Rebirth of the Capital Legend

Chapter 685: Judging the Strength of Short-term Stock Trends!

However, due to the booming offline property market and the fact that the real estate market has siphoned off too many active macro-capital groups, no matter how stimulating the good news is, the vast majority of retail investors and numerous active market hot money will not invest large amounts of funds in the stock market as the stock market's money-making effect is always not as good as the property market.

This results in a constant lack of liquidity in the stock market.

Without sufficient liquidity, the overall market valuation cannot be effectively improved under the huge pressure of historical trapped shares.

At the same time, there is no way to effectively restore investors' confidence.

"There's a lot of good news coming out every day, but why isn't the market going up? Good news leads to a high opening and a low closing, then a high followed by a fall. Without good news, the market opens low and fluctuates, moving sideways. Clearly, current market valuations aren't high, and the major trends are clearly supported by fundamental expectations."

Faced with the continuous positive news, as well as the collective bullish and optimistic remarks of a number of institutional main groups, financial media, and online stock commentators on online platforms, some of the retail investors gathered on major stock investment exchange platforms across the Internet complained in confusion.

"Yes, there are a lot of good news every day, but the stock market just won't rise, and there's just not enough buying capital. These bullish institutions are often just good at talking. If you really ask them to invest money in silver to support the market, or really ask them to increase their holdings, no one is willing to do it. I can only talk bullish, too."

"Yes, if these institutional investors were actively buying, the current market wouldn't be at this level of trading volume, and individual stock valuations wouldn't be so compressed. As the saying goes, there's no market without volume. When volume builds up, the market will naturally follow. It's useless to say anything now."

"Are all the capital groups on the macro level concentrated in real estate and the property market?"

"It's not like everyone is concentrating on the property market, but between the two investment options, I believe the vast majority of people will prioritize the property market. They say buy when prices are rising, not when they are falling. With house prices still rising, the cost-effectiveness of buying a property is far better than buying stocks."

"Yeah, I agree. At the moment, it's clear that the real estate market is more trend-driven than the stock market."

"It's mainly because buying a house comes with leverage. If the house price goes up a little, you can make a lot of money. But with stocks, even if the market goes up, you can't necessarily make money. There are still too few stocks in the current market that can clearly make money. Many stocks are either sideways or continue to fall. I bought several stocks when the market was at 2800 points. Now the market is almost at 3100 points, but the stock prices I hold are not even as high as when it was at 2800 points. I didn't expect... the stocks I bought at 2800 points will all be trapped."

"This isn't surprising. If you don't buy stocks in the core sectors of the market, such as liquor, white goods, and major infrastructure projects, it's hard to make money. Furthermore, if you buy stocks in film and television media, internet software, internet applications, or some of the concept stocks that were hyped during the previous bull market but lack institutional attention and performance support, and have poor fundamentals, then forget about making money. No matter where you bought them, you're basically stuck with them now."

"Indeed, the film and television media, internet software, and internet applications sectors, as well as a number of concept stocks with no fundamental support, have shown truly disappointing performance. Regardless of whether the broader market rises or falls, they all fall. Furthermore, many stocks haven't even managed a weak rebound."

"In the current market, concept stocks without institutional attention and fundamental support are no longer worth buying."

"I've also noticed that stocks that are performing well in the market right now are basically those with strong fundamentals and are attracting institutional attention."

"Well, it feels like the market's investment and speculation trends are changing."

"Does this mean that stock trading in the future will be performance-oriented? Will we have to follow the institutional hype and buy blue-chip and white horse stocks? Will there be no chance for small-cap stocks in the future? If that's the case... I think it's better to exit the stock market. Blue-chip and white horse stocks are now completely controlled by institutions, and these stocks have been continuously controlled by institutions. The current valuations of these stocks are not low. If I continue to buy them, it feels a bit like I am taking over for the institutions."

