Chapter 267 Strong cyclical stocks lead the rally, and the Shanghai Composite Index breaks a new high again!

Thursday, May 9, 2024.

In recent days, the technology war has started again.

On May 7, Huawei and Apple held press conferences on the same day, respectively releasing laptops based on different chip architectures.

On May 8, the United States revoked Qualcomm and Intel's export licenses to Huawei.

When Huawei made a breakthrough in mobile phone chips and Apple's performance came under pressure, the United States returned to its old ways and launched a technology war, trying to directly cut off Huawei's notebook business.

This is exactly the same as what happened back then when Huawei surpassed Apple in the high-end mobile phone field. The United States not only suppressed it in the chip field, but also banned Google from providing software services.

The world is bustling with people because of profit, and the world is bustling with people because of profit.

The fundamental purpose of the Americans' ruthless suppression of Huawei is to maintain their own technological hegemony and to firmly hold on to their position as technological colonizers. They want to sit on the throne of technological commanding heights forever, overlooking companies and even governments in various countries, plundering and raising prices to maintain their superior and luxurious status and life.

This is a form of technological hegemony and also a form of technological colonization.

The technologically advanced country, which is high above the rest, has strong and unequal bargaining power over the defenseless others, and uses modern means such as economics and finance to enslave the world.

For example, a small rubber ring can be sold for thousands of yuan.

For example, a mere piece of iron plate may cost you tens of thousands of yuan.

For example, a single product, from capacitors and chips to tunnel boring machines and airplanes, can be sold at several times, dozens of times, or even tens of thousands of times the cost price.

Why?

It’s because you can’t make it, but you have to use it.

So, you have to buy, you have to accept the other party's exploitation, and even have to beg on your knees.

Therefore, we must break this technological hegemony, break this modern technological colonization, be self-reliant and strong, have our own industries, and have our own cards.

Why are they afraid of us?

Because we have not only broken their technological hegemony, but also made these technological products very cheap, making them truly accessible to the world. To a certain extent, it can be said that we have liberated all of humanity.

Perhaps, this is also the only way to build a community with a shared future for mankind.

Huawei fought back the last time it was suppressed, and it will naturally fight back this time as well.

Last night, there were rumors that Huawei’s internal PC “spare tire plan” is about to become formal, and in the future Huawei will manufacture PCs equipped with its own Kirin chips and Hongmeng system, completely decoupling from the Americans.

Of course, someone said today that this is a rumor.

However, judging from the current trend, the decoupling trend in the field of science and technology, especially in the information field, is accelerating. From the most basic chips to operating systems, various basic software, etc., there will be complete decoupling.

To this end, we can only break down this old world and build a new one to replace it.

The Shanghai Composite Index opened with emotion.

Today, the Shanghai Composite Index opened slightly lower at 3128 points, and then it continued to advance rapidly, directly breaking through 3156 points and continuing to break new highs!

During the trading session, the shipping and shipbuilding sectors outperformed, with COSCO Shipping Holdings and China Merchants Shipping Energy Co., Ltd. rising by more than 7%, Ningbo Ocean Shipping and COSCO Shipping Special Oil Co., Ltd. rising by more than 5%, and China Heavy Industry Co., Ltd. rising by more than 4%...

The non-ferrous metals sector also saw strong gains, with Baowu Magnesium, Aluminum Corporation of China, Huaxin Nonferrous Metals, Zhongfu Industrial, and Oriental Zirconium all rising by more than 3%.

besides……

besides……

Looking at the bright red stocks on his watchlist, Old Chen's face flushed with joy as he said excitedly, "It's going up, it's going up, it's finally going up!"

"Not only did it go up, but the Shanghai Composite Index also hit a new high!" Xiao Bo added.

"Not only has it reached a new high, but it has also reached a new high driven by strong cyclical stocks," Li Feng said meaningfully.

Xiao Bo's expression changed when he heard this, and he couldn't help but ask, "Are you saying... strong cyclical stocks are the mainstream sector in this round of market?"

"Very likely," Li Feng nodded. "We all know that stock speculation is all about expectations. Generally, expectations are speculated first, then performance, and finally growth."

"Whether a market trend can continue to develop depends crucially on whether the stock's expectations and performance can corroborate each other."

"If a stock's expectations and performance are consistent with each other, the stock price will exhibit a spiral upward trend (left foot stepping on right foot). When the stock's expectations and performance are inconsistent, the stock price will often exhibit a speculative trend of straight up and straight down."

