Rebirth of the Capital Legend

"That's because the core concept leading stocks that attract the most market attention also have the highest liquidity due to their extreme profit-making effect, right?" Zhao Zhiyuan said. "It seems that when the market enters a more defensive adjustment phase, the large amount of funds on the market, considering the risk-averse nature, sufficient liquidity is more important than the stability of stock price trends."

Liang Jiucheng nodded slightly when he heard Zhao Zhiyuan's words. "That's for sure, and this is one of the main reasons why short-term investors tend to flock to leading concept stocks during market adjustments. Based on this factor, Beijiang Communications Construction actually has a good combination of timing, location, and people."

"Indeed," Zhang Wei paused, then continued, "First, this stock has a lot of market attention, and it's had four consecutive limit-up days, creating a very strong profit-making effect. Secondly, its basic logic is sound, and its future expectations are also good, which provides the underlying logic for speculation. Furthermore, sentiment in the major infrastructure sector is good today, and there's external stimulus from the Hong Kong stock market, along with various positive news from the real estate markets across the country. With these logical foundations and hype factors converging, this stock, as long as there are no problems with the follow-up and sufficient turnover, will easily form a combined force and hit the limit-up again."

"Haha... So, this stock's divergence has turned to consensus, and its transition from a bull stock to a monster stock is almost here?" Zhao Zhiyuan laughed heartily, then continued, "If that's the case, then we have to buy some. Regardless of whether this stock can eventually perform well or develop into a monster stock, given its current position and the current expectations, it's worth buying some positions to give it a try."

"Yes," Zhang Wei said. "As far as the current market trends are concerned, the many short-term investors in the market who want to make a move will inevitably be tempted by Beijiang Communications Construction. The market's short-term sentiment is actually focused on this stock. Only if this stock performs well can the market's short-term speculation sentiment recover. Otherwise... the market trend will only get worse."

Zhao Zhiyuan nodded and continued, "Overall, today's major market indices show no signs of a sharp drop, and are expected to continue trading sideways on reduced volume. As long as the indices stabilize, then amidst the diverging trends, the corresponding core concept leading stocks in the popular mainline areas that have attracted the attention of the majority of investors in the market should be able to maintain strong support after a brief adjustment. Although there is a lot of profit-taking selling pressure on these stocks, liquidity is extremely abundant. Given the current overall market liquidity, if the market stabilizes, the group of funds that follow the trend and go long will most likely be able to absorb the continued profit-taking."

"In other words, Tianci Materials and Changying Precision should have the opportunity to continue to strengthen and maintain their upward trend?" Zhang Wei responded.

Zhao Zhiyuan said: "I think so."

"Well, looking at the market trends, the trend of major funds converging and increasing their holdings in the main-weight sectors of the main board, such as liquor, white goods, banks, and electricity, does seem to have declined." Liang Jiucheng, who had been keeping an eye on the trading trends of the two markets, continued to respond, "If the enthusiasm of major funds to gather and go long in the main-weight sectors of the main board subsides, then the large number of follow-up funds in the market will inevitably withdraw from these main-weight stocks and flock back to the market's hot concept stocks."

"It's best for the market's major heavyweight stocks to trade sideways, neither rising nor falling. That's the best trend," Zhao Zhiyuan said. "That way, the major heavyweight stocks won't siphon off too much of the market's major long funds, causing a continuous decrease in long orders for other major stocks, while also not overly suppressing the market's overall bullish sentiment."

Liang Jiucheng nodded and said, "The ideal trend is naturally like this. However, the specific direction of the main board weight line still depends on the ultimate combined force of the capital groups in the market. At least for now... after a brief adjustment at the beginning of the trading session, after the continuous explosion of trading volume, and after a large number of short-term profit-taking and yesterday's follow-up stop-loss orders, the market trend has clearly stabilized.

The main lines of the major infrastructure and new energy industry chains, as well as the main lines of the smartphone industry chain.

