[Red Envelope] Sudden positive news, a key point tomorrow, focus on this sector specifically tomorrow

Short-term trading is an art. It uses the ever-changing market as its canvas, sharp insight as its brush, and decisive execution as its pigment. A true masterpiece is not created by chasing random fluctuations, but by precisely capturing and resonating with the market’s core “strength”—sketching direction where emotions are boiling, laying out structure as sectors rotate, and finally delivering the finishing touch at the moment individual stocks lead the surge. ————The Compound-Interest Artist[TaoGuba]

Artist’s Meal Hall: Post-trade Review:

Thank you all for your support! Since I can’t make it onto the newcomer leaderboard right now, my exposure in terms of traffic is not as good as before. So, please, family members, take a moment with your adorable little hands and help by liking, commenting, and rewarding—one-stop service—so we can boost some popularity. Every day, continuing to write post-trade review threads is also something that requires persistence, and it’s also something that needs a source of motivation. You all can provide that motivation. Thank you, family members!

Today can be considered one of the strongest rebounds in recent days. It was a gap-up open accompanied by volume strength release to repair the move. It’s a good signal. The driving factor is still the easing of the fighting situation. A large part of it is unpredictable—it’s just that it happened to line up with a relatively important timing. The halt/limit-down in high-level medical stocks can also be counted as a relatively important sentiment node in the short term. From the medical sector’s perspective, the near-term main-rising phase may temporarily calm down, but afterward there is likely still a chance for repeats. Whether a new cycle will directly start needs to be verified only after it plays out. Today’s several sectors all showed very strong performance: domestic computing power, AI applications, PCB, optical modules—these were all quite eye-catching. Like computing power and AI applications, they’re in an oversold rebound situation. PCB and optical modules are more performance- and trend-driven. Tomorrow, we need to observe whether the strong sectors today can become an important node for a potential main theme. Priority should be given to sectors that are strong today and can maintain better continuity tomorrow, providing some trading “money-making effect.” In simple terms, it’s about finding the sector that strengthens further on top strength, and achieving a resonance repair together with the index moving at a bigger level. Here, the index has a higher probability of an upward trend. Of course, it still needs to be viewed in context of actual conditions—there are many variables, especially Trump’s statements, which can change a lot of things. This is more about following the market. Once the market becomes clear, a right-side entry is also possible.

Driven by positive news from overseas, the index directly showed a gap-up and high open. During the call auction, it also had a surge in volume—after waiting so long, incremental capital finally entered the market. This also coincided with a volume expansion big bullish candle node. In the real sense, it filled the prior gap, which is a very good signal. In the previous period, the index had a trend of building a second base. But today, the situation suddenly improved, and the index chose to break upward. Whether the index formed a second dip or directly chose to break up, fundamentally it doesn’t change the expectation that the index will keep pushing higher this year—only the difference is in timing and in the path of price action. From today’s rise and volume, it’s clearly possible to feel the confidence that the index chose the upward-break trend. As for those who missed the trade today due to stepping out at the wrong time, don’t be too discouraged. The essence is that you need to respect the price action. However, the overseas news changed some details. Being in cash earlier to avoid a big drop was fine. Missing the trade today is also not a problem. Even ordinary retail investors, and institutions as well, have a considerable number who missed out. If the index can continue upward, there are many right-side buy points. There’s no need to纠结 about missing today. The volume successfully released today. Although in the short term it won’t return to the previous extreme low-volume state, overall it likely still can’t maintain a行情 of 2.5W亿 every day. Today can’t directly confirm that it’s the market’s turning point—you need further follow-through to truly confirm. So for tomorrow: on one hand, we can see whether this rebound is effective; on the other hand, we can see which direction is likely to become the main theme going forward. For the index, the expectation is to maintain an ongoing repair, continue closing with bullish candles—this is the best case.

