"The closing pattern of the SSE Composite Index is truly beautiful; it completely reversed yesterday's trend."
Facing the official closing of both markets, Li Jinshi, from the 'Foshan Faction' speculative funds, which also significantly increased positions in the 'lithium battery' main theme, exclaimed in their internal group, quite surprised.
"It seems the market trend is still upward,"
Chen Guiyun in the group responded.
"The SSE Composite Index has firmly established itself at 3500 points. This time... there should be no doubt, right?"
Li Jinshi continued,
"I feel that by the end of the year, the SSE Composite Index might still challenge 3800 points, or even 4000 points!"
"Returning to 4000 points should still be very difficult, shouldn't it?"
Chen Guiyun said,
"In the previous two stock market crashes, between 3500 and 4000 points, at least 10 trillion-level chips were trapped. Such a massive accumulation of trapped positions cannot be freed without a colossal amount of incremental funds continuously entering the market."
"As long as the market's investment sentiment is there, the index's specific points are not very important,"
Liao Guoxiang responded.
"Participating in localized main theme investment opportunities is actually enough."
"That's true,"
Li Jinshi nodded slightly and replied.
"Today, the sentiment in the 'lithium battery' core main theme has completely diffused,"
Chen Guiyun said.
"I feel that the bullish sentiment in this sector has reached a local peak. Although the future expectation logic for this theme still holds, pushing sentiment and expectations so high in the short term probably means it's entering a correction phase, right?"
"The sector sentiment for the 'lithium battery' theme has indeed diffused,"
Liao Guoxiang said,
"but market quotes for 'lithium carbonate' and 'lithium hexafluorophosphate' are still rising, and sales in the 'new energy passenger vehicle' market are further booming due to policy support.
Supported by these two major expectations, the main upward trend of the 'lithium battery' theme will likely continue for some time.
Furthermore, major institutional groups in the market previously had insufficient expectations and positions in the 'lithium battery' theme; they should just be realizing this now and concentrating on increasing their positions.
Coupled with the various follow-on funds and speculative funds assisting in the hype, analyzing the current situation... the sentiment, expectations, and capital flow for the 'lithium battery' theme are all in a state of gradual acceleration.
At this time, facing the acceleration of this main theme, what we need to do is not to judge a temporary top, but to hold onto our chips and let profits run."
"Indeed, the trend has just begun; trying to determine a temporary top now is meaningless,"
Li Jinshi said.
"And... the funds from 'Jinrong Street Fuxing Road' are likely still locking their positions, right?"
"Without a doubt, they are certainly locking their positions,"
Liao Guoxiang said.
"Besides the 'lithium battery' theme, today, stocks like 'Teli A', 'Meiyan Jixiang', 'Chuansheng Jiuzhou', 'Sanxia Xincai', 'Yishang Zhanshi'... these leading concept stocks from earlier, also performed quite strongly,"
Chen Guiyun continued after a brief review.
"I feel that 'Teli A' stock will very likely see another wave of upward movement."
"The market rebound is not over, and 'Teli A' stock has such high market recognition; there will definitely be funds trading it,"
Liao Guoxiang said.
"This stock hitting a limit-up reversal today was also expected. However... its tenfold growth expectation has already been realized. Even if active main institutional funds intervening at this level want to trade it, it will be difficult to leverage market sentiment and follow-on funds to move the large amount of short-term trapped chips accumulated above."
"I think so too,"
Li Jinshi said.
"At best, 'Teli A' stock can manage a rebound. With its expectations already realized, it's absolutely impossible for it to double again. If we're talking short-term speculation... the 'lithium battery' core main theme is definitely more reliable."
"On the 'lithium battery' theme, the most core target should be 'Penghui Energy' stock, right?"
Chen Guiyun thought for a moment and then added,
"I feel its current price isn't low either."
"I, on the other hand, think it's 'Dofodo' stock,"
Liao Guoxiang said.
"If you want more elasticity and current sentiment... 'Penghui Energy' stock is definitely better,"
Li Jinshi said.
"But in terms of driving the entire 'lithium battery' main sector, as well as capital synergy and expectations, the trend of 'Dofodo' stock is clearly much stronger."
"Right,"
Liao Guoxiang said.
