Su Yi watched the market of 'Telid A' with its one-word down limit and shrinking volume, and the movement trends of all high-standard concept leaders.
He knew that with the reversal of sentiment, a general market pullback was inevitable.
However, he also knew that a short market pullback would not affect the continuation of the final rebound, but rather would become an excellent opportunity to increase holdings.
It's just that the target for increasing holdings...
Su Yi searched the entire market for a long time, finally settling on the 'lithium battery' concept theme sector, in which he already held heavy positions.
The speculation on 'Telid A', this core market leader stock, had ended.
This would inevitably lead to a short-term market speculation sentiment avalanche, and would also cause major popular concept sectors and their popular leading stocks to generate relatively obvious money-losing effects in the short term.
In other words, changes in market investment sentiment are cyclical, and the end of the 'Telid A' stock speculation trend is an important turning point for market investment sentiment to shift from bullish to bearish.
When the market enters a pervasive bearish sentiment.
Both the follow-up strength of short-term funds and the risk appetite of short-term investors will decrease.
Thus, short-term concept speculation opportunities in the market will be relatively fewer and harder to achieve excess profits.
This is also why in short-term trading...
The fundamental reason to exit when bullish sentiment is relatively consistent, and to reduce psychological profit expectations, or even hold light positions or no positions, when investment sentiment and risk appetite sharply decline.
And when concept speculation begins to recede and investor risk appetite decreases.
Main institutional funds in the market often choose stocks and main directions with stronger certainty and strong fundamental support for trading.
Because stocks with fundamental support and good performance.
Even if their internal chip structure is often not as clean as many small and medium-cap concept stocks, nor do they have as high elasticity as small and medium-cap concept stocks.
However, in a generally weak market.
These types of stocks are relatively resistant to decline and possess certain safe-haven attributes.
Under this trading logic, looking at the entire market, it is clear that at this moment, with a fundamental reversal becoming obvious, a good upward trend, and strong expectations for future performance growth, the 'lithium battery' main sector has become the primary target for funds retreating from high-level concept theme stock areas.
Under Su Yi's gaze.
At 10:15 AM, while 'Telid A' was still locked at the down limit, and other popular leading stocks like 'Chuansheng Jiuzhou', 'Baofeng Tech', 'Yishang Display', 'Sanxia New Material', 'Tonghuashun', 'LeEco'... were either continuing to fall or also locked at the down limit.
And while the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index, the major core indices.
Were all continuing to plunge, falling more than 1% in a low-open, low-close pattern.
The 'lithium battery' main sector, led by several core leading stocks in the sector such as 'Duofouduo', 'Tianci Material', 'Tianqi Lithium', and 'Ganfeng Lithium', unexpectedly showed a contrarian strength, continuously rising with increased volume and volatility, becoming the core leading sector in the market.
And during this period...
A multitude of active funds from both markets also continued to flow into this area.
"It seems that under the continuous jump in prices and persistent price increase expectations for 'lithium carbonate' and 'lithium hexafluorophosphate', the combined efforts of funds in the 'lithium battery' line are becoming increasingly consistent."
Su Yi stared closely at the trend changes of the entire 'lithium battery' main sector, not immediately investing funds to buy his desired stocks, but secretly sighed,
"Expectations are growing stronger, it's almost time for the main upward trend, isn't it?"
Since he began accumulating chips in the corresponding leading stocks of this core 'lithium battery' main line.
For more than a month.
During the magnificent speculative trend of 'Telid A'.
The fundamental conditions of the 'lithium battery' sector, as well as the internal chip structure of its core individual stocks, and even the main businesses and related main product sales of numerous leading stocks, have been in a state of improvement.
Now... the institutional funds and active speculative funds gathered in the entire 'lithium battery' main sector are no longer a minority.
That is to say, after more than a month of sentiment brewing and market trend development.
The 'lithium battery' line, analyzed from all aspects including sentiment, fundamentals, and capital, has reached a stage of comprehensive market outbreak where quantitative change leads to qualitative change.
Thinking of this...
Su Yi continued to wait patiently until 10:46 AM.
That is, when the Shanghai Composite Index again fell below 3500 points, and the market briefly entered a panic selling situation, with indices and numerous individual stocks generally falling sharply.
He then began to use the nearly 500 million yuan of funds in his account.
