Going Against the Tide: Full of Seedance2.0, Huanyu Century Hits the Daily Limit, Bona Film Industry Rises Sharply, Jiecheng Shares Strong

Since joining Taoguba, I initially intended to use my pen as a blade and stocks as a mirror to record the ups and downs of trading and to seek the pulse of the market. I did not expect to receive such warm support from fellow investors; every encouragement is like a warm tonic, dispelling the confusion of short-term battles, and every attention is like an acupoint guide, strengthening my resolve to refine my system. [Taoguba]

Xiaoyou deeply understands that short-term trading is like traditional Chinese medicine diagnosis—requiring the observation of “disease location” amidst the fluctuations of rise and fall, and distinguishing “Yin and Yang.” Growth is not a solitary journey—your recognition is the most precious “medicine guide” in my review logs, allowing this methodology, based on TCM thinking to deconstruct the stock market, to have a more vibrant practical soil.

In the years to come, I will continue to adhere to Xiaoyou’s “Four Diagnostics”: “Observe the trend, listen to capital flow, inquire about logic, and cut through buy and sell,” honestly recording each trade’s diagnostic process, gains and losses, and hoping to use stocks as a medium to mutually observe, verify, and explore the path to profitability with fellow investors.

Grateful for this encounter; the road ahead is long, and I walk it with you.

26.02.11,
7:56 AM,
Pre-market preparation,
Clear plans in mind.

Xiaoyou reviews daily with dedication and sincerity, hoping for recognition and encouragement from friends!

Today’s diagnosis summary:

Low buy on dissenting views, Huaren Century, limit up;
T+ trading on Bona Pictures, +7.46%;
Profit-taking on Perfect World and Runtu Shares;
Rapidly bought low on Jiechengtong, added more at the close;

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February 11 Xiaoyou Diagnosis Report
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1. Observe: Market Sentiment (Assessing the Big Trend, Recognizing Strong and Weak Pulses)

1. Assessing the Big Trend: Judging the Market’s “Qi and Blood”
Index and sentiment:
Today, 1,977 stocks rose, 3,030 fell; 51 stocks hit the daily limit up, 5 hit the limit down. Compared to yesterday’s broad rally, today shows typical features of “steady index, stock differentiation,” like calm on the surface but turbulent internally. The market’s volume was 1.98 trillion, down 121.3 billion from yesterday, reflecting a “pre-holiday cautiousness” and “risk avoidance” mentality.

In terms of consecutive limit-up stocks, yesterday had 21, today only 11 remain, with a sharp drop in promotion rate; especially, the first-to-second promotion rate is only 8%. The second-to-third promotion has slightly recovered but overall meridian transmission is severely blocked, showing a “high-level disconnect, mid-level struggle, low-level frozen” weakness.

Yesterday’s stocks with consecutive limits averaged only 3.25% gain today, with an increase in limit-down stocks, indicating short-term sentiment has shifted rapidly from peak to a phase of intense divergence, with high-flying stocks’ risks fully released.

2. Assessing the Strong Pulse Sectors: Focus on the “Qi and Blood” of the Core Mainline

Mineral resources and cyclical sectors:
Today, these sectors defied the trend and strengthened, with small metals, nonferrous metals, and steel sectors collectively erupting, like “true Qi” flooding the main meridians. Leading stocks like Xianglu Tungsten led the rally, with significant net capital inflows, benefiting from pre-holiday risk aversion funds favoring “price increase themes,” becoming the market’s most solid safe haven.

Glass fiber sector:
Shandong Fiberglass and 8 other stocks hit the limit up, showing a sector-wide attack mode, like “Qi and Blood” filling the collateral meridians. Driven by the cyclical mainline, the glass fiber sector with logical rebound potential gained capital recognition, becoming an important area of profit today.

3. Assessing the Weak Pulse Sectors: Spotting “Strong Turning to Weak” Risk Zones

Seedance 2.0 / AI application sectors:
Yesterday, 23 stocks hit the limit up; today only 5 remain with promotion, mostly high-level core stocks, like “Qi and Blood suddenly withdrawing, meridians breaking.” The sector shows severe differentiation, with many follow-on stocks hitting limit down, indicating the theme speculation has entered a brutal “elimination of weak, retention of strong” phase.

Computing power sector:
Although 7 stocks hit the limit up, internal divergence is evident, with core stocks diverging from follow-ons, like “Qi and Blood imbalance” meridians. Some previously strong stocks have sharply corrected, with funds shifting or flowing out, challenging the sector’s overall strength.

2. Listen: Market Voice (Explore Policy and Industry Resonance, Observe Capital Movements)

1. Listen to Policy and Industry Resonance: Industry Trends Define Meridian Directions
Today’s market logic returns to industry fundamentals and pre-holiday effects. Although Seedance 2.0 concept was stimulated by ByteDance’s internal testing news, capital favors resource cycle commodities with confirmed price increase logic, like “when cold, only warmth is the right path.” The strength of cyclical sectors benefits from rising resource prices and inflation expectations, with clear industry logic; meanwhile, the retreat of AI application sectors reflects market caution toward theme speculation.

