Rebirth of the Capital Legend

However, although the overall bullish sentiment in the market has declined compared to before the market opened or the initial stage of the call auction, and most of the main capital groups in the market are converging towards the main weighted areas of the main board, local profit-making effects still exist in several popular main line areas.

Moreover, the Hong Kong stock market opened simultaneously.

In the main direction of the real estate industry chain that performed strongly yesterday, a number of domestic real estate stocks, after skyrocketing yesterday, continued to form a concentrated and explosive opening trend today, which seems to be a continuation of yesterday's upward trend and a continuation of high-profile performance. In some respects, this opening pattern also has a certain stimulating effect on the same concept main line of the A-share market and the entire infrastructure main line.

In other words, the market opened slightly lower for a short period of time.

It cannot determine the overall trend of the market during the day, nor can it clarify the major core lines of the market, the performance style and actual rise and fall of the day.

Faced with such an opening situation in the two markets...

In addition to the heated discussions among the main capital groups and many hot money investors.

At this moment, the large number of retail investors gathered on major stock investment exchange platforms across the Internet are also having heated discussions, and there are serious differences between bulls and bears.

"Looking at the opening situation of the two markets, it should be lower than expected, right?"

"Compared to the general sentiment before the market opened, I think it was indeed below expectations. I had originally thought that today's market would open higher given last night's continued surge in US stocks, which hit new record highs. Unexpectedly... it turned out to be a generally lower open."

"Yes, yesterday's strong performance of a number of stocks, as well as several major sectors, all showed some obvious problems in today's call auction."

"On the infrastructure front, all major sectors opened lower. Looking at the opening performance of stocks related to the real estate industry chain in the Hong Kong stock market, I feel there's a huge difference. I don't understand why the two markets have such different trends. Furthermore, after the after-hours Dragon and Tiger List data came out yesterday, everyone was saying that Beijiang Communications Construction would likely accelerate upward today, or even open at the daily limit. Unexpectedly... during the call auction, it actually continued to decline."

"There are indeed problems with the opening of Beijiang Communications Construction's stock."

"I didn't expect the stock price of Beijiang Communications Construction to be so weak."

"According to normal logic, this stock should have opened with at least a 7% increase today, right?"

"I think so. However, as for Beijiang Communications Construction, although there are some differences in the current opening price increase, it does not mean that this stock cannot continue to rise. Whether it can reach the 5-day high still depends on the changes in the bullish and bearish situation after the market officially opens, as well as the bullish follow-up."

"Well, that's true. But generally speaking, if a core market leader underperforms during the call auction, it'll be hard for them to maintain a consistent bullish momentum after the market officially opens, right? After all, the selling pressure should be even greater after the market officially opens."

"It still depends on the big infrastructure and the overall sentiment."

"Looking at the trend of the entire call auction for major infrastructure projects, it seems that there is not much bullish sentiment. Oriental Yuhong also opened significantly lower, as did Conch Cement, Poly Real Estate, Kewan Real Estate... These industry leaders also generally opened lower."

"However, in the Hong Kong stock market, the Chinese real estate stocks that surged yesterday seemed to have a decent opening pattern."

"It depends on whether the bullish sentiment in the Hong Kong stock market, mainly related to infrastructure, can spread to the A-share market. Judging from the current opening situation, it is clear that most major capital groups in the market are cautiously optimistic about today's market trends, and there are signs of a concentration in the main heavyweight sectors of the main board."

"Well, yes, the two major sectors of liquor and white goods are rising, and the overall market situation is difficult."

"It's not just the liquor and white goods sectors. Banks, pharmaceuticals, and power are also showing signs of recovery. These sectors...are all defensive sectors where capital seeks risk!"

"Yesterday's trend in the major infrastructure sector was likely driven by the surge in mainland real estate stocks in the Hong Kong stock market, right?"

"It is indeed the case."

"Based on the opening performance of the entire major infrastructure sector in the Hong Kong stock market today, it is very likely that the major infrastructure sector will continue to be driven by the Hong Kong stock market."

