Reduce trading frequency, do ETF T+0 trades while waiting for the market to recover.

Last Friday, I bought two positions in the switch stock Shengke Communication, and seven positions in Huafeng Technology on the Huawei Ascend line. As a result, last Friday was a trap—one big pit and one small pit. Today the switch sector counterattacked, but the strongest wasn’t Shengke; it was Feiling Kesi. On the Ascend line, the strongest still remains Aerospace Electrical—when it counterattacked, it then surged to a daily trading limit. I was probably one of the very few who bought the Huawei Ascend line on Friday. The direction was right, but I didn’t handle the individual stock trades well. Huafeng got back to breakeven at more than 4% this morning and exited. Shengke Communication exited after running up about 2% this morning… For this market, I’m not asking for profit—saving capital is all that matters.

Today, in the technology sector, storage also ran into a round of profit-taking this morning. This was within expectations. Yesterday’s post had already analyzed it clearly: performance wasn’t as strong as people imagined, and even the opening auction was worse than expected. But after the intraday profit-taking, the money went around and looked at it again—compared with others, storage was at least really making money. As for how much, we can talk about that later; the key is that if you have money to make, that’s the king. Then during the session, they picked up storage again. Jiangbolong, Baiwei, and Demingli—these few with strong identifiers—showed relatively resilient price action and didn’t fall as much. I didn’t have an early entry, and I also didn’t want to open a position and chase during the session. I’ll keep my hands to myself and watch for the next few days.

Today, with my holdings in the 710 Equipment ETF and other positions, I T-traded and made close to 5%. My friend’s STAR Market 50 ETF was similar. I’m planning to continue doing T-trades with ETFs going forward too—switching themes every day, and whether the momentum can sustain is also unclear. In the earnings-line stocks, Hangdian Co., Ltd. somehow released earnings and still got pinned down to the daily limit on the downside—absolutely unbelievable. In the pre-market, I was thinking that if Hangdian showed strength, I’d buy a bit of second-tier optical fiber. But Hangdian opened lower and then got hammered down immediately. Who would dare buy optical fiber then? I’ll keep waiting for a right-side signal. Tonight, Morgan Stanley is still optimistic about Yangtze Optical Fibre, calling it the “number one” in the sector. The logic is that optical fiber is currently a sentiment-driven wrong sell, not a change in fundamentals; demand is still tight. I’ll wait for the right-side signal. I really don’t dare to move anymore. Over these past few days this month, several big players have told me they’re down more than 20%～30%. People losing tens of millions of yuan/equivalent aren’t rare either. Just be honest and wait for the market to build a bottom, and then follow the new-carrying theme on the right side.

On the opposite side, the sector with relatively healthy price action today is innovative drugs. Tonight there’s data: from 2026 M1 to M6, China’s BD total transaction amount in the innovative drugs sector has already reached 103.6 billion USD, up 48% year over year. The upfront payment reached 5.2 billion USD, up 70% year over year. I guess this is probably why innovative drugs have been performing better recently. It must be that some institutions knew about—or predicted—the relevant data early, so they got in early. Subjectively, I don’t want to do non-tech. If I do anything, I’ll do innovative drugs ETFs.

These past few days in July have been difficult to trade. Everyone should protect their capital, and don’t get discouraged. When the opportunity comes, it’s time for a comeback—one wave at a time!