The major tech sector is collectively pulling back; is everyone doing okay?

1. Today’s Market

The major index fell by 1.52 percentage points today, with 980 stocks closing in the red and 4,937 stocks in the green. The total trading volume for the day was 3.3 trillion yuan. Today saw a comprehensive pullback in the big tech sector.

Yesterday, the major index broke new highs, but today it started to retreat. The decline today mainly affected the previously strong-performing big tech sectors, including storage chips, computing power, CPO, PCB, and others, which all collectively pulled back. The power sector, which had been strong for two consecutive days, also showed divergence today, with Datang Power hitting the limit down and many stocks within the sector experiencing similar declines. It was a day of significant divergence.

Today, the sectors that showed strength during intraday trading included healthcare, chemicals, breeding, liquor, and consumer sectors—safe-haven areas. The big tech sector adjusted, and sectors that had not risen before rotated today.

In terms of highs, Mona Lisa advanced to the fifth board, Liren Technology to the fourth board, and the number of stocks hitting the daily limit was significantly reduced today.

Overall, today saw a collective pullback in the big tech sector, marking a day of profit-taking. More profit realization from big tech stocks was evident, serving as a reminder for everyone to avoid risks associated with the big tech sector.

Today, I tracked and observed stocks like Kexiang Co., Ltd. and Jinyao Pharmaceutical at low levels. The main logic was that these stocks showed a strong trend. Even in today’s environment of sharp declines, they still rose against the trend. Keep an eye on them; tomorrow is likely to continue following the five-day moving average trend. Today is a test of controlling retracement.

Focus on the core in the long-term cycle, watch for the first limit-up in the short-term cycle, and respond with idle rotation or trend stocks during disordered rotation cycles. Conduct daily reviews, make static three-day pre-judgments, and prepare dynamic three-day pre-judgments during the second-day bidding. Over time, your predictions will become more accurate.

The stock market always emphasizes following the trend—align with the market’s momentum and sector trends, and control retracement during major downturns. Engage more in profit-making cycles, and manage loss cycles by holding back. This way, earning small profits in each cycle and avoiding big losses leads to stable compound growth. Never pursue daily big gains; always do what’s appropriate at each cycle node. Revisit this advice multiple times; it will benefit you immensely. Wishing everyone to keep pace weekly, reach new account highs weekly, and improve a little each day—let your account flourish and rise steadily.

2. Stock Comments

3. Datang Power, Power Sector, continued strength the day before yesterday and yesterday. Today, it was normal to see divergence expectations. Yesterday’s review mentioned that Datang Power was expected to be a one-word limit-up, with only a concern point and no focus points. This was confirmed today: buy on divergence, sell on consensus—that’s the idea. Mainly, yesterday’s volume reduction led to excessive profit-taking, reaching a divergence point, plus the hurdle of the seventh limit-up, which definitely triggered frantic profit-taking. It even dropped to zero in early trading. It recovered somewhat by the close, so the chance of it being suspended tomorrow isn’t high. As the first stock recently brave enough to break above six limit-ups, today it hit the limit down. The subsequent trend is more likely to continue, similar to trend stocks like Huaneng LiaoNeng and Jintonglang.

4. Huaneng LiaoNeng and Jintonglang, stocks with high recognition recently, showed stagnation today during the big tech sector’s strong divergence. Be cautious—these stocks’ patterns may deviate from the five-day moving average at any time. For stocks with excessive gains, deep adjustments are also likely. Recently, they probably have no focus points, only concern points. Don’t get trapped at high levels. These two stocks have recently gained clear recognition, and future funds are likely to keep mimicking them.

5. Mona Lisa and Liren Technology, the only stocks today to advance to the fifth and fourth limit-ups, respectively—survivor bias. Due to the massive drop of Datang Power, which hit the highest limit-up yesterday, today they also hit the limit-up. The rate of stocks hitting the limit-up is very low. Many hot sector stocks have broken their limit-ups. Mona Lisa’s home ceramics and Liren Technology’s equity transfers lack sector support and recognition, so they are more likely to be suspended. No need to watch or care about them.

6. Tomorrow’s Direction

Today’s collective adjustment in the big tech sector caused a major decline in the index. The top limit-up stock, Datang Power, hit the limit down, and many stocks also hit the limit down. Overall sentiment was heavily impacted, mainly due to profit-taking. When stocks rise too high, a normal correction occurs. The index fell quite a bit today; a normal recovery is expected tomorrow. The stocks that outperformed against the trend today are key points that cannot be ignored daily.

Tomorrow, watch for the switch between high and low, and I wish everyone to continue following the rhythm and reach new account highs.

You can also comment on how to participate tomorrow—more comments will help make reasonable market predictions. Wishing everyone continued big gains tomorrow.

If this is helpful, please like, support, and tip. Your strong support is the continuous motivation for this blogger’s updates. Wishing everyone better and better.