07.12 recap: Hard to deal with.

Declaration: The following are personal thoughts, not investment advice [Taoqiu Ba]
Limit-up situations

Second board

Second board advances to third board

Third board advances to fourth board

Fourth board advances to fifth board: none
Fifth board advances to sixth board: none
Sixth board advances to seventh board: none
Limit-up gets smashed

Top twenty by drawdown

Ranking by gains and losses

1. Market
   （1）

On Thursday, tech stocks rebounded violently and drove the index sharply higher. In the morning, the overall performance of tech was beyond expectations. The front-runners were all at very high premiums. Sub-sectors such as pbc, mcll, optical communications, and others rotated and surged. In the afternoon, the trend directly destroyed everything—leaving nothing standing. Quant trading is now too extreme.

Tomorrow, the expectation is a weak repair in tech, so I can only manage my position size and focus on the strongest. Right now, internal competition is getting more and more intense. A steady, patient wait to see how things unfold after the pressure is exhausted. Most of the double-top/bearish setups are basically running away. Check how the follow-through/support looks for front-runners like Huatian Technology, Shenzhen Technology, and Graduate Institute of New Materials.

There’s also news-driven stimulation for domestic computing power. The main thing to watch is how Ziguang Co., Ltd. and Inspur Information perform in terms of follow-through/support. They are both stocks with large transactions. More needs to be assessed together with the sector—if the sector weakens, then it’s mostly just observation. Only when the “height” is established can rotation happen within the sector.

The strongest “fermentation” right now is commercial aerospace. On Friday, the front-runners had high premiums. Watch the feedback from popular stocks Shenjian Shares and China Satellite. If you’re too stubborn, you can only go with the front-runners; even if later boards turn into bad plates, there can still be a chance to surge and reduce losses. If the hype is too strong and you didn’t get in early, relay trading is still hard to handle. Either wait until the height comes out before talking.

Right now, quant is killing back and forth every day in an extreme way. Just be patient and wait until the market returns to normal; later, new cycles will gradually form.

2. Trading

In the morning, watching the tech opening auction was indeed far beyond expectations. I thought it would be a direct split and then see some rotation elsewhere; instead, it opened broadly higher across the board. The bidding pushed up Huatian Technology, but by the close, I still got hammered.

Inspur Information also got knocked out because the index sold off in the afternoon.

Wishing you well

Like to get rich in a lifetime

Investment is a lonely practice. You must be able to hold on to prosperity, and also endure the loneliness.