5.11 Review: Technology follows the trend, the mantis transforms into a cockroach

The core logic of the market today couldn’t be clearer: technology trends are king. Over the weekend, storage and CPU sectors collectively strengthened, and today A-shares followed the trend to reinforce the main tech line, with all funds focusing on this; other sectors saw rotation but overall heat could not compare to technology, especially storage and optical modules, which performed most prominently.

The current tech sector has already entered a bull market trend, characterized mainly by trend-driven movements rather than continuous board hits. Market trading volume is sufficient, making it ideal for large capital deployment in the tech sector. There’s no need to fixate solely on continuous board targets; instead, clarify the core logic behind market trends—this rally is driven by the reflection of US tech stocks, SK Hynix, and Samsung’s movements, perfectly aligning with current capital preferences.

Today’s tech sector rhythm is very healthy. Even if there are divergences after subsequent peaks, there’s no need to worry. Once divergences are digested and selling pressure alleviated, the sector will continue oscillating and strengthening. The index maintains a healthy upward structure. The big trend in technology remains intact. Here’s a review of key points:

1. Main Tech Line

In this round of tech rally, the previous extreme continuous board pattern actually dragged down the sector rhythm, and core targets in CPU direction experienced sharp rises and falls. But the large-cap sectors are far from over; they are likely to continue oscillating.
Meanwhile, leading storage stocks are trend-based, and today they became the strongest branch of the tech sector, with very high capital recognition.

(1) Chips - CPU

The core sentiment within the chip sector still centers on Great Wall and Mantis.
Looking at Great Wall, today’s bidding volume was 400 million yuan, opening 6% higher. The opening strength was not weak, but after opening, it was collectively cashed out by low-buying funds from Friday. It should have strengthened but weakened, a typical weak signal. Today’s high open and low decline of Great Wall will likely weigh on chip sector sentiment tomorrow.
It’s expected that Great Wall will likely open lower and fluctuate underwater tomorrow. Focus on whether, after intra-day divergence, it can stabilize and lead the sector to turn divergence into consensus; if it closes lower again, the sector’s weakness probability will increase further.

Looking at Mantis, it performed much stronger than Great Wall in the morning. The high open signaled bullish intent, and before breaking the 0-axis, it quickly surged, completing a turnaround within ten minutes. The core purpose of the turnaround was to assist Great Wall in recovery; their movements are highly correlated. If Great Wall can successfully rebound and start a second-stage main rally, Mantis, with its early market funds and high market recognition, is likely to gain a premium tomorrow.
Zongyi attempted a high in the morning to rebound, with the same bullish intent. It did not break the 0-axis and quickly rose, completing a turnaround. The funds’ active participation was the main driver. Unfortunately, Great Wall continued to underperform, with large funds selling after the open, and quant funds unwilling to lift such obvious high targets, leading to a full retreat.
This weakness in Great Wall directly caused Mantis and Zongyi to jump off and fall back in the afternoon. But even if Mantis breaks the board, there’s no need to panic. If it opens lower tomorrow and falls into a high-value zone, funds will still enter to support. As long as it doesn’t hit the limit down or close below the five-day moving average, there’s no need to be blindly bearish.

(2) Computing Power and Optical Modules

In computing power, core stock Tongtong Electronics initially approached a limit down after high-level divergence at open but rebounded strongly in the afternoon. As the current leader in the computing power sector, it must open high in red tomorrow to stabilize sector heat, focusing on whether it can continue its strength.
In optical modules, Guangxun Technology opened high in the morning, oscillated steadily throughout the day, and firmly hit the daily limit in the late session, showing very strong momentum.

(3) Storage Chips

Today, the STAR Market stocks in storage led the way with strong signals, with main board stocks like Dapu Micro and Demingli closely watching their performance. The Korea Semiconductor ETF (513310) suspended trading in the morning and closed strongly at the end of the day. Whether it can continue its strength tomorrow is worth watching. The storage sector is recommended for long-term tracking; it’s a main line within the big tech theme, with promising opportunities ahead.