"'Penghui Energy' stock mainly benefited from the holding advantage of the 'Jinrong Street Fuxing Road' funds. Otherwise... solely based on fundamental expectations, this stock should be far inferior to 'Dofodo', 'Tianci Materials', 'Ganfeng Lithium'... these core stocks."
"Brother Liao, which stock are you planning to use as your core position?"
Chen Guiyun asked.
Liao Guoxiang said:
"For main holdings, we will definitely still focus on 'Dofodo' stock. After all, this stock has the strongest capital synergy, and its market liquidity is high, allowing tens of millions or hundreds of millions of funds to be moved around freely. 'Penghui Energy' stock, on the other hand, cannot accommodate such a large volume of funds."
"I think 'Ganfeng Lithium' stock is not far behind either!"
Li Jinshi said.
Liao Guoxiang replied:
"'Ganfeng Lithium' stock is indeed good."
"Actually, as long as they are core targets, the potential should be similar,"
Chen Guiyun said.
"I'll just maintain a balanced position, and then lock in for another half-month to see how far this theme can develop."
As the three discussed in the group, and numerous other investor groups in both markets continued their post-market reviews, unconsciously, 5 PM arrived.
As countless investors' eyes converged, the daily top trader lists (Dragon and Tiger Lists) for both markets were released.
It was seen that several popular stocks with high public attention were all on the list.
Among them, the main attacking funds for 'Teli A' today were the 'Qilu Gang', which had appeared on this stock several times.
As for 'Dofodo', 'Penghui Energy', 'Ganfeng Lithium', and other hot leading stocks in the 'lithium battery' main theme, they were the result of concerted efforts by active speculative funds and institutional funds in the market.
As for the legendary 'Jinrong Street Fuxing Road' seat that everyone was anticipating, it maintained its locked position status and did not appear on the daily top trader lists of either market.
"Institutions are continuously increasing positions in leading 'lithium battery' main theme stocks, the 'Qilu Gang' has returned to 'Teli A' (the concept leader), and the 'Rongcheng Gang' is mainly attacking 'Meiyan Jixiang'..."
After seeing the daily top trader list data for both markets, Zhao Qiang in the main speculative funds group of the 'Yuhang Faction' said with a smile,
"Today's daily top trader list has good overall data, and big capital participation is very high. For many popular leading stocks, the funds involved in the main buying seats are much larger than the funds sold by the selling seats.
This indicates that the market's overall investment sentiment and risk appetite are all improving, and everyone's willingness to go long is continuously strengthening. From this perspective... tomorrow's market trend should be worry-free."
"The collapse of the 'Zeixi Faction' seems to have not caused much of a splash in the market!"
"The entire 'Zeixi Faction' only had less than 30 billion in funds. How big of a splash could it make? As long as the market's overall trend is upward, the impact of news can only be temporary."
"I didn't expect 'Teli A' stock to be mainly attacked by the 'Qilu Gang' today."
"To dare to trade 'Teli A' stock at this position, the 'Qilu Gang' funds certainly have considerable courage."
"The methods of these funds have always been very sharp."
"Brother Sun's 'Qingchun Road' intervened in 'Ganfeng Lithium' stock with over 80 million chips, truly impressive!"
"Brother Sun, your moves are getting bigger and bigger!"
Sun Chengyu saw the group message and replied with a smile,
"What am I? Compared to the 'Jinrong Street Fuxing Road' funds, I'm far behind."
"It's really strange. In the past few days, we haven't seen the 'Jinrong Street Fuxing Road' funds continue to increase their positions."
"Perhaps these funds are already fully invested?"
"Impossible, the current size of these funds is at least between 500 million and 1 billion; they shouldn't be fully invested yet. It just feels so quiet... not like the style of the 'Jinrong Street Fuxing Road' funds."
"Regardless of the size of the 'Jinrong Street Fuxing Road' funds, their main holdings are definitely still in the 'lithium battery' core main theme."
"That's beyond doubt,"
Zhao Qiang responded amid everyone's discussion.
"Actually, there's no need to focus too much on the movements of the 'Jinrong Street Fuxing Road' funds to trade,"
Sun Chengyu said.
"It's still essential to grasp the underlying logic of the main theme."
"That's right. The fundamental reason why the 'lithium battery' theme can be heavily speculated by various funds to such an extent is the huge shift in fundamental expectations, as well as the explosion in demand in the 'new energy passenger vehicle' market under strong national policy support.
