Rebirth of the Capital Legend

"Sure enough, after 9:20 AM, the market performance, especially the major market trends, really diverged." Noting that the market trends in both markets after 9:20 AM were significantly different from the initial market call auction at around 9:15 AM, Lao Qian, a member of the Suzhou-based major speculators, lamented, "Based on this market performance, it's really hard to be optimistic about today's market trends. I estimate that after the market officially opens, the trends of the major market trends will diverge even more."

Zhang Xinlei nodded and said, "That's exactly what happened. I felt that the high opening at the beginning of the call auction was a sign of false prosperity. It's true. If the major popular main lines can't hold up in the call auction, then the other non-popular main lines will be even less likely to hold up. Once the bullish sentiment of all the market main lines subsides, the market's risk aversion will inevitably heat up.

At that time, a large number of profit-taking investors will choose to reduce their positions decisively.

At the same time, many short-term capital groups in the market will decisively switch to the main weight area of ​​the main board.

If this continues, the overall market trend will inevitably adjust. It seems... today is not a good time to open new positions. I'll have to wait and see."

"I agree. We really need to wait and see," Zheng Jinming said. "Right now, the three hot sectors—large-scale infrastructure, new energy industry chains, and smartphone industry chains—all have some issues in their call auction trends. Correspondingly, Beijiang Communications Construction, Tianci Materials, and Changying Precision seem unlikely to stabilize based on their market trends. I estimate there will be significant divergence in the market for these stocks today. Under these circumstances... there shouldn't be any buying opportunities at the beginning of the opening. We'll have to wait until the market trades and the divergence converges as turnover increases, before a suitable buying opportunity emerges."

"Beijiang Communications Construction's stock has already fallen from its daily limit before 9:20 to its current six-point gain," He Zhong said. "And looking at the changes in its real-time matching orders, it's clear that the growth rate of active buy orders is decreasing, while the corresponding active sell orders are rapidly increasing. It seems that in a few minutes, when the market reaches 9:25, the stock's gains will fall further."

"Judging from the current situation, among the three core concept leading stocks, Beijiang Communications Construction, Tianci Materials, and Changying Precision, Tianci Materials' market performance is clearly much stronger," said Lao Qian. "After 9:20 a.m., the gains of Beijiang Communications Construction and Changying Precision both fell back significantly, while Tianci Materials held steady."

Zhang Xinlei nodded and said, "Indeed, it seems that the long sentiment in the new energy industry chain, especially the lithium battery sector, is still the strongest among the major main lines and major probability sectors in the current market. However, looking at the performance of other industry sectors and concept sectors in the new energy industry chain, it seems that in addition to the lithium battery sector, the selling pressure in the automobile, automobile decoration, automobile parts, non-ferrous metals, charging piles, and the corresponding photovoltaic and wind power sectors are all very large, and there is huge pressure for adjustment. If these industry sectors and concept sectors all fall into a state of adjustment in today's market trend, then... I am afraid that the lithium battery concept sector will also be unable to support itself. So, even though the performance of Tianci Materials' stock is still strong at the moment, I think the subsequent intraday trend is still not optimistic."

"I agree," Zheng Jinming said. "If the new energy industry chain generally enters a state of adjustment, then under the pressure of sentiment, the lithium battery sector will definitely be unable to support itself. From this perspective... the core lithium battery concept stocks such as Tianci Materials, Ganfeng Lithium, and Tianqi Lithium have opened significantly higher. Instead of being a clear buy point, they should be a very clear sell point."

"But if expectations are lowered during the call auction, the market will likely not be overly pessimistic after the market opens," He Zhong said. "Currently, the main pressure on the market is profit-taking over the past few trading days, with no other negative news. And given that overall market liquidity has improved compared to before, the suppressive effect of short-term profit-taking is very limited."

"Looking at the market's main board direction and the unusual movements of the weighted main line after 9:20..." Lao Qian said, "Many major investors in the market have indeed anticipated that the major main line sectors will enter a period of adjustment after the market officially opens, so they are actively adjusting their positions."

"It's really hard to see the momentum for the major trending stocks today," Zheng Jinming said. "However, I feel the large amount of active capital flowing into the market won't be concentrated in the weighted areas of the main board. Do you think... is it possible for capital to shift between high and low levels?"