The trends of these major market hot-spots, the corresponding industry sectors, concept sectors, and a number of popular concept stocks have stabilized, and the bullish force that has taken over seems to be gradually strengthening and recovering. Even the film and television media, Internet software, and Internet application sectors in the emerging industrial chain main lines that performed very weakly at the beginning of the trading session and had a more serious loss effect, as well as their corresponding core concept stocks.

At this moment, there is a gradual rebound trend, and many groups of funds that follow the trend and go long are intervening to buy at the bottom.

At present, the ability to carry out long-term funds has been significantly enhanced, and the core main line of the trend has rebounded significantly.

The core is still the major infrastructure line.

Judging from the current market performance today, among the major hot core areas of the new energy industry chain, the smartphone industry chain, and the infrastructure industry chain, the infrastructure industry chain is still stronger.

"The rapid recovery in the major infrastructure sector is due to the continued increase in funds invested in long positions..." Zhang Wei said. "This is mainly due to the strong performance of major domestic real estate stocks and some building materials stocks since the opening of the Hong Kong stock market. I've seen stocks like Maruda Commercial, Hengda Real Estate, Country Garden, Longfor Properties, and Rongchuang Real Estate in the Hong Kong stock market, all showing gains nearing 5%, setting new recent highs. And there's a constant stream of funds invested in long positions."

"Yes, that's right." Liang Jiucheng heard Zhang Wei's words, glanced at the current trends of many related stocks in the Hong Kong stock market, nodded, and agreed, "Every time there is an adjustment in the major infrastructure line, there are always some positive factors in other market factors."

Zhao Zhiyuan said, "This isn't surprising. After all, this is one of the core market themes with the clearest shift in industry fundamentals. It's also normal to have continued positive news. I originally thought that the infrastructure sector, having reached its current position, would need to adjust before moving upward again, but looking at the current situation... it feels like many of the core leading stocks in this sector simply can't fall any further. If these stocks pull back even slightly, subsequent long-term funds will pour in."

"Haha..." Zhang Wei said, "This is the charm of the core leading trend of the market."

Liang Jiucheng said: "The reason why the trend of large-scale infrastructure is so resilient is that the underlying logic is strong. The current national real estate market shows no signs of peaking, and housing prices in various regions have not stopped or shown signs of stagflation. This shows that the development space of the macroeconomic strategic concept of large-scale infrastructure nationwide is still huge. Since this line still has huge development potential in the future, whether it is the stock price performance of the leading stocks related to this core line or the expectations of the general investor group for this line, it is unlikely to reach the peak at present."

"Yeah, I think so too." Zhao Zhiyuan nodded and continued, "If we compare them this way... I feel like there's something wrong with the strength of the new energy industry chain. After the initial wave of concentrated emotional speculation, the new energy industry chain has been under pressure from a large number of short-term profit-taking investors, and the bullish sentiment has also been temporarily weakened. It seems that everyone's original underlying logic for this line has been shaken."

Liang Jiucheng said, "This isn't surprising. Last Friday's unexpected good news suddenly pushed expectations for this line too high. Now that market sentiment is gradually cooling, a large number of investors in the market are naturally shifting from their previous firm attitude to a slightly skeptical attitude amid the continued decline in stock prices. This is quite normal. However, how much of a stimulus did last Friday's good news have on the entire domestic new energy industry chain and the development of new energy vehicles? How much of an impact did it have? How many related companies' performance reversals it caused will indeed require time to verify and subsequent performance. Now... wait for the market hype of this line to completely cool down and internal chips to consolidate. This will not be detrimental to the subsequent medium- and long-term trend of this line."

"That's true," Zhang Wei said. "But regardless, the logic behind the lithium battery line should still be solid. The demand for lithium batteries is a process of going from 0 to 1, and it's explosive growth. So I believe the potential of this branch line is the most certain and has the greatest room for growth in the entire market."

"Should we say it's from 1 to 100?" Zhao Zhiyuan took over. "Many of the technical difficulties of lithium batteries have been overcome, right? Isn't the most important issue now the large-scale marketization?"