The 'Jinrong Street Fuxing Road' funds' large increase in positions in this core main theme can, at most, only be considered an assist to the trend of the core main theme itself."
"It feels like the 'lithium battery' theme has completely replaced the 'state-owned enterprise reform' core main theme now, hasn't it?"
"That's for sure; it's the strongest and most certain core main theme for the end of the year."
While the main speculative funds of the 'Yuhang Faction' were intensely discussing and analyzing after the daily top trader list data for both markets was released, at the same time.
In Modu, Jufeng Asset Management Co., Ltd., 'Jufeng Future Growth' Fund Trading Room.
Lu Xiangxiang, the fund manager, felt delighted as she faced the fund's net value hitting a new rebound high.
She happily said,
"Looking at this situation, the 'lithium battery' theme has today completely gained the unanimous recognition of all major fund groups in both markets."
"Indeed,"
Yu Xiaolu, the fund's core trader, responded.
"It's probably going to enter a major upward trend soon, right?"
Lu Xiangxiang nodded slightly, her eyes resolute, saying,
"There's a very high probability of a major upward trend. Hehe... It seems our fund is likely to repair the net value drawdown from the previous two stock market crashes during this year-end period, relying on the 'lithium battery' core main theme."
"However, the market quote for 'lithium carbonate' is already close to 80,000,"
Yu Xiaolu said.
"I don't know where the price will gradually slow down. I feel that the explosion in demand for 'new energy passenger vehicles' and the large explosion in demand for 'lithium batteries' still need time to brew. This round of 'lithium battery' market speculation has almost doubled by now. Going further up... short-term, it's probably mostly emotional speculation."
"You mean... we should still quit while we're ahead?"
Lu Xiangxiang said with a smile.
Yu Xiaolu nodded and continued,
"I feel that once the market enters the emotional speculation phase, a correction is likely not far off. Also, this round of rebound from the National Day holiday has seen a significant short-term increase in the SSE Composite Index.
The market has accumulated a lot of short-term profit-taking pressure, and I'm worried that at the year-end juncture, if the overall market's capital flow comes under pressure... there might be a certain degree of extreme volatility in the market."
"Looking at the central bank's policy direction, capital flow issues at the end of the year shouldn't be too significant,"
Lu Xiangxiang said.
"Let's observe further. The 'lithium battery' theme still has great explosive potential in its current trend. It won't be too late for us to reduce positions and take profits when its sentiment progresses further and the upward trend of its stock price begins to weaken."
Yu Xiaolu thought for a moment.
Although she felt it would be better to reduce positions and take profits appropriately while sentiment was rapidly fermenting, she also knew that Lu Xiangxiang was eager to recover the decline in the company's fund product net value, thereby laying a better foundation for the issuance of new funds next year.
So, some words, she paused, then swallowed them back.
But regardless of whether everyone was bearish or bullish on the overall market trend and the 'lithium battery' core main theme in their post-market analyses, as time further progressed, in the evening, the overall market's investment sentiment remained in a continuously heated atmosphere.
Especially when, late at night, US stocks once again opened high and continued to rise, reaching new highs, the bullish sentiment in both markets became even more fervent.
Everyone completely forgot about the negative impact brought by the collapse of the 'Zeixi Faction'.
They also forgot about the trillions of chips accumulated and trapped between the SSE Composite Index's 3500 and 4000-point range.
They only thought that the SSE Composite Index would continue to break through, only hoping that the market's major main themes would continue to hit new highs, thereby allowing their invested funds to continuously appreciate.
And just as this market sentiment once again surged to a heated situation, and everyone began to look towards 4000 points, expecting the SSE Composite Index to further challenge 3600 and 3700 points, the next day, Wednesday, November 11th.
The major market indices, after opening high across the board and exhausting a large amount of aggressive follow-on bullish funds in early trading, quickly plunged lower, causing the SSE Composite Index to once again fall below 3500 points.
And as the SSE Composite Index once again fell below 3500 points, the 'lithium battery' main theme, whose early-trading sentiment was too hot and whose funds followed too uniformly, also suffered concentrated selling by a large number of in-market shareholders.
Countless early profit-taking orders poured out.
This instantly made the vast number of retail investors, who aggressively followed the trend and rushed in with passion and enthusiasm to take on chips, feel the gap between ideals and reality.
Consequently, the fervent emotions in their hearts instantly cooled down.
(End of Chapter)