Rebirth of the Capital Legend

"Well, what Old Wu said does make some sense," Old Zhang nodded in response. "With a severely polarized market, the attention of short-term investors is bound to be even more focused. Therefore, leading stocks with core market concepts that are recognized by the majority of short-term investors, have good expectations, and have promising trends can indeed attract more attention and attract more investors, thus forming a stronger market synergy."

Xu Qiao thought for a moment and said, "But if there's no sector or mainline coordination, the independent movements of one or two stocks will hardly change the overall market structure, especially the trend, right? And if the market trend can't be changed, then naturally the overall market sentiment can't be reversed. If sentiment can't be reversed, individual stocks that go against the trend will probably be dragged down to a certain extent. I don't think they will necessarily develop into the ideal trend, right?"

For example, the previous Huawen Online stock.

Wasn't the stock's performance and market attention strong at the time? However, the sector and main trend were too weak, resulting in the stock failing to form synergy between the sector and the main trend. Even after breaking out of the continuous limit-up trend, there was no real room for speculation.

I think if the market continues to maintain this narrow range of fluctuations.

Moreover, if the line of large-scale infrastructure cannot break further upward at this position, I am afraid that the stock of Beijiang Communications Construction, which is currently attracting a lot of market attention and has relatively strong short-term capital group support, will find it difficult to form the monster stock trend that everyone expects, and it will also be difficult to break through the height of 7 boards.

Of course, if the stock of Beijiang Communications Construction cannot perform well.

So, at present, the probability of so-called core concept leading stocks in other main market sectors coming out is definitely smaller.”

"So?" Lao Zhang said, "Xiao Xu, what you're saying is... at this point, should we remain cautious? Or should we maintain a relatively conservative trading strategy?"

Xu Qiao nodded and said, "I think so. If the Shanghai Composite Index fails to break through 3100 points, then, with the continued decline in market bullish sentiment, the index will definitely adjust downward to further clean out profit-taking and floating chips."

"Well, what Xiao Xu said makes sense." Brother Chen paused and said, "At the 3100 point level, if the pressure is not resolved and the market volume cannot expand further, showing a continuous shrinking state, then, without major positive news stimulus, the index will inevitably adjust sharply downward again to shake out the market. Moreover... in the short term, there are some profit-taking in the main lines of large-scale infrastructure, the main line of the new energy industry chain, and the main line of the Apple industry chain. At the same time, the positive news from last Friday has almost been reflected. In this situation, with the OTC market unable to enter on a large scale, it will be very difficult for the major main lines to continue to attack strongly and further accelerate the upward trend. It will also be difficult to have sustained selling to follow up.

But there is no support from the main lines of large-scale infrastructure, new energy industry chain, and smart phone industry chain.

It is difficult for other main sectors of the market to truly support the overall market and the profit-making effect on the market, and to gain unanimous recognition from a large number of short-term capital groups in the market.

So, during this time period...

It is still necessary to maintain a certain degree of caution and maintain a relatively conservative trading strategy.

Of course, judging from the medium- and long-term market trends and the chip structure, the probability of the Shanghai Composite Index breaking through 3100 points in the future is basically very high.

And after continuous fluctuations, the chip structure in the market is getting better.

This also gives the market certain opportunities and hopes for future bear-bull transitions.

In short, it's right to be conservative in the short term, but we should remain optimistic in the medium and long term."

"I don't have a strong expectation that the main lines of major infrastructure, new energy industry chain, and smart phone industry chain will continue to accelerate upward and expand space. However, in terms of the fundamentals of these main lines and future expectations, with major institutional groups already deeply involved or actively building positions, the possibility of maintaining the current situation and fluctuating sideways is still very high, right?" Lao Zhang took over and said, "As long as these core main lines maintain a sideways and fluctuating trend, then there will definitely be concept stocks that continue to perform well in these main line sectors. From this perspective... I think it seems that there is nothing wrong with focusing on the core concept leading stocks in these major main lines, relying on the corresponding concept leaders to make the market, and actively taking on the bullish outlook.

Take the stock of Beijiang Communications Construction for example...

In fact, I think as long as the major infrastructure line can remain stable and not fall, then, stimulated by the trend of the Hong Kong stock market and the continued hot sentiment in the offline real estate market.