Which he had cleared from 'Telid A' for profit.
He extensively bought into relatively active and core concept stocks such as 'Dangcheng Technology', 'Penghui Energy', and 'Xibu Mining', aggressively sweeping up stocks at low prices with large orders or super large orders, fully taking on the panic selling chips emerging on their trading boards.
As for why he did not continue to increase holdings in 'Duofouduo', 'Tianci Material', 'Tianqi Lithium', and 'Ganfeng Lithium', the four core leading stocks in the 'lithium battery' main sector that had the most aggressive trends, the strongest combined bullish capital on the board, and very strong fundamentals and performance expectations.
It was because his holdings in these four stocks had already reached about 4% of their total market capitalization.
If he were to continue increasing his holdings further.
He might accidentally trigger the substantial shareholder disclosure threshold for those stocks.
Once the disclosure threshold is reached, not only would his position be exposed prematurely, but it would also affect his subsequent exit plans.
After all, holding more than 5% of the shares makes one a major shareholder of the company, and according to regulatory rules, a major shareholder holding over 5% of a company's shares must announce any buying or selling in the secondary market in advance.
Additionally...
If his holdings in these four core leading stocks continued to expand.
Even if he did not trigger the 5% disclosure threshold, under the market liquidity of these four stocks, in the event of an emergency, it would be difficult for him to exit promptly.
Diversified investment, diversified holdings.
Can effectively avoid issues of insufficient liquidity in individual stocks.
At the same time, although the core logic of the stocks he chose was not as strong as 'Duofouduo', 'Tianci Material', 'Tianqi Lithium', and 'Ganfeng Lithium', they were still among the most active stocks in the entire 'lithium battery' main sector, with strong combined capital on the board, generally able to outperform the 'lithium battery' sector index, acting as follow-up leaders.
That is to say, as long as these four core leading stocks—'Duofouduo', 'Tianci Material', 'Tianqi Lithium', and 'Ganfeng Lithium'—can create space for growth.
Then, the performance of the several related concept stocks he subsequently increased his holdings in would not be far behind.
He would also be able to capture ample profits from the explosion of this core 'lithium battery' main line.
Accompanying his aggressive buying in these stocks.
Visibly...
The market trends of 'Penghui Energy', 'Dangcheng Technology', and 'Xibu Mining' improved, with increasing net inflows of main capital, and their stock prices showing concurrent increases in volume and price.
Especially 'Penghui Energy'.
As a newly listed stock, its internal chip structure was relatively clean, with little selling pressure.
Su Yi only used over 20 million yuan to push the stock price from 2 percentage points below water to around a 5 percentage point gain.
"Ms. Lu, the 'lithium battery' line has started to take on the role of the market's leading main line again."
While Su Yi was continuously increasing his holdings and aggressively buying chips in the core 'lithium battery' stocks, in the Financial World Commercial Building, several hundred meters from the "Fuxing Road, Financial Street" branch where he traded, within 'Jufeng Asset Management' company, in the 'Jufeng Future Growth' fund trading room, trader Yu Xiaolu excitedly reported to fund manager Lu Xiangxiang.
"Breaking upward against the trend, it's really not easy."
Lu Xiangxiang had already seen the market trend of the entire 'lithium battery' main sector, her eyes fixed on the large screen in the trading room, she exhaled a breath she had been holding, also happily saying,
"The combined efforts of various market funds in this line are getting stronger and stronger. It feels like it's about to enter the main upward trend."
"It should have entered the main upward trend long ago,"
Yu Xiaolu said.
"According to the public 'Business Society' quotes online, the prices of 'lithium carbonate' and 'lithium hexafluorophosphate' jumped another 5% yesterday, hitting a three-year high. I even heard that 'Duofouduo' and 'Ganfeng Lithium', two industry leaders, have temporarily stopped quoting externally. I also heard that the supply of their main products is already outstripping demand, with many downstream manufacturers lining up to wait."
Lu Xiangxiang smiled and said,
"No need to hear, it is indeed so."
"Has this 'new energy' wave finally arrived?"
Yu Xiaolu excitedly asked.
Lu Xiangxiang nodded and said,
"The latest news, according to last month's new energy passenger vehicle sales data, both month-on-month and year-on-year growth exceeded 50%. This indicates that the supply-demand relationship across the entire industry has indeed been broken.
