Render unto Caesar the things that are Caesar's, and unto God the things that are God's

Weekly Reflection

After the world knew about it, the WSB concept began to collapse. On February 3, WSB leader DeepFuckingValue announced the cancellation of the daily position show. As of that day, his floating profit in GME exceeded 20 million US dollars. As of the close of February 5, GME closed at $63.77, down 87% from the highest point of $483, AMC closed at 6.83, down 66% from the highest point of $20.36, and KOSS closed at $19.98, down 84% from the highest point of $127.45. Render unto Caesar the things that are Caesar’s, and unto God the things that are God’s. Fortunately, at the opening on February 1, I sold AMC at $15, ending this crazy journey.

What impact this crazy event will have on Wall Street, the US financial market, and the global financial market, who is leading behind the scenes, etc., there are still many mysteries to be solved. No matter what the truth is, in this event, those who make money must be those who are rational, bold, and decisive. Those who lose money must be those who are greedy and all in. For WSB and other retail investors, most people must be losing money. Everyone is just the incited, unaware masses.

Events of the Week

Tianwen-1 approached Mars and sent back the first image of Mars at a distance of 182 million kilometers from the Earth and 2.2 million kilometers from Mars. Iconic landforms such as Acidalia Planitia, Chryse Planitia, Meridiani Planum, Schiaparelli Crater, and the longest canyon - Valles Marineris are clearly visible.
The Main Board and SME Board of the Shenzhen Stock Exchange will merge, and China’s capital market will welcome changes again.
WSB concept stocks stalled, render unto Caesar the things that are Caesar’s, and unto God the things that are God’s.

Market of the Week

Period: 2021-02-01 ——— 2021-01-06

Review 4 weeks ago: A-shares welcomed a good start with three consecutive rises, and the turnover of the two markets exceeded 1 trillion yuan for five consecutive days. However, from the market perspective, individual stocks showed extreme 20-80 differentiation. The leading stocks clustered by funds continued to rise, and the PE of some industry leading stocks even exceeded 100 times, while most small and medium-sized stocks fell. Wind industry sectors top 3 gainers were energy equipment, oil and natural gas, chemical raw materials; top 3 losers were office, education, motorcycles. Wind concept sectors top 3 gainers were yellow wine, bicycles, titanium dioxide; top 3 losers were lithium batteries, battery electrolytes, CAR-T.

Review 3 weeks ago: A-share three major indices were basically flat with last week. Consumption and other sectors clustered by funds in the early stage were sluggish, and public funds began to flow to semiconductors. Wind industry sectors top 3 gainers were motorcycles, telecommunications, banks; top 3 losers were agriculture, precious metals, aerospace. Wind concept sectors top 3 gainers were semiconductors, transportation, Yangtze River Storage concept; top 4 losers were yellow wine, beer, aquatic products, liquor.

Review 2 weeks ago: ChiNext Index surged 8.68% in a week, and the three major indices showed an overall upward trend this month. Shanghai-Shenzhen-Hong Kong Stock Connect showed net inflow for four consecutive weeks, and it can be concluded that there is incremental capital flowing into the stock market. Wind industry sectors top 3 gainers were petrochemicals, chemical fibers, power generation equipment; top 3 losers were telecommunications, insurance, beverages. Wind concept sectors top 3 gainers were rare earth, CRO, medical services; top 3 losers were insurance, mining services, cement index.

Review 1 week ago: All major global indices fell this week. The main reason for A-shares is that the central bank started a “mini” reverse repurchase and withdrew funds, and market liquidity suddenly appeared tight. US stocks are mainly due to WSB chasing and beating Wall Street. For the first time in 4 weeks, Stock Connect showed net outflow, and Hong Kong Stock Connect net inflow this month exceeded 250 billion RMB. Wind industry sectors top 3 gainers were airports, catering and tourism, and alcohol; top 3 losers were motorcycles, shipping, and aerospace. Wind concept sectors top 3 gainers were air transportation, HNA series, and rare earth; top 3 losers were aero engines, third-generation semiconductors, and aviation equipment.

Review this week: All global indices rose this week, gains: US > Hong Kong > China, Stock Connect resumed net inflow, and Hong Kong Stock Connect continued large net inflow. Wind industry sectors top 3 gainers were catering and tourism, banking, and office supplies; top 3 losers were airports, shipping, and leisure goods. Wind concept sectors top 3 gainers were medical, CRO, mining services, top 3 losers were ETC, HNA series, and semiconductors, and the local Chinese New Year effect was obvious.