"In the A-share market, the vast majority of funds are from retail investors, and the amount of funds is very small, generally only 10,000 or 20,000 yuan, or even tens of thousands of yuan of investment capital. For small capital, it is inevitable to choose small-cap stocks with higher flexibility for speculation. I think as long as the vast majority of participants in the transactions in our large A-share market are retail investors with small amounts of capital, then the investment style and market trading style guided by white horse and blue chip stocks will not be realized. Inevitably, everyone will still gather to speculate on small and medium-cap concept stocks. The reason why a number of small and medium-cap concept stocks in the market are not performing well and are not as good as many blue chip and white horse stocks is that there are fewer retail investors and hot money participating in the transactions than before."

"Whether it's blue chips, white horses, or small- and medium-cap stocks with concept themes, the main criterion for whether people buy or not is the profitability, and sustained profitability. As long as there's a sustained profitability, people will continue to follow suit, buying in and pushing up the stock price."

"That's right. All that institutional heavyweight stocks, white horse and blue chip stocks, it's all bullshit."

"It's better to focus on market sentiment and major capital flows. All that logic is bullshit. Even the lousiest stocks will rise as long as major capital continues to buy them. Conversely... there are many stocks with excellent performance in the market that have no major capital attention and therefore have difficulty rising."

"But there has to be a logic behind the main capital's purchases, right? They can't just buy for no reason, right?"

"Isn't the logic behind major capital buying and speculation based solely on favorable news and the induced trend of buying in? Doesn't sudden positive news, coupled with appropriate sentiment, drive up stock prices? Look at the recent bull stocks. Aside from Oriental Yuhong, which Mr. Su bought with the blessing of his Fuxing Road seat, the other stocks have no reliable performance or solid fundamentals. Aren't they simply being driven sky-high by speculative investors?"

"The logic behind short-term stock trading is that the news is positive, but that's not entirely true."

"There's also coordination with the sector and the main trend, right? For example, if Beijiang's stock wasn't supported by major infrastructure projects, the entire sector, and the main trend, could investors have driven up this stock? In fact, for a stock to generate sustained profitability and build a consistent market momentum, it's not as simple as simply buying in. It requires more than just other factors."

"That's for sure. Without sufficient market synergy, relying solely on major capital to buy, there will be no one to take over, and the stock price won't go up."

"Yes, there are quite a few stocks controlled by market makers in the market. Is it possible that the main investors are buying too little? But if retail investors invest in these stocks, can they generally make money? Absolutely not."

"Therefore, only concept stocks with relatively strong market synergy are worth speculating on."

“How do we judge the strength of market synergy?”

"It's very simple. Just look at the Dragon and Tiger List data, the daily large order volume, and the net inflow and outflow of funds to find out."

"Generally speaking, if there are people buying after a drop, and the stock price rebounds quickly, it means that the market is strong. If there is limited capital to take over after a drop, or there is not much capital to actively buy, the stock price can only rebound weakly after the drop, or may not rebound at all. These are junk stocks with weak market forces and should not be invested in."

"Yes, for example, the current stock of Huawen Online is experiencing a continuous weakening of market forces, and its K-line trend often indicates a tendency to fall more easily than to rise."

"For example, the current market synergy for Beijiang Communications Construction is quite strong. Based on the stock's performance over the past few days, when the stock price drops, there will generally be buying funds to quickly push the stock price up. This is a sign of strong synergy and a strong trend. When buying stocks, you should buy this kind of stock."

"Beijiang Communications Construction's stock should be the hottest stock in the market recently, right?"

"Isn't it? I feel like this stock has already developed the trend of a monster stock."

"It's definitely a trend of monster stocks. In fact, compared with the core leaders of the previous major infrastructure projects, such as Oriental Yuhong, the increase in Beijiang Communications Construction's stock is not that big."

"Look at Beijiang Communications Construction. During the previous few months of the main upward trend in the major infrastructure sector, this stock had been fluctuating violently within a range. Only in the past few days of consecutive gains has it broken out of the previous huge fluctuation range and formed a complete breakthrough trend. From the lowest point to the current position, if you carefully calculate, the increase is indeed not large. It can be regarded as an average-growth stock in the major infrastructure sector."