"Switch high or low?" Zhang Xinlei was slightly stunned. "Switch where?"

Zheng Jinming thought for a moment and responded, "For example, during the recent market surge, the agriculture, animal husbandry, and breeding sectors have lagged behind. Also, within the emerging industrial chain, the film and television media, internet software, and internet applications sectors have clearly oversold. Furthermore, within the core infrastructure sector, the nonferrous metals, steel, and coal sectors have also lagged behind, as have the power and petrochemical sectors."

"If the main line of the new energy industry chain adjusts..." He Zhong thought for a moment and said, "Funds may indeed flow into the traditional energy sector. However, there is currently no other positive news stimulus in the traditional energy sector. In other words, there is no wind. Under such circumstances... I am afraid that even if some funds intend to switch in this direction, it will be difficult to achieve sustainability."

Lao Qian said, "Lao He is right. I think even if funds want to switch between high and low positions, it still needs favorable news to cooperate. Without the support of news, it is difficult to form a strong follow-up capital flow and a unified bullish force simply by inducing speculation."

"Then it seems... with today's market trend, there's a high probability that there really isn't much hope."

After hearing what Lao Qian said, Zheng Jinming continued to ponder for a while and said with a slight sigh.

Old Qian pondered for a moment, then continued with a smile, "It's not that there's no chance at all. I think if liquor and white goods continue to perform so strongly, it's very likely that funds will be concentrated on a large scale in the consumer sector. After all, with the growth of the macro economy and the rapid recovery of the real estate market, the entire consumer sector is actually gradually recovering. The overall logic of the industry is reversing, so the valuations of the corresponding industry leaders are likely to continue to rise."

"The consumer sector?" Zheng Jinming thought for a moment and said, "Consumer electronics, retail, automobiles, liquor, white goods, medical beauty... they should all be considered consumer goods, right? From this perspective, the consumer sector is really broad. If this logic can be hyped, it seems that it can indeed support the overall market."

"Isn't it the mass consumption sector that the market has been speculating on in the past six months?" He Zhong asked.

Lao Qian replied, "If you really calculate it, it is indeed this line. However, until now, the market has not formed a consistent expectation in this regard, nor has it formed a fixed logic. For example, liquor, white goods, retail consumption, electronic consumption, online games, medical beauty... these sectors are all moving in their own way, and there has been no substantial large-scale linkage."

"Since there wasn't a consistent, large-scale linkage before," He Zhong said, "it's actually quite difficult to create such a linkage now. Based on past market trends, aren't the liquor and white goods sectors more closely linked to the pharmaceutical sector? Should we take a look at the pharmaceutical sector?"

Zhang Xinlei took over and said, "I think it's difficult for the pharmaceutical sector to exceed expectations at the moment. After all, this line is actually a defensive line in nature, and it has risen a lot in the past six months. The valuations of the major pharmaceutical leading stocks are already not cheap, so how can they rise further? I think the pharmaceutical sector is not as good as white goods and liquor in terms of certainty and room for flexibility."

"Let's take it one step at a time and see what happens. There's no need to be too anxious now," said Zheng Jinming.

Following the heated discussion among several core investors in the group.

As the market trading time passed, it soon came to 9:25, the call auction of the two markets ended, and the market officially opened.

After a total of 10 minutes of call auction process.

The final opening situation of the two markets was completely different from that at 9:15.

At 9:15, the major main lines of the two markets, as well as a large number of related stocks, generally showed a trend of opening high or opening flat. There were not many market main lines, related concept sectors, and a number of related concept sectors that opened significantly lower. The overall sentiment was also clearly biased towards a bullish direction.

But at this moment...

The major core indexes of the two cities are presented.

Indexes such as the Shanghai Composite Index, Shenzhen Composite Index, ChiNext Index, CSI 500 Index, CSI 1000 Index, CSI 300 Index, and A50 Index all showed a trend of opening flat or slightly lower. None of the core indexes showed a clear trend of opening higher in the red.

Among them, the ChiNext Index, CSI 500 Index and ZSE 1000 Index showed the weakest performance.

