Rebirth of the Capital Legend

Once the market trading hours reach 10:40 AM, and the intraday trading volume gradually stabilizes, the overall market trend and the performance of various main sectors become more clearly defined, and the relative strengths and weaknesses of popular stocks become readily apparent.

After more than an hour of intense trading following the opening of the market, the following events took place.

At this moment, the non-ferrous metals, coal, and steel sectors are among the top three gainers in the market. Following these three sectors are the three sectors that remain relatively strong in the infrastructure sector: real estate, construction and decoration, and building materials. Then there are the core sectors in the new energy industry chain, such as automobile manufacturing, auto parts, and auto decoration.

In terms of concept sectors, lithium battery, charging pile, and photovoltaic energy storage sectors ranked among the top three gainers in the two markets. Following them, coal, real estate development, and cement sectors also performed relatively strongly, ranking among the top gainers in the concept sector list.

Meanwhile, the film and television media, internet software, and internet applications sectors are relatively weak.

And related concept and theme sectors.

Sectors and concept stocks related to the consumer sector, which were heavily sold off by major institutional investors and active short-term funds, as well as core sectors with high weighting in stocks such as finance and petrochemicals, performed relatively poorly today.

These industry sectors and concept sectors generally underperformed the major market indices.

Furthermore, the corresponding core stocks and popular concept stocks lack the attention of active buying funds, and in terms of stock price movement, they have no initiative and can only follow the trend.

Meanwhile, there is a clear contrast between the trends of the strong and weak main themes.

In the market, a number of popular stocks attract much attention from investors, especially those ranked among the top fifty most popular stocks by market investors.

Their trends are also highly differentiated.

For example, among the many popular stocks in the same new energy industry chain, Tinci Materials and Penghui Energy have successfully hit their daily limit, while Shuguang Shares, after a continuous surge in trading volume, has fluctuated around a 5% increase. Meanwhile, Duofuduo and Jiangte Motor can only maintain their positions near the flat line, indicating that there is still a huge divergence in the market.

Among the many popular stocks in the same smartphone industry chain, Lixun Precision continued its steady rise, while Changying Precision, O-Film Tech, Goertek, and Xinwei Communication could only maintain a slight increase or remain near the flat line, unable to keep up with the leading Lixun Precision's gains.

The infrastructure sector remains the area that attracts the most attention from investors in the market.

Taihe Shares hit the daily limit, while Beijiang Jiaojian fluctuated between 3% and 5% gains. Stocks such as Shougang Group, Tianshan Cement, Financial Street, Chongqing Development, and Huaxin Building Materials either rose slightly, remained flat, or fell slightly, without showing a consistent upward trend.

As for the relatively weaker sectors such as film and television media, internet software, and internet applications...

Correspondingly, among the popular concept stocks, apart from a few with positive news that showed some upward momentum, the rebounds of the others were very weak.

"It seems that although the overall market sentiment has improved slightly since the beginning of the trading day, the market's profit-making effect is still not strong. It seems that after Beijiang Jiaojian failed to reach a consecutive limit-up level, the driving force of other core leading stocks on other stocks in the market has weakened. Even though Taihe Shares, Tianci Materials, Penghui Energy and other newly emerging hot stocks have strong limit-up momentum, it feels that these stocks have very limited driving force on related stocks in their own main sectors or on other hot concept stocks in other main sectors of the market."

Noticing that the market trend was not as optimistic as expected after the intraday trading volume stabilized, many retail investors gathered on various online stock investment exchange platforms frowned and complained.

"That's for sure. With Beijiang Jiaojian's stock taking a breather, the market's short-term speculative sentiment and the potential for individual stock speculation have naturally decreased. This is the most crucial influence of the market's leading stocks. Fortunately, Oriental Yuhong's stock performance remains stable. At the same time, the new energy industry chain is also attracting follow-up funds and generating some profit-making effects. I estimate that although the market performance today is highly differentiated, there won't be a significant loss-making effect."

"The weak rebound indicates that the market is very likely to continue to adjust downwards. It also shows that most investors in the market still have a lot of concerns and dare not take positions at this level. Moreover, today's market volume is not as large as yesterday's, which shows that there is still a lot of funds waiting on the sidelines."