"It's not that easy. I feel like some chips are loosening on the major infrastructure front."

"Previously, the mainland market's major infrastructure sector was clearly ahead of the Hong Kong stock market. The current collective surge in mainland real estate stocks in the Hong Kong stock market can be considered a compensatory rally. Meanwhile, the mainland market's major infrastructure sectors, including real estate, building decoration, and building materials, have clearly already reflected this year's market expectations and reached a relatively high level. At this point, it should be difficult for them to continue to move in tandem with the Hong Kong stock market, right?"

"I think the key lies in the performance of stocks like Oriental Yuhong and Beijiang Communications Construction."

"Oriental Yuhong's stock seems to be entering a period of adjustment, right?"

"I estimate that the stock will continue to move sideways and will not adjust too deeply. As for Beijiang Communications Construction, it seems that it will be difficult for it to challenge the 5-board height."

"If the challenge is successful, then we will break through the short-term hype created by Huawen Online."

"Yes, if the fifth board can successfully break through, it should create a strong bullish sentiment for other short-term concept stocks in the market, at least it will quickly warm up the short-term ecology of the market."

"I feel that Beijiang Communications Construction's stock still has the potential to break through the five-board height."

"If this stock opens with a downward correction and falls back to its intraday low, it should be a good time to buy it, right?"

"Of course, I feel like there's definitely still room for this stock."

"If there's a sell-off during trading, it's definitely worth buying low. Generally speaking, even if these core, hot-concept stocks, which are receiving significant market attention, can't actually break through the five-day high, the market will fluctuate as it reaches its peak, so there's no need to be overly anxious or panic."

"Well, I think so too."

"If the short-term investors in the market continue to speculate, their first target should be Beijiang Communications Construction, right? In other words... Beijiang Communications Construction is still the key to the entire short-term market ecosystem, an inevitable target for all short-term investors."

"Is Beijiang Communications Construction a must-buy stock? I've noticed that Tianci Materials' call auction performance is stronger than Beijiang Communications Construction's. Furthermore, the overall performance of the lithium battery sector, a core area of ​​the new energy industry chain, is stronger than the building materials and cement sectors, where Beijiang Communications Construction operates."

"Isn't the status of the God-given material enough?"

"But the call auction performance is indeed stronger than that of Beijiang Communications Construction!"

"Today's overall performance of the new energy industry chain can't be described as strong, right? Overall, the divergence in this core trend seems more pronounced than yesterday, especially in the closely related sectors of automobiles, auto parts, and auto parts. Selling pressure is clearly stronger, while the number of bulls willing to take the lead has weakened significantly."

"After all, the market has been rising sharply for several days in a row, so it is understandable that there will be some adjustments here."

"That's right. Therefore, the possibility of the new energy industry chain continuing to rise is very low. At its current position... it must clear out profit-taking before it can continue to rise."

"Yeah, I think so too."

"However, the lithium battery sector is performing very strongly. At least judging from the call auction trends of the two markets, the lithium battery sector should be the strongest sub-sector in the current market, right?"

"However, the entire main line has already adjusted. Can the lithium battery sector strengthen independently?"

"That's hard to say. Throughout the lithium battery sector, not only is Tianci Materials' bullish support still strong, but Ganfeng Lithium, Tianqi Lithium... and several other leading stocks in the core industries have also performed very well throughout the call auction process. It seems that the main investors in the market are still increasing their holdings in this direction."

"The continued strength of Ganfeng Lithium and Tianqi Lithium is due to the support of President Su, right?"

“Regardless of whether it’s President Su’s seat blessing or not, is this the truth?”

"So, it's not just the new energy industry chain. The smartphone industry chain is also showing signs of adjustment as the corresponding industry sectors and concept sectors of the entire main line show signs of adjustment. The Apple concept sector, a sub-concept sector, is also showing signs of independent strength."

"Well, yes, that's why I said the market trend is more differentiated."

"Should we say it's early differentiation?"

"Yes, I originally thought that after the market officially opened today, the trend would diverge further due to more profit-taking selling pressure. I didn't expect that in just 10 minutes of the call auction, this trend was fully demonstrated and the adjustment was completed."

