Low volume broad gains, how to navigate tomorrow's momentum?

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1. Operation Review

1. Today’s market saw a long-awaited recovery, with the opening index approaching 1 point, over 4900 stocks rising. Most are oversold, but the strength isn’t strong, so early trading was mainly profit-taking. After Dayi’s bidding ended, he still highlighted opportunities in the electric power sector. Within minutes of opening, the electric sector remained the strongest trend, and those who followed the rhythm enjoyed big gains again—congratulations! Actually, today isn’t the first time Dayi has pointed out electric power as a key opportunity. Despite the index’s continuous decline, Dayi recommended electric power at the start of the drop. Last Friday’s Yunnan Energy Holdings not only avoided big losses but also allowed profit-taking. Because electric power has recently been the only sector with resilience and profit potential, today again proved its strength. How should we respond tomorrow?

2. Market Review


Today, 5,136 stocks rose, 329 fell, with a total turnover of 2.1 trillion yuan, about 350 billion less than yesterday. The index opened with a large volume, nearly 4900+, then saw profit-taking. Later, electric power led a market rebound, approaching a climax around midday. In the afternoon, tech stocks gained momentum, pushing the index higher.

The day saw 83 stocks hitting the daily limit (28 yesterday), with a 79% limit-up rate (65% yesterday), and 77 first-limit stocks (23 yesterday). Only 1 stock hit the limit-down (71 yesterday). Although the consecutive limit-up streak extended to 7, mid-cap stocks lagged significantly, indicating potential divergence at high levels tomorrow.

The electric sector had 20 limit-ups, computing power 4, lithium batteries 6, AI hardware 7, consumer sectors 5, domestic chips 5, conflict concepts 5, photovoltaics 4, hydrogen energy 4, military industry 3, real estate 3. Aside from electric power, most other sectors showed a broad rebound from oversold conditions.

Bid price one-word limit:
Zhongli Group’s order book slightly increased (yesterday 732 million yuan)

3. Market Analysis
Yesterday, Dayi said the index needs positive external news to show a strong performance, and last night’s easing of conflicts came at the right time. Today, the index surged on low volume, relying on external forces, without forming new capital inflows, indicating a short-term performance. From the market perspective, most of today’s gains depended on tech stocks’ strength in the afternoon, showing that the main influence remains tech. Although tech rebounded today, the strength was limited, mainly reflecting a bottom-fishing attitude. Combining these signals, tomorrow’s index is likely to move in a weak oscillation. The low volume today is good for short-term rebounds, but watch out for the risk of volume expansion leading to stagnation.

Electric power sector reached a climax today. During recent declines, electric power was the only sector with sustained profit effects. The sector index approached a new high today. There are two possible wave patterns: one, high-level Huadian Liaoning Power may face difficulty on the 7-8th, risking divergence; two, leading stocks like Yunnan Energy Holdings have been passively hit multiple times and are near previous highs, increasing risk. But does divergence mean the end? Not necessarily.

First, Huadian Liaoning Power’s high-level breakout today was relatively proactive despite regulatory risks, showing firm attitude. Even if divergence occurs, it’s likely to be weak support. Since high-level divergence exists, tomorrow’s strategy could be either high-low switching or active consolidation. Dayi believes both approaches will have followers, so neither is definitively better—each to their preference. For stock selection, focus on low-position new energy electric stocks, then low-priced small caps (around 100 yuan). Tomorrow, 1-2 stocks can be observed. For consolidation, choose popular mid-to-high cap stocks to resist divergence.
If Huadian Liaoning Power continues to rise strongly, then 1-2 stocks tomorrow may follow the trend, but low-position stocks still have opportunities.

Market sentiment tomorrow is expected to be divergent. With three days left this week, if tomorrow shows weak divergence, participation in other sectors may be limited. The rhythm should wait for a major divergence to buy low and repair.

4. Current Profitable Stocks Summary
1. Electric Power & New Energy
Huadian Liaoning Power: Divergence expected.
Dongfang New Energy: Expect a rise then fall.
Zhongli Group: Expect a one-word limit-up.
Li New Energy: Expect a low-open then rise and fall.

Yunnan Energy Holdings: Expect a rise then fall.
Shaoneng Shares: Expect a big gap-up.
Jinkai New Energy: Expect a small gap-up then fall.
Han Cable: Expect a rise then fall.
Huadian Energy: Expect a rise then fall.

Meili Yun: Expect oscillation.
Chint Power: Expect a low-open then rise.

5. Summary
Tomorrow’s index is expected to open slightly lower, with sentiment divergence. In the short term, focus on high-low switching in electric power. There’s a small probability that high-level electric power may strengthen further, but low-level stocks will still have sustained opportunities, with high safety. Also, look for opportunities in electric power stocks that resist divergence. Yesterday, Dayi shared a “red envelope” to spread good luck, and everyone received it today. Dayi is happy too—wishing everyone continued profits tomorrow.

Xiao Shu & Dayi Trading Philosophy:

1. Follow the trend, leverage the momentum!
2. Pre-judge decisively and follow promptly!
3. Seek the strongest, only do the strongest!
4. Actively admit mistakes and cut losses timely!
5. Reject comparison, aim for stable profits!

Short-term trading is like walking on a tightrope—glamorous on the surface but full of risks. It amplifies market fluctuations and easily traps investors in a cycle of chasing highs and selling lows, blinded by greed and panic. Discipline in short-term trading must be remembered: first, strict stop-loss—set a maximum loss limit for each trade, and exit decisively when reached, avoiding luck-based hopes; second, follow the trend—only trade clear trends, avoid counter-trend operations, and don’t guess market tops or bottoms; third, control position size—allocate funds reasonably based on market conditions and personal risk tolerance, avoiding heavy or full positions; fourth, avoid frequent trading—don’t be tempted by short-term volatility, wait patiently for the best opportunities; fifth, stay calm and rational—keep a balanced mindset regardless of profit or loss, execute according to your plan. Remember, the short-term market is full of uncertainties, but for prepared traders, it’s an opportunity, not gambling. Steady operation and flexible adaptation are my keys to success and the solid foundation for future progress.

May your stocks rise like the morning sun, hitting new highs every day; investing be like sailing with the current, steadily earning profits; holdings be potential stocks, value rising step by step; operations be like divine strokes, precise buy and sell. Wishing the market a long rainbow, wealth flowing endlessly, profits multiplying, and harvests abundant! If you find this helpful, please support with likes, tips, and comments—let’s create a positive community atmosphere. The environment of Taoxian is up to us! Likes, tips, and good intentions are not just for flattering the author—they help us curate quality content, improve the community, and increase the chances of discovering valuable posts. We sow, and we harvest!