What prompted me to write this article today is a question from a reader in my Knowledge Planet community — asking Master Chi to analyze how to identify and capture the “leading stock” (龙头). Technically speaking, Master Chi doesn’t typically dwell on smaller tactical “techniques.” But here’s the thing: the significance of the leading stock lies not only in becoming one, but more importantly, in knowing how to follow one.
This isn’t just about stocks. In real estate, in other industries, and across the broader sweep of Chi fortune (气运), aligning yourself with the right leader is an extremely important matter. We always say: when one person achieves the Dao, even their chickens and dogs ascend to heaven. By the same logic — when a dragon soars, the winds and waves it stirs can bring blessings to thousands.
So today, we’ll start with the world’s greatest arena of competition, and then turn our discussion to this windfall of fortune that seems to have descended from the heavens.
First, let me clarify the term “leading stock.” In general, it refers to the frontrunner of a particular market trend — and more importantly, it serves as a critical indicator of the life span of each market cycle. There’s a saying: as long as the leading stock stands, the wave does not fall. Meaning: as long as the market leader remains fierce and active, the current cycle has not yet ended. Only when the leading stock raises the white flag and falls into a slump will the broader market truly run its course.
Why does this effect exist? The reason is simple: the “leading stock” represents the market’s momentum and confidence. Understand this — a leading stock is never “ordained” or designated. It emerges through serendipity and circumstance. When a market trend arrives, there might be five or six sectors, all with compelling narratives. But which story the retail investors and the larger wolves will actually buy into — nobody knows in advance. On any given day, would any major player dare to slam their fist on the table and declare: “I guarantee my stock will rise to the top and become the leading dragon”? Everyone is moving step by step, hoping to achieve the best outcome with minimal investment. It’s like the day someone figures out nuclear fusion technology — everyone knows it would be great, but whether the market immediately recognizes it and pours capital in is a completely different matter.
Never mistake the major players in the secondary market for meticulous scientists. They’re not — at their core, they are big gamblers who have simply mastered the rules of the game.
So the real process of cultivating a leading stock works like this: starting with those five or six promising sectors, each sector selects about ten “powerful horses” to run. That means once a market trend kicks off, anywhere from fifty to a hundred strong contenders are competing at once. Throughout this process, while everyone shows their best cards, nobody truly knows who will emerge as the final market leader.
Take the leading stock Master Chi followed in the last wave — Dongfang, for the most part. I once chatted with its operator, and the conversation really illustrated the situation well: “How was I supposed to know the market would be that receptive to my stock at that particular moment?” Indeed — this is serendipity and the convergence of circumstances. It was destined that this entity would turn astronomical figures, because a company with almost no core 5G technology ended up leading the entire 5G market trend. Doesn’t that strike you as fascinating?
Coming back to the question at the beginning of this article: speaking frankly, Master Chi, just like you, truly has no way to predict at the very start which koi fish among them will leap through the Dragon Gate and become the leading stock. After all, before any koi can make that leap, countless obstacles await.
But one thing is certain: “riding a dragon son-in-law” — catching a leading stock at the right moment — is absolutely something you can seize while the opportunity is hot. How do you understand this? Simply put: as long as the broader market is alive, or even just holding steady, even if a leading stock hits a limit-down day, you can watch it closely and even play along — because it still has Chi (气), its vitality is not yet exhausted.
Don’t fear limit-down days or heavy losses, because it has “Chi.” What kind of Chi? Human energy — popular sentiment.
Let’s imagine: suppose one day you luckily caught a leading stock and rode it from 50 up to 100, then it hit a limit-down. What would your mindset be? Well, I assumed wrong — you’ve been reading Master Chi’s articles long enough that you’re already quite sharp. Let me instead imagine the perspective of a fortunate sheep. Needless to say, that sheep will think: “Whoa! From 50 to 100, then limit-down and a massive drop! The big players must have made enough — they’re dumping! I need to run too!”
Don’t worry — and don’t think this has no logic. Retail investors and sheep aren’t logical to begin with. They operate on impulse and fear. They have no sustained loyalty to or deep understanding of anything. But here’s what you need to know: the most precious thing a leading stock possesses has not scattered — its “human energy,” its popular following. As long as that remains, it means countless other sheep are still standing on the sidelines watching.
So the leading stock shakes its tail like a divine dragon, and just like that, it rises from the ashes. Countless people beat their chests in regret with cries of anguish — but then the fun part begins: a new batch of sheep enters the slaughterhouse.
