise. "Judging from the trading data of these two core leading stocks, the infrastructure sector and the new energy industry chain are likely to have another period of upward movement!" (End of this chapter)