Rebirth of the Capital Legend

“We can wait until after Apple’s new product launch event, when the market’s positive expectations have been fully realized and the entire Apple supply chain has corrected, to see if there will be a better buying opportunity for Lixun Precision stock.” Sun Chengyu paused and said, “Currently, the entire smartphone supply chain is not the core hot spot of the market. There will be many opportunities to build positions in the corresponding core stocks. If you are really optimistic about it, there is no need to rush.

Old Qian smiled and continued, "It's fine to establish a base position first. Lixun Precision's stock has maintained such a strong trend while other Apple supply chain stocks have been correcting. I estimate that even if other Apple supply chain stocks correct later, the correction in this stock will be very limited."

“I agree with Lao Qian’s statement,” Zhao Qiang said. “Let’s establish a base position first, and then adjust the position according to the situation. For now, the core position should still be placed on the major infrastructure sector.”

The discussion took place among three core speculative investors in the "Yuhang Group" group.

At this point, the market trading time had quickly shifted from 9:25 to 9:30.

After a brief 5-minute trading halt, both markets resumed continuous trading amidst the intense scrutiny of countless investors.

The market indicator had just begun to fluctuate.

During the opening auction, a number of popular themes and stocks that performed well and were highly regarded by investors across the market received concentrated attention from a large number of active funds in the market the moment the market opened.

Among them, the stocks with the highest market popularity...

After 2 lots of orders were placed at the opening, the share price of Beijiang Jiaojian quickly fell back from a gain of about 5% to a gain of 2.7%. Shuguang Shares, on the other hand, jumped from a drop of about 2% to positive territory at the opening, with trading volume continuing to surge, and another 4 lots of orders were placed at the opening. Oriental Yuhong, Tianci Materials, and Lixun Precision also saw a rapid surge in volume and price at the opening.

At the same time, Taihe Shares, another stock that is also very popular.

Within 30 seconds of the market opening, the stock price surged and quickly hit the daily limit, resulting in a two-day winning streak.

And influenced by the performance of these popular stocks...

The major themes in the market also exhibit distinct styles.

Thanks to the rapid rise of Shuguang Shares from a significant low opening, the entire new energy industry chain saw a surge in related stocks, with related industry sectors and concept sectors all experiencing gains.

Meanwhile, it was affected by the downward pressure on the performance of Beijiang Jiaojian.

Other concept stocks that followed the trend of Beijiang Jiaojian in the early stage, as well as the speculative sentiment of the entire major infrastructure theme, have all declined.

In the entire major infrastructure sector, some funds have begun to actively switch between high and low-end investments within the main theme.

However, due to the continued positive trend of stocks such as Oriental Yuhong, Conch Cement, and Gemdale Group, and the ongoing upward momentum of mainland property stocks in the Hong Kong stock market during the same period, the overall trend of the major infrastructure sector, despite some internal disagreements due to the decline in the performance of Beijiang Transportation Construction, is still gradually trending upward with fluctuations.

As for the main consumer sector...

Whether it's the liquor sector, the food and beverage sector, the white goods sector, or the consumer electronics sector within the smartphone industry chain.

At this moment, due to the opening decline of many popular stocks, as well as the opening decline of stocks such as Moutai, Haitian Flavoring, Wuliangye, Gree Electric Appliances, and Midea Group with reduced trading volume, the performance is relatively sluggish.

Not only at the moment the market opened, there were signs of active selling by the major internal funds.

A large amount of short-term active funds are also following the trend and selling off.

This directly led to the entire consumer sector quickly choosing to continue its downward correction at the start of trading.

As for the market themes and industry sectors that are in less popular areas, they lack the attention of active capital groups and are also affected by the liquidity of the market.

Most trends are slow and oscillating downwards, which is not satisfactory.

Among them, sectors that have received the least attention from major funds and are also the most severely affected by losses at this stage, such as film and television media, internet software, and internet applications, which are all technology-oriented sectors, continued to fluctuate downwards at the moment the market opened.

Moreover, within these main areas.

