Rebirth of the Capital Legend

"Profits always come with risks, that's a good saying." Brother Chen nodded and continued, "When certainty is high, it's indeed difficult to find good entry points. This is the drawback of both left-side and right-side trading models. But I think... sometimes, when the risk-reward ratio is high, choosing the left side is actually the most cost-effective trading method. Of course, if you are truly risk-averse, waiting until the trend has fully emerged and then taking advantage of the right-side opportunity is not a bad thing either. Just like the current major infrastructure, liquor, and consumer sectors, it's basically... just choosing different positions for the right-side opportunity."

“Entering with a small position is indeed fine,” Xu Qiao said. “However, it’s better to avoid entering with a large position. If the certainty is not high enough, entering with a large position too early will result in a high time cost. I think that given the current market trend, the main focus should be on the major infrastructure and consumer sectors. Finding opportunities within these two sectors should be much better and easier than finding opportunities in the current steel and coal sectors.”

The discussion continued among several core members of the "Shanghai Short-Term Trading Group" group.

Soon, the market's trading time arrived at 9:25.

After the opening auction ended, the Shanghai Composite Index opened flat, while the Shenzhen Component Index and the ChiNext Index opened slightly lower by 0.15% and 0.21%, respectively, following a ten-minute opening auction.

In addition to these three core indices.

A50指数略微高开0.09%，沪深300指数保持平开，华证500指数和全证1000指数，则低开在0.23%和0.31%的位置上。

Judging from the opening performance of the major indices...

Throughout the entire opening auction process, market sentiment cooled considerably.

After all, considering the overall market sentiment before the market opened, the major market indices should have opened slightly higher. However, most of them opened slightly lower or flat, which means that the opening was slightly below expectations and deviated from the pre-market sentiment.

However, the sentiment was somewhat lower than expected compared to pre-market trading.

However, despite the decline in sentiment, the entire pre-market auction did not see the panic selling seen during yesterday afternoon's sharp market drop.

This indicates that while market sentiment has declined somewhat compared to pre-market levels, it has not shifted entirely towards a bearish trend. Relatively speaking, the balance between bulls and bears remains relatively stable.

Besides the performance of the major indices...

Among the various main themes in the market, the new energy industry chain, which suffered a concentrated sell-off yesterday afternoon, and its related sectors, such as automobile manufacturing, auto parts, auto decoration, automotive electronics, lithium batteries, and charging piles, generally opened slightly higher and were among the top gainers in the various industry sectors and concept sectors of the two markets.

Following closely behind, it performed second only to the main line of the new energy industry chain.

The sectors that have gradually begun to attract more and more attention from investors in the market, and major institutional investors have gradually built positions in coal, steel, and non-ferrous metals, which is the main theme of the entire 'black series'.

These major sectors generally closed in positive territory at the end of the opening auction.

Among them, the coal sector even saw a 0.52% increase at the opening, ranking first among all industry sectors in the two markets.

Following the 'dark theme'.

This is the main focus of the "national team" and the "big financial" theme with key holdings.

Of course, within the entire "big finance" theme, the banking sector, which has the largest market capitalization, performed the best and even opened slightly higher.

The insurance and securities sectors saw opening declines similar to those of the ChiNext index.

Both sectors exhibited a pattern of low-volume fluctuations throughout the entire pre-market auction.

This indicates that market attention to these two sectors remains very low.

Following the 'big finance' theme, the 'big infrastructure' theme performed slightly better than the index. The indices for the three major industry sectors—real estate, construction and decoration, and building materials—all opened flat, which is relatively in line with the general expectations of investors both inside and outside the market.

As for the main consumer sector, the opening price was somewhat lower than expected.

Whether it's liquor, white goods, retail, or food and beverage sectors, they all opened slightly lower.

However, even though these major sectors failed to open higher, they also did not see a significant increase in trading volume during the pre-market auction, indicating a loosening of internal shareholding.

And among the main themes and industry sectors in the entire market.

The weakest performing sectors remain those leaning towards the technology theme, such as film and television media, internet software, internet applications, communications, electronic information, and semiconductors.

