Rebirth of the Capital Legend

Zheng Jinming nodded and said, "It seems that the core focus of the short-term market sentiment change is still on the stock of Beijiang Jiaojian. As long as this leading stock of the core concept at a high level does not collapse and does not form an extreme loss-making effect, the local profit-making effect of the market can be maintained."

"Yes, Beijiang Jiaojian stock is indeed a bellwether for the current market sentiment of leading concept stocks," Lao Qian responded. "LeTV stock has long lost its former market influence, and many funds in the market should have anticipated its limit-down performance today when the news of its share reduction came out, right? So this trend is not surprising, and it seems reasonable that it has little impact on other main market themes and other popular concept stocks."

Zhang Xinlei thought for a moment and said, "I think the fundamental reason why other main market themes and a number of recently hyped concept stocks have not been significantly affected is that the technology sector is no longer the core hot spot in the market. There is no large-scale concentration of short-term funds in the market, nor is there a large amount of institutional funds gathered. There is not enough downward momentum, which is the fundamental factor."

Originally, the stocks were in the main sectors such as film and television media, internet software, and internet applications.

There was no active selling pressure.

In other words, the floating shares in these main sectors have already been cleared out during the continuous downward trend, leaving behind mostly funds that have been trapped and accumulated over time.

Most of these accumulated funds, having suffered significant losses, are unwilling to sell at a loss at the bottom.

Therefore, there is naturally less downward momentum, less market influence, and less ability to shake the overall market sentiment.

If this negative news occurs in the core leading stocks of the major infrastructure construction theme...

For example, if this happened to the stock of Oriental Yuhong, the consequences and the resulting market damage would be completely different.

"In short, the limit down of LeEco's stock can be viewed in isolation, without overthinking it, right?" He Zhong said. "Since that's the case, there's nothing to worry about. Just continue focusing on the main themes of major infrastructure and the new energy industry chain. I think the opening auction performance of Beijiang Jiaojian's stock today was significantly better than expected, and it's worth continuing to speculate on. I also plan to place an order to buy some shares before the opening auction ends."

“The major infrastructure sector can still be viewed in relation to the trend of the Hong Kong stock market,” Zheng Jinming said. “Looking at the opening pattern of the Hong Kong stock market today, it seems that most of the major funds are still focused on the real estate industry chain. In that case, it should be fine to continue to trade based on the major infrastructure sector.”

"What about the new energy industry chain? What do you all think? Can it continue to be a driving force?" Lao Qian asked. "Looking at the popular stocks in the new energy industry chain, the opening auction trend of Shuguang Shares today is quite bad. Not only did it open lower, but it also continued to decline as the opening auction time went on, and the selling pressure on the market is getting bigger and bigger."

I am worried about the negative impact of the stock price movement of Shuguang Shares.

The market sentiment, stemming from the rapid decline of this stock, will spread to other stocks related to the entire new energy industry chain.

If emotions really spread like this...

The new energy industry chain is likely to have a poor performance today, and there will probably be problems with the support of buying power.

There are also several other sectors, including complete vehicles, auto parts, and auto accessories.

The current trend is not very good either. These sectors should have opened higher today, stimulated by the profit-making effect yesterday. However, at this moment, the relevant indices of these sectors, as well as the leading stocks with heavyweights within the sectors, have not shown any corresponding opening premium.

Only the lithium battery sector, which received a lot of attention and showed the strongest performance during yesterday's trading session, was included.

There is still some opening premium at this time.

However, even within the lithium battery sector, the differences in the opening auction trends of its constituent stocks are quite significant.

I feel that this is happening during the current pre-market auction.

The new energy industry chain is not as strong as I expected, and it also lacks some initiative.

On the contrary, the main sectors of the smartphone industry chain, especially those related to the Apple supply chain, which should have seen the realization of positive news and a continuous exodus of profit-takers, performed well. Despite being dragged down by the entire technology sector, they did not open significantly lower and stabilized the situation.

The so-called "being weak when you should be weak" is actually a sign of strength!

Judging from the trend of this line, it is basically in a strong state in the current situation.

