Chapter 255 Big Bull Stocks, You Can Only Come Across
Yesterday, the Shanghai Composite Index broke through 3140 points with a small positive line; today, as soon as the Shanghai Composite Index opened, it hit a recent high of 3148 points.
There are undercurrents in the stock market, various funds are restless, and the old investors in the big investor room have also started arguing endlessly. Many people are staring at the index while a question arises in their minds: "Did I miss out?"
"Oh, foreign capital is entering the market, the Hang Seng Index is bullish, and the Shanghai Composite Index has also hit new highs for two consecutive days. Could it be that A-shares have changed their nature and are also going to be bullish?" An old stock investor muttered while staring at the K-line chart of the Shanghai Composite Index with half belief and half doubt.
"Humph, huh, huh, huh, you believe this kind of nonsense? You're so lucky to say it..."
Another veteran stockholder sneered,
"Don't be fooled by the recent surge in the A-share market. In a few days, there will definitely be a big bearish candlestick that will kill it. Once it falls, it may not be able to stop it even at 3,000 points. I'd better wait and see with a short position at 2,500 points."
"Old Wang, don't scare us. If the Shanghai Composite Index really goes bullish, won't we miss out?" someone said worriedly.
"Bah, you won't lose money if you miss out. Let me put it this way, even if the stock price rises to 4,000 points right now, don't even think about tricking me into buying in!" Lao Wang said bitterly.
"Old Wang, this is what you said, don't regret it later..."
"Regret?! Hey, hey, hey, if I regret it later, I'll write my character '王' upside down!"
Several people exchanged sharp words, staring at the Shanghai Composite Index and making sarcastic remarks one after another. They were worried, afraid, and a little hesitant in their hearts.
Li Feng still ignored them. He opened his watchlist of stocks and took a quick look.
Today, sectors such as liquor, real estate, consumption, banking, insurance, and chemicals that soared yesterday have calmed down, while strong cyclical stocks that adjusted yesterday have begun to strengthen.
Yunnan Germanium, Huayu Mining, and Hubei Yihua all began to strengthen. Aluminum Corporation of China even rose by more than 3% at one point, setting a recent high of 7.80 yuan. Zijin Mining and Luoyang Molybdenum also turned positive...
As for China Shipbuilding and China Heavy Industry, they are also slowly climbing...
Naturally, dozens of ST stocks continued to hit the daily limit.
The adjustments in the past few days are quite normal, just the common sector rotation.
Li Feng had just finished looking at his selected stocks when suddenly a surge of funds poured into the market. The Shanghai Composite Index suddenly broke through 3150 points, unknowingly setting a new high.
This is what it is like in the early stages of a bull market. The market moves hesitantly, but slowly and steadily, and will reach new highs before you know it.
At this position, the risk of being bearish is very high.
During this general rise phase, which is also the easiest phase to make money, what tests investors is not their stock selection ability, but their stock holding ability.
Some people have strong holding ability and can make a profit from the beginning to the end, while others are always looking for higher goals and frequently change hands, eventually becoming the lubricant of the market, only making profits from the index but not from the actual stock, or even losing money.
After expressing his feelings about A-shares, Li Feng opened several financial information web pages as usual.
Yesterday, several events occurred at home and abroad that deserved special attention.
1. Eurozone PPI fell 7.8% year-on-year in March, marking the eleventh consecutive month of decline; ECB board member Simkus: Three interest rate cuts are expected this year.
From the initial hesitation to the direct announcement now, it seems that a rate cut by the EU in June is a high probability event.
Americans, hurry up and seize the time.
If you don't follow closely, your followers will follow the Eastern superpower.
2. Israeli military launched airstrikes on the eastern part of Rafah.
There will be no peace in the Middle East any time soon.
Considering that the leader is visiting France and the change in the US attitude towards the Middle East, Russia is probably afraid that China will change its mind. It is estimated that during Putin's visit to China in May, they will discuss the Middle East and even oil prices again. It is unknown what chips they will put up in exchange at that time.
3. We are planning and implementing major measures to further comprehensively deepen reform.
The expression "major measure" is very important.
It is expected that very important news will be released at the July meeting, the importance of which may be comparable to the tax-sharing reform in 1994.
After all, the reason why local governments have been keen on selling land and developing real estate in recent years is because it can solve most of the local fiscal revenue problems.
Now, with the real estate market in a downturn, land finance is clearly unsustainable, so new tax sources should be developed, or the financial and administrative powers of the central and local governments should be redivided to resolve the current mismatch between financial and administrative powers and fundamentally solve the problem of local debt.
Q&A with stockholders:
1. Chen Xiaotian: What stocks should I buy in a bull market? Let me explain. Now I don’t dare to buy ST stocks, so I have to choose low-priced stocks carefully, right?
