5.14 Review

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Morning index opened high and then weakened; during the midday session there was a wave of repair with reduced volume, and in the late session it sold off again. 1047 stocks rose, 4387 stocks fell; 55 hit the daily limit-up, 17 hit the daily limit-down; 17 achieved consecutive limit-ups, with a maximum of 5 consecutive limit-ups. Total turnover was 3.39 trillion, with an increase in volume of 1239亿. The three major indices fell sharply.

Today, both the index and sentiment have entered a correction phase. At present, there are still no signs that the main theme is retreating.

Tomorrow is expected to continue opening lower. As long as there are no signs of a retreat—if it opens with a big gap down, there could be a correction; after the correction, there is still an expectation of further adjustment. If it opens with a small gap down, the expectation is to keep probing the lows and then recover. After the recovery, it may fall back and adjust again next week. If the main theme is retreating, then after the adjustment, it will most likely enter a sideways consolidation. This period of adjustment should be around 3 to 4 days; there should be a turning point by next Tuesday or Wednesday.

In terms of sectors, pay attention to whether AI hardware is retreating. If it does not, then after the follow-up adjustment is completed, you can continue to do the main theme rebound/expansion to new highs. Watch the levels of 4.8 and 4.29 for recognizability, see who holds up better, and consider adding on dips while waiting for funds to return.
If AI hardware retreats, then focus on mid-range themes (computing power leasing, commercial aerospace, and lithium batteries). Afterward, identify which one resonates together with the index rising, and follow the capital to look for a sector’s core recognizability to enter.
Also, today’s strong performers like photovoltaics and hog/pork are rotation themes—there is only short-term room for trading. These are turn-of-the-moment sector rotations; if you want to trade, pay attention to timing and position sizing.

Wishing everyone sustained gains in the stock market.

4-4.38%
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