"Why is the pressure at 3500 points for the Shanghai Composite Index so immense? It just can't break through."
Seeing the Shanghai Composite Index fall below 3500 points again, and with all the core concept and theme main sectors, as well as many popular leading concept stocks across the two markets, showing a high open, sharp drop, and sell-off, Xu Qiao couldn't help but frown in the 'Modu Ultra-Short Gang' main speculative fund group where Su Yi was.
"Not enough trading volume, there's no way,"
Old Zhang replied.
"Without strong attacks from incremental funds at this level, it's impossible to stabilize without a significant increase in volume."
Old Wu paused, then added,
"Above 3500 points on the Shanghai Composite Index is the area with the heaviest trapped capital from previous stock market crashes, with almost a fault in chips. Coupled with the continuous market rebound recently, a lot of short-term profit-taking has accumulated. Under the combined suppression of profit-taking and trapped capital, this resistance level naturally appears formidable."
"Sigh... one truly cannot be optimistic!"
Xu Qiao sighed.
"As soon as one gets optimistic, the market starts to plummet."
Brother Chen continued to gaze at the market trend changes, pondered for a moment, and said,
"Even if the 3500-point mark for the Shanghai Composite Index cannot be crossed in the short term, the problem won't be too big. Overall, macro news remains positive, and there are no external factors for a sustained major decline. The most pessimistic scenario would be range-bound oscillations."
"Insufficient trading volume probably means we're entering a range-bound oscillation mode,"
Old Zhang said.
"From a logical expectation analysis, although the index doesn't have the risk of a continuous major decline, once it falls into a weak oscillation, being stuck below 3500 points for too long is also very uncomfortable,"
Xu Qiao said.
"Such a trend will clearly dampen the market's short-term speculative sentiment and suppress the market's investment risk appetite."
"There's nothing we can do; we can only operate by following market trend changes,"
Old Wu said.
"If the market shifts to a weak oscillation, then main concept theme lines that cannot fully gather sentiment shouldn't be touched."
Old Zhang said,
"Yes, the weaker the market, the more we should focus on leading stocks."
"At this point, the market's core leading concept theme main line should still be 'lithium batteries', right?"
Xu Qiao asked.
"But today, I feel like the 'lithium batteries' line isn't doing so well either!"
Brother Chen replied,
"Overall, the buying support is still very strong. It's just that too much capital has entered during this period, and profit-taking chips have accumulated too heavily, leading to this main line being temporarily suppressed by profit-taking due to overly consistent sentiment.
However... from a logical expectation perspective, the expected logic for this line is still continuously strengthening, and with continuously strengthening expected logic, the market trend for this line will not end temporarily."
"According to Brother Chen's meaning..."
Old Zhang said,
"is a correction a buying point?"
Brother Chen replied,
"Roughly that's the idea. When the expected logic strengthens, the divergence between buyers and sellers on the trading board is a good buying point."
"What about the stock 'Teli A', Brother Chen, what do you think?"
Xu Qiao asked.
Brother Chen looked at the current trend of 'Teli A' on the trading board and replied,
"The 'Qilu Gang' has significantly increased its positions, so they shouldn't just be aiming for an overnight premium. From the perspective of capital speculation, I feel that 'Teli A' should still be able to push up for some more space.
Of course, whether it can further push to new highs and surpass the 100-yuan share price mark...
That depends on the specific gains and losses of the Shanghai Composite Index at 3500 points, as well as the 'Qilu Gang's ability to guide the market, their position-locking pattern, and the follow-up recognition from various main speculative funds and retail investor groups in the market."
"From the current trend on the board, the buying support for 'Teli A' is still very strong,"
Old Wu said.
"However, I feel that 'Meiyan Jixiang', under the strong leadership of the 'Rongcheng Gang', is somewhat challenging 'Teli A' to become the current leading concept stock in both markets!"
"It should be difficult for 'Meiyan Jixiang' to successfully challenge for the lead, right?"
Old Zhang said.
"Whether it's the expected logic, emotional feedback, market capital recognition, or distinctiveness... in all aspects, 'Meiyan Jixiang' is inferior to 'Teli A'.
If, among all the previous market concept leaders, there is still one stock that can emerge. To continue to rescue market investment sentiment and open up space for speculation...
Then only 'Teli A' possesses this aggregating ability. After all, this stock's market recognition and the capital follow-up effect brought by its past historical trends are simply too strong. As long as there is capital to ignite the main attack, a strong wave of follow-up trading sentiment can quickly condense."
In the brief moment while they were talking.
As the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index continued to fall and correct.
