[Red Packet] Market Cyclical Bottom Confirmed

Monitoring the market can reveal opportunities, while reviewing past trends helps clarify direction.[Taogu Ba]
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Monitoring and reviewing are already ways to understand others; the next step is to understand oneself, and finally, choose the right time to act.**
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Stock trading is not based on guesswork. Those who profit often have one of two qualities: first, the insight to anticipate market movements (forecasting), or second, the ability to adapt during trading (following).**

Market Overview:
The three major indices are working together to recover and initiate a counterattack. The indices are showing phased movements: the ChiNext is the first to decline sharply in this round, and today it was the first to rebound; the STAR Market is the most resilient index in this cycle, completing its correction this morning; the Shanghai Composite was supported by bank stocks in the morning to shield large-cap stocks from decline; the Shenzhen Component reflects the more genuine intra-day state, echoing the index movements since 11/24, as illustrated by yesterday’s chart depicting the phase after the 9/24 rally:

Since the bull market started on 9/24, there have been three phased corrections, all using similar methods by mysterious funds—leveraging external negative events such as tariffs, interest rate cuts, and US-Iran tensions to drive declines. Moving forward, if external uncertainties are excluded, the optimistic expectation is that the market will enter a consolidation phase, with a main upward trend expected in April.
This is just my personal optimistic outlook; please do not criticize if you disagree.
Yesterday’s market decline was expected, and today’s rebound confirms the prediction.

Friends who believed in the potential yesterday could have boldly bought the dip, and today they are essentially earning passively.

Today’s trading volume shrank to 2.09 trillion compared to yesterday. This week’s trend: Monday saw over 5,000 points waiting to rise; Tuesday saw over 5,100 points up.

In the short term, the theme of power-related stocks continues to gather strength. The trend started with 688 stocks leading the attack in the morning, and in the afternoon, hardware and storage stocks resonated with the index to rebound.

Yesterday, I predicted hardware and storage would lead because the strong tech support for M-shares mainly comes from storage and optical-related stocks.
From yesterday’s perspective, there are only two possibilities for the overall A-shares recovery: one, a significant positive news event that triggers a standalone rally; the market’s direction then depends on specific news; two, a global resonance recovery, with M-shares opening after hours, anchoring the market, and US stocks recovering, which would naturally lead to a rebound in storage and optical stocks—simple and straightforward logic. This is not about Western admiration but about A-shares’ funds leveraging the trend. If you had early positions in these two sectors yesterday, today you are starting with a win.

The number of stocks hitting daily limit-ups increased to 83 from 28 yesterday, with a success rate of 79%, up from 65%. The number of stocks in the continuous rally team rose from 5 to 6.

Continuous Rally Team:
7-day streak: Huadian Liaoning Energy (Energy sector)
3-day streak: Zhongli Group (Energy storage)
2-day streak: Tuori New Energy (Energy sector), Xuelang Environment (resumed trading), Zhejiang New Energy (Energy sector), Liaoning Energy (Energy sector)

The streak has reached a rare 7 days, surpassing the deviation threshold. Its quality will be tested tomorrow. The energy sector is currently catching up on the downside.

First praise, then observe—develop a good habit of persistence, and daily profits will follow.
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Market Summary:
Big Tech: AI hardware, chips, computing power, etc.
Cycle sectors: Chemicals, metals, etc.
Themes: Electric-related stocks.

1. AI Hardware and Optical-Related Stocks:
Optical: Tengjing Technology, Guangku Technology, Dekeli, Yuanjie Technology, Changguang Huaxin, Juguang Technology, Dongtian Micro, etc.
Leading: Tengjing Technology, continuously hitting new highs, anchoring the upcoming wave of optical-related hype.
Mainboard new star logic stocks:
Taijing Technology (crystals), Yunnan Germanium (indium phosphide), Risconda (switches). All had touches today; Yunnan Germanium successfully closed higher, while the other two are consolidating at high levels, driven by potential volume increases.
Optical fiber: Changfei Optical Fiber, Tongding Interconnection, Guangdian Shares—all showing strength and rising.
Large-cap stocks: Yizhong Tian, currently strong with Easy盛, others follow.

2. PCB-Related Stocks:
Leading: Nanya New Materials, representing CCL (copper-clad laminate), with high-end volume logic, hitting new intra-day highs; yesterday, 204 Wangsu Technology experienced a dip and shakeout.
CCL: Nanya New Materials (high-end), Jinan Guoji (mid-low end), etc.
Drill bit equipment: Han’s CNC, Xin Ge Micro-Assembly, etc.
Copper foil: Longyang Electronics, Copper Crown Copper Foil, Defu Technology, etc.
Large-cap stocks: Shenghong Technology, Hudian Shares, Shennan Circuit, Pengding Holdings, etc.

3. Liquid Cooling Stocks:
Potential leader: Qiangrui Technology, a resilient stock during the recent market decline, newly added Google and Dalian, with potential for new highs.

4. Server-Related Stocks:
Large-cap stocks: Industrial Futelian, Huachuang Technology, Inspur, etc.
Independent trend: Haixing Shares, which hit a new high early today.

