The market continued to rise on May 12th, focusing on tech sector trend-leading stocks + high-low slicing!

Hello everyone, stock gods! [Taogu Ba]

Currently, the market has formed an 8-day winning streak with strong momentum. From the trend and volume structure, the trend is expected to continue. It is anticipated that this Friday could challenge a 12-day rally, and tomorrow will also see a 9-day winning streak. I have always pre-judged and accurately executed the rhythm of the index and themes: on April 8th, I clearly identified the golden pit opportunity in the market, continuously advised to buy on dips and follow the trend; on April 28th, I first analyzed the internal high-low logic of AI hardware, focusing on semiconductor chips, and so far, the sector has been strong for nearly seven days. Looking back at April’s market, the main performance themes combined with CPO and PCB tracks have produced many trending bullish stocks. During this period, I kept sharing core targets, and anyone holding steadily for thirty trading days generally gained over 50% in wave profits. However, most investors tend to frequently switch stocks, chase gains, and sell on dips, turning the big trend into a short-term day trade. When individual stocks experience short-term volatility, they easily cut losses, lacking holding discipline, ultimately missing the entire main upward wave. It might be helpful to review and compare whether you also have the common problem of not being able to hold onto trend stocks.

(Today, retail funds and speculators are flowing out, but institutions continue to buy heavily, so the index may keep rising)

1. On May 11th, sentiment and capital resonance, the tech mainline fully explodes

The market trend on May 11th fully aligned with previous predictions. The index opened high and moved higher, breaking through and stabilizing above 4200 points. The core themes rotated clearly, and capital deployment logic was evident. The market showed a distinct pattern of the index as the platform and technology as the star performer. From the driving factors, external expectations and internal industrial logic resonated strongly: the continued rise in expectations for Trump’s visit to China greatly boosted market risk appetite, attracting accelerated inflows from foreign and domestic main funds, pushing the market to break out; internally, policies promoting new quality productivity kept pushing forward. The AI industry chain, as a core growth track in technology, attracted concentrated capital support, becoming the main driver of the index’s upward movement.

In the market, the AI computing power industry chain continued to explode across the board. Semiconductor chips, CPO, PCB, and liquid-cooled data centers led the rally, with high-low sector rotation reaching its peak. Semiconductor chips surged with multiple stocks hitting daily limit-ups, including Strong You Technology, Changchuan Technology, Changdian Technology, Shenzhen Huqiang, Fenghua Gaoke, and Kangxin New Materials, among others. Stocks in storage chips and advanced packaging sectors also rose in bulk, with core leaders continuously gaining capital inflow, maximizing sector profitability. The CPO sector maintained its strength, with Taijing Technology showing a six-day, four-limit-up streak, and stocks like Guangxun Technology, Optoelectronic Co., Bojie Co., and Woge Photonics either retracing then rising again or starting from low levels to catch up, forming a complete internal echelon. The PCB sector also performed well, with Shandong Fiberglass hitting five limit-ups in eight days, Zhuolang Intelligent four in nine days, and stocks like Hongban Technology, Baoding Technology, Han’s Laser, and Bomin Electronics taking turns to strengthen. Capital shifted from high-level core stocks to low-level rebound stocks, a very clear feature. In the computing power data center direction, Seagull Co., Dayuan Pump, and Binglun Environment steadily rose, with supporting tracks like liquid cooling and computing infrastructure following suit, forming a complete rising pattern of the computing power industry chain.

2. On May 12th, trend continuation, high-low sector rotation in AI tech remains the main line

1. On May 11th, the index held above 4200 points and continued upward. The strong market pattern was established. On May 12th, the A-shares are likely to continue oscillating upward, with the index expected to rely on the 4200 support to push higher. Market sentiment will stay high, and capital support for the tech mainline will not change. The 4200 level has shifted from a previous resistance to a strong support. Trading volume across the two markets continues to increase, and external capital inflow accelerates. The index’s correction space is limited, and it is likely to maintain a high-level oscillation and gradual upward trend. Even if a short-term minor pullback occurs, it is a normal shakeout in an upward process and will not alter the overall upward trend. From sector rotation, the AI industry chain’s hard technology remains the core theme. Semiconductor chips, CPO, PCB, and liquid-cooled computing power will continue to dominate the market. Capital will further deepen high-low sector rotation, with high-level stocks consolidating and low-level rebound stocks taking turns to rise, continuing the pattern of rotation.

2. Clear high-low sector rotation: After continuous gains, core tech stocks at high levels have accumulated profit-taking, and on May 12th, a divergence is likely. Some stocks will enter a retracement and consolidation phase, adjusting around the 10-day and 20-day moving averages. Meanwhile, low-priced, lagging tech stocks and AI application-related targets will receive capital inflows, starting a rebound. After short-term accumulation, the AI application sector may see a new wave of upward opportunities after correction, becoming a secondary leading theme. For stocks in the tech mainline experiencing a correction, focus on trend dips to buy low around the 10-day and 20-day moving averages. Strong tech stocks that have pulled back after hitting limits, as long as the main theme logic remains unchanged and trading volume does not shrink significantly, the dip to key moving averages is a good second entry point. Especially in semiconductor, CPO, PCB sectors with strong fundamentals and high capital attention, rebounds supported by moving averages are more certain.

3. For low-level rebound targets, focus on high-quality low-priced stocks in PCB and AI application sectors, as well as segments within the computing power industry chain that have not yet surged significantly. These stocks generally have lower valuations and higher safety margins. Under the high-low sector rotation logic, they have sufficient rebound momentum and lower risk compared to high-level stocks. Also, pay attention to sector rotation opportunities to avoid over-concentration, and allocate resources across different sub-sectors of the tech mainline for balance.

The core themes on May 12th remain:

AI industry chain (semiconductor chips + CPO + PCB + liquid cooling), cyclical sectors (rare earths + new energy storage + photovoltaics), and commercial aerospace

1. From 1 to 2: Guangdian Co., Tiantong Co., Cangzhou Pearl

2. From 2 to 3: Zhuolang Intelligent, Guangxun Technology

3. From 3 to 4: Baoding Technology, Shandong Fiberglass

4. From 4 to 5: Datang Power

There are so many good stocks, just hold steady with what you have each day. No need to switch stocks every day. The market is very good now, and even if you get caught, you can recover quickly. Don’t cut losses, and don’t treat trend bull stocks as short-term day-trading picks! Hold onto trend-based wave stocks firmly.

Investors must firmly grasp the tech mainline, follow the capital rotation rhythm, rationally view sector differentiation at high levels, avoid blindly chasing gains or selling on dips, and focus on low-level buy-the-dip opportunities and rebound stocks. Keep a close eye on market volume changes and external expectations, act in accordance with the trend, and protect gains in a strong market while seizing high-probability opportunities. This way, you can take the initiative in this round of tech’s main upward wave. From the market’s operational law, most strong core stocks in the AI tech mainline tend to show a clear pattern: after hitting three limit-ups or gaining over 30%, main funds will clear out trailing and profit-taking positions by breaking the board, then retrace to the 10-day moving average for a shakeout, and then start the second wave of gains. The more robust trend stocks rely on support from the 5-day and 10-day moving averages to continue rising, with strong support from moving averages being a key technical reference for subsequent operations. Meanwhile, although the AI application sector was not the leading theme today, some funds have already started building positions, and the sector’s momentum is evident, laying the groundwork for future rotation.

Trend wave stocks are on the move!

Let me also explain the “air refueling” pattern again

This is my personal understanding today; I do not recommend individual stocks. The stock market carries risks, so invest cautiously!