On October 25, the market fluctuated throughout the day, with the Shanghai Stock Exchange Index continuing to rebound and the ChiNext Index opening higher and falling.

On the market, the water conservancy infrastructure sector opened sharply, with nearly 20 stocks in the sector hitting their daily limit; computing power leasing concept stocks were strong throughout the day; Huawei concept stocks changed in the afternoon. Automobile industry chain stocks were active during the session. On the downside, medical beauty concept stocks collectively adjusted.

In general, stocks rose more than they fell, with more than 3,800 stocks rising in the two cities. The turnover of Shanghai and Shenzhen stock markets today was 873.7 billion, which was 152.6 billion higher than the previous trading day. Northbound funds sold a net 1.295 billion yuan throughout the day, including a net purchase of 60 million yuan on the Shanghai Stock Connect and a net selling of 1.356 billion yuan on the Shenzhen Stock Connect.

Today can still be regarded as a general rise. For investors, there are many eye-catching stocks, but Shenglong shares will definitely not be missing.

After all, it has been a long time since I saw such a wild streak of stocks, and the 14 daily limit continued to set a record for the new year.

As for the reasons for its daily limit, there have been a lot of discussions on various investment platforms in the past few days. Even Huashun cited the "dragon character generation" as the primary reason, which I have to say is very down-to-earth.

The hype of "Dragon Generation" is simple to say. Next year is the Year of the Dragon in the Lunar Calendar, which is the same logic as the speculation about baby rabbits at this time last year. It seems nonsensical, but if there are more funds for a group that is willing to believe and take over, it can become a success in a short time.

Isn’t this how demon stocks come about?

Although some concepts such as Shenglong shares and Huawei Automobile are overlaid, the stock price can keep rising, which is obviously not supported by fundamentals - in other words, short-term funds chose it.

Since last week, we have repeatedly reminded everyone of the risks of participating in speculation in our notifications. We also believe that high-level group stocks will gradually collapse as the market index recovers.

But today, our understanding may need some updating.

The following is the author’s personal understanding and is for reference only and does not constitute investment advice.

Please think about a question: Since more and more people realize that the hype is more likely to collapse as it goes on, why does the market still allow Shenglong shares to continue to achieve this high standard? Compared to yesterday's change of hands on the board, today's board closure is even easier.

The answer may not lie in the individual stocks themselves, but in the sectors leading the gains today.

Amidst the general rise yesterday, there were two industry sectors that bucked the trend and fell slightly, one was banks and the other was automobiles.

Today’s increase in the automobile sector is comparable to that of the construction, decoration, building materials and other sectors that directly benefited from “one trillion”. It can be seen that the funds involved in the automobile sector do not want to be absent from this rebound.

To maintain the strength and popularity of the sector, we must have both a Chinese army and high standards. Maybe Shenglong Shares will become the lucky one again.

In addition, the automotive sector, especially Huawei Auto, is experiencing good news again.

It is reported that on October 25, AITO Wenjie released the latest "blind order" report card of Wenjie M9, which has exceeded 15,000 units so far.

This achievement comes only 17 days after Yu Chengdong, chairman of Huawei Smart Car Solutions BU, said that "10,450 blind orders were generated and a total of 8,040 orders were retained." "The momentum is still too strong. The delivery volume next year must be increased and planned with active massive supply as a guarantee." Yu Chengdong said.

The controlling shareholder of Shenglong also said in the afternoon that it would not reduce its holdings. In the words of shareholders, the "big picture" "understands stock trading."

Of course, even if you think that Shenglong shares can continue to be listed in the future, everyone does not have to participate. The stakes are too high, and supervision may take action at any time.

If you are optimistic about the rebound of the sector, it is also a good idea to do "high-low cutting" of high-quality stocks.

On the other hand, the obvious strength in water conservancy, infrastructure, building materials and other sectors is already a clear positive, so we won’t talk about “one trillion” here.

Quoting an institutional opinion:

CITIC Securities pointed out that this time, the budget adjustment and additional issuance of government bonds during the year were carried out again after 23 years, which conveyed a positive fiscal policy to the market. The signal is expected to boost the overall sentiment of stock market investors. In addition, considering that this additional issuance of government bonds will be mainly used for eight key aspects such as post-disaster reconstruction and flood control, it is expected to have an impact on infrastructure and related sectors. At the same time, it is expected that the upstream demand for infrastructure will also see a certain increase, which will benefit the upstream industry.

The good news for the market is that there is no high opening and low closing today, so investors who participated today will not be in a hurry to run tomorrow. The bad news is that "the peak will be reached at the opening of the market." If there is no more and greater positive stimulus, it is inevitable that the subsequent sectors will diverge, shrink, and new core stocks will emerge.

Finally, there is another phenomenon worthy of attention in today's market, which is the activity of small-cap stocks and the downturn of large stocks.

Today, the overall performance of the CSI 2000 Index was significantly better than other indexes.

As for the CSI 2000 Index, the constituent stocks are composed of 2,000 stocks that are small in size and have good liquidity. 98% of the constituent stocks have a market value of less than 10 billion. It is a veritable micro-cap index; according to Shenwanyi From the perspective of industry classification, the distribution of index industries is relatively dispersed, comprehensively covering scientific and technological innovation and emerging industries, and the growth style is outstanding.

Some people say that small-cap stocks have the characteristics of high elasticity and tend to rebound more strongly when the economy recovers, the profit upward cycle and the market liquidity are abundant. Judging from the data, during the previous rebounds in the market, the stage performance of the CSI 2000 Index has also been more explosive.

The performance of the big players was a bit unsatisfactory, such as China Mobile and PetroChina, which all experienced large declines. Of the 10 stocks with the largest market value in the A-share market, only two are in the red.

Taken together, the two suggest that the market style may change in the near future.