Chaotic period gaming failure, night deployment of the core button, can significantly reduce the extent of losses

1 Market Overview [Taogu Ba]

(1) The AI application sector diverged again, with funds continuously attacking the computing power sector for two days, driving the electricity sector.
(2) 9:25 AM, funds focused on computing power, with multiple related stocks hitting the daily limit.
(3) Tefa Information surged strongly to hit the limit, Wangsu Technology strengthened, Litong Electronics did not hit the limit.
(4) During the bidding, AI and media-related stocks underperformed expectations, and the sector weakened.
(5) The chemical sector showed divergence, with the chemical sector and related stocks weakening today.
(6) The market support level is 4122 points, with the lowest point today at 4124 points, closing in the red but turning green.
(7) The market is in a volume-contraction phase, with weak sector continuity.

2 Sentiment Cycle
(1) Cycle: Chaotic period, Day 8.
(2) Sentiment: Average profit effect, explosive loss effect.

3 Leading Funds
(1) Quantitative (GJD).
(2) Institutions (GJD).
(3) Foreign capital.

4 Timing
(1) Hengdian’s one-word suppression, Baichuan’s bidding far below expectations, indicating today’s moves in these two sectors (including related sectors), with full exposure.
(2) Dawei’s one-word strength, computing power (related to electricity), and liquid cooling exploded today, with substantial gains.

5 Continuous Board Tiers

600589 Dawi Technology 9:25 4 Computing Power
603533 Zhangyue Technology 9:25 4 AI Applications
002323 Yabo Shares 9:37 4 Photovoltaic
605287 Decai Shares 15:00 4 AI Applications
000070 Tefa Information 10:04 3 Optical Communications
001896 Yunnan Energy Holdings 9:25 2 Computing Power
605033 Meibang Shares 9:25 2 Chemical
600397 Jiangwu Equipment 9:30 2 Non-ferrous Metals
002951 Jinshi Technology 9:36 2 Optical Communications
603256 Honghe Technology 9:38 2 Fiberglass
605006 Shandong Fiberglass 9:41 2 Fiberglass
603138 Haoli Data 10:19 2 Computing Power
002080 Zhongcai Technology 13:49 2 Fiberglass
002378 Zhangyuan Tungsten 14:02 2 Non-ferrous Metals
000962 Dongfang Tantalum 14:44 2 Non-ferrous Metals
002842 Xianglu Tungsten 14:44 2 Non-ferrous Metals
600545 Zhuolang Intelligent 14:48 2 Fiberglass

6 Stock Selection
6.1 Leading Stocks
None.
6.2 First Market
None.
6.3 First Topic
(1) Dawei Technology (Computing Power).
(2) Zhangyue Technology (AI Applications).
(3) Yabo Shares (Photovoltaic).
(4) Decai Shares (AI Applications).
6.4 Hot Sector & Core Stocks
(1) Computing Power + Data Centers
Core: Dawei Technology.
Tool: Yunnan Energy Holdings.
(2) Liquid Cooling
Rabbit: Dayuan Pump.
Turtle: Chuanyun Shares.
(3) Smart Grid
Jin Control Electric, Wangbian Electric.
(4) Non-ferrous Metals
Jiangwu Equipment, Zhangyuan Tungsten.
(5) Fiberglass Cloth
Honghe Technology, Shandong Fiberglass.
(6) Optical Communications
Core: Tefa Information.
(7) Robotics
Huadong CNC, Rifa Precision.
(8) AI Applications
Core: Zhangyue Technology.
(9) Photovoltaic
Core: Yabo Shares.
(10) Chemical
Core: Baichuan Shares.
Front row: Meibang Shares.

