Through wind and rain, the main storyline is waiting for you! The loyal fans of the steadfast main storyline have made even more—and made a huge profit again?

Is everyone making big gains again today? The market rhythm has indeed been pretty good lately, even though I went on vacation, I’ve been sharing a lot with everyone!!! But I also see that many loyal followers haven’t kept up with our pace in time, which is a bit regrettable. The platform has been saying that our data isn’t the top trending, hearing that really makes me feel disappointed. Our level is the best, but the data isn’t. After all this free sharing, do you still want me to keep sharing? If you want me to continue updating posts for everyone, please help support the data in the future??? [Taoguba]

Actually, no matter which army you belong to, I hope everyone can learn to think independently. Here, I’ll talk about the market rhythm to help everyone sort out the current mainstream sectors. I think if you just want to beat inflation or make your life a bit more comfortable, doing everything around the main line and using free posts to grasp the market rhythm is completely enough. If each main line can capture 20%-30% profit, and you have 5 main lines a year, just do the math—how many times does that multiply? If you want to become a hot money trader and achieve explosive growth, you really need to study carefully, adjust your mindset, and improve your cognition. When the market was falling due to negative news earlier, I kept emphasizing that 3800 points is hard to break below. I said this was the “golden pit” in the first half of the year, and I believe everyone still remembers. But this round of market actually left many people missing out or even facing negative feedback. Regarding the overall trend and direction of the market, and how to participate after the market started on April 8th, I wrote a total of 8 articles.

On April 8th, I pointed out that the current market was beginning to shift, and advised everyone to focus on the main line for trading;

Starting April 14th, I shared ideas on main line trading for those who missed the initial move;

On April 16th, when everyone was discussing various themes, I still firmly urged everyone to concentrate on the main line, focusing on the core of large-cap trends;

On April 21st, when Yingweike’s earnings disappointed and hit the limit down, I continued to remain optimistic about the tech sector, sharing trading ideas on high-performance computing companies like Hanliang Electronics and Hongjing Technology;

Every process requires thinking. Improving trading mindset and sharing ideas are equally important. Continuous thinking will eventually translate into understanding, which then turns into account profits!!

Since April 8th, I almost every day share a sentence: “Follow the main line if you have one.”

The first phase judged the main line as the high-quality tech earnings sector, and identified Dongshan Precision as the focal point of this round of market.

1. First, timing is definitely based on the expectation that the market is starting to move, which is when the “focal point” appears. The “focal point” comes from the core stocks that stabilize investor confidence during the market’s initial phase. Dongshan Precision’s first limit-up on April 8th fits the characteristics of a strong start.

2. Next, we need to analyze its unexpected growth and the logic behind the rise: Dongshan Precision’s rally was driven by doubled earnings, with the entire market showing a strong one-word buy-up. At this point, we can review previous stocks that hit the one-word limit-up due to earnings, compare their performance, and judge whether they exceeded expectations. Before Dongshan Precision, Demingli was also a core stock with popularity, and their current market positions are similar, so comparison helps judge market changes.

3. Finally, comparing Dongshan Precision and Demingli, we see Dongshan Precision exceeded expectations, confirming that the market currently favors tech capacity + high-quality stocks. The comparison process is as follows:

1. Earnings forecast: Dongshan Precision’s forecasted growth was not as high as Demingli’s, but Dongshan Precision performed better in the market, which is an over-expectation one.

2. Market cap size: Dongshan Precision has a trillion-yuan market cap, Demingli has a hundred billion-yuan market cap. Larger market cap makes it harder to hit the limit-up. Dongshan Precision hit a one-word limit-up, Demingli’s stock was sold off. This is an over-expectation two.

3. Stock height: Both experienced a big rise previously, and both could see profit-taking. Demingli’s profit-taking was realized, but Dongshan Precision’s was not. Why? Because their timing windows differ, which shows that since April 8th, the market has been very supportive of tech capacity + high-quality stocks.

The second phase judged the main line as the expectation of a rebound in domestic chips, including high-level storage chips and GPU chips.
High-level storage chips are well known as Demingli, Jiangbolong, Xiangnong Xinchuang, and Baiwei Storage;

The core of GPU chips is Haiguang Information;

The domestic封测 (packaging and testing) leaders are Tongfu Microelectronics and Changdian Technology;

I used Doubao to find some stocks with logical backing. For example, on April 27th, I asked Doubao what the core stocks of GPU were. The first response was Haiguang Information, and I continued to analyze related stocks in the industry. The details are very comprehensive, and everyone can try using this method to find authentic stocks.

