[Red Envelope] Bro, the hot topic you want is right here

The core segments with the highest surge during this wave of the index’s peak on April 7: [Taoguba]
Computing power: Segments: NAS: Zhimei Intelligent
CPU/Nvidia: Litong Electronics
Liquid cooling: Litong Electronics
Servers: Bojie Co., Ltd.
Computing power leasing: Litong Electronics
Data centers: Fuda Alloy
Chips: Indium phosphide: Bojie Co., Ltd.
CPU: Great Wall of China
Optical chips: Guangxun Technology
Storage: Growth Enterprise Board: Dapu Micro; Main Board: Shengshi Technology
Semiconductor equipment: Huayuan Holdings
Glass substrates: Woge Optoelectronics
Clean rooms: Jin Tanglang
Electronic gases: Baoguang Co., Ltd.
Communications: PCB copper foil: Growth Enterprise Board: Tongguan Copper Foil; Main Board: Baoding Technology
Electronic fabrics: Honghe Technology
Copper-clad laminates: Baoding Technology
Optical modules: Guangxun Technology
CPO/MPO: Woge Optoelectronics
Printed circuit boards: Taijin Xinneng
Optical fiber concepts: Tongding Interconnection
Electric power: Datang Power Generation
All of these are recent hot spots with the highest gains. Which one do you favor today?

Yesterday’s volume surge and sell-off were profit-taking, not a tide retreat, because the tech core performed relatively healthily yesterday and didn’t give much negative feedback. The index will still oscillate and digest some profit-taking at this level. This peak isn’t the top; our view remains unchanged. We shouldn’t easily change our stance just because of one day’s movement.

Auction performance:
Weilong Co., Ltd.: 3.205 billion, controlling shareholder change
Zhongli Group: 3.2B, photovoltaic
Gongjin Co., Ltd.: 845 million, communications/switches
Huawang Co., Ltd.: 593 million, communications/robots
Liren Technology: 497 million, equity transfer
Huasheng Co., Ltd.: 358 million, computing power
Jinfu Technology: 276 million, computing power
Jingneng Power: 187 million, green power
Kechuan Technology: 97.2 million, share pledge, optical modules
Volume of 34 billion at the open, volume surge and downward pressure—this is a time to stay cautious.

Datang Power Generation:
Datang Power Generation’s first board with news: China’s first computing power coordination green direct supply project has been put into operation. The auction price is 840 million, and it exploded at the open due to pressure on the left side, but this is a pre-breakthrough pattern. It closed back in on the same day, and the next day opened high, perfectly breaking through the left-side resistance. Funds favor such chips. On May 6, it formed a T-shape, and the next day, the auction volume was high enough to open higher. I precisely predicted the opening downward and limit-up based on the order book and auction volume. When it exploded on the third board, I analyzed that the auction was in line with expectations, and the downward absorption was good. The lowest point was only around 6, unlike Baoguang Co., which was wiped out on a single big drop that day.
Because Datang Power Generation’s explosion was strongly supported, I judged that after a likely rebound, it would weaken the next day, and during the 4-to-5 move, the auction clearly indicated this weak-to-strong shift with volume, showing sincere capital. It then gave a volume-reduced limit-up, becoming the market’s most recognizable. On Wednesday, it broke through recent 5-board resistance, sealed the 6-board, and drove the sector higher. The next day, there was no longer any expectation gap. When volume surged in the auction, it was already beyond expectations, and the drop to water level was also in line with expectations.

Guangxun Technology:
Guangxun Technology is a core optical chip company. It was relatively active yesterday. Last night, the US AI optical interconnect leader POET surged over 43%, and today’s expectations remain.

Market outlook:
Up 1010, down 4115, 54 limit-ups, 17 limit-downs, a sharp retreat of 13, overall strength 45. Based on the above market data, combined with Zhuque Road’s trend, hotspots, rhythm, and comprehensive analysis, the current index is oscillating at high levels.
Direction: oscillation. Can it hold 4200 points this week? The volume is 1.23B. Yesterday, volume surged downward at the open. I believe this was profit-taking triggering a quantitative sell-off. The bull market is not over.

