Rebirth of the Capital Legend

In addition to the generally higher opening of the major market indices, as well as numerous industry sectors and concept sectors, the performance of popular concept stocks and leading stocks that are of great interest to market investors has also generally exceeded pre-market expectations.

Among them, the stock that has attracted the most market attention is Beijiang Jiaojian.

As expected, with most investors watching closely, the stock opened at its daily limit up, with initial buy orders exceeding 25 lots and a total value of 5 million yuan.

As for stocks that garnered the second highest market attention after Beijiang Jiaojian, such as Tianci Materials, Changying Precision, Tianshan Cement, Shougang Group, and Financial Street, their opening gains were all above 3%. In particular, Tianshan Cement, influenced by Beijiang Jiaojian's limit-up opening, opened significantly higher at a 7% gain.

Of course, this excludes the leading stocks in these popular core concepts.

Previously popular leading stocks, such as Oriental Yuhong, Lixun Precision, Ganfeng Lithium, and Tianqi Lithium, all showed a clear upward opening trend.

Even stocks in the film and television media, internet software, and internet application sectors, which had been the weakest performing in recent days, such as Huawen Online, Huawen Media, Huace Film & TV, Guangdong Media, LeTV, Quantong Education, Baofeng Technology, and Wanda Film & TV, generally opened higher at this moment, indicating a certain degree of improvement in selling pressure and market expectations.

In terms of weighted stocks, stocks such as Moutai, Wuliangye, Gree Electric Appliances, Midea Group, and Haier Electric Appliances, although their opening gains were not as large as those of many small and medium-sized stocks, or stocks related to major infrastructure, new energy industry chain, and smartphone industry chain, all showed a good initial opening situation.

"As expected, the market opened generally higher." Noticing the generally higher opening of both markets, and especially the unexpectedly strong opening of Beijiang Jiaojian stock with its limit-up opening, Xu Qiao, a core member of the Shanghai-based short-term speculative trading group, stared at the market and remarked, "It seems that the overall market sentiment isn't as bad as we anticipated. The index will likely be able to hold steady at this level and regroup. Furthermore, the unexpected limit-up opening of Beijiang Jiaojian should stimulate short-term trading today, and we expect some concentrated profit-making opportunities to emerge."

Hearing Xu Qiao's words, Lao Zhang nodded and replied, "The fact that Beijiang Jiaojian's stock could open more than 25 lots of buy orders in the initial stage of the opening auction is indeed somewhat beyond expectations. However, such an overly consistent expectation is not a good thing. Everything in excess is as bad as deficiency. Beijiang Jiaojian was weak today with severely reduced volume, and it directly hit the daily limit up until the close. Then it will be difficult for the market to follow up tomorrow and the day after."

"The entire market is focused on Beijiang Jiaojian stock, so it's hard for sentiment not to be highly unified," Old Wu chimed in. "Since this stock has started to accelerate, there's no opportunity to participate. Any further divergence will have to be dealt with step by step. However, given today's market trend, if there's no buying opportunity in Beijiang Jiaojian, then I think the large amount of short-term capital flowing out of this stock will definitely look for other leading stocks within the major infrastructure theme to speculate on. It seems... Tianshan Cement is the closest follower of Beijiang Jiaojian. If there's no buying opportunity in Beijiang Jiaojian, arbitrage in Tianshan Cement seems like a good option."

Xu Qiao glanced at the current stock trend of Tianshan Cement and said, "It seems that a lot of short-term funds in the market are already doing this. There is a lot of money rushing to buy Tianshan Cement stock. Moreover, the initial trend of second- and third-tier real estate stocks in the real estate development sector, such as Shougang Group, Financial Street, Chongqing Development, Taihe Group, and Gemdale Group, is also very good, with strong buying support."

"If nothing unexpected happens, the infrastructure sector should still be one of the strongest core themes in the market today," Lao Zhang continued. "Focusing on this core theme is always a safe bet."

After thinking for a moment, Lao Wu replied, "The main reason is that the overall investment sentiment in the market has clearly rebounded under the influence of the trend of overseas markets and other positive news. The investment risk appetite of the entire market has been raised again, which has led to a better-than-expected opening situation for a number of leading stocks in the core short-term concepts."

