The index surged then pulled back, power stocks heavily reversed, and tomorrow will focus on recovery and reducing positions.

There’s no god in the stock market—only survivors**,**Slow is fast, and less is more; stable compounding is far more reliable than becoming rich overnight

The biggest highlight intraday is the “Heaven-and-Earth” (地天) pre-market setup
The 地天 setup is a reference quantitative approach summary; focus intraday on the mentioned portion

The Shanghai Composite Index is trading in a range around 3850–3955. On one hand, volume isn’t sufficient; on the other, there’s no clear main theme driving sentiment. Finally, as Qingming Festival is coming up, people are worried about negative news over the holiday, so funds won’t make a major push. In the short term, it’s still mostly range-bound trading.

For intraday average prices, micro-cap stocks, the Shanghai Composite, ChiNext, and other indices have all fallen below the 5-day line. Storage chip stocks are leading the decline, mainly because Micron Technology and SanDisk fell sharply, leading to a low open. 佰维存储 and 德明利 are also selling off aggressively. Optical communication is adjusting as well, influenced by the index, but optical fiber has better follow-through because leading “front-row” popularity names—长飞光纤, 杭电股份, 法尔胜—are holding up better. If a future trend has a bullish reversal (back-to-back rebound), then technology will likely lift, and the index will also move higher. From a bearish perspective, the “three-person group” is catching up on losses, dragging the index lower. Currently, above the 5-day line, both price and volume are holding up fairly well, so in the short term I don’t look for a selloff. For day-trading, only if it breaks below the 5-day line again would I look for downside.

There’s no strong directional signal in the opening auction. Baijiu and the earnings-growth sector after oversold are rebounding and rising. As 神开股份 秒板 (a quick limit-up) advances to a 4-board streak, commercial aerospace gets ignited and jumps higher; 中恒设计 tries to hit the bid; 中化岩土 and 顺灏股份秒板. As funds start arbitraging based on more recognizable names—平潭发展 and 巨力索具—recycling follows up and charges for limit-ups. In the afternoon, the index dips; a batch of individual stocks rally then fade. On the west side, the market tests moves: popular names like 西部材料 turn green; 再生科技 fails to hold the board and explodes off the limit. 神剑股份 is pulled down by the sector and then explodes off the board, but rebounds quickly to re-seal. Tomorrow, be cautious:神剑股份 could rise then fall back and “catch up with the selloff.”

The pharmaceutical sector’s performance is becoming increasingly “insular.” 津药药业 makes a 2-to-3 board 秒板. The leader 美诺华 goes from 5-to-6, but it opens low and gets “shut down” with a dull sell pressure. Regarding 美诺华’s move, it’s also within expectations—its selloff was already expected because yesterday’s power sector had a big drop due to 豫能控股 extending regulatory oversight. 华电辽能 is the 8-board streak direction. But 美诺华 is only coming from the highest 5-board yesterday. In terms of sentiment, there’s a risk of chasing too high (risk of “fear of high valuations”). On the board, 美诺华’s convertible bond yesterday saw a sharp spike and then a reversal lower, so 美诺华’s adjustment is within expectations; the “above-expectation” part is the back-of-day trend stock 万邦德 making a reversal rebound. The pharmaceutical sector isn’t easy to handle. Going forward, we should watch the “3 people”: 津津 at the 3-board level (the “3板”), 万邦德 as the trend follower, and 美诺华 as the gap-down/board-failure. As long as two of them print big bullish candles, the sector will likely repeat the cycle.

For the lithium battery direction, it’s continuing disagreement. The main reason is that the leader 融捷股份 opened flat then went lower, with no surprise rebound/limit-up reversal. During the day it nearly revisited the 5-day line; toward the close, some funds took the lead to grab positions early. If tomorrow prints a big bullish reversal (大阳) and rebounds, then it’s right; if it doesn’t, then it’s a small loss exit. For trades with good cost-effectiveness: from a sector perspective, lithium batteries aren’t strong—because only 融捷股份 has pushed to a 4-board, and there aren’t many little followers to support. So the rally in lithium batteries is more about reducing the level of attention. If it doesn’t rally and instead breaks below the 5-day line, you should reduce attention even more.

Summary:
1、This is a choppy, index-led market with no main-theme catalyst, so most sectors follow the index’s rhythm. Only a small number of individual stocks are group-huddling. Overall, use a “buy the dips, sell into strength” mindset. First, for the Shanghai Composite, watch 3850 as support. If it breaks below 3850, then wait for 3800 before paying attention to opportunities.

2、Tomorrow is expected to see a repair. Whether it’s a strong repair or a weak repair is unclear. Refer to the micro-cap stocks’ trend and whether trading volume expands. As long as micro-caps don’t print a big bullish candle, any rally should mainly be used to reduce positions, and then wait until an “ice point” before paying attention again.

Final risk warning: All the information above only represents my personal viewpoint and does not constitute any investment advice. If you buy or sell based on it, you bear all risks and losses.

See you tomorrow pre-market…