[Red Envelope] 2026.5.12 Review: The overall market adjusted as expected, and the mantis defied the trend to become a legend

A simple like, continuous gains; Keep asking questions, long-term benefits! Hello everyone, I am Wan Gu Zhang Qing. [Taogu Ba]
1. Auction Analysis
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A day in the stock market begins with the auction. Today, the first to auction are online and offline, which was added after 9.20 as a sneaky move, or due to a change in the actual controller, purely individual stock good news, with no guiding significance. The second in the auction is Kechuan Technology, a new first-board, with guiding significance, indicating the optical communication concept. The third is Hanbang Gaoke, which was a one-word board yesterday, and today reduced orders with no guiding significance. Overall today, the auction funds lacked sincerity, just a divergence auction, and the weak trend of the index later is also normal, a predictable adjustment, which does not mean a top.

2. Continuous Board Tiers
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Five-Board
Datang Power, new energy concept, today broke away from Fuda’s influence and led the sector, and has fermented the sector, showing signs of breaking through as a leader, currently one of the three major core stocks in the market.

Four-Board
Tongding Interconnection, fiber optic concept, opened with a one-word board, continued to advance beyond expectations today, but is not the highest board, not the first choice for relay.
Baoding Technology, electronic components, this name sounds meaningful, went up in the afternoon, strongly believed to be driven by Tongding, currently seen as a supporting player.

Three-Board
Mona Lisa, home textiles, clearly part of the industry chain, likely used for guidance, this tier may have industry chain layout.
Jiaoda Angli, food processing, poor chart, still a big drop, industry chain layout probably not it.
Kangxin New Materials, packaging and printing, this kind of opening at the limit-up is obviously an industry chain layout, and it’s clear Mona Lisa is guiding it.
Jingtou Development, real estate development, this tier is non-mainstream, with three consecutive trends, almost at the end.

Two-Board
This tier currently shows no seed players, no need for analysis for now.

3. Trend Analysis
Today, the index adjusted as expected, but it’s a technical adjustment, no need to panic, no problem. However, due to many nodes now, and inflation already occurring, I will not analyze all nodes, only focus on core stocks I favor for clarity.

1. Dongshan Precision, optical communication concept, a stock at the big bullish node on 4.8, with a second wave trend, continued to hit new highs today. From its stock nature, it prefers to hit the 5-day line before pulling, so those wanting to trade should wait until it hits the 5-day line.

2. Litong Electronics, chip concept, a stock at the big bullish node on 4.8 and 5.6, showing signs of breaking the 5-day line today. If it doesn’t recover tomorrow, be cautious of a short-term top.

3. Han’s Laser, laser concept, a stock at the big bullish node on 4.8, continued to hit new highs today, expected to reach the 5-day line tomorrow, those interested can go for it.

4. Yunnan Germanium Industry, non-ferrous metals, a stock at the big bullish node on 5.6, moving quite aggressively, not touching the 5-day line much, yet hitting new highs. In such cases, wait for the 5-day line or open low and absorb.

5. Tongfu Microelectronics, chip attribute, a stock at the big bullish node on 5.6, gave a chance at the 5-day line today, a good buy point.

6. Jiangbolong, chip concept, a stock at the big bullish node on 5.6, suggest waiting for the 5-day line.

7. Demingli, storage chips, a stock at the big bullish node on 5.6, gave a chance at the 5-day line today, with large funds supporting at the bottom four points, a suitable buy point.

8. China Great Wall, domestic chips, a stock at the big bullish node on 5.6, opened with a rally today, but touched the zero axis during trading, which is close to the 5-day line, a good buy point. No need to panic if it breaks the board; for latecomers, tomorrow might give another chance at the 5-day line.

9. Guangxun Technology, optical communication concept, a stock at the big bullish node on 5.11, wait until it hits the 5-day line again to act.

All these targets are selected through the trend main rise formula, which is in the dry goods post Eighteen. If needed, go check it out.