Stocks such as Baofeng Technology, LeTV, and Netspeed Technology were once core and popular stocks in the market.

The price continued to fall, opening lower and continuing to decline. On the trading floor, there was almost no buying from major players, with only occasional retail orders taking over. Meanwhile, selling pressure continued unabated as the stock price fell.

The market's performance at the opening was influenced by the overall market trends...

In terms of the performance of major market indices, the Shanghai Composite Index remained in a sideways trend, while the Shenzhen Component Index and the ChiNext Index continued to decline after the opening, with the market decline further widening.

And this is reflected in the changes in the index.

As market trading continues.

Active buying funds in the market have begun to concentrate further on the main sectors with relatively strong profit-making effects at the beginning of the trading day, as well as the corresponding individual stocks. At the same time, heavyweight stocks with relatively good market performance are also continuing to siphon off the already limited buying liquidity in the market.

"Damn, judging by this trend, the market isn't going to be any better today!"

It was noted that after the opening of the two stock exchanges, the overall market trend was not as good as everyone had expected before the market opened. At this moment, on various stock investment communication platforms across the country, countless retail investors gathered, and many of them expressed their feelings and began to feel a significant sense of disappointment.

"Are you kidding me? With such a strong performance in overseas markets, can't this get things going?"

"Who said the market would definitely surge today? Is this what they call a surge? The Shanghai Composite Index is stagnant, while the Shenzhen Component Index and the ChiNext Index are getting lower and lower."

"Holy crap, this is unbelievable! There's no reason for it to drop like this. What's going on?"

"I knew that A-shares would only follow the decline of overseas markets; otherwise, they would have their own independent trend."

"That's too independent."

"Actually, it's not too bad; it's just the expected trend."

"The index hasn't fallen much, but my individual stocks are suffering. Why are the big-cap stocks always the ones that are rising? Why are these big players rising? Isn't it said that the worse the market liquidity, the easier it is for funds to concentrate on small-cap stocks? Because small-cap stocks are the easiest to manipulate. How come reality is the opposite of what we imagined?"

"With poor liquidity, it's even harder to buy and sell small-cap stocks. How can there be a concentrated speculation on small-cap stocks? When the market is bad, only heavyweight stocks can be used as a safe haven because these stocks fall slowly and have stable performance. No matter how much they fall, they will eventually have a bottom. Do small-cap stocks have a bottom? They might just fall and eventually be delisted."

"That doesn't make sense either, as large-cap stocks keep rising while small-cap stocks keep falling."

"I don't know. There are many unreasonable things in the market. Who can you reason with?"

"The film and television media, internet software, and internet applications sectors are the ones that are truly suffering. They're just in a continuous decline; they feel uncomfortable if they don't fall for a day."

"These three main areas are precisely the areas where retail investors are most concentrated in the market right now."

"That's right. I've invested all my money in here, and I can't cut my losses. If I hold on, I'll lose money every day, and my mentality is collapsing. I really don't know what to do now."

"What else can I do? I refuse to believe that I can lose everything."

"It's not that it will be completely wiped out, but if it drops to a fraction of its original value, it's not much different from being completely wiped out."

"Sigh, that's true. But what should I buy after cutting my losses? I'm afraid of getting trapped in other stocks. I really don't know what to do."

"Yes, at this point... should we still chase after blue-chip stocks?"

"Following the market trend is always the right thing to do, isn't it? If we can't beat them, why don't we join them?"

"I'm afraid I'll buy at the highest point again."

"Then diversify your holdings. Just buy half of your portfolio. If you see a bad trend, get out quickly. Anyway, right now, you can't hold stocks for long."

"There's no way to escape now, so let it be. It's already down 60%, so whether I cut my losses or not makes no difference."

"Speaking of Baofeng Technology stock, is there really no bottom? It has fallen so much, and it still won't stop falling."

"The price peaked at 300 yuan and dropped to 8 yuan. It's still a long way from falling back to the issue price, and even if it does fall back to the issue price, it's hard to say whether it will stop falling."

"It's safer to buy real estate stocks."

