Starting with a fully invested A-share portfolio to become a capital...

Chapter 67 Short-Term Market Themes
What is shikimic acid?

Lujiazui, the capital of Shanghai.

Grand Golden Pan Garden residential community.

Tao Yuang was carefully studying the market research report sent by Zhang Yang, which emphasized the "shikimic acid concept" at the end. Zhang Yang also sent him a special QQ message emphasizing that shikimic acid might become the main theme of the market in the short term.

After some searching, Tao Yuang also understood the importance of shikimic acid.

"It is an intermediate for antiviral and anticancer drugs, has a strong inhibitory effect on various DNA and RNA viral diseases, and is also an important raw material for the synthesis of the anti-influenza drug oseltamivir."

"In other words, Zhang Yang believes that the market will hype up the H1N1 flu."

As Tao Yuang muttered to himself, he recalled today's market trends.

Because the banking and securities sectors both underperformed, the Shanghai and Shenzhen indices experienced another significant correction, and the situation is not optimistic. However, the only sector that turned positive was shikimic acid.

After confirming that shikimic acid met the criteria for speculation, he continued his investigation.

Upon seeing the list of brokerage firms that bought Rhine Biologics, the first stock to hit its daily limit, Tao Yuang exclaimed in surprise, "So it was Xu Xiang who drove it!"

Every speculative investor has a preferred brokerage firm, and Xu Xiang frequently used four, namely...

1. Galaxy Securities Ningbo Jiefang South Road Branch.

2. Guotai Junan Securities Shanghai-Sujiang Road Branch.

3. Dongfang Securities Shanghai Baoqing Road Branch.

4. Dongfang Securities Shanghai-Zhaojiabang Road Branch.

It's worth mentioning that brokerage firms are not exclusive to any particular speculative investor. As long as you pay to buy a seat, you can also use the trading channel of the corresponding brokerage firm, and when you appear on the Dragon and Tiger List, your name will also be that of the brokerage firm.

In order to better influence market sentiment, some small-time speculators will deliberately use the brokerage seats commonly used by well-known speculators, which is commonly known as "borrowing a pseudonym".

After thoroughly investigating the matter, Tao Yuang picked up a coffee cup and whispered his analysis: "The WHO just classified H1N1 influenza, and Xu Xiang couldn't wait to push up related concepts. According to his trading style, shikimic acid does have the potential to become a short-term main theme."

Thinking of this, he first took a sip of coffee, then put down the coffee cup and continued his analysis: "If I can predict the rise of shikimic acid concept stocks in advance, the company's executives might give me more resources once they find out."

Tao Yuang went to great lengths to reach a "Co-creation Agreement" with Zhang Yang, but his only purpose was to obtain the company's training resources.

For a fund manager, the ability to accurately predict future market trends is the best proof of professional competence.

Just like Warren Buffett, the stock market guru, he has never made a mistake in his half-life of investing. He always manages to cash out and leave before the stock market crashes. The market has also set up a reference data called the "Buffett Indicator" for this legendary figure, which is a symbol of top-level strength.

Now, not only has Zhang Yang's research report mentioned shikimic acid, but Xu Xiang is also going long on shikimic acid, and there's also the WHO's characterization of H1M1 influenza.

All these factors indicate that the A-share market, and even the global capital market, may be subject to speculation surrounding shikimic acid in the future.

After seeing the shikimic acid concept stocks listed on the later pages of the market research report, Tao Yuang went to verify them one by one.

He never fully trusted Zhang Yang, or rather, he dared not gamble his future on Zhang Yang's character.

If Zhang Yang were to use him to manipulate stock prices, the serious consequences would likely far exceed his ability to bear the consequences.

Fortunately, after Tao Yuang's own in-depth investigation, all the stocks related to shikimic acid recommended in Zhang Yang's research report were without any problems, and Tao Yuang gradually felt relieved.

He has already decided to stay up all night to rewrite the article and then submit it tomorrow, because the sooner he predicts the rise of shikimic acid, the more stable his elite image in the company will be.

……

The next day, the sun shines brightly.