These sectors, under a continued trend of decreasing trading volume...

There has still been no strong buying interest, nor has there been any clear signs of a bottoming out and rebound.

As for the agricultural sector, which has received very little market attention and has always been relatively unpopular, such as animal husbandry, agriculture, fishery, and aquaculture, it generally showed a slight opening decline with reduced volume, following the trend without any obvious independent trend.

Other key sectors include pharmaceuticals, power, petrochemicals, and biochemistry.

It falls in the middle of the market's various sectors, attracting some major funds. However, there are still quite a few buy and sell orders on the market. It's not exactly strong, but it's still much stronger than the main sectors like technology and agriculture.

Besides the performance of the major market sectors...

Among the many popular stocks that have garnered significant attention from a broad investor base in the market.

The stock that is currently attracting the most market attention, 'Beijiang Jiaojian', opened with a 5.37% increase in trading volume.

This high opening was lower than the expectations of many overly optimistic people, but also higher than the expectations of many overly pessimistic people.

That is, this stock, throughout the entire pre-market auction process.

Once again, the excessive consensus has been reversed, and the market has entered a phase of significant divergence between bulls and bears.

However, although the chart pattern and trading volume indicate that this stock has once again entered a phase of significant divergence between bulls and bears, the fact that it opened significantly higher after the surge in volume shows that the active funds in the market are still actively supporting this leading stock in the core concept of the entire 'major infrastructure' theme, and there is no consensus of a shift from bullish to bearish sentiment.

Moreover, this stock was able to open significantly higher again.

This can be seen as a positive sentiment response to yesterday's surge in trading volume.

Furthermore, this positive emotional feedback continued to influence the entire major infrastructure sector, which is a key reason why the major infrastructure sector's price movement during the pre-market auction was significantly stronger than that of the major consumer sector. It ranked after Beijiang Transportation Construction.

The second most popular stock in the two markets is Shuguang Shares.

Yesterday, Shuguang Shares experienced the worst losses in the market. Today, during the entire opening auction, it started from the limit down and was snapped up by bargain hunters. It eventually opened slightly lower by 2.39%, and nearly 20 lots were traded in just ten minutes of the opening auction.

This trading volume is quite staggering compared to its previous daily trading volume.

Of course, this also shows that the large amount of panic selling at stop-loss and take-profit levels that had accumulated on this stock has been largely consumed by bargain hunters during the morning's opening auction. In other words, the potential selling pressure on the stock's trading board is not as great as it was during the opening auction.

Regarding the stock's opening price drop of 2.39%, the chart pattern suggests a downward trend.

The vast majority of investors, both inside and outside the market, felt that the figures were significantly higher than expected.

After this stock hit its daily limit up and then plummeted by more than 15 points yesterday, people were generally pessimistic about its performance today.

Many people even believed that this stock would open at the daily limit down.

The current low opening is clearly unexpected and even somewhat beyond everyone's expectations.

Many investors who missed the opportunity to place buy orders during the pre-market auction now regret not acting decisively when they saw the stock opening significantly better than expected.

Similarly, the stock's better-than-expected opening performance also brought a relatively positive sentiment response.

This positive emotional feedback also had an effect on and spread to the entire new energy industry chain, resulting in a general recovery in sentiment for related sectors such as automobile manufacturing, auto parts, auto decoration, lithium batteries, power batteries, charging piles, anode materials, and cathode materials, which had experienced significant declines yesterday, and achieved a slight opening gain.

This also led to other popular stocks in the new energy industry chain.

Stocks such as Tinci Materials, Tianqi Lithium, Ganfeng Lithium, Lead Intelligent Equipment, Do-Fluoride Chemicals, and Power Source also opened slightly higher.

Following these two popular stocks.

Among the stocks that have garnered the most attention and discussion in both the Shanghai and Shenzhen stock exchanges, Oriental Yuhong, a trending bull stock, ranks third.

During today's opening auction, this stock maintained a stable trend, slightly outperforming the Shanghai Composite Index. It opened 0.42% higher, and trading volume remained stable, with neither a significant increase nor a significant decrease. The overall trend was very stable, with no particularly large sell orders or aggressive buy orders.

