AI hardware boom, switching within the main line! Stay steady and hold on, or switch quickly?

Today’s Index [Taoguba]
A precise pullback to the 5-day moving average, then a rebound, and finally closing flat, still fully demonstrating the market’s control capabilities. This afternoon, insurance stocks declined sharply to prevent AI hardware sentiment from overheating. Clearly seen are Runze Technology breaking the limit, and Shudi Co., Ltd. also breaking the limit at the end of the session—all driven by volume selling after the index declined. Many stocks start to sell off in the afternoon, all on the way down, with yesterday’s most obvious example being Fenghua High-Tech, which is not afraid of strong resistance! At worst, all the shares are handed over.

Today’s Trading Volume
Fortunately, the volume was relatively high in the morning, and it shrank in the afternoon, leading to a pullback after the rally, with many stocks breaking the limit. These are expected outcomes; everyone just needs to get used to it. So, finding the right direction and rhythm is very important, or just stay in one direction, like gas turbines, where core stocks keep hitting new highs. Volume is about buying on dips and selling on rises; today, Dongfang Electric and Youliu Co., Ltd. all followed this pattern. That’s why the importance of the 5-day moving average is gradually becoming clear!

Review of the Morning Session:
You can review yesterday’s morning session—yesterday, everyone was advised to hold long positions in Changfei and Hengtong at the 5-day moving average. Today, you could have taken profits. Strong stocks with bearish candles now are buy points; even if you make mistakes for 2-3 days, it can be corrected. The premise is that these are strong stocks with good trends, not those with wild surges and crashes. Yesterday’s morning session, today, you could have taken big profits, not just bought in the morning and made money on the same day.

First of all, thanks to friends who liked and rewarded, I hope we can communicate more and improve together!

Today’s Key Points:
Clearly informing everyone, the market has risen for two consecutive days, facing some resistance at this level. It’s likely to test the previous high. This morning, volume increased, but in the afternoon, volume decreased, meaning the index couldn’t break through today. Even three days of continuous rise don’t quite align with the market’s intentions. If volume doesn’t reach 2.8 trillion, the index cannot break out, so choosing the right direction is crucial.

Direction One:
Very clear, highlighted in bold—chemical sector is expected to diverge, with weak stocks leaving and strong stocks remaining active. Look at Huaxing Chemical’s single-character pattern today, but the order book isn’t strong enough. I’ve clearly stated that if the order book is less than 10 billion, then the chemical sector’s active stocks are mainly Chengxing and Jinzhi. Today, Jinzhi also opened with a single-character pattern, so the valuation isn’t attractive.
If the front ranks aren’t strong enough, the back ranks will start to diverge—that’s the script already told everyone.
Specifically, if Yunnan Energy Investment hits the limit today, it could hurt sentiment, but it exceeded expectations and hit the limit, boosting the computing power sector. The market became active.
Yesterday, Yunnan Energy’s limit was not friendly to our holdings in Hanlian, so today Hanlian hit the limit because it didn’t get the position. Yunnan Energy’s strong move today was not about position-taking expectations; the funds inside cashed out. A flaw is that tomorrow is Friday—will funds choose to hold over the weekend with 7 limit-ups? That’s why I said if Hanlian was the top today, it could still go over the weekend with 6 limit-ups, because yesterday’s strong push created a high point, making it hard to catch up tomorrow.

Today’s Clear Point:
The most prominent is AI hardware. Electronic fabrics adjusted today, so isn’t this a good opportunity to buy on the 5-day moving average?
It depends on whether you dare to buy. Those who bought Longfei and Hengtong yesterday did so at a premium today—these were bought yesterday morning. Conversely, today, Honghe and Keji have retraced about 8%, precisely testing the 5-day moving average. How many dare to buy? Those who did benefit from about 8%.
Nvidia’s earnings exceeded expectations, and today PCB and CPO stocks surged. PCB’s Shenghong Technology continued leading, CPO’s Tianfuh led, optical fiber’s Hengtong led, and electronic fabrics experienced a brief correction. Dongcai Technology, a resin segment, is a question of whether to dare to buy.

Direction Three:
Lithium mining is a typical high-to-low pullback, but some strong stocks held up well. Buying at too high a price isn’t cost-effective.
In the rare earth sector, it’s obvious that Northern Rare Earth, China Rare Earth, and Baogang are not performing well, so arbitrage opportunities are limited. Seeing these three, it’s better to temporarily give up on rare earths.