Analysis of Today’s Market:

From the index, the sudden ceasefire news early in the day led to gains across the board overseas. The index here also gapped up and rose strongly. During the early-session call auction, the market directly had a blowout in volume—there was even an outlook that the full-day volume might reach 40W亿. You can imagine how much volume was exploded in the call auction. After the consecutive extreme low-volume period, the call auction once again saw an extreme volume surge. As mentioned earlier, after extreme low volume, there must be a reversal. Since the early session still added so much incremental volume, the confidence for intraday long positioning is there, so there naturally wouldn’t be a “rally then fade” pattern. From a volume perspective, the total turnover of both markets was 2.43W亿, an increase of 50.8% from yesterday. 820.1B—this volume has returned to the previously normal level. From a sentiment perspective, there were 122 stocks hitting limit-up, 4 hitting limit-down, 4878 stocks advancing, and 292 stocks declining. Yesterday’s limit-up stocks averaged a gain of 1.84% today overall, continuing a broad “rising across the board” market. The money-making effect is obvious. In the short term, there is also some loss-making effect: yesterday’s board-pick trading capital may see some losses, mainly because yesterday was a batch-driven rally in the chemical sector.

From the sectors, the index rose in a one-way move, and the market rotated strongly. AI applications, after being oversold, saw a sharp rebound and strong repair. Sector stocks saw batch limit-ups. In sector weights, Blue Label (蓝色光标) hit a 20cm limit-up; the computing power direction kept fermenting—Hangzhou Steel (杭钢股份) had a large order one-word limit-up. In the AI hardware direction, the PCB branch stood out. A weighted stock, Dongshan Precision (东山精密), was strong with a one-word board. The whole sector followed suit with many stocks jumping higher. In the optical module branch, multiple stocks reached new highs again. Sectors such as storage chips, gas turbines, and commercial aerospace all saw strong repairs. Meanwhile, recent hot sectors like medical and oil & gas, as defensive sentiment weakened, showed a pattern of divergence and weakness.

Artist’s Sector Discussion:

1. Medical
Although the medical sector has recently risen in resonance with the index, when Tianjin Yaoye (津药药业) kept expanding its height, the sector did not receive further reinforcement. So, to a certain extent, Tianjin Yaoye’s last one or two boards have taken on a “high-position crowding” characteristic. In addition, medical itself also has a certain level of defensive sentiment. For example, last night the U.S. stock market’s medical sector was relatively strong. But the U.S. market closed at 4:00 p.m. If, by the time we open in the morning, Trump speaks, then at that moment the defensive attribute of medical on our side basically isn’t very useful anymore, including the crowding attribute of high-position Tianjin Yaoye, which also collapses at the same time. The medical sector’s overall price action even failed to exceed the broader market. When you get it wrong in the medical sector, this is not a personal problem. Under last night’s situation, no one could predict that it would directly shift to a ceasefire. After all, the tough talk had been pretty tough. Whether the index can directly turn strong and start a trading opportunity is unknown. So, in the short term, the medical direction will definitely still have some chance for back-and-forth. This includes high-position Tianjin Yaoye as the recent “break-the-deadlock” target; most likely it won’t directly go for an A-kill either. Going forward, we still need to respond specifically based on the index’s price action.

2. AI Hardware
The AI hardware direction has shown relatively good performance recently. Today’s broad rally can’t be missed either. During the early-session call auction, Dongshan Precision (东山精密), with such a large float, was directly lifted to a one-word open. Naturally, PCB’s strong performance today is reasonable. Mingpu Optical Magnet (铭普光磁) also opened one-word, and Tongding Interconnect (通鼎互联) also had a high open and quick board. However, because Ziguang Feiyan (长飞光纤) has a crowding attribute, in today’s行情, Ziguang Feiyan’s performance wasn’t that strong, which resulted in the whole sector not being as eye-catching. The optical module direction is basically those few core tickers, with a process of making new highs in rotation; overall it’s still a trend-type行情. For institutions, it’s necessary to pay attention to earnings expectations. Whether they continue to launch another institutional trading wave is not impossible. In the short term, you can focus a bit more on PCB. PCB’s position is relatively low, and earnings expectations are also generally in the realm of exceeding growth. For the optical module direction, you can look at those that still haven’t made new highs—there are plenty of names that have just broken out or are about to oscillate in a box range, and those are worth keeping in mind. For the fiber direction, you need to anchor on the走势 of Ziguang Feiyan: whether the crowding attribute has broken down, or whether it will continue to push an institutional trend-type行情.

