"Indeed!" Hou Baolong nodded in response. "I originally thought the spread of the market rally would be gradual, but I didn't expect... after just a single weekend, the rally would completely ferment. Still, this is for the best. At least once sentiment picks up, investors' confidence in the market will gradually recover, thereby brewing a more sustainable market trend."
"However, with market sentiment fermenting so quickly, I'm afraid it might produce some adverse impacts on our trading plan," said Wang Kang, the trading team leader in charge of the Hong Kong market, taking over the conversation. "On the current order books, there are more and more funds competing with us to grab shares. Director Hou, President Su, do you think we should alter our strategy and plan?"
"What do you want to do?" Su Yi glanced at Wang Kang and asked.
Wang Kang said, "Let's wait until this wave of emotional speculation passes before continuing to scoop up shares. The 'real estate' main theme is a long-term investment theme, and our purpose in building positions is not to chase short-term market price spreads amid these two or three days of speculation. Rather, we are looking ahead to the next one to two years, seeking expectations of several-fold or even tenfold gains.
Therefore, I feel there's no need for us at this moment to weather the market's red-hot speculative sentiment and fight for chips alongside this flock of converging hot money groups and active retail investor crowds.
Once the order book sentiment passes and the short-term capital's chasing sentiment toward the 'real estate' sector ebbs, we can use the chips currently in our hands to appropriately suppress the market when short-term sentiment ebbs, following the trend by selling off a tiny fraction of our chips.
There's an overwhelming probability that we'll secure better entry and position-building opportunities than right now, as well as cheaper chips."
"Your strategy is actually quite good." After listening to his analysis, Su Yi smiled and nodded slightly. "Indeed, the investment logic for long-term and short-terming is completely different. In investing, our horizon should still be a bit more long-term. Since our expected investment cycle and holding cycle is a year, or even two years and beyond, there's no need to contend for profits with the active capital groups currently speculating on short-term expectations in the market."
"Does that mean... President Su agrees with the strategy I just proposed?" Wang Kang said happily.
Su Yi replied, "I think the strategy you just mentioned is pretty good. Since we've already established a partial base position and hold a certain degree of market dominance and initiative, we should go ahead and do it this way."
"However, President Su..." Hou Baolong couldn't help reminding him at this point, "If we follow Xiao Wang's strategy, the time cycles for building positions in core sectors like 'real estate', 'coal', 'steel', and 'non-ferrous metals' might end up getting extended quite a bit."
Su Yi chuckled softly and said, "It doesn't matter. The transformation of industry fundamentals, the bull market process of the housing market, and the deterministic trajectory of trends cannot be completed in just a few trading sessions, or a month or two. From the perspective of industry expectations... the future expectations of sectors like real estate, steel, coal, and non-ferrous metals currently only show signs of turning for the better and the possibility of changing industry expectations.
However, this entire expectation shift, along with long-term market and performance trajectories, still carries very high uncertainty.
With such uncertainty, the market cannot form consistent expectations in the short term. Since there are no consistent expectations, it cannot forge a continuous upward and consistent market trend.
In other words, we currently have all the time in the world.
Right now, just let the short-term capital groups in the market speculate.
At this time node and this position, since there isn't a particularly suitable opportunity to build positions, we'll continue to wait. As an outstanding investor, patience can be described as arguably the most important capability."
"Understood." Hou Baolong nodded, instantly turning his gaze to Wang Kang and saying, "In that case, Xiao Wang, go ahead and execute the strategy President Su just mentioned."
"Alright, Director Hou." Wang Kang immediately acknowledged the order.
Instantly, he transmitted the corresponding trading instructions and overall trading strategy to the other team members.
As the 'Huayi Expedition No. 1' main fund trading team under Huayi Capital abandoned aggressive position-building and follow-up buying in core sectors like real estate, non-ferrous metals, coal, and steel, as well as their corresponding core stock order books,
for a time, the market performance of the industry bellwether stocks in these major core sectors slowed down slightly.
"Huh... After surging at the open, it feels like buying interest is drying up this moment!"
Noticing that in both markets, the fractional trading volume and active buying power for core stocks in the real estate, coal, steel, and non-ferrous metals sectors—which were fiercely attacked by various capital sources in the morning session—were both decaying, Chen Guiyun inside the 'Foshan faction' major hot money group chat said with a hint of surprise: "It looks like overall market investor confidence still hasn't effectively recovered. A lot of capital is completely unwilling to continue chasing highs and buying at this position."
"No choice, with insufficient confidence, it's hard to drive the market up to the heights it should reach," Li Jinshi chimed in. "Besides, aside from the first 20 minutes of the morning session where volume continued to expand, the subsequent market trading volume clearly shrank back down. Based on this volume result... I think we might have to lower our expectations for the rebound rally triggered by the real estate sector."
"The buying interest for a few core stocks in the real estate sector is fading a bit too fast!" Liao Guoxiang, a core figure of the 'Foshan faction', couldn't help frowning at this point, saying, "Could it be that the capital from 'Huayi Capital' has given up on continuing its buying actions on the order books?"
"It shouldn't be because of Huayi Capital's capital, right?" Li Jinshi said. "I think the most critical issue is still that the overall market volume is inadequate. The investor groups currently remaining in the market and still active are basically veteran retail investors. These guys... are not that easily fooled.
Furthermore, because over the past half year, the market experienced various spikes followed by pullbacks, and far too many instances of gapping up only to open high and walk lower, it has caused a growing number of investors to get trapped after chasing highs.
Naturally, this has formed a trading discipline among the investors still active in the market today: never chase highs. This trading discipline has naturally caused many main-theme concept stocks in real estate, steel, coal, and non-ferrous metals that possessed limit-up potential during today's session to lack sustained follow-up capital, with no hot money willing to chase highs to pull them to their daily limit and anchor the main seal."
"Hesitant markets don't go far," Chen Guiyun said. "I originally thought I could comfortably make money for a few days, but I didn't expect... sigh, since this is the trend pattern, and since market volume stubbornly refuses to expand, I'm not going to hold a heavy position anymore. I'm going to take profit on a portion of my chips first."
Without waiting for a reply from Li Jinshi or Liao Guoxiang, he instantly dumped half of the chips he had followed up with yesterday on Pingdingshan Tianan Coal Mining—a stock that had already surged over 7 points intraday, sitting just a step away from hitting its daily limit—locking in partial profits.
And following his active selling to take profits...
Li Jinshi hesitated for a moment, then couldn't help letting out a soft sigh as he also began selling off chips to lock in profits.
Only Liao Guoxiang continued to stare intently at the changing order books without responding for a moment.
He always felt that the current market movement was quite bizarre, and seemed to be deliberately guiding the capital that intervened last week to actively sell off their chips.
(End of Chapter)