Market (%)	Index	This Week	1 Week Ago	2 Weeks Ago	3 Weeks Ago
Shanghai Composite	3496.33	0.38	-0.63	1.13	-0.1
Shenzhen Component	15007.30	1.25	-0.61	0.7	-0.25
ChiNext Index	3193.71	2.07	-1.04	8.68	0.02
Hang Seng Index	29288.68	3.55	-0.94	3.06	0.27
HSCEI	1027.74	1.48	-1.22	0.78	0.24
Hang Seng HK Chinese Enterprises	3967.20	2.40	-1.18	0.93	-0.67
Dow Jones	31148.24	3.89	-2.03	0.02	-0.57
Nasdaq	13856.30	6.01	-2.00	3.28	-0.87
S&P 500	3886.83	4.65	-1.93	1.21	-0.72

Market (CNY, Billion)	This Week	Previous Week	2 Weeks Ago	3 Weeks Ago
Shanghai Connect	74.97	-56.95	11.45	44.87
Shenzhen Connect	178.29	-10.41	84.62	134.72
Hong Kong Connect	485.13	664.22	798.46	585.95

Positions

A-shares: Zhongjia Bochuang cleared the risk of greater losses after a one-time provision for goodwill impairment in 2020. Although the three businesses of 5G messaging, base station maintenance, and credit card collection were affected by the epidemic in 2020, they are developing overall. According to its description in the private placement application, after April 2021, the three major operators will restart the base station operation bidding, and the bottom performance is guaranteed. During the Spring Festival, whether operators and merchants will test 5G messaging on a large scale is worth paying attention to. I believe the company will have a good performance under the leadership of Wu Ying, a big shot in the telecommunications industry.

Buy Guangqi Technology, a core technology company of new materials. [I once heard a sharing by Dr. Liu Ruopeng in early 2016](https:// .xyz/zjuae-2019/). At that time, he and his team were still bent on civilian use, but the road to commercialization was not smooth. Now with the support of large military orders, the focus is on military use, and performance is guaranteed.

Buy Polyfluorodof, a leader in lithium hexafluorophosphate raw materials, and prepare to hold it for a long time.

Buy the oversold Weichai Heavy Machinery. Starting from summer, the temperature rises, the epidemic is eliminated, the demand for domestic seafood gradually increases, and the prosperity of ocean fishing rebounds. Coupled with the post-trade war period, the prosperity of global shipping rebounds, and Weichai Heavy Machinery’s performance recovery is expected.

Hong Kong and US: It is estimated that fintech will take a long time to recover, and clear positions at a loss. Buy Luokung Technology, which is sanctioned by the US, has established cooperation with multiple car companies, and has been unable to pay wages for 5 consecutive months.

Funds: Try the person investment + track investment mode. Person Investment Mode:

Like Xie Zhiyu’s (Xingquan Herun Graded) capability boundary circle view;

Liu Yanchun is a stability player (Invesco Great Wall Domestic Demand Growth Mixed);

Zhou Haidong (Huashang Trend Flexible) is a big open and close player, betting heavily on optimistic industries, such as mining in the fourth quarter;

Liu Bin (Xinhua Xin Dongli Flexible Allocation Mixed) is a PhD in materials science. All technology disputes, mapped to the industry, are ultimately material disputes;

Track Investment Mode:

Optimistic about medical (GF Medical Health A) in 2021;

Technology (E Fund Information Industry Selected Stocks);

Military Industry (E Fund National Defense Military Industry Mixed);

High-quality technology companies (Huaxia New Era Mixed).

Code	Name	Current Period Dynamics
SZ000889	Zhongjia Bochuang	Flat
SZ.002407	Polyfluorodof	New
SZ000880	Weichai Heavy Machinery	New
SZ002625	Guangqi Technology	New
LKCO	Luokung Technology	New
F260104	Invesco Great Wall Domestic Demand Growth Mixed	Flat
F163406	Xingquan Herun Graded	Flat
F166301	Huashang Trend Flexible	Flat
F002083	Xinhua Xin Dongli Flexible Allocation Mixed	Flat
F004851	GF Medical Health A	Flat
F010013	E Fund Information Industry Selected Stocks	Flat
F005534	Huaxia New Era Mixed	Flat
F001475	E Fund National Defense Military Industry Mixed	Flat