Rebirth of the Capital Legend

"That's true," Liang Jiucheng responded. "If the market opens sharply higher, the selling pressure from profit-taking will be heavier, while the active buying will be relatively reduced. Therefore, a slightly higher opening will create a relative profit-making effect, allowing profit-taking to sell out safely, and allowing funds willing to take over to buy to intervene at a reasonable price within the day, giving the market a certain amount of expected space for the day's trend, which will form the continuous upward momentum of the bulls.

Let's look at the current market trends and the call auction situations of each main line.

It is clear that the entire market is moving towards this expected situation. If nothing unexpected happens... at 9:25, when the call auction ends, the Shanghai Composite Index will open no higher than 0.5%, while the Shenzhen Composite Index and the ChiNext Index will open higher by less than 1%. "

"If the stock doesn't open too high and the follow-up is relatively good..." Zhao Zhiyuan pondered for a moment and said, "It should be a relatively obvious buying point on the right side."

"It should be considered as a right buying point within the day." Zhang Wei continued, "The right buying point of the stage market should be after the Shanghai Composite Index breaks through 3000 points and stabilizes. However, if the intraday market is used as a standard, the high opening is not much, and it has not fully reflected the sentiment and overdrawn the market's bullish power. It is definitely a more certain buying point."

As the few people were talking, the market trading time had already entered after 9:23.

I can see on the board at this moment...

As well as popular concept stocks that are the focus of the vast investor community in the market, there are also a number of core main-line weighted leading stocks.

'Oriental Yuhong', the recent core leader of the two markets, has seen its high opening range fall back to around 3% and stabilize at this position. The long and short forces on the market have maintained a short-term balance, the selling force is no longer increasing, and the buying force seems to be waiting and watching.

The check of "Capital Group" opened high, but the margin also fell back to within 5%.

'QuanTong Education', 'Huawen Online', 'Netspeed Technology', 'Ren Zixing', 'Baofeng Technology', 'LeTV'... and a number of other stocks that performed relatively well yesterday and have relatively high market recognition are popular concept core leading stocks in the film and television media, Internet software, and Internet application sectors.

At this moment, the high opening range has generally fallen back to within 5%.

However, although the gains of these leading concept stocks have fallen significantly compared to the call auction status before 9:20, the active buying on the market is still relatively strong.

Especially when the time reached 9:24 and there was only one minute left before the end of the call auction.

As trading time continues to move forward rapidly.

The long and short situations in these core concept leading stocks have begun to change significantly.

Many potential buying funds that had been waiting to see the market saw that these stocks seemed to have strong support at this position, and that the volume of buying continued to increase as the stock price fell. So... many funds that wanted to seize the initiative at the opening began to buy in the last minute.

At around 9:24:30, Oriental Yuhong's stock price opened higher and returned to around 5%.

At the same time, the trends of stocks such as QuanTong Education, Netspeed Technology, Huawen Online, Shouchuang Group, Beijiang Communications Construction, and Huaxin Cement all rose rapidly in the last minute, quickly breaking away from the continuous decline in the previous call auction.

Finally, when the call auctions in the two markets ended, 9:25 arrived.

On the market disk presented, the Shanghai Composite Index opened higher at a gain of 0.62%, the Shenzhen Composite Index opened higher by 0.76%, and the ChiNext Index, the CSI 500 Index, and the CSI 1000 Index all opened higher at around a gain of 1%.

The highly anticipated 'big infrastructure' main line and the 'oversold rebound' main line related sectors.

The industry sector indices related to the 'oversold rebound', such as Internet software, Internet applications, film and television media, electronic information, etc., opened slightly higher than the ChiNext Index, while the industry sector indices related to the 'big infrastructure' main line, such as real estate development, building decoration, building materials, nonferrous metals, steel, coal, etc., opened higher, below the ChiNext Index and above the Shanghai Composite Index.

Overall, the market is in the entire call auction process.

The market's small and micro-cap stocks still maintained their trend, which were generally stronger than the market's large and medium-cap stocks and heavyweight stocks.

Moreover, on the two core themes of "big infrastructure" and "oversold rebound" with the highest hype expectations and long expectations, small and medium-sized stocks and micro-cap stocks are also stronger than the core weighted leading stocks in these two main areas, as well as industry leading stocks. This shows that in the current market, with the continued recovery of long-term sentiment, the rapid recovery of market investment confidence, and the corresponding increase in market investment risk preference.