"Buying Huaguo Construction is also a good idea. The infrastructure sector has always been a hot spot and the strongest theme in the market." "The liquor and white goods sectors are also very strong, but they started to correct today. I don't know how long the correction will last, but I feel that these two sectors will definitely rise again later."

"Are stocks in the major infrastructure sector still worth buying? I think the core leader, Beijiang Jiaojian, seems to be running out of steam today. It should have hit the daily limit up in the opening auction, but it didn't. After the market opened, it should have been aggressively pushing up, but that didn't happen either. Now it's fluctuating in the 2% to 3% range. I think this stock will have a hard time holding steady today."

"It's hard to say. Dragon heads usually have two lives."

"The trading volume of Beijiang Jiaojian stock was already high yesterday, so there's no reason for it to continue to rise today. With such high trading volume now, the rally in this stock is definitely over."

"A new generation replaces the old. The core leader in the major infrastructure sector is now clearly Taihe Shares."

"If you want to take a leading position in Beijiang Jiaojian stock, Taihe Shares is far from being a contender."

"With such a large difference in the number of consecutive limit-up days between the two, how could it possibly take the place of Beijiang Jiaojian? Even if it were to replace Beijiang Jiaojian, it should be Shuguang Shares that has the potential."

"Give me a break. What market position does Shuguang Group have? How dare it compare to Beijiang Jiaojian, a leading company?"

"What market position do they have? Their number of consecutive limit-up days is no less than that of Beijiang Jiaojian, right?"

"What's the point of talking about consecutive limit-up days with low volume? Everyone knows that limit-up days have little value and are unlikely to gain the approval of short-term speculative funds in the market."

"Whether we agree or not is not important; as long as the market agrees, that's enough."

"Really? Let me put it this way: Shuguang Shares stock can't possibly go further than Beijiang Jiaojian stock, believe it or not?"

"If you don't believe me, look at the current market trend. The stock of Beijiang Jiaojian has already ended, while the stock of Shuguang Shares will definitely rebound and hit the daily limit today. If it opens higher again tomorrow, it will directly start the second wave of consecutive limit-up days. Moreover, the overall trend of the new energy industry chain is much stronger than that of the infrastructure sector. I feel that the active main funds in the market are already switching the main theme and sticking together."

"What's the logic behind the new energy industry chain? What's its scale? Can it compare to the major infrastructure sector? With the size of the new energy industry chain, can it support the overall market? Can it lead the entire market to strength? Are you kidding me? This sector can only be used temporarily as a rotational theme in the market, and it can't support too much institutional money clustering together."

"What do you mean by 'size'? The new energy industry chain involves so many sectors and at least a hundred related stocks in the two markets. Is that a small size?"

"It's a large entity, but does it have influence? Does it have a long-term underlying logic?"

"How can there be no underlying logic? With so many favorable policies supporting it, are you just putting it on display?"

Can favorable policies translate into real performance gains?

"Why not? Just watch, next year will definitely be a big year for the new energy vehicle industry. This is the time when the entire automotive industry will be reshaped, and it is also our country's only chance to overtake others by taking a shortcut."

"Who can't do macro narratives? The key is that the stocks you hold can go up."

"Then tell me, what makes Beijiang Transportation Construction's stock still rising? Valuation? Is this stock really cheap? Performance? Does this stock have strong performance to back it up? The so-called Silk Road, the development of Beijiang... how many of these stories can actually come true?"

"You're talking to me about valuation for these kinds of stocks? Aren't you just speculating on sentiment? Let me ask you, has the sentiment for the major infrastructure sector collapsed yet? If not, then why can't we continue to speculate on it and why can't the stock price continue to rise?"

"Your statement makes sense for any stock in the market."

“That’s how it is.”

"To be honest, I think the stock of Beijiang Jiaojian has reached a pretty good level."

"This is nothing! Look at Oriental Yuhong, is its price increase really that much?"

