Rebirth of the Capital Legend

In addition to the several popular core themes that everyone is paying attention to.

In yesterday's market trend, there were sectors with more obvious loss-making effects, such as film and television media, Internet software, and Internet applications in the main areas of the emerging industrial chain. Although the market as a whole opened slightly higher, they still performed weakly. The corresponding industry sectors, concept sectors, and a number of component stocks in the sector areas generally showed a slightly lower opening trend, which was contrary to the overall market performance.

Among them, in these three major sectors, there are corresponding core concept leading stocks.

Stocks such as Huawen Online, Baofeng Technology, Quantong Education, Huace Film & TV, Huawen Media, Guangdong Media, LeTV, Maruda Film & TV, etc., showed a clear trend of opening significantly lower, continuing the losing effect of yesterday's market trend, and continuing to kill the group of funds that took over the long position yesterday.

As for the market's weighted main sector areas...

The two major weighty sectors, liquor and white appliances, continued to perform strongly. Following yesterday's general rise, they continued to open high and rise today. However, sectors such as pharmaceuticals, consumer retail, finance, and petrochemicals performed relatively poorly, generally maintaining a flat opening trend.

Others are unpopular main-line sectors that are generally less concerned by investors in the market.

Industry sectors such as animal husbandry, agriculture, and light industry have basically shown a sideways trend with shrinking volume. There is neither an obvious high opening trend nor an obvious low opening trend. There has never been too much attention from the capital group, nor too much concentrated selling pressure.

"I originally thought the market would generally open lower in today's initial call auction, but unexpectedly... it actually opened slightly higher." He Zhong, among the major speculators from the Suzhou faction who were watching the market trends after the two markets entered the initial call auction, said with a smile, "It seems that market sentiment, although generally weakened after yesterday's late-day sell-off, is still more enthusiastic than we expected. The fact that both markets generally opened higher in today's initial call auction shows that the majority of investors, both inside and outside the market, are still relatively optimistic about the market's future trends."

Zheng Jinming heard He Zhong's words and said with a smile, "The market opened generally higher in the initial call auction today. This was mainly due to the US stock market opening higher and setting new historical highs last night, right? Otherwise, pre-market sentiment wouldn't be this high."

"Well, that's for sure." Old Qian nodded and said, "If it weren't for the high-flying trend of the US stock market last night, the market would have opened lower today without strong support from other favorable news. In fact... this high opening situation is not of very high quality. Apart from the relatively hot major infrastructure, smartphone industry chain and new energy industry chain, the other major market sectors opened with very limited gains. Moreover, in yesterday's trend, the film and television media, Internet software, and Internet applications sectors, which had a relatively serious loss effect, opened significantly lower today, continuing to show a loss effect. I don't think this is a good phenomenon.

After all, there are several major sectors: film and television media, Internet software, and Internet applications.

It is the core industry sector of the entire emerging industrial chain.

There are hundreds of constituent stocks in these major sectors, and most of them are pure concept stocks in the small and medium-sized cap sectors.

The continued weakening of these sectors will directly affect the market trends of small and medium-sized and micro-cap stocks, and will also affect the confidence of short-term capital groups in the market in speculating on small and medium-sized and micro-cap concept stocks.

Simply put, the trends in these sectors represent the market's emotional feedback on small and medium-sized and micro-cap stocks.

These sectors are not performing well.

Then the sentiment in the small, medium and micro-cap stocks of the entire market will not be good.

In this case, the market will most likely continue to maintain a differentiated trend, and will cause various fund groups inside and outside the market to continue to concentrate on the market's main safe-haven sectors and their corresponding weighted stocks.

And the obvious...

I feel that there is obviously excessive emotional feedback in the major infrastructure, new energy industry chain, and smartphone industry chain, and the bullish force is showing signs of exhaustion.

In the short term, it will be difficult for these core lines to continue to open up a lot of room for growth.

Therefore, although the market appears to have opened higher, in reality, the trend may not be as optimistic as we see it. "

"Old Qian has some truth to what he said." Zhang Xinlei nodded and continued, "This high opening seems to be a sign of false prosperity. Besides the two major sectors of liquor and white goods, which are weighted by the main board, and their corresponding core leading stocks, which showed strong active buying in the initial stage of the call auction, the core leading stocks in other mainline sectors, as well as concept leading stocks, have also shown strong buying.

Judging from the current market trend, the active buying orders are a bit weak.

Such as the stock "Beijiang Communications Construction".

Judging from the current market performance of this stock, although its stock price showed a daily limit trend in the early stage of the initial call auction, there were only more than 3000 orders. This is a typical false order. According to this initial order... after 9:20, the call auction trend of this stock will inevitably go down.

Compared to the situation where it opens at the daily limit.

In fact, it would be more appropriate to open at a relatively low position, such as a 3% to 5% increase.

Comparing the initial call auction trend of the stock "Beijiang Communications Construction", I think the stock of Tianci Materials is relatively stronger.

Although the stock of Tianci Materials opened at the daily limit under the situation of Beijiang Communications Construction.

The market opened only about 3% higher.

However, as the time went by over one or two minutes, the group of long funds on the Tianci Materials stock market continued to follow up, that is, its stock price trend was going up step by step with the passage of the call auction time, which means the trend was getting stronger and stronger.

So I judge that there is a high probability in today's intraday trend.

The stock of Tianci Materials will be stronger than the stock of Beijiang Communications Construction.

As for the stock of Changying Precision, looking at the market trend, although the main funds that intervened in the market earlier are not in a hurry to place sell orders at this time, the active buying is relatively speaking still not very active. Moreover, I think the potential selling power of this stock in the market is actually more serious than that of Tianci Materials and Beijiang Communications Construction. At the same time, the circulating volume and market value of this stock are also much larger than those of Tianci Materials and Beijiang Communications Construction.

