Is the cow still there? Just give the conclusion, the market here is not at the top.

Today’s pullback caused many to turn bearish. It’s very clear that the index is not at its top here. Today’s movement was a bit below expectations, but it’s not a bad thing; it provided an opportunity for off-market funds to buy the dip. The overall trend is still upward, the main driver remains technology, so don’t switch sectors arbitrarily. [Taogu Ba]

Brothers, we’ve been gaining steadily lately. Some brothers privately messaged me saying they’re gaining more confidence now—seeing your gains makes me the happiest! Our energy flows mutually. For those who like my Jin Bao Bao, feel free to chat more, give likes, leave comments, and send encouragement or tips. Every interaction I see and feel warm inside. I also want to give you more and hope brothers can soon push Zhuque Road back to the hot list’s top spot—this glory belongs to us.

What I can genuinely do for everyone: select stocks carefully, capture market hotspots in real time, organize mainline logic, pre-judge market risks, precisely grasp repair points, and help everyone control the overall trend. Let’s interact, support each other, and keep warm. Keep going, and let’s go further together!

Auction performance:
Online and offline 1.05B shares transferred
Kechuan Technology 814 million Light module takeover
Hanbang High-tech 799 million Computing power
Wanghua Co. 300 million Chips
Keren Technology 123 million Share transfer
Mona Lisa 80.64 million Chips
Auction volume 29.9 billion, yesterday was 38.5 billion, returning to previous levels, so today’s volume is expected to shrink. If volume shrinks, it’s hard to absorb yesterday’s 3.54T volume, so a pullback is likely today. Therefore, auction activity suggests everyone should be cautious and not too aggressive.

Thought breakdown:
Tongding Hulian: Recently, US stocks’ optical communications soared. Longfei Fiber has already quadrupled, with high-level stagnation expected to be supplemented. Tongding Hulian gapped higher on May 7, breaking through resistance on the left. Saturday’s live session also shared the profit effect of this pattern. Similar to Dongshan Precision on April 8, there are two logical reasons: one, US optical stocks surged, Longfei Fiber at high levels stagnated, and the market needs a fiber sector rally; on May 7, Tongding Hulian’s top single gap became the strongest fiber stock for a rally. The second reason is based on Dongshan Precision’s profit effect—Tongding Hulian mimicked this effect.

Jin Tanglang: Jin Tanglang confirmed its core position in the commercial aerospace sector on April 21. It accelerated with a single line on April 22, and on April 23, it volume-spiked with a T-shape, but this didn’t lift the sector. The next day, it opened 0.37 higher, but some funds thought it lacked premium and didn’t meet expectations. After a sharp drop to the limit down, it was recovered but then fell back again. On the morning of April 27, it already had volume, so I commented that even if it fell back to the limit down that day, the next day would at least be a shallow water zone, increasing safety. Even if wrong, the cost is small, and the odds are high. The logic involves quant preferences for profit-taking on April 24, and on April 27, funds betting against the rebound were forced to cut losses, as the volume on April 27 was relative to the volume spike. Funds prefer bloodied chips; once they cut losses inside, the probability of a rebound the next day increases. Plus, as a core in commercial aerospace, the sector rotation gave Jin Tanglang a limit-up. On April 29, it also touched the chip cleanroom concept, supported by dual logic of chips and aerospace, leading to a surprising 5+5 board. The opening on May 8 was due to negative news, but this created a gap in expectations. At 9:19, the panic was extreme, with over 3.24T shares at the limit down. By 9:20, over 200 million were locked in without canceling orders. The funds at the limit down couldn’t cancel anymore, so off-market funds started buying the chips at 9:21. During auction, 353 million traded. Brothers familiar with Zhuque Road’s auction volume can calculate that the volume was sufficient. Combined with the order book and expected opening, there was an upward expectation. The stock briefly rose in the morning, and the close was a barely positive line. The two-wave momentum of 5 boards is stronger than a single wave, so further upside is expected. Yesterday, Jin Tanglang broke the limit, so today’s normal expectation was a gap-down, but the auction opened high, which was beyond expectations. During the day, I commented that Jin Tanglang hadn’t finished its move, and today it hit a new high with a limit-up again.

Datang Power Generation: Datang Power was the first to announce that China’s first computing power coordination green direct supply project was operational. The auction order was 840 million, and it opened sharply due to initial resistance, but the chips’ structure indicated a pre-breakout pattern. It recovered that day, and the next day, it opened high and perfectly broke through resistance. Funds liked this pattern. On May 6, it formed a T-shape, and the next day, the auction volume was high enough for a gap-up. I predicted the opening drop and limit-up based on order book and auction volume. When it dropped, it was well supported, with the lowest point just over 6, unlike Baoguang Co., which fell to the water and was basically dead. The strong support after the drop suggests it will likely rebound and weaken the next day, with volume confirming the shift from weak to strong. It then gave a volume-reduced limit-up, becoming the most recognizable stock in the market and driving the power sector.

Daye Co.: Yesterday, I shared the idea that there would be volume-based recovery in deep water zones today. Since Daye Co. is core in robotics, its core position didn’t change after the halt yesterday. Today, deep funds bought into the red.

Great Wall of China: The core of CPU, not rising as much as fiber, PCB, or chips, but still with room for growth among other segments. I pointed out the lowest point on May 8 in the comments. The trend of Great Wall of China has rolling value. It hit the limit today in sync with the index, but the index pulled back at the end, which was expected, so it doesn’t mean Great Wall is weakening.