The various active fund groups are indeed selecting mid-cap and large-cap stocks and weighted core leading stocks.

Gradually converging towards small, medium and micro-cap stocks.

There is indeed a change in investment trends, with most active funds beginning to give priority to trading in stocks with higher elasticity.

Under this situation, the trend of A50, its corresponding component stocks, and the recent internal chip structure, which have loosened to a certain extent, such as liquor, white goods, medicine, consumption, electricity, finance... and other industry sectors, have not performed very well. These industry sectors, as well as the A50 index, opened flat or even slightly lower when the entire market generally opened high.

Among them, the banking sector even opened 0.45% lower, leading the decline of a number of industry sector indices in the two markets.

Several heavyweight bank stocks, such as Minshang Bank, Huashang Bank, and Huajian Bank, which had been relatively strong before and had even set new highs, now opened lower at a drop of 0.5%.

The Shanghai Composite Index opened slightly higher than the Shenzhen Composite Index and the ChiNext Index.

It was mainly dragged down by the A50 Index and a number of heavyweight main sectors in the market.

In general, judging from the overall call auction trend of the market, the different styles of large and small caps are very obvious, and the style of large funds cutting small is also quite obvious.

"The Shanghai Composite Index's opening is a little lower than expected." After the call auction of the two markets, Li Jinshi, one of the main speculators of the 'Fushan Group', frowned slightly and said, "Originally, I thought that with such strong sentiment before the market opened, the Shanghai Composite Index would open directly higher and break through 3000 points, but I didn't expect... it was still suppressed below 3000 points.

If it fails to directly cross the 3000-point mark, the opening will inevitably continue to be suppressed.

Many profit-taking investors, after seeing that the Shanghai Composite Index has not crossed the key pressure point and feeling the strong selling pressure near 3000 points, should quickly take profits and sell off the market after the official opening, right?

From this logic...

When the market officially opens later, I'm afraid that both markets will be under relative pressure and will show a rapid decline.

As for whether it can withstand the selling pressure of profit-taking after the decline, it is still uncertain at present. It feels that at this moment... there is no obvious buying point in the market!"

"The Shanghai Composite Index did not cross the 3000-point pressure mark, mainly because of the A50 Index and a number of heavyweight stocks, right?" Chen Guiyun took over and said, "According to the generally high opening trend of the Shenzhen Composite Index and the ChiNext Index, this opening situation can't be said to be weak, nor can it be said to be lower than pre-market expectations.

On the contrary, I think that not opening too high leaves enough room for expectations in the subsequent trading, which is not necessarily a bad thing.

As for the selling pressure of profit taking after the market officially opens...

Does it mean that if the Shanghai Composite Index opens sharply higher, directly above 3000 points, the profit-taking in the market will not be sold? No, if it really opens higher than 3000 points, the profit-taking will only sell more vigorously.

As it is now, the difference remains at 3000 points.

If there is still room for growth, the selling pressure from profit-taking will be smaller, and the market will be more willing to take the initiative to buy."

"So... it seems to make sense." Li Jinshi pondered for a moment and said, "Let's see how it moves after the official opening. Yesterday, the volume shrank and the market rose sharply. After today's high opening, the normal trend is bound to fluctuate. It depends on whether the subsequent buying can take over yesterday's and the accumulated profit-taking selling pressure in the market in the past few days. If it can take over... then the Shanghai Composite Index will naturally cross 3000 points. If it can't take over, then it will have to adjust downward significantly, accumulate strength to go long again, and appropriately lower expectations."

"It is highly likely that they will be able to catch it," said Liao Guoxiang. "During the call auction, we will look at the leading stocks. During the entire call auction, whether it is the core leading stocks of the 'big infrastructure' main line or the core leading stocks of the 'oversold rebound' line, the performance is still good."

"Yes." Chen Guiyun responded, "Especially in the last minute before the call auction ended, the trend changes of the core leading stocks of the main lines, looking at the situation at that time, it is obvious that there are many active short-term capital groups in the market, and there are also many retail capital groups who follow suit and aggressively grab shares."

“However, we still have to wait and see what happens after the market opens before we can make a judgment.” Liao Guoxiang pondered for a moment and added.

"Lao Liao, did you reduce your positions and lock in profits during the call auction?" Li Jinshi asked.