2. Listen to Capital Movements: Capital “Qi and Blood” Gather in Safe Assets
Existing capital: The market shows extreme features of “abandoning high and seeking low, abandoning虚 and favoring实,” like “Qi and Blood” returning from superficial restlessness to stable internal organs. Large-scale capital withdrawal from high-level AI and media sectors, flowing into low-level resource and cyclical sectors seeking refuge, highlights the intense capital flow divergence between main and non-main lines.

Limit-up capital:
High-level stocks with consecutive limits face difficulty in promotion; Banchuan Shares, despite 4 days of 4 limit-ups, remains an exception. Capital prefers low-priced stocks with performance support or price increase logic, such as batch limit-ups in cyclical sectors, indicating a significant reduction in risk appetite.

3. Ask: Self-Reflection and Logical Check

1. Ask about Position Logic: Assess the “Qi and Blood” of individual stocks

Huaren Century:
Divergence buy low and hit the limit up, capturing the “strong get stronger” of high-level core stocks. As a core leader of Seedance, it remains strong amid sector differentiation, demonstrating high recognition and capital support. The holding logic lies in the resilience of the leader.

Bona Pictures:
T+ trading confirms its stability as a “central army” target. Compared to purely sentiment-driven small caps, Bona has stronger fundamentals and trend-based movements, suitable for swing trading.

Jiechengtong:
Buy low and add at the close, based on its core position as a copyright operation leader under AI content monetization logic. Despite sector correction, it has potential to traverse cycles, offering low-entry opportunities after “mistaken kills.”

Perfect World and Runtu Shares:
Profit-taking aligns with the “take profits and secure gains” pre-holiday risk-avoidance principle, avoiding retracement amid increasing market uncertainty.

4. Cut: Diagnose Trading Pulse (Set Strategies, Clarify Entry and Exit)

1. Cut the pulse for tomorrow: Predict sector “Qi and Blood” trends
Seedance 2.0 sector:
Today faces a life-and-death split; tomorrow likely enters the “leader battle and后排淘汰” final stage. Whether high-level core stocks like Yueyue Technology and Huaren Century can continue their streak is key; if leaders weaken, the sector will retreat overall.

Cyclical resource sectors:
As today’s strongest line, tomorrow probably shows “strongest always stronger, some differentiation.” If risk aversion persists, cyclical sectors may continue to attract funds, becoming the market’s short-term core.

Overall market:
Today’s volume shrank with broad declines; tomorrow, before the holiday, likely to see extreme divergence of “ice and fire.” If cyclical mainline can continue to hold the flag, market sentiment may be maintained; if sector differentiation intensifies, market mood will cool further, entering a defensive mode.

2. Trading Strategy: Establish a “Differential Diagnosis”
Alternative diagnosis:
Tomorrow focus on cyclical resources (minerals, fiberglass) and core AI leaders (Huaren, Yueyue, etc.) for rebound or low buy opportunities. Follow the principle of “avoid high and seek low, eliminate weak and keep strong.” Watch for the持续性 of leading stocks in cyclical sectors and low-level补涨 opportunities; for AI sectors, only focus on top core stocks for low buy, avoid all follow-on hype.

Operational principles:
Follow the “strict position control, quick entry and exit, avoid fighting” diagnostic rule. During the emotional retreat phase, it’s better to miss opportunities than to make mistakes—only participate in the most certain core stocks. If holdings show signs of “冲高回落,无量空跌” (rising then falling, no volume decline), exit decisively; if core mainline exceeds expectations, small positions can be added to capture core gains.

Short-term trading requires cultivating the mind. Do not let daily ups and downs disturb your spirit; instead, see through phenomena to understand the essence, grasp the market’s “Qi and Blood meridians.” When you can calmly handle market fluctuations, dare to buy low in divergence, and dare to sell in consensus, you are “riding the market” rather than “being ridden.”

The greatest opportunity is where no one is paying attention;
the greatest risk is when everyone is noisy.

Let capital become an extension of your will!

Wishing everyone’s Qi and Blood flow smoothly, and their accounts shine long and bright!

Thanks to: @HushangYouzi@Beibeibeibei@YongxinChonglai@WosxiGua@Wodabai Brothers and sisters of Jinfen World, for understanding and supporting Xiaoyou through wind and rain. Your support has been invaluable.

Xiaoyou has unblocked the account, ready for communication at any time, responses guaranteed, progressing together, striving for freedom!

Thanks to all brothers and sisters for your likes! Recognizing others is also accumulating your own blessings;

Thanks for generous tips! Those who are willing to give will receive continuously and abundantly!

Thanks for encouragement! Those who cheer for others will find their path blossoming and becoming more wonderful!