Even if the incremental funds entering the OTC market are limited, this stock will be able to continue to move forward by relying on the extremely strong market profit-making effect that has accumulated during this period. As for where it will end, I think we cannot jump to conclusions before this stock moves forward.

Just like the Oriental Yuhong stock.

Its trend continues to exceed expectations amidst repeated divergences.

Moreover, there is no obvious sign of this stock reaching its peak yet. It seems that as long as the major infrastructure is concerned, a large number of institutions are still continuing to hold on to their positions.

Moreover, the hot speculation in the offline real estate market has not subsided and housing prices have not reached a turning point.

Then, the upward trend of this stock will not be interrupted.

By the way...Brother Chen, have you reduced your holdings of Oriental Yuhong to lock in profits?

Brother Chen smiled and responded, "From a medium- to long-term perspective, whether it's the main theme of large-scale infrastructure construction or related industry stocks, as long as the offline property market and the hot real estate market haven't reached a turning point, there will be expectations. I originally didn't invest in Oriental Yuhong as a short-term stock, but since the trend hasn't ended, I naturally hold on to it."

"Brother Chen really has a big picture." Xu Qiao smiled and said, "To be honest, whether it's ultra-short-term stocks or medium- to long-term stocks, I find it difficult to hold on to them. As soon as I make a little profit, I think about selling it to take the profit. Sigh... because of this, I've missed out on a lot of great stocks."

"In fact, the most difficult period to hold on to is the initial period after establishing a position," said Lao Wu. "Once the profits are piling up, it will be easy to hold on to it."

Xu Qiao nodded and responded, "Old Wu is right. The hardest time to hold onto your shares is right after you start building a position. Without sufficient profit margins, you'll always be wary of future uncertainties. This is especially true when stocks are still relatively high. If there's any sign of trouble, it'll be hard to hold onto your shares."

For example, when Mr. Su first got involved in the Oriental Yuhong stock, I didn't have the opportunity to invest heavily in it.

As the stock continued to squeeze upward, the stock price gradually rose, and it became difficult to find a suitable position to intervene heavily.

The same is true for the current Beijiang Communications Construction stock.

Faced with the situation where the stock has already risen by five daily limits, especially in the main line of large-scale infrastructure, it has also reflected a lot of previous good news and subsequent expectations.

I dare say that at this point, the funds that dare to continue to bet heavily are probably few and far between.”

"That's why I say the market's combined force is the most important," Lao Zhang continued. "With Beijiang Communications Construction's stock now at this point, there's no longer any so-called major capital controlling the market. It's all the result of a combination of funds driven by sentiment. I think stocks like this are more likely to be more sustainable."

Because there is no dominant capital controlling the stock, and the stock market is small, there is no potential institutional capital group. In addition, after the continued violent fluctuations in the trend over the past two or three months, the large number of retail investors who locked in their positions in this stock in the early stage are probably almost out.

In other words, the current chips of this stock should be relatively concentrated.

When I say concentration, I don’t mean concentration in the hands of a few big players, but price concentration.

The profit-taking is concentrated in the short term, and many floating chips are mostly involved in these two days.

Under this situation, even if the stock price continues to rise, there is actually not much selling pressure. At the same time, there is no dominant capital and potential institutional capital, so there is no need to worry about large funds continuing to dump the stock.

I think so...

Even tomorrow, or in the next few trading days, the market trend of the major infrastructure line will not be satisfactory.

I feel that the stock of Beijiang Communications Construction will be able to continue to perform well with the continued support of funds, and it is very likely to become the biggest monster stock in the market this month.

Of course, the current position of Beijiang Communications Construction is indeed a bit high compared with the previous stock price position.

However, this type of stock is originally based on emotions.

As long as there is continuous capital support and the market synergy is still there, I think there will be no problem with the trend of this stock.

However, to be on the safe side, we must definitely look at the after-hours Dragon and Tiger List data of this stock before making any decision.

According to my prediction, I think today's Dragon and Tiger List data for Beijiang Communications Construction stock is likely to be similar to yesterday's, reflecting the concerted efforts of speculative investors in the market. The maximum purchase volume of various speculative investors will still not exceed 1500 million, and there should still be a lot of speculative investors locked in their positions."

