The adjustment arrives as scheduled! Keep your chips safe!

Today’s index adjustment, down 0.25%, market volume shrank close to 300 billion, in line with expectations. [Taogu Ba]
The market declined more than it rose, with multiple sectors falling into correction.
Today’s market situation has already been written into the morning report; those who read it carefully should be prepared mentally. It’s just a matter of how you choose to operate.

Check the morning report:

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Important notes: First, yesterday’s high volume was too strong, so today’s judgment is definitely to reduce volume, and today’s volume approaching 300 billion indicates the market is likely to weaken. Even with a volume of 300 billion, market liquidity remains ample. If you hold core stocks, there’s no need to worry too much. So everyone should stay steady and hold on, even if there are some adjustments today, they will come back later. Stocks above the 5-day moving average should not be sold easily. But the direction must be correct, and it’s definitely toward AI computing hardware. I can’t say much about other sectors.

Regarding the current market, what we should do is wait for rotation within subdivisions or be more敏锐 (sharp) and follow the rhythm of subdivisions.
Internal T+0 trading is also okay.

Today’s first direction: Optical Communications

1. First, don’t chase highs; those without an early position should hold back.
2. Points 2, 3, and 4 will see upgrades today, but it’s necessary to weaken the weak and strengthen the strong. Tongding Interconnection had divergence in the morning, so held through the plunge. Red-board tech opened flat, so couldn’t hold through the midday dive. For trading, it’s better to switch to turnover stocks.
3. Personally, I think Hangdian Electric has a good chance of a rebound today. It started weak and turned strong in the morning, benefiting from the power grid sector, but was ultimately dragged down by optical communications’ plunge.
4. The core three-piece set positions are switching; Zhongtian is now leading, so pay more attention.
5. Today, it’s crucial to buy near the 5-day line rather than chase highs. The decline to the 5-day line today is an opportunity, which should be validated in the next day or two.
   Optical Communications rose today with Yizhongtian, which has formed a团体 (grouping), while others are adjusting.
   In summary, today’s major index is correcting; optical communications can only be bought on dips, not chased at highs! The logic for optical communications remains unchanged; the market just needs a profit-taking phase to be realized, then oscillate and continue upward.

Commercial aerospace performed quite poorly today. During the market correction, it was sold off along with the market, especially compared to the tech sector, which saw more declines.
Multiple stocks broke below the 5-day line.
The three core stocks: China Satellite retracted to the 5-day line with low volume, Western Materials also retreated to the 5-day line, and Xinwei Communication did the same. It’s not as scary as it looks! Instead, it’s an opportunity. If tomorrow’s decline continues, it’s a good time to exit for better value. Funds can then scoop up bargains!

The three major core stocks in robotics are also not doing well, so there’s no need to watch them. However, stocks with robotics concepts today performed relatively well, just not Tesla-related.

Storage and computing power stocks have started to adjust. I see this as an opportunity. When they were rising continuously, nobody dared to chase; when they fell, nobody dared to buy. Should we wait for them to rise again before chasing?

In summary, with 30 trillion yuan market cap, everyone should stay steady and hold on! Do not give up your holdings easily!

Changchuan Technology showed divergence today. It’s okay if it doesn’t move today; I adjusted my positions to free up some space, so I exited. -2, taking 10 shares.
Bodao Co., the bidding was okay, just lacked some support during trading, and the trend shifted. I sold at -5, losing 2. Not fighting uncertainty opportunities, as this is not in the AI hardware sector.
Baibang Co., opened flat today, which I didn’t understand; the stock dropped 32 shares, haha! Just luck.
Shanghai Hànxùn didn’t move today; I had a 5-point cushion, and the 5-day line held, so I didn’t sell.
Yuhuan CNC, the stock dropped sharply; this was a reminder during trading.
Pingzhi Information, bought at the end of yesterday’s session, surged in the morning but didn’t sell, exiting at a 1-point loss. Quite frustrating. Yesterday, I also chose Xingyun Technology and bet wrong.

New openings today:
Hangdian Co., this stock had a pre-set plan; the opening met expectations, bought on dips at 2 points, but it exploded afterward, which was unavoidable. Still okay; just lower expectations for tomorrow.
Tongda Co., entered midway; the morning’s power sector performed well. It’s also a recognizable stock. At that time, Hanlan was also there, but I prefer this pattern more.
Guangpu Co., one bid at 1 point. This was pre-announced. No worries if you didn’t buy; my stocks are all risky. Baibang Tech also bid yesterday, luck was on my side, so I was stubborn today. Mainly because Baibang opened flat, giving me confidence, haha. Everyone asks about the logic; it’s similar to Baibang yesterday—pattern + volume and price are appropriate, and it’s a tech sector stock.
Baoding Tech, hit the limit up; I wanted to buy low, but hesitated and missed the chance, ending up buying at the limit. I also wanted to buy Jintanglang at the same time; both stocks had similar templates. In the end, I chose Baoding. After it opened, PCB sector started to gain momentum, which was a good sign.
Variety Shares, bought at 1 point, now down 3 points; I saw the domestic CPU chip sector was strong, with Haiguang, Hanwu, and Great Wall all rising. I didn’t want to chase Great Wall at the limit, just wanted to buy on dips. That was a mistake. No particular meaning; I should have just bought Great Wall. A lesson learned.

Today’s egg: 7 out of 15, many are buying opportunities on dips!

Today’s strongest power grid:
Datang Power exceeded my expectations; this stock has been accelerating daily. I didn’t foresee this, it’s not my usual pattern or my money-making target, haha. Just watch others eat meat.
I also hold Baibang, which hit three limit-ups, just like Datang Power. Truly incomprehensible.
Hua Electric Liaoning Power fell 9 points yesterday and hit the limit-up today—really… always selling at a loss.
Tomorrow, focus on Datang’s situation; if it can upgrade, the power grid sector will explode. Today, the power grid was just defensive. The real action will be tomorrow.
The first stocks to hit the limit-up are all well-recognized stocks.

Optical Communications still had 7 stocks upgrade today:
421 echelon, Tongding Interconnection swapped out a flat-board tech stock,
Yizhongtian became today’s stabilizer. Others showed a pattern of rising and then pulling back for profit-taking.
Longfei, Hengtong, Zhongtian, Guangxun are all similar.

Domestic chip stocks showed divergence today.
There’s also a second-board seed stock; watch it tomorrow, and it should be fine.

Real estate sector moved out of 3-2-1 pattern; Jingtou has M&A activity, tech divergence, and it’s normal for real estate to be pulled for a walk.

Nothing else worth mentioning.
Still the same advice: with volume, stay calm and steady! Follow the market!

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