Hardware and software. Livermore: 3.10 Review Record

Briefly summarize today’s market. [Taogu Ba]

Today’s market rally was mainly driven by hardware sectors, with concepts like advanced packaging, communications, PCB, and lithography machines showing gains. There were also many limit-up situations in computing power and PCB sectors. Robots attracted some capital today, but the momentum was still lacking. Although the market overall rose today, various funds did not strongly push the rally, indicating that a bullish market sentiment has not truly emerged. Given this, we should pay attention to potential divergences in the market tomorrow. Some of the recent gains today should not be overly optimistic.

I still prefer to focus on the low-priced computing power sector, which also has some continuous limit-up stocks. However, overall performance today was weak. The market moves in stages; during a rally, if a stock rises for three consecutive days, it often enters a correction phase. After the correction, the market can again reach new highs. Besides choosing strong themes, it’s important to hold onto stocks that can sustain the initial momentum.

Stocks that were previously strong, after being suppressed in recent trading days, showed a bottoming and rebound yesterday, accelerating today. This indicates market rotation. Currently, besides the ongoing rally in the computing power sector, stocks that previously surged strongly and then fell sharply—if they haven’t started rebounding yet—are now good opportunities for bottom fishing. Don’t think that a decline means the stock is bad; some major trend upward movements, when met with market negative news and being unfairly sold off, can be good entry points. For those not following this direction, stick firmly to your chosen computing power sector, which is currently a focus of the market. Hardware and software sectors alternate in rising, so pay attention to rotation and operate at high and low points accordingly.