Overall, these three are the core stocks that the majority of investors in the market pay close attention to.

The performance of Changying Precision stock will be relatively weak.

In addition to these three main popular leading stocks that the majority of investors focus on.

Other industry-leading stocks, such as Anhui Conch Cement, Tianqi Lithium, Ganfeng Lithium, and Lixun Precision... Looking at the trends in the initial call auction, there was no obvious active buying.

Therefore, I think this high opening situation is a bit of a false prosperity.

The true strength of the market can only be determined by looking at the market trends after 9:20, when a large number of fake orders have been cancelled."

"What Old Qian and Old Zhang said makes sense," Zheng Jinming nodded in response. "The current market trend is simply a reflection of pre-market sentiment, but how much of this pre-market sentiment can actually translate into actual buying power will depend on the market's proactive buying after the large number of fake orders are canceled at 9:20."

He Zhong chuckled and said, "I don't think it's as pessimistic as you say, right? Film and television media, internet software, and internet applications are indeed the bellwethers of the market for small and medium-sized stocks, but their impact on the overall market trend is actually not that important anymore.

Look at the market trends the day before yesterday, and the market trends before the major positive news was announced last week.

The influence of the performance of these three major sectors on the overall market trend has long been gradually decreasing.

Moreover, compared with the main line of large-scale infrastructure, the main line of new energy industry chain, and the main line of smart phone industry chain, the market value of these major sectors is not high.

In other words, it has a heavy weight in the Shanghai Composite Index, Shenzhen Composite Index, and ChiNext Index.

They are not that high.

Furthermore, don’t the two hot market lines, the new energy industry chain and the smartphone industry chain, belong to the emerging industry chain?

If these two main sectors continue to strengthen, they will be able to continue to develop a good profit-making effect on the market.

Then, these two major sectors should also be able to drive the growth stocks in the market with good quality and good expected future performance to strengthen.

Also, the current market liquidity has not reached an abundant level.

However, compared with the market performance before the release of major positive news last Friday, there has been a significant improvement.

In the previous market trends, the trading volume of the two cities generally hovered between 4000 billion and 5000 billion. Now it has clearly reached a higher level.

At least not after the big positive news released last Friday.

In recent trading days, it has attracted at least 500 billion in incremental funds from the OTC market.

After these incremental funds enter, no matter which core lines or core stocks they gather in, as long as they remain in the market, they will be beneficial to the development of the entire market.

Furthermore, although the Shanghai Composite Index has temporarily fallen below 3100 points, the expectations of continued upward breakthroughs that were originally generally optimistic have been reduced.

But it is not far from 3100 points.

As long as the market sentiment improves a little bit, the two core weights of large-scale infrastructure, new energy industry chain, smart phone industry chain, and liquor and white appliances will slightly boost the market's bullish sentiment, and the corresponding core leading stocks will be able to create a decent profit effect in the market trend.

So, the current market trend is actually very likely to continue to strengthen.

Anyway, I think there is no reason to be pessimistic about this situation.

There is no reason to be afraid of the Shanghai Composite Index at 3100 points. Correspondingly, there are no so-called risk points in a number of core leading stocks and concept leading stocks.

Of course, compared to last Friday when the major good news was released.

Continuing to go long at this time does seem like chasing high prices.

But I think that after the rise in the past few days, many core leading stocks in the popular main line areas have just come out of the bottom and have just formed an upward trend.

For example, the two core leading stocks are Tianqi Lithium and Ganfeng Lithium.

It seems that the two stocks have generally reached a rebound height of 25% from the bottom.

However, looking at the historical trend of Oriental Yuhong's stock, Mr. Su's "Huayi Capital" has a large-scale and heavy investment layout.

Is a 25% cost difference really unacceptable?

I don't think so.

However, from a short-term or even ultra-short-term perspective, it is indeed quite risky to take over today’s position.”

"From the perspective of the overall market's mid-term rebound, we shouldn't be pessimistic at this point," Zheng Jinming said. "However, judging from the performance of some specific stocks, we tend to be cautious, which is not a problem. For example, Beijiang Communications Construction's breakthrough of the 5th board today was extremely difficult, and we expect intraday divergence between bulls and bears will also be significant. Of course, the development of a monster stock is a result of the combined efforts of the market. Until it emerges, no one knows whether it will succeed."

"Yes, Lao Zheng is right." Lao Qian and Zhang Xinlei nodded in agreement.

And amidst the heated discussions among several major speculators in the "Gusu Group" internal group.

Soon, the market time moved to 9:20, and a large number of fake orders were cancelled. After a large number of fake orders were cancelled, the market...

What is shown at this moment is obviously much calmer than that at 9:15.

Among the leading stocks in core concepts that are the focus of the majority of retail investors, the share price of Beijiang Communications Construction has fallen from the upper limit to around 6%, while Tianci Materials has stabilized at a 4% increase without a significant decline, and the share price of Changying Precision has fallen back to around 1.5%.

The main lines of large-scale infrastructure, new energy industry chain, and smart phone industry chain are related to these three core concept leading stocks.

The corresponding industry sectors and concept sectors have also declined significantly compared to 9:15.

Of course, the three major industry sectors of film and television media, Internet software, and Internet applications, which had already performed poorly, performed even weaker at this moment. The corresponding industry sector indexes fell by about 1% at this moment.

As for the main board's weighted sectors, they are liquor, white goods, medicine, consumption, electricity, finance, and petrochemicals.

After a large number of false orders were cancelled, the market's risk aversion sentiment further increased, and the corresponding active buying and the performance of the corresponding industry sector index became stronger.