Liang Jiucheng said: "In fact, I think that whether it is from 0 to 1 or from 1 to 100, the future development trend of this line is indeed very certain. We have no way of predicting how big the specific industry demand explosion space is, but... we actually only need a vague direction.

In fact, in market transactions and market investments.

Sometimes, we don't need to be too precise, we just need to look in the right direction.

Under the premise of a certain general direction, build positions in batches and hold on patiently, and you will definitely reap rewards in the end."

"What Lao Liang said makes sense," Zhang Wei said. "A vague sense of correctness is indeed very important. Sometimes... if we focus too much on precision and accuracy, we'll miss many market opportunities. There's a saying that goes, 'The so-called highs and lows aren't just points, but ranges.' When the direction of a market trend is relatively certain, we can vaguely sense whether the corresponding core stocks are overvalued or undervalued based on our intuition and instinctive trading decisions."

When a stock feels undervalued, its stock price may not have bottomed out and is still in a downward trend.

You can also gradually build up your position, make continuous purchases, and hold on patiently without fear of losses.

On the contrary, when it feels overvalued, even if the stock price continues to rise, the upward trend will continue.

So, the risks have already become apparent.

In this case, we should gradually reduce our positions rather than further increase our positions and go long to chase the trend more aggressively."

As the core investors in the Qilu Gang's main speculator group continued to discuss...

In the trading market at this moment, the time has come to 10 o'clock in the morning.

Based on the intense trading in the market in the previous half hour.

It can be seen that the entire market has stabilized under intense trading. The Shanghai Composite Index has maintained a narrow range of fluctuations between 3090 and 3100 points. At the same time, the A50 Index has also formed a narrow range of fluctuations with a slightly red market trend.

The declines in the Shenzhen Composite Index and the ChiNext Index are gradually narrowing.

The trends of major industry sectors and concept sectors in the two cities.

The growth rate of the main board weight sector indices such as liquor, white goods, banks, and electricity is gradually narrowing, while the three major industry sectors of real estate, building decoration, and building materials in the main line of large infrastructure, as well as the related lithium battery and nonferrous metal sectors in the main line of the new energy industry chain, and the Apple concept sector in the smartphone industry chain, are gradually rising as market trading time goes by, and have returned to the leading position in the two markets.

At the same time, the main areas of the emerging industrial chain performed extremely weakly at the beginning of the market opening.

The declines of the major industry sector indices such as film and television media, Internet software, and Internet applications have been gradually narrowing as the gains of a number of heavyweight main-line sectors have declined. The corresponding core concept stocks have also bottomed out and rebounded after a rapid sell-off at the beginning of the session. Among them, the stock of Huawen Online has almost turned red from its lowest point in the session after falling as low as 5.23% at the beginning of the session.

As for the relatively unpopular industry sectors and concept sectors, they do not receive such high attention from the majority of investors in the market.

However, as market trading hours go by, the trend becomes weaker and weaker.

Overall, after the general sell-off adjustment at the beginning of the trading session, many short-term capital groups in the market began to become active again and began to converge on many popular concept stocks in the market.

The short-term investment sentiment in the entire market has begun to gradually pick up.

At 10:13, the turnover rate of the market reached 31%, and the stock of "Beijiang Communications Construction", which had always maintained a continuous fluctuation between 5% and 7% increase, was pushed up by the concentrated buying funds at this moment, and once again quickly closed the daily limit, achieving the achievement of five consecutive daily limits. At the same time, it also broke the previous record of consecutive daily limits created by the stock of Huawen Online, and refreshed the market's short-term stock speculation space.

The moment when the stock of Beijiang Communications Construction quickly hit the daily limit.

A number of the market's major infrastructure-related concept stocks, as well as the popular main-line concept stocks that short-term investors focus on, all moved abnormally in an instant, forming a trend of following the trend and rising. At the same time, the market's short-term speculation sentiment and the enthusiasm of many retail investors to go long were once again ignited in an instant, and trading in the entire market became hot again.