2. Review of Other Sectors

(1) Batteries

The core stock with high recognition in the battery sector is Yongshan. Today, it continued low open and rose, replicating the trend pattern after Bo Yun’s break. It is likely to oscillate upward along the five-day line, with good intra-day support. Holders can continue their positions.
Most stocks in the battery sector stabilized today, with Tian Ci, Enjie, and Tianhua as core mid-caps, all closing with positive signals near the 10-day line support. Considering tomorrow’s expected divergence in the chip sector, the battery sector may see capital rotation and recovery opportunities. Fortunately, no funds rushed to the end of the day today, increasing the probability of battery recovery tomorrow. Focus on Yongshan and core mid-caps.

The veteran stock Shengyang opened flat in the morning without premium, consistent with the previous failure of battery inflows on Friday. It dipped about 4% after opening but did not see volume increase, indicating a false shakeout by early funds. Coupled with the overall market sentiment warming today and frequent intra-day long-legged moves in stocks, Shengyang at low levels presents a good buying opportunity.

In the afternoon, a key detail: as Shengyang surged, Mantis simultaneously broke the board, showing a clear fund tug-of-war effect. Mantis’s strong rebound in the morning indicated the second wave of high-level momentum isn’t over. Shengyang’s low-level high-low logic no longer applies, which is the main reason for early profit-taking. Shengyang’s afternoon rise diverted tech funds, and despite causing Mantis to break the board, Shengyang itself did not reach a second-board level. Tomorrow, they are likely to continue their tug-of-war. If the battery sector as a whole supports, Shengyang still has a chance to perform.

(2) Commercial Aerospace

Despite strong gains in the aerospace sector on Friday and pre-market launch benefits, today’s commercial aerospace sector overall remained average. As a secondary main line, it generally waits for the tech, chip, and computing power sectors to fully ferment in the morning before starting a rally in the afternoon, serving as a transitional link. When tech and chips diverge tomorrow, aerospace may see rotation opportunities.

The core stocks today include Bo Yun and Aerospace Development, with internal rotation continuing. In the afternoon, as the tech main line weakens, aerospace stocks like Aerospace Development have led the sector for two consecutive days. Monitoring their sustainability is important. The sector has yet to produce a clear leader; core stocks are concentrated in a few high-recognition stocks, so continuous tracking is advised.

(3) Computing and Power Collaboration

Today, the newly added computing-power and electricity collaboration sector performed better than expected. The key stock, Datang, which had a high-volume limit-up on Friday, turned weak and then upgraded to a four-board today, driving the same-named stocks to rally. This signals noteworthy capital activity.

Previously, the market viewed Datang as a rebound target for Huadian’s second wave, which operates contrary to tech and index logic. When tech diverged and Mantis broke the board in the afternoon, Huadian also broke, confirming this logic. But Datang is different; it dared to upgrade to four boards early in the day when the tech sector was strongest, and it held the limit all day without breaking, resonating with the index. Although their themes seem similar, their emotional rhythms are completely opposite.

This pattern is very similar to last year’s Aerospace Development: as a rebound target early on, it successfully crossed the theme cycle and formed an independent main line. Currently, Datang’s relationship with Liaoning Energy is comparable to Aerospace Development and Pingtan back then. Tomorrow, focus on whether Datang can shake off Huadian’s influence and develop an independent trend.

That’s all for today’s review. Thanks everyone for liking and commenting!!!

Tomorrow’s core focus:

Main Tech Line

1. Chips/CPU: Can Great Wall stop falling and recover, leading to sector divergence convergence? Will Mantis open lower with funds supporting, holding the five-day line?

2. Computing Power/Optical: Can Litong Electronics open high in red and continue strength? How strong is Guangxun Technology’s consecutive limit?

3. Storage Chips: Performance of Dapu Micro and Demingli; can Korea Semiconductor ETF (513310) continue its strength?

Other sectors

1. Batteries: Yongshan’s trend support, watch for Tian Ci, Enjie, Tianhua’s recovery; Shengyang and Mantis’s tug-of-war.

2. Commercial Aerospace: Sustainability of Aerospace Development and other aerospace stocks.

3. Computing and Power Collaboration: Can Datang break free from Huadian and develop independently?

All above are not investment advice!

Currently holding: Litong brand, Dapu brand.