"I think this early adjustment trend is actually a positive for the future market performance."

"How do you say that?"

"Originally, with yesterday's late-day sell-off, the pressure in today's morning trading was already very high. Profit-taking and some short-term stop-loss orders will jointly suppress the market. In this situation, it is actually not good to open high rashly and overdraw the market's bullish power and sentiment at the beginning of the trading session. When the market reacts in advance and forms a low opening, after the market officially opens and some profit-taking and stop-loss orders are sold, the stock price is in the low range of the intraday, which is actually conducive to the subsequent wait-and-see funds to enter and take over. After all, at the current position, people should be more willing to buy at the bottom than to chase highs."

"Well, I think so too."

"So, there's no need to be too pessimistic?"

"There's definitely no need to be too pessimistic. I think the overall market trend is still very stable."

"The Shanghai Composite Index has been suppressed below 3100 points, which feels very bad."

"I firmly believe that there will be a breakthrough sooner or later."

"Has anyone noticed that compared to yesterday's and the day before yesterday's market trends, there is a clear sign of shrinking volume in today's call auction?"

"I've already discovered this, but what does it mean?"

"What does this mean? Hehe... This shows that after yesterday's disagreement, the chip structure in the market has settled down a bit."

"That's true. Looking at the chip structure of many stocks, it's obviously better than before."

"However, there are also areas where the chip structure has become worse, such as the film and television media, internet software, and internet applications sectors within the emerging industrial chain."

“There was no hope for these sectors in the first place.”

"Yes, the fundamentals of these sectors are so poor that no funds are willing to invest in them for speculation."

"On the one hand, the fundamentals are poor, and on the other hand, after the sudden collapse of Huawen Online's stock, which presented a huge negative feedback, the group of investors who dared to continue to follow the trend and speculate on this stock is gradually shrinking."

"That's true, but this line isn't completely without any chance, right?"

"If we can fall through, I feel there is still a chance to regroup and come back again."

"Falling all the way? How far does it take to fall all the way?"

"Let's see the volume shrink further, at least until it reaches a new yearly low. Otherwise, this line... is really worthless."

"I don't know if you've noticed, but the current market speculation is increasingly focused on fundamentals."

"That's for sure. The previous line of simply speculating on probability was no longer viable."

"It's not just the speculation logic of various funds that is increasingly focusing on fundamentals. Rather, a large number of institutional main capital groups that guide market trends are paying more and more attention to fundamentals, valuations and growth."

"Yeah, and I don't know whether this is a good thing or a bad thing."

"I feel it's a good thing. The market is starting to return to the track of value investing."

"How can we say we're back on the path of value investing? It feels like we've just gone from one extreme to another, not really on the path of value investing, right? Besides, there are actually some concept stocks that are being hotly pursued in the market right now, like Beijiang Communications Construction, Huawen Online, Capital Group, and Tianci Materials... Do these stocks really have strong fundamentals?"

"The Tianci Materials stock might actually exist."

"Among the stocks you mentioned, Tianci Materials is the only small-cap stock that has seen significant institutional buying, right? I think the fact that this stock is being chased by various funds is definitely not just a simple hype; there must be a more solid underlying logic behind it."

"In short, this trend of speculation based on fundamentals is always a good thing, right?"

"I don't think it matters whether it's a good thing or not. We just need to follow the market trend and respect the trend. You can't go wrong."

"Haha, that's the truth, that's the logic..."

Along with countless retail investors in the market, they discussed the trends of the two markets' call auctions and looked forward to the market trends after the market officially opened.

Under everyone's gaze...

Soon, the time came to 9:30.

During the brief five-minute trading halt in the two markets, emotions briefly brewed.

At 9:30, the two stock markets began to fluctuate violently again.

We saw that several major market hot lines that attracted much attention, as well as the core leading stocks that received concentrated attention from various buying funds groups in the call auction trend, all saw rapid explosions in volume at this moment, and their stock prices fluctuated dramatically, forming an obvious and more differentiated market trend.