And with several major international lithium giants unable to add new capacity in the short term. The domestic supply-demand gap, with the explosion of the new energy vehicle market, is estimated not only to not decrease but to continue to widen in the short term.
Meaning this round of rapid price increases for 'lithium carbonate' and 'lithium hexafluorophosphate'. Most likely will not stop, nor will it be a short-term phenomenon.
It has persistent price increase expectations. And this is enough to support leading stocks like 'Duofouduo', 'Tianci Material', 'Tianqi Lithium', and 'Ganfeng Lithium' to embark on a magnificent trend."
"I hope this wave comes even more fiercely,"
Yu Xiaolu said with renewed vigor.
Due to their heavy bet on the 'lithium battery' core concept main sector over the past month.
Their company's main fund product.
Had essentially recovered the significant decline during the 'stock market crash 2.0' and significantly outperformed recent market index performance.
Almost at the same time.
While both of them expressed very positive and optimistic sentiment about the 'lithium battery' main trend.
Also in Modu Financial City, within 'Huaxi Capital' company, where Su Yi had previously worked.
In its fund trading department, specifically in the fund trading room focused on 'New Energy Investment', Zhou Sheng, the fund manager in charge of the 'New Energy Hybrid Selection' fund product, also clearly noticed signs of the 'lithium battery' concept sector breaking through against the trend, with market capital synergy rapidly strengthening.
"Tian Xiaohui, you can increase holdings at this point."
After a brief contemplation, Zhou Sheng instructed Tian Xiaohui, the trading group leader for the fund product, who was beside him.
Tian Xiaohui was startled and asked,
"Manager, are you talking about increasing holdings in the 'lithium battery' sector?"
"Nonsense, of course, it's this sector,"
Zhou Sheng said.
"'Duofouduo', 'Ganfeng Lithium', 'Tianci Material', 'Tianqi Lithium'... these stocks have already shown a breakthrough trend to new rebound highs, and it's visible that the intensity of various funds snatching up shares is increasing. This indicates that the investment logic of this line has gained widespread recognition and concerted effort from many funds across the entire market."
"But isn't the broader market index still falling?"
Tian Xiaohui said with some hesitation.
Zhou Sheng squinted at the index's trend pattern and said,
"Today's index was just dragged down by 'Telid A' and external negative factors, but the overall rebound trend has not been broken. Also, at the critical time node of the imminent IPO restart, regulators will still maintain the market.
The entire market will not experience a liquidity crisis like before, and as long as there is no liquidity crisis in the market, there will certainly be main investment opportunities. Without a doubt...
Currently, the 'lithium battery' core main line is such a main investment opportunity. Our fund's investment theme is focused on 'new energy'. Since such a buying opportunity has arrived, it would be too inappropriate to miss it again."
"Okay!"
Although Tian Xiaohui had not yet fully understood the investment logic of the 'lithium battery' line.
But since his superior strongly requested it, he could only obey.
So, he nodded, and without waiting for Zhou Sheng to give further instructions, he immediately conveyed the relevant trading commands to the traders behind him.
Subsequently, when the trading commands were fully conveyed.
Tens of millions of yuan in buying capital rapidly flowed from the traders' hands into the relevant weighted popular stocks of the 'lithium battery' main line.
After that, under the concentrated absorption and aggressive buying of these incremental buying capital groups.
The 'lithium battery' concept main sector index, as well as numerous related stocks such as 'Tianci Material', 'Tianqi Lithium', 'Duofouduo', 'Ganfeng Lithium', 'Penghui Energy', 'Dangcheng Technology', 'Xibu Mining'... all continued to rise with increased volume, continuously hitting new highs on the board and new highs for this rebound, despite the weak performance of the broader market index.
Even a core leading stock in the sector like 'Duofouduo', which had previously been heavily speculated by various main funds.
With more and more buying funds aggressively snatching up shares.
It recovered its June bull market high with an incredibly strong posture, hitting an all-time high, showing a strong potential to replace 'Telid A' as the core leader, capturing the attention of investors across the market, and thereby single-handedly reversing market sentiment and the market's downturn, guiding active funds across the entire market to accelerate their inflow into and concentrate speculation on the 'lithium battery' main sector.
(End of Chapter)