Hehuo Ren Chaojia (May 12) Morning Session Strategy

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Brothers, good morning!!

Yesterday’s “Morning Market Ideas” received
Over 200 likes from brothers,
6 people tipped.

Thanks to @RuimeiJiu, @JingNiuMaFan, @ALuoyeZhiQiu, @RuXinLiaoGe, @LiMinGogogo, @GeliTe

Special thanks to the top tipper on the tipping leaderboard
@RuimeiJiu, @JingNiuMaFan
Wishing: Big gains every day!
Also thanks to all brothers who tipped and supported!
In May 2026, let’s create new account highs together again, wishing the stock market a long rainbow!

Yesterday, the A-share market surged significantly. By the close, the Shanghai Composite Index and Shenzhen Component Index rose by 1.08% and 2.16%, respectively, while the ChiNext Index and STAR Market 50 Index increased by 3.50% and 4.65%. Market turnover reached 3.57 trillion yuan, surpassing 3 trillion yuan for four consecutive trading days.

Regarding the market trend, Brother Long mentioned two scenarios yesterday: one is an upward trend, and the other is a sideways consolidation after a breakout. Among the historical cases of the latter, Brother Long described the disappearance of the top divergence as “just disappearing,” meaning only a slight breakout.

Yesterday, the 60-minute DIF value of the Shanghai Composite Index significantly exceeded the DIF values of the last 60-minute candlesticks on April 16 and May 7, which means it is not just a slight disappearance.

Additionally, non-bank financials (securities, insurance) rallied strongly in the afternoon, coupled with the market hitting a new high for the year, indicating that the rebound has turned into a reversal trend. The probability of the market fluctuating within a range has greatly decreased, and the likelihood of an upward trend has greatly increased. Against this backdrop, the main tone is bullish, especially not to easily abandon the main sector themes.

Foreign giants are also collectively bullish, such as Goldman Sachs recently releasing the latest Asia stock strategy report, explicitly proposing “overweight China,” and raising the 12-month target for the CSI 300 Index to 5,300 points.

On the directional view, Brother Long’s stance remains unchanged,
still focusing on computing power and commercial aerospace.
Why does Brother Long remain optimistic about computing power? Because, in Brother Long’s view, the true main theme still points to one direction—computing power.

Brother Long has been talking about this for a long time, and it has never changed. Because computing power is not just a concept hype; it represents the infrastructure foundation for the future development of the AI industry.
Whether it’s competition in large models or AI application deployment,
ultimately, it all depends on the support of the computing power base.

Yesterday, there was a slight adjustment in computing power, and many people started to lose footing again. Now, it’s a trend market, and we should respond with trend-based thinking and tactics. It’s completely different from March’s approach. Now, in a trending market, dips are buying opportunities, not exit signals. The rhythm of adjustments is the core action. The logic is intact, the space is there, and the trend remains.

Currently, Litong Electronics has already started a move exceeding 200%, so a correction here is not a bad thing. The core macro view of the computing power leasing sector, Juchuang Technology, has already exceeded 200%, and Xingyun Technology has exceeded 100%. Now, Litong Electronics is up over 200%, and Xingyun Technology over 100%. The entire sector, until yesterday, only experienced a slightly larger correction, mostly near new highs, refusing to correct, which is normal.

The gap in computing power tokens continues to widen. Major companies’ purchase restrictions and the demand for computing power leasing are not just a quarterly issue but an era issue. Is a retracement at this level worth fearing?
So, Brother Long’s current approach is very clear: continue to hold tight to the main theme of computing power without wavering.

Copper foil sector: still in tight supply, with Copper Crown Copper Foil, Defu Technology, etc., experiencing two days of pullback, but the pullback has been mild. Currently, Copper Crown Copper Foil is also under pressure, is someone deliberately dragging it?
Electronic fabrics are still rising in price, as previously shared, with Honghe Technology and International Composite Materials. Are these trends turning bad now?

Commercial aerospace rose 1.42% yesterday. CETC Blue Sky rose over 10%, hitting a new listing high, JunDa shares hit two consecutive limit-ups, AVIC Optoelectronics and Xinwei Communications also hit new highs simultaneously.
Catalysts include the successful launch of Tianzhou-10 this morning in Wenchang. The Long March 35.7k, ZhiShenXing-1, and ZhuQue-3 recovery tests are scheduled for mid to late May, providing continuous catalysts. ETF has had net inflows for 13 consecutive days, showing strong capital recognition.

The real big trend is never a straight line up; there will be oscillations and fluctuations. Some panic and exit, some fall behind halfway. Those who understand the logic and remain patient are always the ones who reach the end.

Also, congratulations to brothers who got into Shenzhen Huaqiang,
thanks to all brothers on the same path for your trust.

Brothers, you can check out this article.
It’s a good article, everyone can learn from it, and there will definitely be gains!!!