As for the steel, coal, and non-ferrous metals sectors, which also performed strongly yesterday, I feel that their sustainability is questionable, given their current pre-market auction trends.

A large number of major buying funds were stimulated by the strong bullish sentiment yesterday.

At this moment, they are not converging in this direction.

However, although a large amount of major funds did not converge in this direction, the corresponding selling pressure along this line was not significant, suggesting that the shares were still relatively well locked up.

Therefore, this line should not be viewed as bearish at the moment, and it seems that we can still continue to trade.

Other sectors, such as liquor, white goods, pharmaceuticals, finance, power, and petrochemicals, also saw a rebound due to the overall technology sector, particularly the sharp declines in film and television media, internet software, and internet applications caused by LeEco's stock price hitting its daily limit down. As market risk aversion intensified, these sectors also attracted some safe-haven funds, leading to a certain degree of recovery in the market.

However, these main themes are still in the process of consolidation, with insufficient time and space for adjustment.

I think it will still be quite difficult to see another significant upward trend supported by this brief recovery in risk aversion.

Therefore, in terms of the priority of speculation and investment.

These themes are likely weaker than the major infrastructure theme, the smartphone industry chain theme, and the cyclical themes of non-ferrous metals, steel, and coal.

"Old Qian's statement basically points out the main directions that can be pursued at this moment," Zhang Xinlei said. "Based on the current market's opening auction pattern, the directions that can indeed be pursued are the major infrastructure theme, lithium batteries, the smartphone industry chain, plus a few popular concept stocks in the steel, coal, and non-ferrous metals sectors. As for other main directions... it's best to avoid them if possible."

"That's how it seems at the moment," Zheng Jinming said. "However, the specific market sentiment will depend on whether Beijiang Jiaojian can reach a new high and close at the daily limit today, thus fulfilling the expectation of a second wave. If it can achieve this, then as short-term bullish sentiment in the market rapidly intensifies, the local profit-making effect will definitely become more concentrated, and it is highly likely that the core theme of large-scale infrastructure will continue to lead the market."

“Indeed.” He Zhong nodded and said, “Given that Beijiang Jiaojian’s stock continues to generate profits, the market influence of this core concept leader is truly unmatched by other stocks on the market. Moreover… judging from the trend of Hong Kong stocks, the speculative sentiment in the major infrastructure sector has not yet reached a point of decline. According to short-term trading strategies, continuing to follow up on Beijiang Jiaojian’s stock does not seem to be a big mistake.”

The discussion continued among several key speculative investors within the 'Suzhou-based' speculative investor group.

The market trading time has now reached 9:24.

At this moment, among the many popular stocks attracting attention on both the Shanghai and Shenzhen stock exchanges, Beijiang Jiaojian's stock price is still rising actively, with a gain of 3%. Meanwhile, the weak sectors such as film and television media, internet applications, and internet software, which experienced panic selling at the beginning of the opening auction, have seen a significant reduction in selling pressure. Many stocks within these sectors with high visibility have also seen a relative recovery in their share prices.

Finally, at 9:25 a.m., the opening auction for both Shanghai and Shenzhen stock exchanges ended.

Among the major indices of the two markets, the Shanghai Composite Index closed at a 0.13% gain, while the Shenzhen Component Index and the ChiNext Index fell slightly, closing at 0.23% and 0.42% respectively.

Besides the major core indices...

The main themes of the market, as well as the performance of various industry sectors and concept sectors.

Among the sectors related to the major infrastructure construction theme, real estate, construction decoration, and building materials have once again become the leading sectors in the two markets, ranking among the top three in terms of gains. Among them, the real estate development sector opened with a gain of 0.56%, while the construction decoration and building materials sectors also saw gains of over 0.4%.

Following closely behind the major infrastructure theme are several sectors in the new energy industry chain that performed strongly yesterday, as well as cyclical sectors in the ferrous metals sector such as steel, coal, and non-ferrous metals.

Among them, the non-ferrous metals sector opened with a gain of 0.43%, ranking fourth in the list of gainers among industry sectors in the two markets.