While we are excited about the bull market, we must also be sufficiently vigilant.
For most people, a bull market is not a time to make money, but rather a time to lose money, especially a time to lose a lot of money.
Because, in a bear market, everyone is timid and places fewer bets, and they will run away at the slightest sign of trouble. In a bull market, as the market rises, the greed in the hearts of retail investors will be aroused step by step, and they will place bets again and again with red eyes, placing heavy bets that they cannot afford, and eventually the bear market comes, and they will suffer a crushing defeat.
Therefore, it is not particularly important to study what stocks to buy in a bull market. The focus should be on successfully taking the money and leaving the gambling table at the end of the bull market to become the ultimate winner.
Of course, if you really want to delve into which stocks will rise sharply in a bull market, you can look back at Intech Medical in 2020 and the liquor sector's market performance that year.
Big bull stocks are hard to come by.
However, they all have one common feature, that is, on the one hand, they are in the mainstream sector, and on the other hand, their performance continues to exceed expectations, and coupled with the buffs of low price, small capital, restructuring, etc., they have become the target favored by retail investors, hot money, and funds.
In the end, with the combined efforts of many funds, the bull stock itself was created.
2. "Seven Years L":
1. What policy factors are behind the surge in bank stocks this year? Logically, they shouldn't be rising.
2. I feel that China's A-shares will not have long-term bull stocks like the US stock market. After all, China is mainly based on manufacturing, and the stock market serves the manufacturing industry and provides blood transfusions to the manufacturing industry. A long-term bull market should be detrimental to the stability of the manufacturing industry. What does the author think about this issue?
1. Theoretically, bank stocks should not rise, but there are exceptions to everything.
Just like in 2014, when the interest rate cut cycle began, bank stocks did not fall but rose instead, and rose sharply, creating the big bull market in 2015.
This is because the invisible hand is controlling everything. Whether it was ten years ago in 2014 or ten years later in 2024, the reason is the same.
Now, we must "build a strong financial nation"; we must help "better meet the people's growing demand for wealth management"; we must "firmly hold the bottom line of preventing systemic financial risks."
Therefore, there is the bank stock market, and since last year, the top management has been continuously buying blue-chip stocks at low prices through various ETFs.
The weighted stocks of A-shares are basically bank stocks.
Therefore, continuing to be bearish at a low level is to underestimate the impact of policies on the stock market and ignore the power of the invisible hand. It means that our cognition needs to be improved.
If you still don’t understand this, just open Chapter 87 and feel it.
Tuesday, July 7, 2015.
The bulls and bears staged a battle of the century over China Ping An's stock.
Ping An of China opened at around -9%, and after a fierce game, it finally closed at the daily limit. Its daily trading volume was as high as 67.941 billion yuan, with a turnover of 15%. This terrifying trading volume directly created the history of A-shares, which was more than twice the full-day trading volume of the ChiNext on the same day!
On the same day, China Construction Bank, China Minsheng Bank, Bank of China, CITIC Bank, and China Life Insurance also hit their daily limit.
What a terrifying power this is.
Looking back at the stock market crash, and then looking at today.
I hope that if there is another bull market, stock investors must not increase leverage and must not borrow money to invest in stocks, because you cannot control or earn money beyond your cognition. Even if you make money for a while, you will lose it sooner or later. Remember!
2. If we build a "financial power" according to the above plan, the market must have a slow bull market. Only in this way can we give all parties a stable expectation and allow everyone to slowly invest their wealth into the market and expand the market.
If it is still like before, when the bull market comes, all kinds of sickles will be waved at the same time, and the leeks will be pulled out by the roots as soon as they sprout. Even if you want to cut the leeks from abroad, no one will come.
This will test the level of the trader.
In this regard, on the one hand, we should be happy to see the emergence of a slow bull market, but on the other hand, we should also be wary of the arrival of a mad bull market.
Also, the stock market is fundamentally a financing market. There is no reason why a bull market would be detrimental to the manufacturing industry. As long as it is guided reasonably and regulated properly, funds will naturally favor, or support, the manufacturing industry. Even if they don't support it, they will have to support it.
There are various supported methods, such as private placement, listing, rights issue, issuance of thematic funds, issuance of thematic ETFs, etc.
Among them, there are venture capitals, various fund institutions that come with missions, financial giants who come with the smell of blood, various dealers, and, the ever-increasing number of retail investors who are continuously harvested and grow in ignorance.
A typical example is the Science and Technology Innovation Board, which is a special board set up to provide financing for the high-tech industry.
Another example is the liquor sector in 2020-2021, the same applies.
The key lies in policy guidance.
Before we knew it, the Shanghai Composite Index reached a new high. Investors took action and took advantage of the opportunity to take advantage of Tomato and get a free gift of "Generate Power for Love".
Your support is my motivation to update.
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