'Teli A', the core leading stock that received widespread attention from the broad investor community, had already violently touched the daily limit with lightning speed, driven by the aggressive assault of various main funds.
"Holy cow... indeed powerful, it's forming consecutive daily limits. It looks like it's going to start another wave of market trend!"
Noticing the daily limit trend of 'Teli A' instantly, Xu Qiao couldn't help but exclaim.
"The 'Qilu Gang', these main speculative funds, showed great courage in this operation,"
Old Zhang also sighed.
"I said that 'Meiyan Jixiang' would find it difficult to challenge 'Teli A', didn't I? Haha... it's just a pity I didn't follow with two hands just now. Looking at the trend, it really is heading for consecutive daily limits."
"It's probably heading straight for new highs,"
Xu Qiao said.
"A 'demon king' is a 'demon king'; even at this point in its stock price, it can still ignite a market trend."
"The market's capital follow-up effect for this stock is truly invincible,"
Old Wu said.
"However, this stock being able to achieve consecutive daily limits at this position is also quite beneficial for the overall market trend. At least... this strong daily limit has pulled back overall market investment sentiment and investor risk appetite from their downward trend."
"'Meiyan Jixiang' also feels like it's about to hit the daily limit,"
Xu Qiao hastily added.
Brother Chen quickly glanced at the trend of 'Meiyan Jixiang' on the board and said,
"It's likely to hit the daily limit. It seems the overall market trend is better than I expected."
"'Meiyan Jixiang' also feels like it's heading for the high point of its first wave of speculation,"
Old Zhang said.
Xu Qiao replied,
"It's clearly heading for the previous high, hehe... I didn't buy 'Teli A', so I'll follow this stock with two hands first."
Saying this, Xu Qiao quickly used the funds in his stock account on the board of 'Meiyan Jixiang'.
He aggressively bought a considerable amount of chips.
As he swept up shares on the board of 'Meiyan Jixiang' at market price.
Within a few minutes, under the continuous influence of follow-up buying and stimulated by the profit-making effect created by 'Teli A', 'Meiyan Jixiang' sealed the daily limit with a massive trading volume approaching 2 billion, its stock price narrowing to about 25% of the distance from its new high during its first wave of speculation, recovering much of the decline during the previous 'stock market crash 2.0'.
Then, with 'Teli A' and 'Meiyan Jixiang', two core leading stocks, both hitting their daily limits.
A group of popular stocks that had initially suffered concentrated selling pressure from profit-taking and opened high only to plummet significantly, such as 'Sanxia Xincai', 'Chuansheng Jiuzhou', 'Tonghuashun', 'Puyang Huicheng', 'Yishang Zhanshi'... and other leading concept stocks, also quickly rebounded in their wake.
And driven by these stocks...
Their corresponding concept theme sectors, such as 'State-owned Enterprise Reform', 'Securities Investor Protection Fund, Pension Fund Holdings', 'Industry 4.0', 'Internet Finance', 'Film and Television Media', and other concept theme sector indices, also showed unusual movements, successively recovering their early-session dips and continuing to demonstrate strong profit-making effects.
However, due to the excessively heavy selling pressure from profit-taking and trapped capital faced by the two core main lines that had previously led the market's rise, 'Big Consumption' and 'New Energy Industrial Chain', the divergence between bullish and bearish funds on the board was too great.
This resulted in, despite a group of early concept theme leading stocks creating a certain degree of profit-making effect.
And attracting many active capital groups to follow.
It still failed to completely pull up the broader market index and reverse the downward trend of adjustment in the 'Big Consumption' and 'New Energy Industrial Chain' main sectors.
Therefore, as market trading hours continued.
The market trend began to show clear differentiation in its main line structure and individual stock movements.
"How come it feels like the active capital groups in the market have again shifted their focus from the two main lines of 'Big Consumption' and 'New Energy Industrial Chain' from the past few days, and re-converged on main concept lines like 'State-owned Enterprise Reform', 'Securities Investor Protection Fund Holdings', 'Internet Finance', 'Film and Television Media'...?"
Noticing the divergence in market trends, Li Jinshi, a main speculative fund manager from the 'Fushan Faction' who had originally shifted his positions to the 'lithium battery' main line, said in the group with great surprise,
"Could it be that the speculation on the 'lithium battery' line has come to an end? That would be... too much of a trap."
"It really looks like a rotation of main market trends,"
Chen Guiyun replied.
"Before, the 'lithium battery' core main line could still resonate with concept main lines like 'Securities Investor Protection Fund Holdings', 'State-owned Enterprise Reform', 'Film and Television Media'..."