"Can it be compared to Oriental Yuhong stock? Oriental Yuhong's main business has expanded significantly, its performance has skyrocketed, its valuation has dropped, and then there's the intervention and control of 'Huayi Capital' by President Su, which has led to its current rise and the characteristics of funds clustering around it. Does Beijiang Jiaojian have these supporting logics? So the two cannot be directly compared like this."

"I think it's quite normal for funds to shift between high-end and low-end projects within the broader infrastructure sector, right?"

"It's normal, it's just not easy to follow."

"The market is changing too fast these days, so it's really not good to follow the trend."

"Actually, it all revolves around the three main areas of large-scale infrastructure, large-scale consumption, and new energy. As long as you keep an eye on these three areas, it's still quite easy to do business."

"Speaking of which, how about we divide our portfolio into three equal parts, allocating one-third of our portfolio to each of the three main themes: major infrastructure, major consumption, and new energy? What do you think?"

"Haha, that works... that way there's no risk of missing a step."

"The fear is that the market trend might change again later."

"Let's wait and see if things change. As it stands, this layout is definitely the safest option right now."

"In the new energy sector, do you think it's better to buy Shuguang Shares or Tianci Materials? In the infrastructure sector, should we continue to speculate on Beijiang Jiaojian, or Taihe Shares, or Oriental Yuhong? In the consumer sector, Guizhou Moutai and Wuliangye should be safe bets."

"I think Tinci Materials is more stable than Shuguang Shares."

"Is it impossible to buy Taihe Shares today? This stock has already hit its daily limit up."

"If the stock of Beijiang Jiaojian shows an opportunity to move below the opening price during the day, I think it would be a good time to get involved. Currently, the volatility and trading volume are not yet sufficient."

"In the major infrastructure sector, aren't Oriental Yuhong and Conch Cement the two more stable stocks?"

"These two stocks are quite stable, but they're too stable; there's practically no fluctuation."

"Isn't the volatility of Oriental Yuhong stock already high enough?"

"I prefer stocks with more volatile price movements."

"Then let's talk about Beijiang Jiaojian. I still believe that when buying stocks, you should buy the most core leading stocks. Currently, Beijiang Jiaojian is definitely not at the end of its upward trend."

"What about Lixun Precision stock? Is nobody interested in it?"

"It's better to concentrate your holdings on Changying Precision than to buy Lixun Precision stock."

"The Apple supply chain is currently showing a problematic trend. I feel it's not strong enough, so I shouldn't buy it."

"Isn't Apple's fall product launch event just around the corner? I feel there's still a good potential for hype surrounding the Apple supply chain, so why can't we buy it?"

"The closer we get to the press conference, the more likely there will be a 'profit-taking' trend, so it's not a good time to buy."

"The price hasn't even risen much, and the good news has already been priced in?"

"It hasn't risen much yet? It should have increased by at least 20% by now, right?"

"Compared to the major infrastructure sector, what is this 20% increase compared to the gains of many leading stocks?"

"How much hype is there surrounding the major infrastructure sector? How many major funds are paying attention to it? You can't compare every major sector in the market to the major infrastructure sector, can you? The Apple supply chain is not a hot theme in the current market, and I think it's really not a good time to buy."

"That makes sense, let's take another look..."

This was accompanied by heated discussions among retail investors and clashes of bullish and bearish views on major market themes and popular stocks.

As market trading continues.

The market trends in both Shanghai and Shenzhen are increasingly resembling those of yesterday afternoon.

That is, while the Shanghai Composite Index is maintaining a sideways trend, the Shenzhen Component Index and the ChiNext Index are experiencing increasingly larger declines, and the divergence between the performance of large-cap stocks and small-cap and micro-cap stocks in the two markets is also becoming increasingly pronounced.

Moreover, today's stock, Beijiang Jiaojian, is the focal point of short-term speculative sentiment in both markets.

It is also unable to maintain its strength as it did yesterday and continue to drive short-term speculative sentiment in the market.

This stock, after opening significantly higher with high volume in the morning, has been fluctuating and declining throughout the day with increasing volume. At this point, before 10:00 AM, the stock has already fallen by nearly 5% from its intraday high, almost erasing all of its intraday gains. (End of Chapter)