As May approaches, temperatures in Shanghai are gradually rising, with the highest temperature in the past two days reaching 30 degrees Celsius. Air conditioners in the Lujiazui CBD business district have also started running 24 hours a day.

Just like yesterday, Zhang Yang went to a casual coffee shop on the commercial street, ordered a latte, and started watching the market. Since yesterday, when shikimic acid concept stocks, led by Rhine Biologics, hit their daily limit, news releases in the last 12 hours have been overwhelmingly positive.

On Weibo, the top three trending topics were all related to H1N1 influenza, one of which mentioned shikimic acid.

9 points.

A-share opening auction.

The pre-market trading remained sluggish, with both banks and securities firms opening lower, clearly indicating a spreading bearish sentiment.

However, it is worth mentioning that after the news last night, stocks related to shikimic acid all opened higher and closed in positive territory, with Rhine Biologics, which hit the daily limit yesterday, hitting the limit again.

Zhang Yang opened the pre-market auction screen of Rhine Biologics and saw that the buy order volume bars at the top were constantly increasing, showing a bullish trend, but the corresponding volume at the bottom was constantly decreasing.

This trend indicates that retail investors holding Rhine Biologics shares have no intention of selling and believe that the stock can continue to rise.

On Baidu Tieba, the stock of Rhine Biologics has appeared in popular posts, with countless investors discussing it intensely.

[Cola Doesn't Drink]: Rhine Biologics is about to hit the daily limit for the second consecutive day. As the saying goes, two consecutive days determine the leader. Could it be the leader in shikimic acid?
[White Shoes]: It is said that Rhine Biologics is controlled by Xu Xiang, the mastermind behind the stock. If nothing unexpected happens, it will at least have 10 consecutive limit-up days!
[Crazy Xiaodi]: Half a month ago, I felt that speculative funds were involved in Rhine Biologics to accumulate shares, so I casually bought 5000 yuan worth. Now I regret it. I regret not buying more.

The investment market is never short of speculators. Even if people know that Rhine Biologics is a product of market speculation, a large amount of funds will still follow suit.

Speculation and investment differ by only one word, but their trading models and profit/loss ratios are worlds apart.

9 points.

The call auction has ended.

Zhang Yang picked up the Nokia phone on the table and called Zhong Qifeng, the trading manager at Hongyue Investment.

"Dududu-"

Not a moment.

The call was answered.

"Good morning, Mr. Zhang. What stocks are you planning to buy?" Zhong Qifeng asked with a smile on the other end of the phone.

"No rush, let's wait for the official opening."

Zhang Yang responded.

Zhong Qifeng: "Okay, Mr. Zhang, I will keep my phone accessible. If you have any trading needs, please call me anytime."

The two did not hang up the phone. Zhong Qifeng only has Zhang Yang as a client now, so he can provide one-on-one service.

The market opened at 9:30 a.m., and the banking and securities sectors saw another sharp drop.

China Construction Bank (CCB) released its first-quarter results yesterday, showing a net profit of 262.76 billion yuan, a year-on-year decrease of 18.22%. This significant negative financial report caused CCB's stock price to open at -0.46%, currently trading at 4.33 yuan.

The minor "blowout" in China Construction Bank's first-quarter financial report triggered a correction in the banking sector. In addition, the Industrial and Commercial Bank of China is scheduled to release its first-quarter financial report on April 28, which is tonight at 9 pm, which has made market funds increasingly worried.

However, according to Zhang Yang's memories of his past life, the A-share market will not enter a bear market until July or August. This information is undoubtedly more convincing than the support signals shown by the K-line.

Furthermore, the banking sector has been falling for five or six consecutive days. Even without prior knowledge, one could still try to profit from a rebound during this downtrend.

In addition, after the release of China Construction Bank's first-quarter financial report, the negative news has been priced in and the market is digesting it. Even if the price continues to fall, it is possible to buy more shares to average down the cost.

Thinking of this, Zhang Yang looked at the stock price, which had already fallen to 4.3 yuan, and said, "Manager Zhong, please help me buy 20 yuan worth of China Construction Bank shares."

"I'll do it for you right away."

(End of this chapter)