Liao Guoxiang laughed and said, "Why should we stop profit? At this position... the various capital groups in the market, as well as many investors who have not entered the market, still have a strong desire to go long. Moreover, even if this position fluctuates, the overall upward trend of the market has not been broken, right? In this case, we can continue to wait for a while, and there is no need to rush to stop profit and reduce positions.

Even after the market officially opens, the buying pressure in the market will not be able to withstand the selling pressure from the profit-taking.

The market has shown a clear and rapid dive, so we cannot be pessimistic.

Referring to the trend of yesterday's 'oversold rebound' line, the market is at this position, after the core theme of 'big infrastructure' has played a demonstration effect and formed a substantial upward breakthrough.

The overall bullish sentiment has warmed up.

Moreover, many oversold stocks can no longer fall.

At the same time, although the internal chip structure of a number of stocks in the main weight line has loosened, the overall trend has not been broken. In addition, their valuations, future expectations, and the entire fundamental situation have not become worse. It is just that they have risen too much due to the early institutions and the "national team" that have come together to protect the market.

In other words, the main line of weight does not have much downward momentum.

Since the major core themes of the market have no strong momentum and power to sell at the current time nodes and trend positions.

Then, it will be clear which direction the market will choose to break through.”

"Lao Liao's analysis makes sense." Chen Guiyun nodded and said, "I think so too. At this position and time point, the market does not have strong momentum to sell off, and 3000 points is right in front of us. Whether it is a false breakthrough or a real breakthrough, we have to at least touch it, right?

What's more, the trend atmosphere of the external markets and the Hong Kong stock market, as well as the bullish atmosphere are all very good.

In other words, both domestic and foreign markets support funds to go long.

It's just that due to the overall liquidity problem and the hot off-market real estate market, liquidity has been siphoned off, resulting in insufficient funds flowing into the A-share market at this stage. This is not enough to support a long-term reversal, but we don't need the index to clearly show a reversal trend.

As long as this rebound can continue a little bit and show some sustainability.

That will be enough for the market's core themes to move in a rotation, and as long as the market maintains the local profit-making effect, the overall market will be much better than in the first half of the year."

"That's true." Li Jinshi nodded. "In the past month or so, the overall market trend has indeed recovered a lot. Even though the market fluctuated violently some time ago, the loss effect is not as serious as in the first half of the year. It seems... I should improve my trading strategy a little bit and not be so conservative."

As the three were talking, the brief five-minute trading suspension passed in a flash.

Soon, under the watchful eyes of the crowd, the clock moved to 9:30, and the two markets entered the formal continuous bidding trading period.

The stagnant stock markets began to move again.

Under the impact of countless buying and selling orders, the emotions brewed after a short five minutes.

Across the entire market, a number of small, medium-cap and micro-cap stocks, all rose rapidly at the beginning of the opening under the inertial bullish force.

At the same time, the Shanghai Composite Index also rose rapidly, heading towards 3000 points.

However, a number of small, medium and micro-cap stocks that had been rising by inertia soon encountered the pressure of profit-taking.

At 9:33, just 3 minutes before the opening of the two markets, the Shanghai Composite Index hit a high of 2996.43 points. Among the core main-line related sectors where the two active capital groups of "big infrastructure" and "oversold rebound" gathered, a number of popular stocks and heavyweight stocks began to rise and fall rapidly under the concentrated pouring of profit-taking.

At 9:35, all major indexes in both markets, as well as most individual stocks, returned to near their opening positions.

At 9:37, a number of popular stocks in the market continued to decline and plunge. The Shanghai Composite Index, Shenzhen Composite Index and ChiNext Index all opened high and then fell back in large volume.

At 9:39, the Shanghai Composite Index fell back to around 2980 points, getting further and further away from 3000 points.

"Alas, I still feel like I can't get through it." Noting that the pressure of the Shanghai Composite Index at 3000 points was too heavy, and at the same time, the concentrated selling pressure of profit-taking in the main line of "big infrastructure" and "oversold rebound" was getting heavier, the active buying gradually decreased, and the intraday volume of the two markets also gradually decreased. At this moment, among the main hot money group of "Magic City Ultra Short Gang", Lao Zhang sighed lightly and couldn't help saying, "Everyone, the index can't break through the pressure level, and the market has once again increased its volume and divergence. It is likely that we should reduce our positions and stop profits first, right?"