Small trend:
Yesterday, the index dropped to 4215, hovered for a while, and funds tried to support at this level but couldn’t hold. It then fell to the weaker 4200 support and broke shortly after. When it dropped to 4185, volume started to shrink, but during the rebound, funds still flowed out. I judged that the probability of this repair being successful was small because the funds lacked sincerity. It closed at a new low. From the closing result, based on Zhuque Road’s core hotspots, no sector stood out.

Sentiment:
Yesterday’s sentiment resonated with the index, with volume decline and drop, 17 limit-downs, 13 big retreats. The bearish leader is China Great Wall, but tomorrow’s expectation is unlikely to be at a deep water level; it will probably stay in shallow water or even in the red zone.

Hot sector analysis:
Computing power: Liquid cooling: Huasheng Co., Ltd.
Chips: Storage: Hefei Urban Construction
Communication: Optical modules: Kechuan Technology
Robotics: Wang Co., Ltd.

Summary:
The bull hasn’t left yet. The tech high hasn’t fallen yesterday. I still don’t see this high as the top. Yesterday was just profit-taking causing a quantitative sell-off. But a major recovery will be difficult. Today’s goal is to hold above 4200 points. Focus on low-buying around tech cores. Don’t chase highs in this market, and avoid non-mainline sectors. Mainline corrections may have opportunities for recovery, but non-mainline corrections are harsher and may not perform during recovery.

News highlights:
1: US AI optical interconnect leader POET surged over 43%. The company cooperates with the optical interconnection infrastructure platform Lumilens to promote wafer-level photonic integration. The latter issued its first $50 million optical engine purchase order, with a potential scale exceeding $500 million over five years.

2: Google returns to the smart glasses market after 13 years.
On May 19, the Google I/O developer conference opens. Google plans to officially release new AI smart glasses at this event. This is Google’s first return to the consumer smart glasses market since 2013. The new product will deeply integrate the Gemini AI model with Android XR system.

3: Epoxy resin price increases by 10-20%.
Sumitomo Electric announced on May 14 that the price of epoxy molding compounds used for semiconductor packaging, used in semiconductor manufacturing, will increase by about 10%-20%, effective from June 1, 2026.

4: SpaceX’s IPO prospectus may be released as early as next week.
According to reports, SpaceX plans to disclose its prospectus as early as next week. After merging with Elon Musk’s AI startup xAI in February, SpaceX’s valuation reached $1.25 trillion. The company is preparing for this anticipated historic listing. SpaceX aims to start roadshows on June 8 to pitch the deal to investors. According to regulations, relevant documents must be made public at least 15 calendar days before the roadshow begins, but SpaceX and its advisors hope to disclose earlier so investors have more time to digest financial data.

5: South Korean water-free hydrofluoric acid producers start importing from China this month.
According to TheElec, South Korean water-free hydrofluoric acid producers, including Solbrain, ENF Technology, and Huseong, will start importing from China this month, with prices up about 40% from the beginning of the year. These companies plan to mix anhydrous hydrofluoric acid (AHF) with ultrapure water (deionized water), purify it, and produce electronic-grade hydrofluoric acid (EG-HF) for semiconductor companies. They will supply electronic-grade hydrofluoric acid to semiconductor giants like Samsung Electronics and SK Hynix, with prices expected to rise sharply in June and July.