3. Computing Power / AI Applications
The computing power and AI applications sectors are undoubtedly the strongest today. During the early-session call auction, Hangzhou Steel (杭钢股份) was still directly set to a one-word board. Aoruite (奥瑞德) and Lianhua Holdings (莲花控股) also quickly locked boards after the market opened. In the AI applications direction, Guangdong Media (粤传媒), Dasn Intelligent (达实智能), and others also quickly boarded after the open. The sector’s core stock, Blue Label (蓝色光标), also hit a 20cm limit-up. Computing power and AI applications fermented throughout most of the day, and the strength is still solid. But purely from the sector trend, AI applications falls under an oversold-trend category. Recently, news around deepseek has been fermenting; the computing power sector overall is also in an oversold state. Several capacity core stocks within the sector are in an oversold stabilization posture. So whether it can continue to push out strength still needs to be discounted. Even though today’s fermentation is decent and the sector is strong, it still needs to strengthen again tomorrow to qualify for discussion about a sustained follow-through行情. Today’s sector fermentation overall is fairly sufficient, with both front and back rows showing performance. Whether tomorrow continues to strengthen or starts differentiating, it’s possible to try swapping from back rows to front rows. Once it can’t produce a certain level of sustainability, the back row will definitely topple faster. On individual stocks: Hangzhou Steel is a one-word fermentation stock from the sector and can be taken as a marker of sector strength, also a low-position start. Aoruite was the earliest to rotate into a turnover board; its stock behavior in the preceding period wasn’t great and it hadn’t really shown連板行情 for long, but recently it has improved. Lida Trading (利通电子) has expectations for a second wave (二波). If the sector can continue to strengthen, Guangdong Media has some advantage in “having the lead position” (身位优势), and it also boarded very proactively this morning. Leidou Shares (利欧股份) and Blue Label are old “dragon” stocks for AI. The others are basically familiar faces too, but basically they’re still within the oversold category. Specifically, we still need to see whether the sector can continue to strengthen tomorrow. Priority is still to participate in the front row; if you can’t get into the front row, then appropriately do some arbitrage.

4. Commercial Aerospace
Commercial aerospace had favorable news yesterday: the successful launch of the 7th batch of networking satellites. Combined with today’s overall repair of oversold sectors in the index, commercial aerospace at the time had fallen right alongside AI applications. So when repairing AI applications today, commercial aerospace naturally also had repair expectations. When the whole sector performed well, only Tianyin Electromechanical (天银机电) closed down in green. In recent times, Tianyin Electromechanical also counts as a crowding-type name within the sector. With the index surging today, the crowding attribute naturally fades. In the sector, you should still focus more on the relatively more proactive names in recent times, like Shenjian Co., Ltd. (神剑股份), ZaiSheng Technology (再升科技), and Tongyu Communications (通宇通讯), as well as Julijisu (巨力索具). Tongyu Communications saw action earlier than the sector last week when it started boarding. Julijisu also snapped boarded on the afternoon open, and it is also a core name that led earlier in commercial aerospace. Overall, the sector is still within the oversold range. There have been some swings recently, but whether it can continue to strengthen is the same principle: it needs to be validated by continued strengthening on the next day.

Every morning there are message-based highlights and精选 lists of core stocks. Family members, follow the Artist and keep up with the steps—don’t get lost. The early-session content is basically the sectors that I’ve sorted out based on what the market has expectations for!! Family members, please like the post; you can also reward points or add oil!

I’ve gotten used to hearing too many grand principles and market theories. Many people still don’t know how to put them into practice. So I’m sharing my own “Strength Pyramid System.” It can bring you growth, and it’s worth taking seriously. People who always want to get things for free with no cost will always only be stuck on the surface layer of trading, never truly reaching the original intent. Those of you who hope to find meaning and happen to pay attention to this post shouldn’t stay lost in confusion. But the market will evolve nonetheless. In the same way, our “Strength Pyramid” system will also evolve. In the future dynamic changes of the market, I’ll also add new “dimensions” to it based on different market conditions, making it more suitable for different market cycles.