The same price action, viewed from different angles:
The leading stock: “Those old sheep were too much dead weight. I needed to shake myself loose and absorb them in the process — now I can fly higher.”
The old sheep: “Things have come to this point, time to exit. Made some money, that’s enough. Let’s go.”
The new sheep: “What an opportunity! This is just a pullback — I can get on board!”
Note the crucial difference: the number of new sheep far outnumbers the old sheep. This is also why many leading stocks might strain to move up 4% at 20 yuan early on, yet cruise through limit-up days effortlessly at 50 yuan — because fresh supply from new sheep keeps growing.
But you might ask: Master Chi, what gives you the confidence that the leading stock won’t die, and that shaking off the sheep will actually work?
The answer is simple: as long as the broader market remains active, the leading stock can rise from the dead. The two are mutually reinforcing — just as a dragon meets wind and rain to soar into the sky, and when a dragon enters the clouds, wind and rain descend. The more critical point is this: if even a leading stock with such strong price action collapses permanently after a single shock, then everything else in the market is even more fragile. Fragile enough to crumble at a touch — why would you still sit on a listing ship?
As for the sheep? Never try to apply any logic to their psychology. Just remember one important characteristic: a sheep’s memory lasts only three days. That’s why you’ll find that leading stocks always seem to die and be reborn, charging to a brand new high. Nobody remembers, and nobody truly cares about that previous “resurrection.”
At this point, I need to pause. If we only talk about the “dragon,” we lower the scope of today’s discussion. What we truly need to discuss is the recent “rain from heaven” event. Master Chi has read many analyses and discussions over the past few days — and after reading them all, I’m left with a profound sense of frustration.
Because while everyone is busy discussing “what will happen,” not a single person has taken the time and effort to address “why the heavens are sending rain” and “what the leading forces are actually doing.” Those are the essential questions most worth exploring.
Before diving in, Master Chi wants to ask you something: in 2019 — this year — what have our major business titans been up to?
Don’t search the news. Just tell me off the top of your head. If you can’t answer, that’s completely fine — because indeed, this year, their various statements and public appearances have dropped sharply compared to the past two years. What we’ve seen and heard amounts to nothing more than minor moves here and there. So don’t feel bad — even someone as well-connected as Master Chi would need three minutes of mental effort to piece together where they’ve been and what they’ve been doing this year.
If you’re as sharp as I think you are, you’ve already grasped the connection Master Chi is drawing between this and the earlier passage about “leading stocks.” Yes — the current state of affairs marks the beginning of a brand new starting point. The only uncertainty is where exactly the next truly powerful “wave” will be triggered. That is the critical detail.
Understand this: when a person begins commanding hundreds of billions in wealth, their task is no longer to continuously create new industry extensions through direct investment. Doing so would be absolutely counterproductive for someone at their level. Think of it this way: having ten million yuan and going back to run a street food stall would be absurd. Equally, when you have ten million yuan, the best way to grow that wealth is to place it into the right vehicle — real estate, commercial properties, industry, stocks, funds, and so on. Only these platforms have enough “wind” to lift your volume off the ground.
So the flip question becomes: which platform today can actually lift the fortunes of those commanding hundreds of billions — or even certain invisible titans holding trillions?
That is the absolute core of the question. Because only when you find that answer can you, when the next wave arrives, be that small seedling planted right at the center of the riverbed — ready to drink in the full flow of financial abundance. Don’t ever think this is a pipe dream, or an opportunity that doesn’t belong to you.
This is also why those titans have been hesitating — finding it difficult to commit. Because opportunities like this appear in every cycle, and someone always steps on them at exactly the right moment. Why can’t that be you?
Let me use the simplest example: cryptocurrency. The fundamental nature of this industry is a confidence game — when I say that today, it seems hardly anyone will argue. But a year ago, the pushback and debate were deafening. That said, Master Chi doesn’t care whether your view on this aligns with mine, even if you’re still involved with it. I want to tell you: even when playing unconventional angles, you need a method. You can deceive heaven and earth — that’s your freedom — but you must never deceive yourself. That I have to tell you, because it is Master Chi’s responsibility to his readers.
Why do I say this? Because cryptocurrency is a textbook case of “first arrivals get fat.” Although the industry itself never truly grew large, those who entered earliest made their money purely by arriving early. Of course, the few faces that showed up publicly in cryptocurrency don’t count as genuinely heavyweight players. But it’s the clearest example for illustrating the underlying logic, because in the “unconventional” arena of that era, cryptocurrency was one of the leading forces.