6: Industry news

1. Aikedi: The company’s zinc alloy business has successfully entered the optical module field. (Performance briefing)
2. Ruijie Networks: 1.6T LPO products are under development, expected to be available for sampling by 2026. (Performance briefing)
3. Nvidia’s seven consecutive gains, up over 4% intraday, setting new highs, with a total market value of $5.71 trillion. (Shenghong Technology, Maige Mite)
4. US’s three major mobile operators—AT&T, Verizon, and T-Mobile—issued a joint statement that they have, in principle, agreed to establish a new joint venture to promote satellite-based direct device communication technology. (Xinwei Communications)
5. China’s computing infrastructure opens a maritime track: the world’s first underwater data center with zero freshwater consumption. (Hailanxin)
6. Ministry of Agriculture and Rural Affairs issues the “Pig Production Capacity Comprehensive Regulation Implementation Plan (2026 Revision).” (Tianyubio, Tianbang Food)
7. Shanghai Securities News: Strong demand for gas turbines, leading industry companies’ orders extend to 2030. (Jereh, Wanze, Fuan)
8. Xuzhou Yunzhichuan New Energy’s lithium iron phosphate batteries are increasing in price. (Hunan Yunneng, Defang Nano)
9. Central government allocates 500 million yuan to support the development of specialized campus football schools. (Zhongti Industry, Yue Media)
10. Goldman Sachs: Commercialization of small modular reactors accelerates, with deployment scale possibly reaching 46GW by 2045. (Heduan Intelligent, HaHuan Huadong)
11. Times Report: Flexible stacked photovoltaic and aerospace photovoltaic are key directions. (Jiejia Weichuang, Maiwei Co.)
12. Samsung Electronics union leader in Korea states that if management does not respond by 10 am Friday, they will strike.
    13: Putin’s visit to China is ready; the specific date will be announced soon.
    14: Latest financial disclosures show Trump disclosed at least $220 million in large-scale financial transactions earlier this year, involving securities of major US companies, including S&P 500 funds, Nvidia, and Apple.

Actually, the questions I raise daily are purposeful. I hope brothers pay attention!
Today’s thought: Which recent hotspot core do you like most?
Feel free to share your insights, I’ll join the discussion, let’s exchange ideas together.

What is the right short-term path? Sometimes, it’s better to keep it simple—forget all those so-called trading strategies, routines, and indicators. For us, trading only needs to solve three questions: buy or not? buy what? when to buy or sell? These are the questions we think about every day. Thanks to my master, I’ve had the chance to learn from some other big players. The trading systems we once admired are actually not complicated but very direct and effective. So I’d like to share my trading system here, and I believe everyone will gradually realize what the right path really is!

The core of Zhuque Road’s system boils down to five words:
Trend (decides whether to buy or not), Hotspots (decide what to buy), Rhythm (decides when to buy or sell).

Trend: What is a trend? It’s not the red or green of candlesticks, nor the golden or death crosses of indicators, but the consensus direction of funds, the flow of sentiment, and the resonance of fundamentals and policies. The trend is the ultimate carrier of all trading logic.

Hotspots: Once the trend is clear, we no longer follow the market blindly. When the wind is favorable, where should we aim our bullets? The answer is hotspots. Hotspots are the three-dimensional presentation of fund consensus because the essence of the stock market is capital-driven, and hotspots are the strongest magnets for attracting funds. Retail investors who don’t understand hotspots will always be paying for others’ bull markets. In A-shares, never waste too much time and money on non-mainline sectors. 90% of your profits will come from the hotspots you participate in.

Rhythm: Rhythm is the top art in trading. It doesn’t teach you what to buy but answers the question every trader’s soul asks: 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. When the timing and terrain are aligned, success depends on harmony—that is, your control over trading rhythm.

Thanks to skilled players @ZizaiJin @Xiyue1669 @JQSY @DushangGaolou991 @QingxuDecidesFuture @MengKongShiGuangNian @Feng236 @HanFengChui @GulouPoHua @XiangZhangWang @TudiJianJin @HuangQuan7Dian @LongGongLong @30Fen @GuaZhouDu for supporting Zhuque Road with points!

Thanks to @Wu1997 @GDQingtian @DushangGaolou991 @XianxiaMoyu @KuangDunQing @HouGe66 @Feng236 @QianNiuShangShanDaHuHu @MengKongShiGuangNian’s 9 valuable support coupons, elevating Zhuque Road’s articles to treasured highlights on Taoxian!

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

Everyone, each day you have 10 push tickets to send—any small support helps add warmth and strength to our small circle. Your encouragement gives me more energy to deliver valuable content.

What I can do for everyone: select stocks carefully, capture market hotspots first, organize mainline logic, pre-judge market risks, precisely grasp repair nodes, and help you keep the overall trend in check. If you have content or needs you want to see, tell me in the comments. I’ll prioritize popular topics in daily reviews, making the content more thoughtful. Let’s interact, support each other, and keep warm. Keep going, and let’s go further together!