"So, this stock still has a lot of room for speculation."

"That's for sure. At least this stock won't end until it catches up with the growth of Oriental Yuhong's stock, right?"

"Let alone catching up with the growth of Oriental Yuhong's stock, as long as it can rise a few more times and achieve the growth of the sector, I will be satisfied."

"Fuck, from what you said, you are in the car."

"Hey, when there was a disagreement this morning, I decisively bought heavily."

"Congratulations! Judging from today's Dragon and Tiger List trading data and market sentiment, this stock will definitely hit the upper limit when it opens tomorrow. There's even a high probability that it will remain at the upper limit for the entire day."

"I don't dare to think about a daily limit, as long as it can open significantly higher and be able to sustain it during the trading session, that will be fine."

"According to your logic of the strength of synergy, is Oriental Yuhong currently considered a strong stock with strong synergy in the market? Is it still a good time to buy it?"

"Oriental Yuhong's stock is certainly strong, but its current price is a bit high."

"Well, it's true that without a base position, it's really hard to buy Oriental Yuhong at its current price. However, with President Su's position at Fuxing Road as a supporter, I feel there's a high probability that Oriental Yuhong's stock will continue to rise. Judging from its trend, it's clear that the stock hasn't peaked yet."

"Hey, I originally had a base position in this stock, but unfortunately I didn't hold on to it earlier and sold it a long time ago. I never expected this stock to perform so well."

"I sold it, too. This stock is really strong. It's the stock with the biggest increase in this round of major infrastructure construction market."

"It's not just the stock with the largest increase in the major infrastructure sector; among all the core stocks in the market, Oriental Yuhong's stock is considered to have a relatively large increase."

"That's right. Looking at the entire market, in the first half of this year, apart from some restructuring concept stocks, it seems that few stocks have seen the same growth as Oriental Yuhong."

"Speaking of the Tianci Materials stock, what do you think?"

"This stock is quite strong, but the trend of the new energy industry chain is not very good today. I think we should continue to wait and see and not rush into a large position."

"It's a bit surprising that even though Tianci Materials has such a small market cap, there's institutional investment, and it seems like quite a bit of institutional investment is going on in this stock."

"Yes, if the current market trend is such that institutional investors are more likely to rally sentiment than speculators, then I think Tianci Materials is a stock worth paying close attention to."

"Yeah, I think so too. I feel that this stock, relying on the new energy industry chain, will see a significant increase in its subsequent growth."

"I hope so. I'm heavily invested in this stock."

"I feel that Tianci Materials' stock is not as good as Tianqi Lithium and Ganfeng Lithium. I still prefer to take over the core concept stocks that Mr. Su has invested in. Based on the past trends of the stocks that Mr. Su has invested in, as long as the investment position is not too high, the probability of making money is still very high."

"Haha, me too. I've been involved in all the stocks that Mr. Su has bought, whether they're large-cap or small-cap. I've just followed Mr. Su's lead and the rate of return has been pretty good."

"Is it really that accurate? It seems that blind research on your own is really no better than just following the crowd."

"That's how it is. Following the trend is the safest way, and following President Su's trend is even safer. Those investors who initially followed the trend and didn't sell Oriental Yuhong stock have now doubled their profits. As for those who didn't follow the trend, how many of them can double their profits?"

"That's true. It seems that Mr. Su has shown signs of buying stocks, so we have to pay attention to it."

"That's true. Anyway, it's always a good idea to pay more attention to the concept stocks that Mr. Su has bought."

Along with discussions among a group of retail investors...

As market time continues to progress, time begins to shift to the US trading period.

The U.S. stock market trend, in the absence of corresponding positive news and other favorable support, still formed a pattern of opening high and closing high, and continued to set new historical highs based on the inertia of the trend.

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