100,000 challenge 20 times, Day 73

5.12 Operation Records [Taoguba]

Today’s Pattern: Western Materials, China Great Wall, Yongshan Lithium (Western Materials surged and cut in half, Great Wall hit the limit and also reduced, Yongshan performed well in the afternoon so no action was taken)
Out Today: Shenzhen Huaqiang
Newly Opened Today: Xian Dao Ji Dian
Many friends have been privately messaging recently, unsure how to grasp the 3 trillion market, here we also open a small group, satellite can view securities below

Today’s Review — Benign Differentiation, Low Buy Tomorrow

Market Brief

Shanghai Composite Index shrank in volume and adjusted down 0.25%, power and grid stocks performed countertrend actively, the total market turnover has exceeded 3 trillion yuan for five consecutive days

Market oscillated and adjusted, Shenzhen Component Index fell over 1% intraday. The yellow-white line divergence is obvious, small and mid-cap stocks are weaker, micro-cap index fell over 1%. By close, the Shanghai Composite fell 0.25%, Shenzhen Component Index fell 0.47%, ChiNext Index rose 0.15%. The overall decline in stocks exceeded 4,000; total daily turnover was 3.24 trillion yuan, down from 30k yuan yesterday, with turnover exceeding 3 trillion for five consecutive trading days. Domestic main funds net sold 122.1 billion yuan, median change was -1.42%.

On the market, fiber optic concept continued to strengthen, power and grid equipment concepts oscillated upward, optical module concepts repeatedly active, PCB sector oscillated higher, military industry concepts surged in the afternoon, semiconductor chip stocks strengthened again, advanced packaging and other niche directions rose simultaneously, real estate stocks rose, robot concepts were active in the morning, innovative drug concepts surged in the afternoon, in addition, intelligent driving, high-speed rail and subway, brokerage firms and other sectors showed performance.

Last night’s review emphasized that after each market volume surge, there is always significant differentiation. Today, the average stock price once dropped to 1%. Fortunately, today’s volume still stayed above 3 trillion, so the adjustment cycle won’t be too long. We can review the trends of 924 and mid-January this year; after these two market volume surges, the market only experienced brief oscillations of 2-3 days before quickly entering a rebound cycle.

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In terms of direction, today AI hardware materials and semiconductor chips are still progressing amid differentiation. During this phase, it’s important to choose stocks that are strong and continue to be strong, as laggards tend to fall behind quickly. Tomorrow is the 13th, and it’s expected that there will be many favorable news in trade and economic areas during the session, so the market will definitely be very active!!!

Hotspot Analysis

1.Optical communication: Today’s optical communication sector surged again, Tongding Interconnection hit 4 consecutive limit-ups, Yuan Dong Shares also hit the limit, and several stocks like Chuanchuan Technology also hit the daily limit. In terms of weight, Zhongji Xuchuang surged 8.28%, with market value surpassing 1 trillion yuan.

Catalysts include overnight US stocks, Nvidia rose 1.97% to a new all-time high, and optical communication concept stocks collectively surged, with application optoelectronics up over 24%, Lumentum up over 16%, Corning up nearly 11%.

Last night, US stocks led the way in optical communication, and today’s A-shares perfectly mirrored this. Currently, Chinese tech stocks are deeply tied to the overseas giants’ valuation, so we also need to pay attention to the impact of overseas market adjustments on A-shares. This is mainly the second adjustment; the first only affected the opening, so we should keep an eye on US stock trends.

2. Power

Smart grid sector surged today, China Huaneng LiaoNeng hit 4 limit-ups in 5 days, Datang Power hit 5 consecutive limit-ups, and Shao Neng Shares and others also hit the limit.

On the news front, Morgan Stanley stated that driven by a 350% surge in token demand, data centers are expected to face a 55GW power shortage. AI participants are increasingly acquiring “off-grid” solutions. Power availability has become a decisive factor in tightening energy infrastructure financing.

Every time computing hardware differentiates, the power sector begins to appear. The logic of AI power shortages still exists, but the power sector is still moving counter to the index, and the logic of group formation here is stronger than sector logic. The key is to watch the feedback from China Power’s two giants.

Tomorrow’s Outlook

According to Reuters, an informed source said that the focus of the White House visit is on agriculture and commercial aviation, and chip issues are not the core agenda. The main theme remains technology, and with Nvidia absent, the key highlight of this super consortium might still be Musk-related T-Chain commercial space, so pay attention to movements in this direction tomorrow!!!