The three core indices all opened lower by around 0.5%.

The Shanghai Composite Index, Shenzhen Composite Index and CSI 300 Index all opened slightly lower. The Shanghai Composite Index opened 0.29% lower, the Shenzhen Composite Index opened 0.35% lower, and the CSI 300 Index opened 0.25% lower.

As for the A50 index, it performed the strongest among all market indices, showing a flat opening trend.

In addition to the performance of a number of market indices.

The major core themes within the market, as well as the performance of corresponding popular industry sectors and popular concept sectors.

The two major weighty main sectors of liquor and white appliances, as well as the banking and power sectors, all maintained a trend of opening slightly higher and closing in the red, leading the main and industry sectors in the two markets.

The remaining sectors include other consumer sectors, pharmaceutical sectors, insurance sectors, and securities sectors.

It maintained a slightly lower opening trend, almost the same as the opening performance of the Shanghai Composite Index.

The three hot main areas of infrastructure construction, new energy industry chain and smart phone industry chain, which have attracted much attention, have clearly shown a low opening trend, whether it is the corresponding industry sectors or the related concept sectors, and the low opening range is generally greater than the performance of the Shanghai Composite Index and is on par with the ChiNext Index.

Other emerging main areas of the industrial chain include film and television media, Internet software, and Internet application sectors.

and its corresponding concept sector index.

The performance is even weaker, maintaining the trend of leading the decline in the two markets.

Moreover, the declines at the opening were greater than those of the ChiNext Index, the CSI 500 Index, and the All-China Securities 1000 Index.

Judging from the overall situation of the market opening, a total of more than 800 stocks in the two markets closed in the green, and most of the other market stocks opened lower to varying degrees.

Overall, there are more declines than increases.

In addition to the index, in addition to the performance of a number of corresponding main industry sectors and concept sectors.

Regarding the popular concept leading stocks that the majority of investors focus on...

Beijiang Communications Construction was fixed at a 4.22% increase in the market, and the stock price was falling throughout the call auction; Tianci Materials was fixed at a 3.89% increase in the market, and although the stock price fell during the entire call auction, the decline was not large; Changying Precision maintained a flat opening trend, and the stock price also showed a downward trend throughout the call auction.

Other related hot stocks...

东方雨虹小幅低开0.42%、华新水泥平开、天山水泥低开1.22%、首创集团低开2.33%、天启锂业高开0.49%、赣锋锂业高开0.52%、利讯精密平开、歌尔声学低开1.17%、欧菲科技低开1.21%……

In general, among the popular stocks, there are more declines than increases.

As for yesterday's trend, it showed a number of popular stocks in the film and television media, Internet software, and Internet application sectors that were abandoned by a large number of short-term capital groups in the market.

The stock of Huawen Online continued to open significantly lower at 4.17%.

Huawen Media opened 3.21% lower, Baofeng Technology opened 3.11% lower, Huace Film & TV opened 1.97% lower, and Guangdong Media opened 2.19% lower. Their share prices have completely wiped out recent gains and returned to historical lows. LeTV opened 1.12% lower, and Maruda Film & TV opened 0.89% lower.

The low opening range of these stocks is generally greater than the performance of major market indices.

In complete contrast to the performance of popular stocks in the film and television media, Internet software, and Internet application sectors are a number of popular leading stocks in the main market weight areas.

Among the popular leading stocks in the main weight areas.

Several first-tier liquor brand stocks including Qianzhou Moutai, Wuliangye and Luzhou Laojiao all opened higher with an increase of more than 0.5%, far outperforming the performance of major market indices. The three leading white goods stocks including Gree Electric Appliances, Midea Electric Appliances and Haier Electric Appliances also opened higher.

Other second- and third-tier liquor stocks, as well as white goods stocks.

Its opening price increase is basically the same as that of these leading stocks in core industries.

Judging from the opening points of many market main lines and popular stocks, a large number of capital groups in the market are obviously withdrawing rapidly from the popular main line areas and weak main line areas, while quickly entering the main line areas of the main board of the market for speculation and risk aversion.

Judging from this funding trend...

The main capital group in the market and a large number of follow-up investor groups.

People are generally not optimistic about today's market trends.