"In yesterday's article, we saw that the first-quarter reports for the entire mainstream A-share sector were very poor, with only strong cyclical stocks showing signs of improvement."

"So, in theory, the market will revolve around strong cyclical stocks, thus forming a wave of market trends. This can be seen from the liquor stocks in 2020."

Upon hearing this, Lao Chen's eyes widened and he said excitedly, "Really? Are they really buying strong cyclical stocks together?"

As he spoke, he excitedly opened the market page, refreshed the market again and again, and looked at the jumping numbers.

If we really want to stick together to invest in strong cyclical stocks, the future market will be huge.

Among the liquor stocks back then, the leading stocks basically saw increases of two to three times, while small and medium-sized stocks even saw increases of seven to eight times, or even more than ten times.

Seeing his expression, Li Feng quickly poured a bucket of cold water on him and said:

"No one knows the future. While we make bold assumptions, we must also be prepared for a weakening market, or even a bear market. Therefore, we must be cautious when selecting stocks, stay away from stocks with excessive gains in the past, and choose stocks with limited downward potential and greater upward potential."

Li Feng reminded again.

Because the longer you survive in this market, the more insignificant you feel, just like an ant facing a mountain, unable to measure it.

Because, in this capital market, personal power, or personal capital, compared to the trillions of trading volume, is like a drop of water in the ocean, unable to create even a ripple. Sometimes, only a little wind is needed to blow this drop of water into nothingness, plunging it into an irretrievable situation.

Therefore, if you want to survive in this market, you have to respect the market and be extremely cautious as if you were walking on thin ice.

Do it, from heaven, overlooking hell.

Q&A with stockholders:

"Long Jiao who likes Kui Zhou Long": Dear author, the recent drone show on the Yunnan border is very inspiring. Drone ZZ should be the theme for some time to come. This thing consumes so much energy. Can we pay attention to drone manufacturing companies or the entire industry chain in the future?

I am always wary of technology companies.

Because the performance of many technology companies is difficult to measure, and some are not even profitable yet. Even if they are profitable, there is no past performance of related industries to refer to, so it is naturally impossible to establish a clear understanding, so we can only stay away from them.

"Viewer 107": I've been listening to you about non-ferrous metals, but what do you think about ferrous metals like steel?

For the steel sector, we can look back to the bull market from 2005 to 2007.

During the super bull market that year, we all know that sectors such as gold, copper, aluminum, tin, zinc, lead, kerosene, shipping and shipbuilding saw huge increases, but the steel sector did not see a particularly large increase that year.

This is because iron ore, the main raw material for steel, is monopolized by BHP Billiton/Vale/Rio Tinto, and the domestic steel industry is basically in the smelting and working position. Therefore, during the period of high inflation, most of the profits were intercepted by the three major iron ore suppliers, including now.

At the same time, the downward trend in the real estate industry has not stopped, which has also put great pressure on demand for the steel sector.

Therefore, compared with sectors such as gold, copper, aluminum, and tin that have minerals, the steel sector is not a good target.

"Speechless": Can you tell me whether the lifting of the ban on China Heavy Industry on May 27 will have any impact; and what is going on with the riot in the real estate sector.

First, there is no need to worry. The more than 700 million shares of China Heavy Industry that have been released from lock-up are basically held by its subsidiaries, with their cost being more than 5 yuan. It would be fine if they did not reduce their holdings, as any reduction would mean a loss of state-owned assets.

Second, the real estate sector is experiencing a surge. This should be an anticipation of favorable policies for the industry, but I personally believe that the favorable policies anticipated here are not the various measures currently being implemented to relax purchase restrictions, but rather the important policies that are likely to be announced at the July meeting.

Faced with such unpredictable policies, unverified performance, and immeasurable industry downward trends, I personally feel that the real estate sector is not worthy of special attention.

Suddenly, strong cyclical stocks led the market to a new high! It actually broke through 3158 points! COSCO SHIPPING Holdings nearly hit its daily limit, while Ningbo Ocean Shipping, China Merchants Energy Shipping, COSCO Shipping Specialized, Zhonggu Logistics, and China Merchants Energy Shipping all rose by over 5%. Chalco, China Heavy Industry, and COSCO Shipping Specialized all hit new highs!

I’m a little excited... Has this day really come?

Fellow stockholders, please use your lucky hands to send a free gift of electricity for love.

Your support is my motivation to update.