Focus on core trending stocks with bullish alignment – pay attention to the continued recovery of the tech sector and opportunities for rebound at low levels – control your impulses – secure profits and take the money off the table

Next week is a week focused on light indices and heavy individual stocks. Pay close attention to the continued recovery of the tech sector and opportunities for low-level rebound. Keep your hands steady and avoid jumping in during emotional surges. [Taogu Ba]
Volume contraction with broad gains, a typical “high-low switch”

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Practical insights on how to judge market sentiment peaks and troughs, seize core opportunities, and lock in profits

Today’s focus:
HuaGong Technology, T-Back Aerospace Development, low-level attention to Yunnan Energy Holdings, sentiment leaders

Our major A-shares and money-printing machine have experienced a “gap up and strong recovery” rally, with all three major indices closing in the green, over 4,200 stocks rising—celebration all around.

After a morning of low open and oscillation, the market has staged a “deep V” reversal, with all three indices rising and stocks broadly up. Today’s market isn’t just a simple “big bullish candle,” but a typical “stock surplus game” with large capital migration.

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Practical insights—short-term breakout and capital strength analysis

Last night’s analysis of HuaGong Technology’s logic

Practical sharing—focusing on core short-term trends and rolling T+ strategies

Analysis of today’s continuous board sentiment logic

But if you only look at the number of rising and falling stocks and ignore volume, you might be “fooled.”

1. Core feature: volume contraction rebound. Today’s turnover is about 2.2 trillion yuan, nearly 200 billion less than the previous trading day.
   This indicates today’s rise was not driven by large outside capital inflows but by internal funds self-help and repositioning.

2. Sentiment recovery, but willingness to chase highs is weak. After several days of adjustment, market panic has cooled, and panic selling has mostly ended. However, signs of funds rushing to sell at the close suggest confidence is still fragile, with many wanting to take profits quickly.

3. The key “high-low switch.” The core logic today is funds retreating from high-level cyclical stocks (like oil & gas, coal) to bottom-fishing in previously deep-fallen tech and growth stocks.
   This is a typical “rebound” pattern and an important signal in practical trading.

Lock in profits during the auction and the first 15 minutes of trading to enjoy compound interest!

4. Capital flow: from “old cycle” to “new track” retreat. Today’s capital flow shows a clear “high-low switch,” with funds withdrawing from previously high-flying “old cycle” sectors affected by geopolitical conflicts and flowing into “new tracks” driven by policy benefits.

Withdrawers (risk aversion): sectors like oil & gas, coal, and small metals, which performed strongly earlier, fell today.
This suggests that as geopolitical tensions normalize, funds are no longer willing to pay premiums for conflict-related assets and are taking profits. Don’t chase the tail; the news-driven hype is ending.

Attackers (aggressive buying):
Big tech (computing power and power grid): stimulated by the inclusion of “computing and power synergy” in government work reports, sectors like smart grids, computing leasing, and CPO concepts are active.
This is a typical policy-driven trend with high capital recognition.

Healthcare (innovative drugs): biotech stocks surged to limit-up levels. As a “new pillar industry” and with increased industry BD transactions, this sector has established a mid-term logic with deep capital involvement.

Agriculture (seed industry): under the expectation of rising international grain prices, the agricultural sector is favored as a defensive counterattack tool.

Core practical trading skills

Based on today’s capital flow and “high-low switch” logic, next week’s capital is likely to continue focusing on the following areas:

Follow policies closely and focus on “new quality productivity.”
Next week’s strategy should revolve around “policy certainty” and “performance realization.”
Capital will likely continue to explore the “new quality productivity” theme.
Q1 earnings reports that are strong will have a significant advantage.

1. Major tech theme (new quality productivity): the strongest rebound force today and the main focus next week.
   Includes AI applications and hardware: such as smart grids (leading today), AI computing power, and semiconductors (especially storage chips).
   Funds are shifting from “expectation trading” to segments with actual performance and application deployment.
   AI computing power and power (the strongest main line):
   Logic: AI’s ultimate is electricity, resonating with overseas grid expansion and domestic “computing-power synergy” policies.
   Focus: smart grids, computing leasing, CPO (optical modules).
   Pay special attention to leading power equipment and AI hardware companies with both policy support and overseas orders.

Brain-machine interfaces/innovative drugs: this sector performed strongly today, boosted by policy support (listed as a “new pillar industry”) and year-end report expectations, likely to stay active next week.
Focus: innovative drugs, CRO/CDMO, cell immunotherapy. As the annual report season approaches, leading stocks with expected performance growth will be safe havens for capital.

Tips and strategies for buying at the close

2. Major consumption and agriculture (defense + rotation rebound):
   In a volatile market, agriculture often acts as a safe haven for funds. Today’s strong performance suggests that if tech stocks diverge next week, funds may flow back into agriculture.

Major consumption:
With ongoing policy stimulation of domestic demand, sectors like food and beverages will not surge daily but will repeatedly attract capital for rebounds.

3. Financial stabilization (brokerage/insurance):
   Today’s rise in securities and insurance sectors was mainly to stabilize the index.
   If next week the index aims to break key resistance levels (like 4150 points), brokerage stocks need to rally again. Keep an eye on their role as “stabilizers.”

Personal advice:
Be cautious of “trap” risks: today’s broad rally is a recovery, not a main upward wave.
Early next week, individual stocks are likely to diverge.
Stocks rising without volume support may face pullbacks.

Avoid blindly chasing highs: since volume hasn’t expanded, the market can’t support all sectors rising together.
If tech stocks open sharply higher next week, don’t rush to buy; instead, watch out for profit-taking.
Pay attention to “Two Sessions” news: next week is the Two Sessions period, and policy news (like anti-involution, expanding domestic demand) will directly impact the market. Following policy dividends is key to success.

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Disclaimer: The suggestions are for reference only and do not constitute investment advice. Do not consider individual stocks as recommendations. Invest rationally and bear your own risks. All content reflects my simulated trading ideas for sharing purposes only, not investment advice. Profit and loss are your own responsibility. Feel free to like and follow!