4. First Board Arbitrage
The first board arbitrage mode can be used under any circumstances, and the probability of hitting the board is very high, but the premium is hard to grasp. Due to time constraints, I didn’t post messages during auction today, so I’ll comment on the targets that appeared in this module. Today, the first board arbitrage formula on 9.25 did not produce stocks, so there’s not much to say. Most of the time, there will be stocks, and for fans who haven’t obtained this formula, check the dry goods post Eighteen.

All targets in this module are selected through the first board arbitrage formula, which is in the dry goods post Eighteen.

5. Market Summary
Today, the index moved with a volume reduction adjustment, which is normal and expected. My early thoughts were clearly leaning towards an adjustment. Since the index currently has no conditions to continue rising, the previous breakout was somewhat driven by external factors, and the index is far from the 5-day line, needing a pullback. Today’s adjustment does not mean a top; the future remains bullish. The best trend is to move along the 5-day line; only if it breaks the 5-day line should we consider a short-term top.

In terms of themes, the chip industry chain has seen divergence and flow back. Given the sustained nature of the chip industry chain, it has long met the main line conditions. However, the main players inside are institutions, not following the continuous board main rise pattern, but trend stocks moving erratically. So, focus on trend participation. Another strong theme today is power, driven by Datang Power’s continuous unexpected performance. Focus on Datang Power alone; the theme itself is less important.

In stocks, Fuda broke the limit as expected, still fearing abnormal moves, choosing to avoid abnormality, mainly consolidating. Later, Datang Power broke away from Fuda’s influence, reached the five-board height, and showed signs of breaking through as a leader. I believe Datang Power is currently one of the three major core stocks in the market. The other two are Jin Tanglang, which is riding the wave, and China Great Wall, a trend core. Buying any of these today would be profitable.

As usual, I’ll summarize today’s operations: First, Datang Power had a volume explosion and avoided participation; I plan to wait and see tomorrow. China Great Wall has been waiting for the 5-day line, but my luck with trend core stocks is off; it didn’t follow my script. I expected it to open low and drop to the 5-day line, which would be a good entry, but it rallied at open, so I couldn’t participate. I’ll wait for it to hit the 5-day line during trading, probably near the zero axis or at the end of the day. It touched 0.26 at the low, just a bit off, so I didn’t buy, and later it hit the limit-up, so I gave up.

So today, I chose Jin Tanglang, which was indicated during trading; the moving averages near it were a good buy point. When the index dipped in the morning, Tanglang hit the moving average, and I bought early, a bit ahead because of the psychological shadow from China Great Wall. I bought around five points, and it later hit the daily limit-up. I bought half a position, keeping the other half to catch Datang Power tomorrow or do T in Tanglang. I think I’ll give up on China Great Wall; it’s really incompatible with my luck. Even with such a perfect buy point today, I didn’t buy, and I’m less interested now—focused on continuous boards.

6. Thanks List
Thanks to the following friends for your encouragement, I really appreciate your support.
@TimePen @YuMuchun @QiongQiongXin @Cheertt @hnlhyhx @GuYinYuanTingShen @YangChunSanYue6789
Thanks to the following friends @WuKong1984 @MengShiQi @ChangChengTaiShan @hzsunky @MainTrendLeaderKongKongLong @WuMingJunXia @GuGuFengShun @QiongQiongXin @EternalDream @SelfDisciplineKeepsPath @QiaoJianDongFang @XieJianZhou @TaoguNote @78901Support, thank you very much for your support.

The eighth gold fan has appeared: @TimePen, thank you for your continuous support!
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A moment to remember the gold fan, thank you all for your strong support! @BeginnerLevelPasses @My1Turtle @AvatarAndNezha @GuHaiXiaoBai @YuMuchun @hnlhyhx @Cheertt @TimePen**

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Thought Questions

1. Today’s index adjusted as expected, but it hasn’t broken the 5-day line. Considering the external situation, do you think the A-shares can stay above the 5-day line by the close tomorrow?
2. Recently, the sustained theme has been the chip industry chain. Do you think there is a leader in this theme? Which one, or one trend and one continuous board?
3. Datang Power broke away from Fuda and advanced to five boards today. Do you think it can reach six boards tomorrow?