Overall trend: 1275 stocks up, 3846 down, 57 limit-ups, 7 limit-downs, 4 large retracements, overall strength 48. Based on these market data and Zhuque Road’s trend, hotspots, and rhythm, the overall index has broken through effectively. Volume is 32,427 billion. Direction: upward. Tomorrow, a low open or intra-day pullback likely means a recovery is expected.

Small trend: Yesterday, the market was hot, but today, a correction appeared. Many wonder if the bull run is over. The index pulled back sharply at 10:40 after a slight rally. Funds flowed into chips during this period, then continued to fall back. Off-market funds showed no intention to bottom fish, indicating they’re not attracted at this price. Today’s divergence was volume-shrinking, so it’s not profit-taking. Buyers are unwilling to buy the dip. The current goal is to hold 4200. If it oscillates around this level, the market will rotate. If tomorrow opens lower or pulls back during the day, a recovery is likely within the day. It’s very clear this is not the top; the pullback is still a good entry point. The trend remains upward, focusing on technology. The main sectors are already clear—don’t look elsewhere. Stay firm on the main line: chips, computing power, and communications. Don’t lose your chips.

Sentiment analysis: Today, Tonghuashun All-A gave a bearish candle, with the yellow line below the white line all day, but the consecutive limit-ups didn’t give negative feedback. Even the breakouts were mild. The 3-in-4 and 4-in-5 breakouts all closed in the red, so overall sentiment remains healthy.

Hot sector analysis:
Chips & Optical Chips: Jingtou Development
Clean Rooms: Jin Tanglang
Communications: Fiber optic concept: Tongding Hulian
Optical Modules: Kechuan Technology
PCB Copper Foil: Baoding Technology
Computing Power: Data centers: Haijiao Co., Fuda Alloys
Liquid Cooling: Shengyang Co., Haijiao Co.
Power: Datang Power Generation
Diamond: Yellow River Cyclone

Summary: The bull market was confirmed yesterday. It’s clear today’s high isn’t the top. The overall trend remains upward, with technology still the main driver—communications, computing power, chips. High-level stagnation continues, while mid- and low-level sectors keep moving. No matter what, focus on technology. Even if caught, it can bounce back in a day or two. If the overall trend and main sectors are misunderstood, and you get caught in some miscellaneous sectors, it will be hard to recover. Don’t have high expectations for this week—don’t expect a big rally just because the index breaks through. From today’s performance, that’s unlikely. After lessons learned last time, we shouldn’t chase a crazy bull but prefer a slow bull. Controlling the rhythm is crucial. The index first targets 4400 points, and the main driver remains technology.**

Actually, every question I raise has a purpose. I hope brothers take it seriously!
Today, Zhuque Road offers two thoughts:
1. Will Kechuan Technology hit the limit-up tomorrow?
2. How much room does Tongding Hulian have?
Welcome all heroes to share your insights. I’ll join the discussion, and let’s exchange ideas together.

What is the correct short-term path? It might be simpler—forget all those so-called strategies, routines, and indicators. Trading for us only needs to solve three questions: buy or not? What to buy? When to buy or sell? Aren’t these the questions we ask ourselves every day? Thanks to my master, I’ve been fortunate to learn from some big players. Their trading systems are not complicated but very direct and effective. So I’ll share my trading system here, and I believe you’ll gradually understand what the right path is!

The core of Zhuque Road’s system is only five words:
Trend (decides whether to buy or not)
Hotspots (decides what to buy)
Rhythm (decides when to buy or sell)

Trend: What is trend? It’s not the candlestick colors or indicator crossovers, but the consensus direction of funds, the flow of sentiment, and the resonance of fundamentals and policies. Trend is the ultimate carrier of all trading logic.

Hotspots: Once the trend is clear, we no longer blindly follow the market. When the wind is favorable, where should we aim our bullets? The answer is hotspots. Hotspots are a three-dimensional presentation of fund consensus because the market’s essence is driven by funds, and hotspots are the strongest magnets for attracting funds. Retail traders who don’t understand hotspots will always buy into others’ bull markets. In A-shares, don’t waste too much time and money on non-mainline sectors. Ninety percent of your profits come from participating in hotspots.

Rhythm: Rhythm is the top art in trading. It doesn’t tell you what to buy but answers the question every trader fears: when to enter? When to exit? If trend is the timing, hotspots are the terrain, then rhythm is the harmony—your mastery of trading timing.

Thanks to skilled players @Zizai Jin @San Ye Mei @Eighth Arrow @Rebirth I Drink Sanlu Milk Powder @Kaka Senior @Difficult to Name @Trading Little Machine @Cold Market @Guzhou Crossing @30 Minutes @Leek Flavor @Climbing High 991 for supporting Zhuque Road with points!

Thanks to @Shadi Peanuts @Feng236 @Kuang Dunqing @Xingduoduo @Wu1997 @Zizai Jin @zkng for 7 valuable tips supporting Zhuque Road’s articles to become treasured highlights on Taoxian!

Sincerely wishing all brothers supporting Zhuque Road: continuous limit-ups! Long market rally! Wishing you prosperity!

Everyone, each day you have 10 push tickets to send. Even a small support adds warmth and strength to our little circle. Your encouragement motivates me to keep delivering valuable content.

What I can genuinely do for everyone: select stocks carefully, capture market hotspots in real time, organize mainline logic, pre-judge market risks, precisely grasp repair points, and help everyone control the overall trend. If you have content or needs, tell me in the comments. I’ll include the most requested topics in daily reviews to make the content more thoughtful. Let’s interact, support each other, and stay warm. Keep going, and let’s go further together!