Tuesday pre-market outlook

Index Expectations: [Taogu Ba]
Today, the index opened high as expected amid the weekend external positive news and a strong surge in technology stocks, quickly realizing profits from last Friday’s embedded funds after the open.
As market volume gradually released, the reception exceeded expectations, with technology stocks stabilizing after the high open and realization of profits, resonating with the index to produce an intraday super-strong recovery.
It can be said to be very beyond expectations, with the index breaking through previous highs in one go and staying at high levels throughout the day.
Volume approached 500 billion, with the ChiNext Index soaring 3.5%, just one step away from a new historical high.
From today’s trend, it further confirms the expectation of a strong divergence this week.
On the news front, Trump visits China on Wednesday for three days.
It’s unclear whether the market will choose to realize profits early or wait until the end of the visit.
Today’s volume release was very large, raising questions about whether additional outside funds can still effectively follow and absorb the liquidity.
No matter how the market forces short-term short squeezes at this level, the operation remains cautious—riding the donkey while looking for horses, always ready to defend.
In the evening, U.S. tech stocks are still rising, with core leaders in optical communications performing well.
It’s expected that tomorrow’s market will have an inertia-driven surge, possibly as early as Tuesday afternoon or Wednesday, with a noticeable pullback.
The market will face divergence, but divergence does not mean the end of the trend.
It’s always emphasized that adjustments are for better rises.
The May rally has already started.
From today’s performance, regardless of when the index market diverges and adjusts in the future, it’s an opportunity for low-entry on divergence.
Currently, it’s more about stock selection, chasing highs, reducing positions, and defending—creating主动性, with the flexibility to attack or retreat.

Stock Position Operations:

Cambridge Technology, which today showed moderate oscillation on the daily chart in the morning, suddenly saw funds enter and push higher in the afternoon, then retreated due to Hong Kong stock plunge.
From the trend, it looks very healthy.
Tonight, U.S. stocks’ old-timers surged 17 points, Nvidia continued to rise strongly, hitting a new high.
The normal expectation for tomorrow is a high open.
Given the previous divergence in the index, if a small gap up occurs, it’s recommended to realize profits first and then continue to hold if it crosses the intraday moving averages with gentle oscillation.
If it opens with a rush to buy and a large volume surge, reduce 1/3 to half of the position, then buy back on pullbacks.
If it gaps down unexpectedly, as long as it stays above the five-day moving average, even if the index adjusts, do not reduce holdings due to market divergence.

Lighter Optoelectronics, which opened high and realized profits early, then followed with a rally, encountering a wave of profit-taking at previous highs and pulling back.
In the afternoon, it followed the index to rise and stabilized at a small red close.
Structurally, it has been oscillating within a platform box since breaking through the platform on April 21, forming a standard “old duck head” pattern.
Mainly holding positions, considering T+0 trading during the rise, and observing divergence first.
By the way, with Trump visiting on Wednesday, will Lighter Optoelectronics do some metaphysical move?

Fosun Plastics, which today’s trend fully aligned with expectations, was mentioned yesterday that today’s tech stocks would open high, so lithium battery sector continued under pressure.
Fosun Plastics oscillated underwater in the morning, then rose in the afternoon to re-cross the 10-day moving average, a typical box oscillation with decreasing volume and obvious fund locking.
The trend remains optimistic.
Now, just wait to see if the index adjusts and market divergence holds.
Until the trend breaks or an adjustment occurs, it’s recommended to mainly hold positions.

Zhuoyi Information, which today’s trend fully matched yesterday’s prediction—rising sharply then falling back.
Yesterday, Intel surged, and the CPU sector initially recovered at the open, but Great Wall of China showed weakness and did not lead the sector higher, causing a pullback.
In the morning, reduced positions by 5 points, then defended above the five-day moving average, with some quantitative funds entering.
The day was with decreasing volume.
It’s expected that tomorrow, the five-day moving average can be watched for one more day.
If strong, hold or take profits; if weak and breaks the five-day line, clear positions and exit.

Electric Science and Technology, a secondary new stock in the business aerospace sector, which surged yesterday, hit the limit today amid sector divergence.
The sector’s high volatility suggests continued divergence after the tech sector’s climax (small probability of a direct gap down).
As a high-recognition sector this month, the probability of a return is high.
Therefore, taking early advantage of the rebound to play elasticity, if funds flow back into core stocks, aim for high recovery; if not, consider exiting gracefully.
Focus on high rebounds and taking profits, with overnight gains as a priority.

Changguang Huaxin, bought back at the end of the day, mainly expecting Guangxun Technology to possibly form a two-day limit, with strengthened logic in optical communications and EML chips.
The divergence today is similar to the late Friday buy-in of Dongshan.
Given the index will likely face adjustment and the main upward trend shifting to consolidation, the main approach is swing trading—selling into strength.
If the market continues to gently adjust, decide whether to hold based on overall market trend.

Dongcai Technology, which also showed a trend consistent with expectations today—rising then falling back, with late buying after Guangxun Technology’s strong limit.
Guangxun’s unexpected acceleration indicates the market is quickly accumulating risk in the short term.
For those who bought back late or didn’t sell today, consider taking profits if it rises tomorrow or breaks the five-day line.

Shenghong Technology, bought at zero line on Friday, added positions today as the market showed good support amid divergence.
As a core leader in PCB, with two consecutive days of volume-driven bullish candles, if tomorrow’s rise exceeds 5%, and the deviation from the five-day line is large, it’s recommended to take profits.
If it adjusts mildly and the five-day line rises, hold the positions.

Dongshan Precision, which today’s trend also matched expectations—rising then falling back, with late buy-in after Guangxun Technology’s strong move.
Guangxun’s acceleration suggests the market is rapidly accumulating risk in the short term.
For those who bought back late or didn’t exit today, consider taking profits if it rises tomorrow or breaks the five-day line.

Summary:
Although the market is booming, there are hidden undercurrents.
Volume release is too rapid, and the index has not yet pulled back from new highs.
Despite the strong market and clear logic, the upward trend is undeniable.
The trend has already begun vigorously, and AI technology as the main carrier has just begun to open up space for growth.
The risk I’ve been warning about isn’t that the trend will turn bad, but mainly short-term pullbacks.
Many friends are not mature investors, so I try to help everyone make some choices from their perspective—preferably participating less in adjustments and retracements.
Of course, no one can be in the red every day.
Within current understanding, avoid some risks as much as possible.
Reiterate: adjustments will come, don’t be reluctant to sell.
Tomorrow, continue to reduce positions on the rise.
For those who prefer not to fuss, holding steady through short-term adjustments is also a good approach.
Maintain a calm mindset, give stocks, the market, and emotions some buffer time.
In a trending market, hold more stocks, worry less about gains and losses.
In the end, the greatest returns often come from patience.
How much you understand depends on yourself.
Trading is a form of cultivation—watching clouds drift by, waiting quietly for flowers to bloom.