"It's essentially a zero-sum game, so I think it's normal that the trading volume hasn't changed much, right?"

"The main reason is that the infrastructure sector wasn't performing well today, which kept market sentiment from getting hot and also made many funds less willing to trade."

"The infrastructure sector has been rising for many days in a row, so a slight correction is normal, right?"

"In today's Hong Kong stock market, the real estate industry chain is still rising, and the share prices of various mainland real estate stocks are also continuing to rise. At the same time, looking at the major infrastructure sector, although the trend is under some pressure, the overall stock structure is still very healthy. In particular, a number of popular core stocks have not seen a significant increase in trading volume, and there are no obvious signs of major funds withdrawing. Therefore, I think this sector will stabilize and will definitely continue to rise in the future."

"This should be beyond doubt, it's just that the market focus today is not on large-scale infrastructure."

"Yes, indeed. It's easy to understand why today's focus has shifted to the new energy industry chain, since this sector suffered a sharp drop yesterday and should see some rebound today. However, what's the logic behind the market's funds being concentrated on speculating in sunset industries like coal, non-ferrous metals, and steel? I don't understand it at all."

Is this an expectation of a commodity bull market?

"How could that be? Given the current macroeconomic situation, where is there any talk of a commodity bull market?"

"So, what new news is there regarding the supply-side reform theme? For steel, coal, and non-ferrous metals, this is the only logic we can be speculating on right now."

"Is it possible that the industry's fundamentals have improved, and the speculation is based on expectations of an industry turnaround?"

"Can't you tell? The steel and coal industries have such huge overcapacity, and it's already been cleared out? Even if it has, it will still take some time before the industry cycle reverses, right?"

"I think it's possible. Funds in the A-share market have always liked to speculate in advance, so it's not impossible."

"Let's wait and see. I'm not too keen on following the steel, coal, and non-ferrous metals sectors today. After all, this sector hasn't shown much continuity for a long time. It's usually just a pulse-like movement. Today it rallies, and tomorrow it pulls back. It's hard to grasp the market trend."

"Yes, I think so too. However, I think it's still worthwhile to invest in stocks that are more focused on the new energy industry chain, such as Tianqi Lithium, Ganfeng Lithium, and Huayou Cobalt. These stocks still show clear signs of major funds accumulating positions and controlling the market."

"Tianci Materials is a good stock, but unfortunately I bought the wrong one this morning."

"You wouldn't buy Shuguang Shares stock, would you?"

"I bought Shuguang Shares at the bottom in the morning, thinking I made a profit, but now I see... it's not as good as buying Tianci Materials back then. I really didn't expect the two stocks to have such a big difference in performance. I originally thought that Shuguang Shares would hit the daily limit today and drive other new energy industry chain concept stocks, but I didn't expect Tianci Materials to be the first to hit the daily limit."

"The large size of the circulating shares of Shuguang Co., Ltd. has dragged down its stock price."

"Isn't it because there were too many limit-up days before, resulting in a break in the shareholding structure and too much divergence in the market? Tianci Materials stock has basically come up through turnover, and there was a significant turnover yesterday. Once market sentiment recovers, its stock price movement will be more consistent and smoother, which is only natural."

"Actually, I think that in this wave of the new energy industry chain rally, Tinci Materials is the most core leading stock, right?"

"Agreed. I feel that Tinci Materials is like Beijiang Transportation Construction in the major infrastructure sector."

"Speaking of which, has the rally in Beijiang Jiaojian stock come to an end? There was a lot of divergence in the market for this stock today. The rapid sell-off in the morning looked quite frightening."

"I think the upward trend of Beijiang Jiaojian stock, at its current level, is not over yet."

"I think so too. If the market really is over, that early morning sell-off should have gone straight to the daily limit down, and it wouldn't have been able to recover so quickly."

"The end? This is just the beginning. Compared to Oriental Yuhong stock, I think Beijiang Jiaojian stock has a high probability of doubling in value."

"There's still room for it to double? That's unlikely, isn't it?"

"However, this leading stock is really not a trap. I feel that even if you buy in at the high today, you can get out safely tomorrow."

"The core leading stocks are inherently highly profitable; if they are leading stocks that trap people, then they are not true leading stocks."