Summary:
Those who can understand the summary daily are likely to reward.
Today’s volume slightly increased, considered flat volume, indicating internal rotation of the price increase theme. AI computing hardware also supports the price rise logic. Optical fiber and CPO stocks are very strong today; electronic fabrics and chemicals are resting.
If you believe in the theme logic, then a pullback is a buying opportunity. Even if you make mistakes, losses are limited. Correct decisions could lead to a daily limit.
Since volume didn’t expand today, market sentiment didn’t spill over much. Commercial aerospace is currently just a rebound from oversold, but luckily, Hangdong took over Hangfa’s limit-up, bringing new core stocks to the forefront daily. Commercial aerospace will gradually warm up, but it’s not quite there yet.

Chuanjinnuo:
Clear arbitrage expectations. Today, took profits at a high point, with good gains. This has been explained; Chengxing’s order book was below expectations. I definitely cashed out on the rise, and the points are posted in the comments of the previous article.
Hanlian Co., Ltd.: Yesterday, Yunnan Energy’s limit-up made Hanlian less meaningful. That’s just how the market works—if you’re the top, you get the treatment. Since it was cut off, it’s destined to be eliminated. Today, it also had a high premium, quite decent. Yesterday, I bought at a low, and today I took profits.
Fenghua High-Tech: It surged about 3 points today. I mentioned in the comments that you could sell; those who didn’t are stubborn. I didn’t sell, so I told everyone the points where you could exit. Don’t blame me for poor judgment later! I clearly said in the comments that three points was a good exit.
Sanchuan Wisdom: Yesterday, it was at 3 points, today sold at -1 point, taking one share off.
My stocks all carry risks because, often, after I focus on them, I need to check Taoguba, post comments, review, and there’s a delay—at least 10 seconds or more from when I buy to when you see it. Everyone knows how high stocks can go. Today, Runze Technology consolidated for a long time before starting to rise, so I didn’t say you couldn’t follow. Still, be cautious of risks.

Newly Opened Today:
Runtu Co., Ltd.: The first stock opened today, bought at 5 points. It’s been quite a while since I posted it. I was also caught out today—early on, I shouldn’t have looked at the dye price increase news, which caused a breakout. That’s within my pattern—only participating in explosive moves, not in oscillations. Today, it surged then fell back. Many brothers followed, but don’t go all-in; diversify your positions because I do.
Runze Technology: When posted today, it was about 5 points. It consolidated for at least 20 minutes before rising again. But after review, I should have taken high-level profits, even though Runze is a core stock. The large volume today caused it to break. I explicitly said in the comments yesterday I was preparing to buy low near the close. Today’s correction is a mistake. If only following Runze, it’s not enough.
Tongguang Cable: Bought at 6 points. I clearly said in the comments not to follow because it was posted quite late.
Farsight: Bought halfway today. The optical fiber sector was strong in the morning, so I jumped on this recognizable stock.
Dongcai Technology: Bought today at 3 points, with some at 1 point. Cost was around 2 points. It didn’t surge due to electronic fabric influence, so just lower expectations. The logic is electronic resin. Feilihua is Q fabric.

Most Strong Today:

Yunnan Energy led the cloud computing data centers. Many stocks here are gas turbines, which keep hitting new highs—just a few core stocks. Keep an eye on them; the core is Runze Technology. Although it didn’t hit the limit, its strength today boosted the whole sector.

PCB stocks also performed strongly today, though copper foil and electronics were weaker, with some hitting the limit. The core remains Shenghong Technology.

Optical communication continued to be strong, led by Tianfu Communications, Hengtong Optoelectronics, and Changfei Optical Fiber.

Liquid cooling was stimulated today by Nvidia’s news and started to rotate higher, with Runze Technology as the core. Gaolan Co., Ltd. and Chuanrun Co., Ltd. are also worth watching.

State Grid:
Today, under Yunnan Energy’s leadership, it started to rise, but there’s some divergence from Yunnan Energy. Hanlian is still suspended.
If Yunnan Energy can’t continue the limit-up tomorrow, keep an eye on Hanlian’s rebound opportunity!

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