(A note: I don’t recommend anyone make any particular type of investment, as these are entirely personal decisions, and not everyone is suited for unconventional gains. However, Master Chi once told friends in the Knowledge Planet community: if you ever want to get involved in cryptocurrency in the future, the only one worth touching is BTC itself — everything else is meaningless. And the timing must coincide with turbulence and major economic disruption on the international stage — second- and third-tier world actors like Iran, or regions like Russia experiencing upheaval and economic shocks. The reasons, you can work out yourself — I won’t elaborate here on the public channel. In short: treat BTC as a “global chaos indicator.”)
Now let’s bring the conversation back to the true theme of this article — the “riverbed ready to channel wealth.”
Before discussing the riverbed, we need to understand one very basic concept: wealth, no matter how large or small, ultimately flows into the hands of people. And once it flows into people’s hands — what do you think happens next?
As always: the mother goes out and returns with offspring. Wealth flows into the market to create more wealth. Pay close attention — what you want to watch is the moment it “flows into the market.” After that, you can confidently merge into its current and go hunting alongside it.
Because one thing is beyond doubt: this torrential flood of immense wealth has only just begun to flow. It will absolutely create entirely new landscapes beyond imagination.
The following thoughts are for your own consideration. If you can read between the lines, good. If not, you’ll simply need to keep accumulating experience — saying things too plainly is pointless.
One. Many people ask: will the market return to the 2,400-point level? When Master Chi predicted this trend at the time, I also added: it would first push toward the 3,100–3,200 range. Why? Look back at the passage on “leading stocks” and “sheep,” and you’ll understand naturally. Or put yourself in the position of the major players — you’ll have an even deeper appreciation.
Many people have failed to grasp the mystery and logic here, as if no analysis can explain why there would be such a sharp decline. To put it simply: there are too many “sheep” clinging on right now. There’s no point bringing them all along for the real charge. Before a genuine push upward, the body must shake loose first — only then can it soar higher.
Don’t let the analysts and so-called experts confuse you. Chips are bought in blood, always have been and always will be. Never assume that the 600-point range would be claimed by the sheep. But only by clearing them out can you go into battle unencumbered. Ten thousand points presents no great problem or pressure.
Two. This is certainly only the first step. The intention behind this heaven-sent abundance is to irrigate. Irrigation aims toward harvest. Its ultimate effect will necessarily complete the groundwork for welcoming the birth of the next “new frontier.”
Why suppress real estate — or rather, the boarding passes? To let more people get on the ship. Why let more people board? To better leverage the “city” effect. What lies behind this effect? As the years pass, countless people slowly age — along with their needs and markets.
I’ve said before: the post-1940s elderly and the post-1960s elderly are two entirely different populations. The latter’s consumer spending is formidable — because they are willing to spend. Therefore, eldercare, medical care, health and wellness, and services are definitely sectors worth waiting for the right moment before entering.
Three. In the Knowledge Planet community, a friend named Floating Cloud said something brilliantly concise: “Shenzhen will become the Shenzhen of the entire nation.” I deeply agree — because Shenzhen is a city with virtually no barriers to entry for young people. A city like this will see its real estate flourish, even if other regions stagnate due to aging populations and complacency. Why? This requires clarifying a concept that many people cannot understand or analyze — because it simply doesn’t have an “analyzable” essence. That concept is: “I want to buy a house.”
Recently, many commentaries have embraced a narrative that the outlook for real estate isn’t optimistic. But they’ve forgotten one thing — Shenzhen will always be the exception.
Here’s a simple example: a young couple who have built solid careers in Shenzhen — after they get married, what will they do? You don’t even need to answer. They will buy a house. It doesn’t matter how you analyze the market or debate rise and fall — they don’t care. They simply want a house. They want a home. They want a place to put down roots. If prices drop 20%, they’re delighted. If prices rise 20%, they’ll grit their teeth and get on board anyway.
This has nothing to do with the market. This is the naked, fundamental necessity of modern human life — even survival itself. There is no logic to argue against it. To put it even more plainly: smoking multiplies lung cancer risk by orders of magnitude, yet people still smoke. So what confidence does anyone have in severing the Chinese people’s deep love of land?
(Of course, Master Chi’s view on the overall trend is a separate matter.)
So a small divergence emerges — between Shanghai and Shenzhen. I firmly believe that Market 2’s landscape will be largest and most advanced in Shanghai. But I equally firmly believe that Market 3’s ebbs and flows will be most turbulent and most solid in Shenzhen. As for Market 1? You can get on board and stake your position any time.
Today’s article has illuminated three “ascending dragons.” Which one you favor — that decision is yours to make.