“That makes sense.” Old Zhang nodded and said, “Even the weighted index seems to have opened well today, with many stocks opening higher.”

"However..." Old Wu paused, then continued, "The market opening situation at this moment only reflects pre-market sentiment. The real market trend will depend on what happens after 9:20. We'll see if the buying power that actively takes over as sentiment clearly recovers can withstand the increasing selling pressure over these few minutes. If it can withstand it, then the market will most likely open higher and continue to rise today. If it can't, I feel that the market will most likely have to adjust downwards again. However, even if the market develops according to the worst-case scenario and continues to adjust downwards, the magnitude and depth of the adjustment should be very limited."

“It’s unlikely that the market will continue to decline,” Xu Qiao said. “However, if the trading volume cannot increase further, the upward momentum will still be insufficient. The timing for the Shanghai Composite Index to stand firm and break through 3100 points is not yet ripe.”

Brother Chen nodded and chimed in, "Yes, the current market sentiment has clearly improved thanks to last night's overseas market performance and other positive news. However, it's hard to say how much buying power it will actually bring. After all, before 9:20, orders could be placed at will, which doesn't reflect the true market trend."

"Brother Chen, do you still think the market trend today is not optimistic?" Old Zhang asked.

Chen responded, "A significant surge is unlikely. I think today's market trend will probably not be too bad, but there won't be a strong concentrated profit-making effect either. It will most likely continue the market trend of yesterday and even the day before, with a divergence among the major themes. The main profit-making effect will likely be concentrated on a very small number of leading stocks in popular themes and core concept stocks. As for other ordinary themes that don't receive as much attention, don't have such strong expectations, and are weak or unpopular, they will likely find it difficult to attract concentrated buying attention and will be hard to achieve a significant surge."

"It should still focus on the main themes of major infrastructure, new energy industry chain, and smartphone industry chain, right?" Lao Wu said. "After all, the most popular stocks and leading concept stocks in the current market are mainly concentrated in these few main areas."

Xu Qiao glanced at the Hong Kong stock market, paused, and said, "Looking at the opening performance of the Hong Kong stock market, the infrastructure sector is indeed still very strong. I think the infrastructure sector should perform well in today's market. As for the new energy industry chain and the smartphone industry chain, I have a feeling that these two sectors will diverge more today and won't have a very good profit-making effect."

"Why do you think so?" Old Wu asked subconsciously.

Xu Qiao thought for a moment and replied, "The main problem with the new energy industry chain right now is that the positions that have made substantial profits in the past have not yet been cleared out, and there is still strong selling pressure. At the same time, various institutions have not yet completed their layout and position building in this line, and the stock structure has not stabilized. The trend will naturally continue to fluctuate. Perhaps this line will provide a good low-level buying point later."

As for the smartphone industry chain...

At the current time, the Apple new product launch event is very close, and this topic has been hyped up several times this month.

The expectations for Apple's new product launch event have clearly been overextended.

In addition, as the news approaches its release, many long positions in this sector will be worried about the realization of the positive news and the possibility of others rushing to sell. Therefore, it is highly likely that these funds will reduce their positions and take profits in advance before the actual positive news is released.

And then these funds began to be sold off in large quantities to lock in profits.

The natural upward momentum for continuous breakthroughs will become insufficient.

Comparatively speaking, the major infrastructure sector is not only stimulated by a series of positive news, but also by the continuous expansion of speculation in Hong Kong-listed mainland property stocks and the impact of continuously rising valuations, thereby driving the repricing of related stocks in the A-share market.

Overall, the major infrastructure sector currently has the strongest expectations and the best combined investment from market participants.

Moreover, there's the issue of large-scale infrastructure projects.

There's also the stimulus and support from the core concept leader, Beijiang Jiaojian.

With the stock of Beijiang Jiaojian opening at a completely unexpected price and hitting the daily limit up, its market attention will certainly increase further.

And when the potential buyers for this stock increase, and the number of people who are optimistic about it also increases.

Funds that clearly cannot buy this stock will definitely chase after similar stocks for speculation, which will accelerate the inflow of more funds into the major infrastructure sector.