"It shouldn't be difficult to predict the performance of Beijiang Communications Construction's stock based on today's Dragon and Tiger List data," said Old Wu. "This stock has a small market cap to begin with, and coupled with strong consensus expectations today, there should be a significant amount of locked-up capital. Furthermore, given the current market conditions, it's highly unlikely that speculative investors would be willing to invest heavily. It's truly the combined efforts of market capital to manipulate the market."

Xu Qiao nodded and said, "My thoughts on Beijiang Communications Construction are similar to Lao Zhang's. There shouldn't be any surprises on the Dragon and Tiger List, and tomorrow's trend of this stock should still have a high probability of hitting the daily limit. However, at this point, no matter what, we can only gamble with a light position.

In fact, it is relatively difficult to guess and the trend is difficult to predict.

On the contrary, regarding the two stocks of Tianci Materials and Changying Precision, I feel that there are huge divergences in the new energy industry chain today, and there is a high probability that adjustments will intensify tomorrow."

Old Wu thought for a moment and took over the conversation, saying, "Tianci Materials' stock clearly has major institutional funds involved. If the institutional seats participating in this stock are real institutions, rather than speculators borrowing seats, based on the institutional trading style, I feel that even if there may be adjustments in the new energy industry chain, this stock will most likely be able to stabilize. It's hard to say how much room it can continue to expand, but I feel there is hope that it can maintain its trend and not fall sharply.

At the same time, due to Mr. Su's institutional seat at "Huayi Capital", it has already made large-scale intervention in the new energy industry chain.

Moreover, the hype logic and fundamental expectations of Tianci Materials' stock are basically consistent with those of Ganfeng Lithium and Tianqi Lithium.

Since these stocks have consistent expectations logic.

Then, as long as the stocks of Ganfeng Lithium and Tianqi Lithium remain stable, there should be no extreme adjustments.

Logically speaking, there is a high probability that the stock of Tianci Materials will continue to strengthen, and judging from the market trend, the stock of Tianci Materials has already gathered enough popularity and main sentiment, and has become the leading leader of the main line of the entire new energy industry chain.

Generally speaking, the leading stocks are more stable than other stocks.

Therefore, I think that the stock of Tianci Materials still has a very high cost-effectiveness. And if this stock can really undergo major adjustments along the new energy industry chain in the next few days, I feel that as long as the adjustments occur, it will be a good entry point.

As for Changying Precision's stock...

The time for Apple's new product launch conference is getting closer and closer.

I feel that the smartphone industry chain is likely to see an adjustment trend of expectations being fulfilled and favorable news being realized. Relatively speaking, I think the strength of this line is not as good as that of the new energy industry chain. I also feel that the risk-reward ratio of this stock is not as good as that of Tianci Materials.

So, looking at it all...

As for the three stocks of Beijiang Communications Construction, Tianci Materials, and Changying Precision.

In terms of priority, Beijiang Communications Construction should be given priority, followed by Tianci Materials. As for Changying Precision, its trend is relatively uncertain.

"What do you think about Sugon shares?" Brother Chen thought for a moment and suddenly interrupted.

Xu Qiao pondered for a moment and responded, "Shuguang Shares looks like a leading stock in the new energy industry chain, but it's been trading at a flat price with no turnover. The chips are completely broken, and the positive news for this stock is a bit vague. The rumored restructuring hasn't even begun, so... I feel that if this stock releases a large amount of volume, the trend will probably collapse, and it will be difficult to get out of the second wave of turnover. It's likely to be a disaster as soon as it opens, making it unsuitable as a short-term relay target."

Old Zhang nodded and responded, "I agree with Xiao Xu's idea. Basically, there's no need to look at Sugon shares. There's a lot of hidden capital lurking inside these stocks. You either can't participate, or if you can, it's definitely because the hidden capital has taken over."

"This stock can indeed be abandoned directly," said Old Wu. "As for the new energy industry chain, we still have to look at the performance of three stocks: Tianci Materials, Tianqi Lithium, and Ganfeng Lithium. Furthermore, in terms of sectors, the lithium battery sector is clearly the engine of this round of new energy industry chain market. Naturally, the core concept leader must be found in the lithium battery sector."