Domestic semiconductors continue to make efforts, continue to do T+0 trading on semiconductor equipment ETF!

Today's market performance is still strongest in domestic semiconductors. Around 9:51 AM, the strongest stock under Tao's Law, JCET, began to see large orders flowing in, leading the sector to continue its upward movement. When Tao's Law first appeared, it already proved that advanced packaging is the most beneficial direction and the most critical link. Based on previous capital memory, the recognizable names in advanced packaging include JCET, SJ Semiconductor, and Huatian Technology (the emotional leader in the first wave of Tao's Law). At 10:27 AM, Huatian saw buy orders of 180 million and 48 million yuan. This is a typical scenario: with sustained capital inflows into the major bellwether JCET, capital initiated moves, and Qin Xulong assisted the sector in continuing its upward push. This is the first right-side entry point within my strategy. I followed the market and bought a small amount.

The result was that Huatian went straight to the limit up. However, constrained by the index's decline, JCET did not further approach the limit up but instead showed volatility. After the market closed, the sentiment indicator was at an extreme low. If the index recovers tomorrow, JCET is likely to resonate with the index and move upward again. At that time, I will make decisions based on the market conditions.

Additionally, within the Huawei Ascend line, a niche sector—domestic switches—specifically the switch chip maker Centec Networks, is currently moving along its trend line, forming two small bullish candlesticks. If domestic switches continue to gain momentum, they may lead the sector to recover. In terms of rhythm, on Monday, the sector saw its first recovery. Today, except for Centec Networks still moving upward, other stocks like the 20cm Feiling Cisco (strong on Monday) and the 10cm Unisplendour, were in deep adjustment today. However, none broke the 5-day moving average trend line. So I took a position in Feiling Cisco at the end of today, betting on a stabilization and upward trend tomorrow. If it breaks down, I will cut losses.

Within the domestic line, one of the strongest sub-sectors today is semiconductor equipment. Yesterday, I made a 5% T-trade on the semiconductor equipment ETF 588710. Today, the equipment ETF opened below the water line. I added to my position and sold the base position when it was 2% above the water line. Although I didn't hold until the afternoon, I still managed a nearly 5% intraday T-trade. I would call this the optimal solution in the current poor market. Additionally, today's T-trade once again proved that T-trading can lock in positions and prevent selling too early. This ETF and I have a good connection—except for the first day when I bought early and lost money, the subsequent days of T-trading have all been profitable. I will continue T-trading until the trend turns downward.

Others: Today, Hangzhou Electric Co., after releasing its earnings, continued its limit-down for the second day. During the first limit-down this morning, some capital tried to open the board. A comprehensive analysis suggests it might be a sentiment low point. I went left-side to buy a position in second-tier optical fiber maker Far East Smarter Energy. However, currently, it seems no capital is flowing into this line, and there's no sign of intraday recovery. On the positive side, at the end of the day, there was pre-positioning in Zhongtian Technologies and Hengtong Optic-Electric.

Although this cannot be taken as evidence that it will definitely rise later, it at least indicates that capital has started to pay attention to the optical fiber sector at oversold levels. After all, this sector has indeed been profitable, and the stock prices have risen a lot. I'll see if the market recognizes it and let the market decide.

Tonight, Inspur Information released its earnings forecast:
Inspur Information announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 2.6 billion and 3.1 billion yuan, an increase of 226%-288% compared to 799 million yuan in the same period last year; net profit after deducting non-recurring gains and losses is expected to be between 2.06B and 2.56B yuan, a year-on-year increase of 206%-280%; basic earnings per share are expected to be 1.77-2.11 yuan, compared to 0.5425 yuan in the same period last year. The growth is attributed to the company's active efforts to seize industry upward opportunities, continuous technological innovation, and improvement in customer satisfaction, constantly optimizing product line layout, enhancing product added value, and strengthening supply assurance capabilities.

This earnings report indirectly confirms that since the first quarter, the prosperity of the domestic semiconductor industry has been continuously improving, with earnings steadily increasing. Recalling the earlier surge in Ruijie Networks' switch earnings, this also indirectly validates that the prosperity of the domestic semiconductor equipment industry is rising, especially after the overseas computing power sector has already seen significant gains. Currently, the market seems more inclined to favor domestic computing power and semiconductors. Therefore, I will continue T-trading the semiconductor equipment ETF 588710 while monitoring whether the switch sector recovers and strengthens.

In the afternoon, influenced by rumors, the large optical communication sector, with Dongshan Precision as the core recognizable name, saw significant capital inflows. Many large orders aggressively pushed Dongshan Precision upward. However, sectors like optical communication and large optical are heavily dependent on the index. If the index moves upward later, this would be the optimal time for this sector to shine. When the index stabilizes and rebounds, I will consider going right-side into Dongshan Precision. For now, I'll focus on the domestic semiconductors I already hold.

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July has started off tough. Everyone must not lose heart. Stay humble, follow the trend. In a downtrend, try to keep your hands restrained and wait for the next opportunity.

Wishing tomorrow a turnaround from adversity, with the market reversing upward.