Li Jinshi wondered,
"Why can't it now? Unknowingly... it's turned into a seesaw game."
"As more and more capital groups gather around the 'New Energy Industrial Chain' main line, the 'lithium battery' core concept sector is now dominated by institutional capital groups,"
Liao Guoxiang said.
"Compared to speculative fund-dominated concept theme main lines like 'Securities Investor Protection Fund Holdings', 'State-owned Enterprise Reform', 'Film and Television Media'... there are clear differences between the two in terms of chip structure and capital dominance, and naturally, their market trends will also differ."
"Damn it... just heavily invested and immediately encountered a market style switch,"
Li Jinshi complained.
"I said that the sentiment for the 'lithium battery' line was too uniform, and there would definitely be huge divergences in its board trend. 'Teli A' is still strong; it even managed to achieve consecutive daily limits."
"There is divergence on the 'lithium battery' line, but the impact should not be significant,"
Chen Guiyun said.
"After a brief adjustment, once profit-taking pressure eases, it will definitely continue to reach new highs."
"I know that too,"
Li Jinshi said.
"The key is the opportunity cost... I'm afraid it won't be small!"
"Although the two main lines have formed different market trends, however..."
Liao Guoxiang paused and said,
"the strengthening of these earlier core popular concept main lines like 'Securities Investor Protection Fund Holdings', 'State-owned Enterprise Reform', 'Film and Television Media'... is still very helpful for the 'lithium battery' line's speculative sentiment to recover and end its adjustment sooner."
"As long as the market still has strong profit-making effects, there's actually no need to panic,"
Chen Guiyun said.
"Just hold positions patiently and wait; you'll definitely make money."
Saying this, he turned his gaze back to the 'lithium battery' main line.
Instead of thinking about reducing positions to take profits and avoid the adjustment of this concept theme main line, he pondered for a moment and began to use the funds in his account to continue increasing his core stock positions in this sector.
And with the discussion of several big players from the 'Fushan Faction'.
At the same time, along with the refresh of related topics on various major stock forums where retail investor groups from across the network gathered in the market.
The market's differentiated trend became increasingly evident.
And this differentiated trend, under the dominance of various main speculative funds and relevant institutional capital groups, continued until the market closed at 3 PM.
After a full day of market trading...
Ultimately, the three major indices – the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index – all closed lower across the board, failing to extend yesterday's rebound offensive.
Moreover, the Shanghai Composite Index also failed to return to the 3500-point mark.
But even with the major indices closing lower across the board, and the two main lines of 'Big Consumption' and 'New Energy Industrial Chain' that had led the market's rise and showed significant profit-making effects in the past few days falling into a weak oscillatory adjustment.
The overall profit-making effect in the entire market was still not weak.
Among the more than 2,000 stocks in the two markets, over 60 stocks hit their daily limit, and over 500 stocks saw daily gains of more than 3%.
Neither retail investor groups nor active speculative funds in the market were affected by the index's decline in their willingness to follow up and take positions.
However...
Among these, a group of concept stocks related to the 'Ze Xi Faction'.
Were once again abandoned by various capital groups in the market, showing sharp declines despite the index not falling significantly.
Facing such a differentiated closing situation in the two markets.
After a brief review, Su Yi was not at all nervous about the correction in 'lithium batteries', a main line in which he held heavy positions.
He knew that based on the expected future industry fundamental shift of the 'New Energy Industrial Chain' core main line and the expected explosion in demand for the 'lithium battery' industry, a temporary correction was for a better and faster rise later, after clearing the selling pressure from profit-taking.
And as he had expected...
When many people, during their post-market reviews, began to waver in their investment ideas and logic for the 'New Energy Industrial Chain' core main line, thinking of continuing to chase 'State-owned Enterprise Reform', 'Internet Finance', 'Film and Television Media'... and other early concept main lines and their core popular leading stocks.
On Thursday, November 12th.
The market trend style of the two markets instantly reversed.
Concept main lines such as 'State-owned Enterprise Reform', 'Internet Finance', 'Film and Television Media'..., which had risen sharply against the trend yesterday and attracted countless follow-up funds, followed suit in selling off and adjusting, as leading stocks like 'Teli A', 'Meiyan Jixiang', 'Tonghuashun'... did not show enough premium and fell into adjustment.
The 'Big Consumption' and 'New Energy Industrial Chain' main lines, which had opened high and then fallen low yesterday, experiencing a concentrated panic sell-off.
Instead, they swiftly recovered yesterday's losses and continued to show a strong upward breakout trend.
(End of Chapter)