Overall, hardware stocks in various segments have withstood the recent decline. Future performance depends on whether the sector can continue to lead in its niche, especially with overseas market mapping concepts like Old Mantou and TTMI, which showed strong afternoon resonance with the market. The sustainability of this trend depends on index cooperation; trend-based sectors are suitable for skilled investors who excel at identifying opportunities.

2. Chip Sector: Mainly storage and general chips.
Chips:
Leading: Yaxiang Integration, with cleanroom attributes—the only Taiwanese-backed cleanroom stock in A-shares, with explosive potential over 26 years, currently undergoing valuation reassessment, trending on the 5-day moving average.
688 sector rebound: Muxi Shares, Cambrian, Moore Threads, etc. These led the rebound on the STAR Market today, providing clear bottoming signals, mainly for technical traders.
Emerging trend: Saiwei Microelectronics.

Storage:
Leading: Baiwei Storage, Demingli, both showing strong intra-day performance, resonating with the index for recovery in the afternoon.
Other stocks in the mid-to-lower ranks also saw random rises.

3. Computing Power:
Leading: Hongjing Technology, affected by a small article from Xiechuang, was heavily sold off but is now testing the 13-day support. Whether it can shake off Xiechuang’s influence remains to be seen.
Mainboard leaders: Meiliyun, Qunxing Toys, Aoruid, with Aoruid bouncing back today, Meiliyun dropping out, Qunxing Toys performing second best.
STAR Market active stocks: Lian’ang Technology, Pingzhi Information, etc.
Overall, the strength is mainly in mid- and low-priced stocks; high-priced stocks were dragged down by small articles and remain sluggish.
The dilemma in the theme: after channels were cut off, will the expansion of computing power leasing companies be restricted? No one can answer definitively. From the company perspective, they will deny impact; from the market view, Nvidia’s attitude toward chip licensing could influence leasing expansion.
This sector is somewhat unfortunate, originating from AI application hype, then shifting to compute-electrical synergy, with trend stocks like Hongjing Technology once crushing recent storage leaders like Baiwei Storage. Even the most compelling logic can be overshadowed by small articles. Whether it can turn around remains a key focus.
One more thing: many say compute-electrical synergy is a logical concept, but in market practice, no actual synergy has been observed since the start.

4. Electrical Sector:
If the focus is on power grid equipment and transformers, it follows the index.
If on photovoltaic stocks, it runs counter to the index.
If on energy sector (能字辈), it’s a group rally.
Energy group leaders: GCL-Poly Energy, Jinkai New Energy, Yunnan Energy Holdings.
能字辈 daily limit high: Huadian Liaoning Energy, breaking 7-day streak and surpassing the 10-day deviation; tomorrow’s test.
Yunnan Energy Holdings is limited by regional restrictions and remains in the second wave.
Jinkai New Energy has been competing with GCL-Poly Energy since March 19, recently overtaking GCL-Poly today.
Photovoltaic leader: GCL-Integrated.
Overall, the strongest theme currently is the 能字辈 group rally. In the afternoon, as the index rebounds, Jinkai New Energy experienced a breakout, mimicking past aerospace hype. For long-term growth, the power sector must fully follow the index.

Morning market details for potential resonance:
The stocks hitting new highs early are: Tengjing Technology, Haixing Shares, and Yaxiang Integration—representing AI hardware and chips, i.e., Big Tech.

5. Summary:
Overall, this recovery has not introduced new directions; yesterday’s robot stocks were a one-day wonder and remain stagnant.
The main sectors are still Big Tech hardware, storage, computing power, and electric-related themes.
Those skilled at trend detection should focus on Big Tech, which offers good value but relies heavily on index environment.
Group rally stocks are in the power sector, with high flexibility—simple and direct. The downside is that if the sector cannot effectively follow the index later, the group may collapse, leading to violent declines.
Choosing a sector depends on your understanding and preference.
Currently, the market is at the end of the decline phase, with a consolidation expected, not a main upward trend. It’s a structural market, a good time to start from a low point.
If you expect a main rally, wait until the consolidation phase is complete.
If this article is helpful, please give it a like. If likes are low, future review posts may be sporadic.
There is a live broadcast this Saturday; interested friends are welcome to reserve a spot~

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The above reflects personal logic and may not suit everyone, but it’s how I currently operate. If you find it inappropriate, just ignore it. No need for harsh words. If it helps you, I am glad.
The bull market in A-shares is ongoing, but it’s in individual stocks, not the index. Holding the right stocks means being in a bull market; missing them means the index can rise to the sky, but you remain in a bear market.
Disclaimer: The above review, posts, and comments are for entertainment and reference only, not as investment advice. Do not trade solely based on this. The stock market involves risks; invest cautiously! Remember, there are no stock gods in A-shares!
Note: Stocks mentioned in the article and below #￥ do not represent my holdings or favorites; do not follow blindly.
Sharing is also a form of happiness—there are treasures and gold in the text.
Hope readers gain something from this article.

Disclaimer: This article is a record of my own operations. Investing involves risks; trade cautiously. Plans can’t keep up with market changes. Follow the market movements; content reflects personal thoughts and records, for sharing and understanding only. Not investment advice. Buy and sell at your own risk.