It seems to be a group of bullish funds deposited within this stock.

It maintains a stable locked-in position.

Following Oriental Yuhong, the fourth most popular stock in the two markets is Qianzhou Moutai.

The fifth, sixth, and seventh most popular stocks are all stocks with extremely high market weighting.

These heavyweight stocks generally followed the trend of the Shanghai Composite Index, with no obvious abnormal movements.

The stock ranked eighth on the two stock exchanges' popularity list is Lixun Precision, which comes from the Apple concept sector.

With the entire Apple concept stock index opening significantly lower today, and the entire smartphone supply chain beginning to realize positive news, a large number of short- to medium-term institutional investors are taking advantage of the upcoming Apple product launch to sell off their holdings.

Lixun Precision's stock maintained a relatively strong opening.

Unlike other stocks that opened lower, this one opened slightly higher with a small increase.

It is precisely because of the stock's obvious abnormal price movement during the pre-market auction that it has attracted further focused attention and discussion from most investors.

The ninth most popular stock in both markets was 'Taihe Shares', which performed particularly strongly yesterday.

After hitting its daily limit up yesterday, this stock opened directly at a 9.23% gain today.

Originally, this stock opened at its daily limit up until 9:23 AM. However, due to the rapid decline in overall market sentiment during the last two minutes of the opening auction, the limit up was broken by some sell orders at the last moment.

Regardless of whether the stock maintained its opening price at the daily limit.

This significant opening surge is already beyond expectations.

Furthermore, many active funds in the market believe that a high-volume opening with high turnover is better than a direct limit-up with low volume.

Following Taihe Shares, the tenth most popular stock in the two markets is Tinci Materials, followed by Yangtze Power, Conch Cement, Baofeng Technology, LeTV, Shougang Group, Pingmei Energy, and Geli Electric, all of which are among the top-ranked stocks in the two markets.

Among these, some stocks rose while others fell, some performed strongly while others showed very weak performance.

In summary…

By examining these popular stocks that have garnered significant attention from market investors, it's clear that at this stage and at this level, the market's bullish and bearish sentiment is still largely characterized by divergence.

There is neither a clear bullish pattern nor a clear bearish situation.

"Among today's opening auction trends, the most unexpected one should be Shuguang Shares, right?" After the opening auction ended in both Shanghai and Shenzhen stock exchanges, Zhao Qiang briefly reviewed the opening patterns of major indices, main themes, and a number of popular stocks in the 'Yuhang Group' main speculative capital group, and said, "Originally, everyone thought that even if this stock didn't open at the daily limit down, it would open significantly lower. Unexpectedly, after a huge volume release, it only opened about 2% lower. Looking at it this way... I feel that this stock should have a lot of potential today. The bottom-fishing is obviously much stronger than I estimated before the market opened, and the selling pressure on the market is also much lighter than I estimated before the market opened."

"Actually, the selling pressure on the Shuguang stock is quite significant." After hearing Zhao Qiang's words, Lao Qian continued, "It's just that there was so much money buying at the bottom that it managed to absorb all the stop-loss orders from the panic selling during the opening auction, as well as the profit-taking orders from those who had been accumulating positions earlier. In the ten-minute opening auction, more than 20 lots were traded. To be honest, that volume is a bit exaggerated."

"Haha..." Zhao Qiang laughed and said, "This fully demonstrates that as long as there is hype, there will be opportunities for funds to continue speculating. Moreover, the better-than-expected opening of Shuguang Shares has indirectly revitalized the new energy industry chain. I feel that the new energy industry chain will most likely become the leading sector in the market today, and there will be a significant recovery in market sentiment, right?"

Hearing this, Sun Chengyu chimed in, "After Shuguang Shares' better-than-expected performance, market attention on the new energy industry chain has increased. I think there should be a strong recovery in sentiment. As for whether the market can stabilize, we'll have to see how Shuguang Shares performs after the market officially opens, as well as how other popular stocks in the new energy industry chain contribute." (End of Chapter)