The thinking process for the second phase judging the main line as the expectation of a rebound in domestic chips is as follows:
Starting April 8th, I identified the main line. Over three weeks, as long as you participated around the main line, you would experience at least one big bullish day each week. On April 23rd, the index hit a new low, and everyone said the market was retreating, but I clearly told everyone not to look for a retreat, the index would hit new highs again. When the market entered the second phase, focus on the second phase’s main line. Looking back now, this foresight—whether starting from 3800 points or the pre-holiday trading—was held by a very small minority, fitting the pattern of 7 losing, 2 breaking even, 1 winning in trading. Why have I been telling everyone that the second phase’s main line is domestic chips? Because from April 23rd to April 30th, the last trading day before the holiday, in six trading days, although the market was rotating with divergence, the strongest sector was domestic chips. If the market isn’t retreating, according to the “Pre-Holiday Trading” theory I developed, domestic chips are likely to explode after the holiday. That’s one of the reasons I was firmly optimistic about domestic chips before the holiday.

Post-holiday, the performance of domestic chips was as expected, with a big breakout. Many followers might have missed the rhythm and missed out, but I told everyone that domestic chips are a resonance index. After market divergence, buy the dips in domestic chips. Why call it a resonance market? As shown below: Using the definition of resonance, the market’s pre-holiday trend was a box oscillation within the red frame. When the first candle after the holiday appeared, the index was close to breaking new highs, meaning the short-term trend shifted from strong oscillation to a breakout expectation. The big bullish move that indicates this change is called resonance. Now that the index has broken new highs, everyone can see that domestic chips once again meet the judgment criteria and have become the strongest sector.

Back to today’s market, everyone’s biggest concern is the weekend’s fermentation. Today’s gap-up was realized! However, I told everyone at the opening that domestic chips would be the strongest today. While everyone was judging the index to retreat and preparing to defend, I continued to remain optimistic about domestic chips. Changdian Technology and Lankui Technology are new starts today.

First, from the macro perspective, the index jumped past 4200 points with a big volume. Knowing that 4200 points is a resistance, but still jumping over the previous high, this clearly shows a strong attitude. No need to worry about a pullback; after profit-taking, it’s an opportunity to test strong stocks.

Second, from the stock selection technique of choosing the strongest intraday, compared to Changdian Technology, Tongfu Microelectronics, and China Great Wall, Changdian Technology was not as high or as strong before, but today, during the market’s profit-taking, it fell the least and quickly led the rally after stabilizing, confirming it as the intraday core of strength.

Third, if you analyze more carefully, you’ll notice a phenomenon: as shown below, after the index surged and then pulled back today, it retested 4200 points and stabilized. At 10:30, Changdian Technology hit the limit-up again, which again confirms our judgment.

Facing the current market with continued volume-driven rises, the index fully aligns with my previous analysis. The pullback caused by external negative news is a “golden pit,” and the trajectory will show changes, but the overall direction will not. The value of this statement is still rising. Now that the 4200-point target has been met, the market may oscillate around 4200 for a few days. When the market rises with volume and has a main theme, don’t be so retail-minded—focus on the main line. Keep firm on the main line, which remains domestic chips. As domestic chips strengthen, the previously most涨幅 (gains)光通信 (optical communication) will also tend to strengthen. Here, everyone should note that signals of partial profit-taking are appearing at high levels. I mentioned early in the session that Litu Electronic, representing both the computing power sector and the market’s tech trend at high levels, indicates that high-level chips are starting to loosen. Therefore, I prefer stocks that start at low levels, like Changdian Technology and Tongfu Microelectronics, which are in the second phase of their rally.

Overall, as long as the market doesn’t experience severe volume shrinkage, profit-taking doesn’t mean bearishness. Don’t foolishly switch to defensive sectors. Focus on the main line. From the market performance on May 6th and May 11th, it’s clear that the index is being tightly controlled. Followers who have been missing out don’t need to rush. A market with high control can easily have sudden sharp declines followed by quick recoveries. When that happens, remember to check my comments—if I say the market is turning bearish, don’t blindly switch. A quick switch to mini positions is more appropriate! If I don’t say bearish, keep the core mindset: follow the main line!!!

That’s all for today. The market is good, but surprisingly, the number of tips each day has never exceeded 100, which is a bit disappointing. I call on everyone to be more active—help push the data to the top of the heat list every day. Lastly, I wish all followers can set new highs in their accounts during this rally.