2026-01-20 16:22:43

The market is showing a clear structural differentiation, with the pace of sector rotation accelerating. Funds are frequently switching between high-performing stocks and low-priced rebound targets, with increasingly rapid tactics.

Some sectors are experiencing internal divergence: leading stocks show signs of profit-taking at high levels, but the strong new stocks within the sector continue to hit daily limits, demonstrating a clear crowding effect. Similar phenomena are also happening in the tech sector—some stocks continue their strong rally, newly listed stocks are gaining popularity, but at the same time, some targets are continuing to weaken.

Opportunities for low-level rebounds and sector rotation are emerging, with some seemingly forgotten targets beginning to break out of their trading ranges. The entire market exhibits characteristics of "the strong get stronger, the weak get weaker," with a pronounced Matthew effect.

The trading strategy is also quite clear: as market sentiment becomes more cautious, focus on strong stocks with clear logical support. High sell and low buy are essential; avoid stubbornly holding weak stocks. The key is to seize the window for low-level rebounds and sector rotation.

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VCsSuckMyLiquidity

· 10h ago

Leading stocks profit-taking and retreat, while the new listings are still hitting the daily limit. This strategy is really getting more and more clever. Selling high and buying low sounds simple, but truly timing it precisely is the real key. With such a strong Matthew effect, the weak stocks really should be willing to let go. Watching low-priced targets break out of their consolidation, this wave is indeed about rotation. The idea that the strong get stronger sounds easy to say, but in practice, it still requires a bit of luck.

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0xSherlock

· 10h ago

The leading stock pulls back from the new high limit, this move is indeed fast... Funds are playing hot potato. But honestly, now those bottom-fishing at low levels should be more cautious, and need to see clearly whether it's a genuine rebound or just trash.

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LiquidationWatcher

· 10h ago

Once again, funds are battling here, with leading stocks dropping from high levels while new stocks are still excited. This tactic is indeed ridiculously fast. Clinging to weak stocks is truly suicidal; catching the bottom requires keen insight. The dormant targets at low levels are now somewhat interesting, looking forward to the upcoming rotation window. The logic of "the strong get stronger" is actually just eliminating retail investors' money. The Matthew Effect is so strong that ordinary people really have no advantage.

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PuzzledScholar

· 10h ago

Leading stocks retreat from high levels, second-tier new stocks still hitting daily limits, this game strategy really has changed... Wow, this is the legendary Matthew Effect: the strong keep getting stronger, the weak keep dying, and everything in the middle gets squeezed out. Talking about buying low and selling high is easy, but the real question is who can hit the precise timing... In simple terms, it's one word: fast. The speed of capital switching is getting faster and faster; if you're a step slow, you'll get trapped. Are forgotten targets breaking out of their consolidation? That might be the real opportunity now, as the leading stocks have already been fully played out. Window periods, they disappear as soon as you realize them—truly ruthless. It's good that some people emphasize not to stubbornly hold weak stocks; too many are caught bottom-fishing to the point of bankruptcy... Hotspot rotation is so fast, it feels like big funds are deliberately creating panic effects. Under this rhythm, stocks without clear logic are simply not worth touching. On the tech track, new re-listings are being chased, but it also feels quite risky...

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SchrodingersFOMO

· 10h ago

Funds are switching between cutting leeks and being cut, it just feels like no one is cutting me The leading stocks are running, and the new ones are still surging? How much can they deceive Breakout of the low-position targets? Honestly, I don't see any logic in that The Matthew Effect is coming up again, meaning those who make money earn even more Talking about selling high and buying low is easy, but in practice, you'll just miss the opportunity The whole market is just watching who can run faster, ordinary people should just wait for the opportunity

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