Following closely behind are sectors such as coal, auto decoration, auto parts, and steel.

Subsequently, sectors such as automobile manufacturing, petrochemicals, banking, food and beverage, and retail also performed relatively strongly, generally outperforming the Shanghai Composite Index.

As for the film and television media, internet software, and internet applications sectors, they are all relatively weak.

There are also less popular sectors such as animal husbandry, agriculture, and aquaculture.

Although the sector indices generally rebounded somewhat near the end of the pre-market auction, their final performance was still generally weaker than the overall market index, with many opening slightly lower.

Besides the performance of these industry sectors...

The performance of the top 20 most popular stocks in the market.

The stock of Beijiang Jiaojian, which is currently ranked first in terms of attention in both markets, finally closed with a 3.75% gain in the opening auction. This closing price was significantly stronger than the pre-market expectations for the stock's performance and generally exceeded everyone's expectations.

LeEco, the stock that ranks second in terms of market attention.

Although the number of sell orders at the limit-down price decreased at the end of the pre-market auction, it still opened at the limit-down price.

The third-ranked stock in both markets is Tinci Materials, which is part of the new energy industry chain.

Driven by the stock of Beijiang Jiaojian, this stock also showed a significant gap up at the open, with the opening price at a gain of 4.75%.

Then, there's Shuguang Shares, which ranks fourth.

Although it is also a popular stock in the main theme of the new energy industry chain, its trend is completely different from that of Tinci Materials. It opened significantly lower, with a drop of 3.23%, further wiping out all the buying funds that took over yesterday.

The fifth ranked stock is Lixun Precision, which is part of the mobile phone supply chain.

The surge in market discussion surrounding this stock has come as some surprise.

After all, this stock belongs to the mid-to-large-cap blue-chip stocks, and speculative funds and a large number of retail investors are relatively indifferent to such stocks.

This stock suddenly appeared among the top five most watched stocks in both Shanghai and Shenzhen stock exchanges.

The reason for this is that the stock performed exceptionally strongly in the short two or three minutes before the end of the opening auction. Its price opened slightly higher and continued to rise, eventually opening significantly higher at a gain of 2.89%.

This unexpectedly strong opening has caught many people's attention.

This has also drawn the attention of many market investors to this stock.

Moreover, thanks to the reversal of Lixun Precision's stock price at the last moment of the opening auction, a number of popular stocks in the entire smartphone industry chain, especially those in the Apple supply chain, also benefited and received attention from a large number of major buying funds.

Stocks such as Changying Precision, O-Film Tech, Goertek, Lens Technology, and Xinwei Communication...

In the final moments, a wave of proactive buying emerged, resulting in a significant gap up at the open and outperforming the performance of major market indices.

The stock ranked sixth in terms of discussion volume in both Shanghai and Shenzhen stock exchanges was Taihe Shares, a stock in the major infrastructure sector.

As many investors regard it as a core leading stock for the rotation of high and low positions by major speculative funds in the market, the stock's performance in today's opening auction and its closing price at the end of the opening auction lived up to everyone's attention to this stock. The stock finally opened slightly higher with a volume increase, near the 3% gain position, and further created a new recent high.

The stock ranked seventh in both markets is Pingmei Energy, a stock in the coal sector.

Despite some concerns and low expectations regarding the performance of cyclical sectors such as coal, non-ferrous metals, and steel, as well as the market trends of related popular stocks.

However, as the most popular and discussed leading stock in this core concept, it has garnered the most attention.

The performance of Pingmei Energy stock during the pre-market auction was largely in line with everyone's expectations.

After a brief period of fluctuation, the stock finally closed in positive territory at 9:25 AM, continuing its strong performance from yesterday.

The stock ranked eighth in both Shanghai and Shenzhen stock exchanges is Penghui Energy.

Similarly benefiting from the significant gap-up opening of Tinci Materials, Penghui Energy, a newly emerging leading stock in the new energy industry chain, also opened well, showing a clear gap-up opening pattern and attracting some bullish sentiment at the opening. (End of Chapter)