26.7.8 Inspur Communications’ large single order hits limit-up—can domestic computing power take over next?

Foreword: I went out drinking last night and didn't get back until after 1 a.m. After returning, I replied to all the messages on the stock bar... Got up early this morning and read through the news and Lord Ci's posts. Still, I can't help but sigh that having a young body is truly a blessing. I wonder how long this body can last—must cherish it. Back to business. Today's market feels like a simple setup to me, because after consecutive declines in tech recently, there are very few focal points. Today's review outline: 1. Market analysis 2. Personal trade review and tomorrow's plan 3. "Be vigilant in times of peace" – today's pitfalls [Tao Stock Bar]

Encouragement: Today, let me talk about myself. This is my one month and one week of writing reviews. I'm truly grateful for everyone's support. I will remember every like and comment. I've mentioned before that I'm a person with a low sense of worthiness. Over this month, I've gained over 540 followers, and the discussion atmosphere in my posts has picked up. I really don't deserve this... This also forces me to keep improving, constantly raising my cognition to bring higher-quality reviews for discussion with everyone. I will maintain an empty-cup mentality and continue to learn alongside everyone—To make each day count!

I. Market Analysis

Topic 1: Inspur Information's 10 billion pre-market buy order – Is domestic computing power poised to take over?

First, let's review the tech hardware sector trends. CPO, PCB, storage, optical fiber, etc., are still in correction. Some sectors have already seen six consecutive bearish candles without a rebound.

Among the tech sectors I've been following, computing power rental + semiconductor equipment are the only two sectors that closed with positive gains today.

The most eye-catching during the pre-market auction was Inspur Information's 10 billion buy order at the limit-up. The limit-up came from a significant earnings surge, with both year-on-year and quarter-on-quarter high growth.

So why, despite similar earnings surges, did tech hardware stocks like Longsys Electronics, Yongding Stock, and Hangdian Stock decline?

The key reason is that previous gains had already priced in earnings expectations. In contrast, the domestic computing power line has been at a low level without activation. See chart below:

Moreover, storage and optical fiber have recently been heavily influenced by external factors, while domestic computing power can follow the domestic self-sufficiency and controllable line, independent of overseas chains. I believe that in future AI competition among nations, domestic self-sufficiency and controllability is the only breakthrough—this is a national will. I think that amid consecutive corrections in tech hardware, domestic computing power has the potential to take over and become the new trend's primary upward move. However, after South Korea's circuit breaker triggered again in the afternoon today, A-shares once again pulled back, failing to close above 4,000 points, causing the domestic computing power line to also retreat. This proves that under the current environment, the emergence of a new sector faces tremendous pressure. Therefore, Inspur Information's performance tomorrow will be particularly important—let's wait and see.

Topic 2: Hengshang Energy-saving explodes to 7 consecutive limit-ups; Yibin Paper self-destructs at open – Has short-term sentiment deteriorated again?

Today, Inspur Information's large single-limit order at the open I see as another wave signal, shifting from overseas chains → recent non-mainstream speculation → domestic computing power.

Yibin Paper, affected by yesterday's negative earnings news, opened near the lower limit, only pulling up to -1.91% (slightly green) in the last few seconds before 9:25. At this point, one must observe the first candle's direction after open. If the first candle plunges straight down and fails to turn positive after a rebound, it can basically be confirmed as a discard. I've previously explicitly mentioned that Yibin Paper is analogous to Lanfeng Biochemical, characterized as a bearish index reversal indicator.

Meanwhile, today's 10 billion large order from Inspur Information is another signal of tech rotation. Therefore, impacted by Inspur, Yibin Paper failed to advance, and short-term heights were once again suppressed.

Additionally, Hengshang Energy-saving saw massive volume in the afternoon today, and the current highest limit-up board is Daheng Technology, also of the "Heng" family, which will still be pressured and dragged down by consecutive limit-up heights. As of now, short-term sentiment has been terminated once again—still waiting.

II. Personal Trade Review

At the open, seeing Inspur Information's single large limit-order, Ziguang opened near the limit-up, and Sugon opened at +4.68%. At that time, I judged that Ziguang would be difficult to catch with a fast limit-up and lacked cost-effectiveness for the day, so I focused on Sugon. Meanwhile, I observed Yibin's first candle direction. After confirming that Yibin was off the table, I decided to buy Sugon.

In fact, I've entered this stock twice recently. The last time I bought based on the logic of a main board catch-up rally compared to Zhongke Flight, I didn't make money and actually lost some. This time, it's to arbitrage Inspur Information and join the domestic computing power sector to see if there's an opportunity.

During the morning pullback, since no new themes appeared on the market, I judged that domestic computing power would rotate back. I was encouraging everyone in my post, but in the afternoon, with South Korea's stock market triggering another circuit breaker, A-shares followed with a dip. Ziguang had its limit-up broken again, and unfortunately, the domestic computing power line pulled back once more.

I closed the day with a small loss (-0.87%). Why was I in a hurry to switch to the domestic computing power line at the open?
Currently, I'm not playing short-term consecutive limit-ups, and the trending tech hardware sector is in continuous correction. If no one steps up in this market, I believe the market will become stagnant. I see Inspur Information's 10 billion buy order as a signal acknowledging domestic computing power. As analyzed above, in the AI competition, domestic substitution is the only way out. Based on the national will, I'm willing to charge forward first. Even if I lose, I believe this trade is worth trying.

Tomorrow's observation plan:
Sugon should anchor to Inspur Information for exit decisions. The first 5 minutes of trading will be critical.

Short-term consecutive limit-up observation targets: Xingye Stock, pattern reference to Taishan New Energy. Watch for a gap-up breakout above the box range, and watch for entry points below 5%. Also observe whether Xingye Technology simultaneously pushes up.

Jinshi Technology: Noticed Lord Ci mentioned this stock. From a paper angle similar to Yibin, keep it as an observation. However, looking at Jinshi's chart, it's a rebound from oversold levels. Treat it as an observation target for now.

Also, tomorrow's Plan B is stay in cash to maintain state, because the current market is still very chaotic. The number of limit-up stocks in the past two days has decreased significantly compared to before, and tech hardware is still in correction.

III. "Be Vigilant in Times of Peace" – Today's Pitfall Avoidance

Yibin Paper: I believe today, besides the impact of Inspur's large single limit-order, Hainan Haiyao, as a former bearish index reversal target, also had earnings losses and hit a second consecutive limit-down today, opening directly at the limit-down. I think this also affected Yibin Paper. Moreover, Yibin failed to seize the divergence in domestic computing power during the early session and couldn't turn positive. Therefore, I believe today Yibin Paper could only be sold, not bought.

Thank you to all my friends. Through our joint efforts, my followers have surpassed 500. This is the achievement of one month and one week. I am willing to continue learning and improving together with everyone.

Feel free to leave comments and discuss. I hope everyone can like this post. Wishing you all prosperity~