[Red Envelope] Happy Lantern Festival! Keep your hands in check and wait for the opportunity to arrive!

Short-term trading is an art. It uses the ever-changing market as a canvas, sharp insight as a brush, and decisive execution as paint. True masterpieces are not born from chasing random fluctuations, but from precisely capturing and resonating with the market’s core “strength”—drawing directions at emotional peaks, structuring during sector rotations, and ultimately adding the finishing touch at the moment individual stocks lead the rally. ————Reinvestment Artist[Taogu Ba]

Artist’s Meal Review:

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Today’s market delivered a heavy blow. Aside from oil and natural gas, which are safe havens for funds, the rest of the world is crying out in distress, with hardly any sectors spared. Is this situation due to our stock selection issues? Or is our rhythm off? There’s no point in analyzing these reasons today, but you can think about why you didn’t dare to buy oil and related sectors yesterday.
In a broad market decline, it’s crucial to manage your positions well, operate less, and avoid being swayed by bottom-fishing emotions. Today’s market lacks the turning points needed to support bottom-fishing, and the indices did not stop falling. During such times, it’s best to stay cautious, control your hands, and keep an eye on your pockets. Chasing high at this moment is very likely to lead to losses.
It’s not that falling means only despair; we should focus more on the opportunities after the decline. Currently, the biggest market expectation is the Two Sessions. If new directions emerge during the Two Sessions, new opportunities will arise then. Also, today’s sharp decline hasn’t yet triggered widespread panic selling. If the market can quickly fall tomorrow and panic is released, it could be a good bottom-fishing opportunity. Everyone has seen the strong will to support the market, but external influences are too large. So if there’s a continuous drop and panic selling, it’s worth betting on the opportunity—big disagreements lead to big bets, small disagreements to small bets. When the market was strong previously, we could bet during disagreements because the willingness to buy was high. When the market is relatively weak, we should bet during ongoing disagreements, as the willingness to buy isn’t strong, and only when disagreements persist and stocks are supported can we bet safely.
Observe the trend-following stocks, but due to recent declines, some stocks that have already fallen and can’t go lower anymore are worth noting.

Market Analysis Today:

From the index perspective, influenced by geopolitical tensions and risk aversion sentiment, the A-shares market showed weakness across the board today. The index opened high in the morning, setting the tone for the day, but heavy selling pressure caused a sharp decline. Thanks to the support from heavyweight sectors like banking and finance, the index briefly turned positive, but as risk aversion intensified, the overall Asian markets weakened, and the Shanghai Composite closed down 1.43%. Today’s trading volume continued to rise, reaching 313 billion yuan. There were 76 stocks hitting the daily limit up and 53 hitting the limit down, mostly in oil and natural gas sectors. Sentiment was fragmented, with some sectors exploding while others lagged.
From sector perspective, sectors showed a stark contrast—oil, petrochemicals, port shipping, and natural gas continued their rally for the second day, with strong capital grouping effects; banking and insurance sectors also rose during the session, acting as safe havens. Meanwhile, non-ferrous metals and precious metals surged and then retreated, with many small metal stocks hitting the limit down. Tech sectors suffered a broad setback, with many high-priced stocks hitting the limit down and profit-taking causing significant outflows. Overall, the biggest declines were in high-priced stocks, reflecting a clear profit-taking trend, which has been the main market sentiment recently. When stocks at high levels lack upward momentum, they are quickly sold off.

1. Oil/Shipping/Natural Gas
The US-Iran conflict escalated further today, with the three major oil companies hitting the daily limit up again—an extremely rare event, marking an epic move over the past two days. The entire sector continued the limit-up trend, driven by risk aversion and rising prices. This is a classic case of early confidence paying off; those who bought yesterday or intraday today benefited. Based on current news, the Middle East situation isn’t as optimistic as hoped, and the conflict may be delayed further. But news changes rapidly, and market reactions are faster than ours, so while resting on the board, stay alert to external news. Future betting will become more difficult. Today, 32 stocks advanced to the second tier, mostly in oil and natural gas sectors, with most market limit-ups concentrated there. The acceleration after yesterday’s news suggests some divergence expected tomorrow, but panic selling in other sectors has not yet appeared. Some stocks even broke their limits at the end of the day. If divergence occurs tomorrow, there will likely be a rebound and some panic in other sectors. Everyone has seen the strong support intentions, but external influences are significant, so watch for external news.

2. Computing Power
The computing power sector declined sharply today due to market impact. Core stocks like Huasheng Tiancai plunged, but Huawei’s subsidiary, Tuowei Information, held relatively steady, with funds returning at the close. When the market is turbulent, no sector is immune. Even stocks with good trends have been damaged in the past two days. But a damaged chart isn’t necessarily bad; as long as the underlying logic remains intact, the trend will eventually recover. It’s just a temporary interruption, and regardless of external developments, stocks tend to return to their trend. This decline might even be an opportunity. Keep observing which stocks can stabilize and support.

3. Chemicals
The chemical sector, which should have moved in tandem with oil, showed significant internal divergence today, mainly due to methanol-related stocks. Other areas are difficult to recover in the short term, so it’s better to observe and hold cash. Look at previously hot stocks—are there signs of stabilization? For example, Jinjingda jumped from the floor to red today, indicating the overall trend in chemicals is still in a correction phase. When the market is weak, it’s not the time to gamble early.

4. Optical Modules/Optical Fiber
Tech sectors weakened overall today. Dalian saw a rebound yesterday, and with Nvidia’s positive news, it opened low and then rose strongly. However, A-shares did not react well. The market environment is poor, and recent funds are wary of high-priced and overvalued stocks, leading to profit-taking and divergence at high levels. But the long-term logic remains unchanged, and there are still opportunities. Keep an eye on Yizhongtian, Changfei, and Hengtong to see if they stabilize. Be patient; corrections and rebounds are natural.

Every morning, I share news and selected core stocks. Follow the artist, stay updated, and avoid getting lost. The morning analysis covers sectors with market expectations! Please like, tip, or support the post to show your encouragement!

You’ve heard many truths and market theories, but many still don’t know how to implement them. That’s why I share my “Strength Pyramid System,” which can help you grow and is worth your serious attention. Those who always want free gains without effort will only stay on the surface of trading and miss the core logic of profits. My original intention is to help those who follow this post not feel lost. But the market will evolve, and so will our “Strength Pyramid” system. In the future, as markets change, I will add new “dimensions” to it to better adapt to different market cycles.