"I feel like the major infrastructure sector is about to enter a phase of switching between high and low levels. Looking at the stocks, the performance of high-priced, high-performing stocks is not as good as that of low-priced stocks. For example, the performance of Beijiang Jiaojian is obviously not as strong as that of Taihe Shares."

"Taihe Shares has only been trading for two consecutive days; can it be compared to Beijiang Jiaojian?"

"Don't compare stocks that have hit the bottom and are on the second limit up with stocks like Beijiang Jiaojian; they're not even as good as Shougang Group."

"What I mean is not the market position of the two stocks, but the strength of the follow-up buying shown by the market trend. It is obvious that the divergence of funds is gradually widening in the market of Beijiang Jiaojian, while the consensus of buying in the market of Taihe Shares is continuing to strengthen."

"I think the switching between high and low within the main sectors makes some sense and shows signs of capital inflows."

"It's too difficult to time the market with high and low entry points. If you ask me, it's better to just buy core leading stocks and hold them."

"For example, the stock of Oriental Yuhong?"

"That's right. Looking back, it would have been better to just hold onto Oriental Yuhong stock instead of making frequent moves."

"That's true. At the current price of Oriental Yuhong stock, there probably aren't many funds willing to continue investing heavily, right?"

"Those who are afraid of high prices are destined for misery. In fact, for strong core leading stocks, you should buy more as they rise, because the higher they rise, the higher the certainty and the clearer the trend will be. Furthermore... look at the performance of a number of mainland property stocks in the Hong Kong stock market. In fact, the current stock price and valuation of Oriental Yuhong are not high."

"If we're talking about stability, then Conch Cement stock has to be it."

"Yes, Conch Cement is really stable."

"The stocks in the cement sector have actually been quite stable. The turnaround in this industry is quite evident as the real estate bull market deepens."

"Yes, although the market is generally weak, there are still quite a few opportunities with a high degree of certainty that can be analyzed."

"With over 2000 stocks in the market, even in the worst market conditions, there will still be stocks that rise."

"Actually, I feel that the underlying logic for the surge in the steel, coal, and non-ferrous metals sectors is still the spread and development of the main theme of large-scale infrastructure construction. Of course, the same goes for large-scale consumption."

"Yes, that makes sense."

"Anyway, if you avoid the so-called technology-related sectors, you shouldn't easily lose money."

"I don't understand the market's technology theme; why is it so weak?"

"It's simply because the last bull market was overhyped. What other reason could there be? In fact, many sectors within the technology sector still have relatively good future prospects. Unfortunately, the entire sector was abandoned by major market funds, and even some good stocks struggled to break out of their own price range."

"When the nest is overturned, no egg remains intact; this is understandable."

"It's far more profitable to simply buy any stock in a sector that's already performing well than to try and find profitable stocks in a sector with a high rate of losses."

"That's true. No matter what, we should always follow market trends."

"So, is the current trend still focused on heavyweight stocks, or is it shifting towards small and mid-cap growth stocks?"

"I feel that after a round of share exchange, the market trend will return to a style dominated by heavyweight stocks."

"Yes, I think so too. The overall shareholding structure of small and mid-cap stocks is too chaotic."

"It's not that the chips are chaotic, but that there are too many trapped positions. The major funds in the market are not doing charity, and it is unlikely that they will help to free these heavily trapped positions. Therefore, the most likely trend is that they will quickly speculate and then withdraw, and they will definitely not linger in this area."

"I have the same feeling, so I didn't dare to chase the newly emerging low-priced growth stocks today, for fear that if I did, they would just give me a sudden and unexpected loss tomorrow."

"It's unlikely to be a complete sell-off; there should still be a premium in the market the following day."

"It's hard to say. During a market sideways movement, the trend can change too quickly. It might be one way in the morning and another way in the afternoon."

"Yes, if we're talking about certainty, I think it's better to buy at the end of the trading day."

As discussions continue among countless retail investors in the market...

The market trading hours were fast approaching 11:00 AM, nearing noon. As the market trading hours drew closer to the midday break, the market began to close.

Trading activity within the market began to decline further.

While trading activity has decreased, the market trends of major themes and popular stocks, as well as the balance of power between bulls and bears, have become increasingly distinct.