Isn't the main driving force behind market trends continuous buying?

With sustained buying pressure, the market will naturally find its way forward.

Based on the current situation, the major infrastructure sector is the area with the strongest potential buying power and the strongest combined market capital among all the major market themes.

This is an area where both institutional investors and speculative capital like to team up and speculate.

At the same time, it is also the core theme that has been the longest-lasting trend and the longest-lasting profit-making effect in the market in recent months.

I believe that, barring any other major negative news and given the overall market's insufficient downward momentum, making a significant drop unlikely, there's no reason why the infrastructure sector shouldn't continue leading the market upward. Furthermore, there's no reason why many core concept stocks in this sector shouldn't perform well and attract short-term speculative investment.

"Xiao Xu's analysis is quite good." After listening to Xu Qiao's analysis, Brother Chen nodded and responded, "I think so too. If we continue to follow the trend and go long on the infrastructure sector today, there shouldn't be any major risks or losses. As long as Beijiang Jiaojian stock doesn't collapse, the short-term bullish sentiment in the infrastructure sector shouldn't dissipate. As for the new energy industry chain and the smartphone industry chain, the expectations are indeed weakening, and the buying power is gradually decreasing. It's time to be cautious."

“I’m also worried that the core theme of the smartphone supply chain might see a sell-off after Apple’s product launch,” Lao Zhang said. “So I’ve been gradually reducing my positions in this sector. Of course, I’m still optimistic about Lixun Precision, which has already gained recognition from various funds in the market and whose trend is clearly accelerating. It’s just that I should wait a little longer for a short-term buying opportunity.”

Old Wu said, "Lixun Precision's stock is indeed showing a strong trend, and institutional funds seem to be really grouping up to speculate on this stock, but there is really no buying point. Relatively speaking, Oriental Yuhong and Conch Cement in the infrastructure sector are more stable and have a more secure support."

"It's a pity that I couldn't buy shares of Beijiang Jiaojian today," Old Zhang sighed.

Brother Chen smiled and replied, "Not necessarily. There might be a chance for it to open suddenly during the trading session. After all, although the current trend of Beijiang Jiaojian stock is strong, there are quite a few funds locked up inside that want to take profits. If the index drops during the trading session after the official opening, then... more of these funds locked up inside will definitely sell for profit and push up the limit-up order. At that time, there may be an opportunity to buy in when the limit-up is broken."

"I hope so," Old Zhang nodded and continued.

Old Wu thought for a moment, then continued, "I don't think it's particularly important whether or not we can buy Beijiang Jiaojian stock. There are many other excellent stocks in the entire infrastructure sector. Moreover, if we determine that Beijiang Jiaojian stock can continue to rise and open up more room for short-term speculation, then choosing Tianshan Cement stock for quick arbitrage seems like a good option."

"That's the only way," Old Zhang said. "If we can't buy the leading stock, we can only buy the second-best."

"The key question is whether Tianshan Cement can be confirmed as the second-best follower of Beijiang Jiaojian," Xu Qiao said. "I feel that the strongest second-best follower stocks are Shougang Group, Chongqing Development, Financial Street, and Taihe Group. I think the buying point for the second-best follower is not now, but after the official opening. Whoever gets the first buy order and hits the limit up first, that's the stock I'll buy. I should say that hitting the limit up is the only sure buy point."

Brother Chen nodded and said, "That's right. At this time, there are still many uncertainties in the trend."

The discussion took place among several core members of the Shanghai-based short-term speculative trading group.

Soon, amidst the intense attention of investors both inside and outside the market, the trading session had already moved beyond the initial call auction phase and into the real call auction phase after 9:20 AM, where orders could not be cancelled.

And when the market trading time enters this stage.

After a large number of false orders were placed and cancelled, the actual market situation in both Shanghai and Shenzhen markets showed a significant decline compared to 9:15 AM. Many industry sectors, concept sectors, and numerous stocks also changed from opening higher at the beginning of the pre-market auction to opening flat.

This indicates that after several minutes of battle between bulls and bears, the actual market trend is not as optimistic as everyone expected or imagined. The actual upward pressure and the divergence between bulls and bears in various main sectors still exist.