[Red Envelope] 5.12 Review. Continue to hold a short-term cash position, maintain trend defense, and patiently wait for new opportunities to appear!

First praise then watch, daily income exceeds ten thousand. Keep it up with tips and rewards, shining all the way! If you find the review helpful, please like + follow. We update pre-market ideas before opening every day. If you have trading questions, leave a comment, and I will answer them one by one. [Taogu Bar]

Today’s operation review:: All the following actions are simulated, for market review and learning purposes only, not real trading guidance.

Short-term account:

Sell: Zhuolang Intelligent, earning a handling fee, bidding based on

Comment: No good premium was given, and the bidding didn’t meet expectations, so I just clicked through.

Trend account:

Buy: Shenzhen New Star, less than one electric

Comment: Entered during the weak-to-strong shift in the intraday opening, then it was prosperous for a few minutes. The sector was too heavily dragged down. Let’s see if it can stabilize tomorrow.

Sell: Han Jian Heshan, broke below zero axis and unfollowed, red 2 points; Shenzhou Information, red 2 points, broke the 5-day line and unfollowed; Furuing Technology, broke the 10-day line and unfollowed, 1 point green.

Holdings: Jinan International, Huasheng Tiancheng

Morning thoughts:

A brief reflection: Currently, the account is in a defensive phase, and the market has entered its first wave of profit-taking.

The account has been divided into positions for low buy-in to defend.

Market review:

Total trading volume across two markets: 3.2427 trillion yuan, down 296.2 billion from the previous trading day, maintaining above 3 trillion for the fifth consecutive day.

Current market sentiment is shifting from yesterday’s peak to a typical pattern of opening high, oscillation, and divergence in today’s A-shares. Driven by the overnight record highs of US tech stocks, the three major indices gapped higher at open but soon faced concentrated profit-taking by institutions, showing a clear pattern of “index false stability, individual stocks broadly falling.” Sector directions are diverging, with compute power tech sectors like communications, chips, and computing power leading; power, smart grids, robotics, real estate chains, chemicals, photovoltaics, food and beverages, and pharmaceuticals participating in rotation. The first board mainly reflects defensive sentiment with low-position cyclical stocks. Tomorrow, focus on whether Datang Power and Tongding Internet can continue to expand, and whether the first board sectors can form new hotlines.

Consecutive board blocks:

5-board: Datang Power: Computing electricity. Today broke away from Fuda, very strong. This is a crossing model. Just see if funds keep doing it. If yes, reaching 7 boards is no problem. Plus, the sector fermented today.

4-board: Tongding Internet: Optical migration. This really depends on the main force’s mood.

4-board: Baoding Technology: PCB copper foil. If it continues, it’s a tough lead.

3-board: Mona Lisa: Isn’t this Guangdong tile? I bought some before. Industry chain standard. Just watch the bonds.

3-board: Jingtou Development: Acquisition + real estate. How many people can know the early news?

3-board: Kangxin New Materials: M&A. Good initiative, explosive volume. Needs to weaken and turn strong tomorrow.

3-board: Jiao Da Angli: Consumer. Exploded into small fragments. Also depends on tomorrow’s opening attitude.

(Three boards not watched closely)

Two-board and first-board predictions for tomorrow’s early trading will be discussed later, need to study whether it will go from one to two or two to three.

Today’s note: Recent posts may need a comprehensive adjustment. I am designing a new post framework. If you have good suggestions, let me know. Focus on content that can help everyone.

Future market outlook:

Index level: The Shanghai Composite remains high and sideways, no significant decline, with a healthy divergence and consolidation pattern. The short-term high-level oscillation is clear, and future rotations will still be structural. But watch two key variables: if trading volume across both markets does not significantly decrease compared to yesterday, and if the continued shrinking volume leads to greater sector divergence. Focus on whether power sector risk aversion can continue, whether AI hardware / optical communications can stabilize and recover, and the upgrade rate of consecutive boards as three major signals.

Weekend technical notes (V): If you’re not making money trading stocks, it’s not due to poor skills but because your mode is messed up. Explaining the logic of short-term and trend trading clearly.

Weekend technical notes (IV): Survival in trading: defense as the foundation, offense as the tool!

Weekend technical notes (III): Short-term trading can also be steady and sustainable.

Weekend technical notes (II): How can short-term traders accurately review their trades!

Weekend technical notes (I): Nine key factors for high win rates on high/low limit hits.

Weekend dry goods sharing: Master the rules of auction bidding, distinguish between leading stocks and mid-tier rebounds, stay away from following the crowd!

How to improve win rate on breakouts, how to operate the next day after encountering poor or explosive volume stocks?

Core strategies for swing trading.

Only operate within your cognitive mode.

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