5.12 Can't stand a little trend

Market Overview [Taogu Ba]
Today the market adjusted as expected, even if there is another rebound tomorrow, it will still need to form an upward reversal afterward.

As for how deep this adjustment will be, it’s hard to say now, because so far, both wave 4b and wave 53 still exist.
The correction amplitude of wave 4c will definitely be larger than that of wave 54.

Profit-Making Style
Trend Style: 60, no obvious preference for profit-making effects. (Unique index: 0 means profit-making effects are concentrated in stocks that have recently had consecutive limit-ups, 100 means profit-making effects are concentrated in pure trend stocks)
If the style index doesn’t stay above 65, I can’t do any trend trading. The key is to be quick, accurate, and decisive!
The last time it stayed above 65 was in the first half of 2023…

Hotspot Speculation
The market trading volume reached about 3.27 trillion yuan, supporting speculation in 4 to 5 sectors:

1. Today, performance lines diverged; the leading stock Haitai Xinguang continued to rise, although short-term sentiment leader Fuda Alloy broke the limit, more like suppressing anomalies. But with the disclosure of annual reports, Haitai Xinguang’s rise might be due to transformation into computing power and optical modules. If this logic holds, then watching Haitai Xinguang’s performance will tell us how far the AI technology line can go, much simpler than considering what separation confirmation.
2. Unlike yesterday’s broad rise in the AI tech line, today it diverged as expected, with optical communication standing out, and computing power and chips adjusting. A rapid resonance adjustment will happen soon, either tomorrow or the day after.
3. Today, power stocks strengthened. It’s unclear whether they are preparing to replace the AI tech line as the main theme or if it’s just a rebound and expansion of the big plate of Datang Power with five consecutive limit-ups.

Short-Term Relay
Fuda Alloy ultimately did not challenge serious abnormal fluctuations, closing with a 99+% increase over 10 days, and is likely to trend for a few more days.
But as a short-term profit hunter, before the style index clearly indicates a trend, I won’t take even a tiny trend position.
Because Datang’s market cap is too large, so I ignore it directly, and tomorrow will be the time to pick a new leader…

Current holdings: 1st layer Tongding Interconnection.