7 Stock Buying
None.

8 Position Holding
None.

9 Selling
(1) Sell GCL System Integration at auction.
(2) Sell Guangxian Media at auction.

10 Tomorrow’s Plan
10.1 Core Principles
(1) Keep the main line fuzzy, do not insist on leading stocks; respect the cycle, adapt flexibly.
(2) Set the direction first, then choose entry points; control risk first, then seek returns.
(3) Lurk for rotation, strictly control trial and error; avoid chasing false heat, prevent huge losses.
10.2 Review Today’s Stock Pool (Zhangyue Technology, Longyun Shares, Huanrui Century)
(1) Zhangyue Technology: One-word limit, can buy if night trading.
(2) Longyun Shares: Bidding far below expectations, remove.
(3) Huanrui Century: Bidding far below expectations, remove.
10.3 Tomorrow’s Stock Pool & Operation Strategy (Dawei Technology, Zhangyue Technology, Yabo Shares, Tefa Information, Honghe Technology)
(1) Dawei Technology: Expect opening gap, higher probability of breaking the board than upgrading.
(2) Zhangyue Technology: Expect opening gap, higher probability of breaking the board than upgrading.
(3) Yabo Shares: Continue weak-to-strong, optimistic about upgrading.
(4) Tefa Information: If Dawei doesn’t perform well, proceed cautiously.
(5) Honghe Technology: Continue weak-to-strong expectation.
10.4 Position Management
None.

11 Mode Summary
11.1 Static Stock Selection
Pre-market stock selection must follow concepts like “prefer new over old,” “more consecutive boards than rebounds,” “highness before strength,” “core priority,” “front row above back row,” etc.
Yesterday’s pre-market subjective selection only chose AI media, which was somewhat biased, resulting in no action today, only passive empty positions.
11.2 Timing Operation
Timing focuses on turning points: if the leader breaks the board the next day, or the index drops significantly the next day, or hits a bottom, it’s a good time to act.
Today’s auction leader A was sold off, feeling like a decline phase, staying hands-off is correct.
11.3 On-the-spot Stock Selection
(1) On-the-spot selection is a necessary supplement and correction to static stock selection, following principles like “bidding exceeds expectations,” “first to launch,” “core stocks in sectors,” “good stocks must be grabbed,” “A-shares doing A-shares,” etc., with the mental model of “patience, one-hit kill.”
(2) Prioritize stocks with high market recognition.
(3) Observe core stocks’ bidding and opening trends across sectors.
(4) Choose new stocks, not old ones.
(5) Choose high, not low.
(6) Choose strong, not weak.
(7) Choose high, not just strong.
11.4 Stock Buying Issues
Buying stocks is the implementation of the trading plan. For low positions, “stronger is better” buy points; for high positions, practice “weak to strong” buy points.
11.5 Position Holding Issues
Holding stocks is an integral part of the trading mode. Holding must follow the “early strong and firm” principle. Early strong and firm means closing the limit up before 10:00, with smooth intraday trend and large orders; after 10:00, no breakouts and strong closing orders at the end of the day. The core logic is to gain high premium the next day; violating this makes holding illogical.
11.6 Selling Issues
Selling must follow the “sell from strong to weak” principle. Be prepared to sell if:
(1) Bidding gains are less than yesterday or below market expectations.
(2) Opening drop exceeds 3 points, not as expected.
(3) First wave of high is less than 3 points.
(4) First wave hits the limit but cannot close the board or nearly close.
(5) Second wave of high does not surpass the first wave high.
(6) Intraday pullback breaks below the moving average, cannot re-establish within 10 minutes.
(7) Breaks below 7 points after a breakout, cannot recover within 10 minutes.
(8) Breaks below 4 points after a breakout, cannot recover within 3 minutes.
(9) Weak tail stocks.
(10) During chaos, stocks that fail to upgrade after a breakout (excluding core stocks), next day night trading core button.
(11) During chaos, core stocks break the board and fail to turn strong the next day, next day night trading core button.
11.7 Correction Issues
Selling prematurely is normal. The key challenge is overcoming psychological acceptance, requiring deliberate training. Correction should follow “divergence to convergence”: e.g., if disciplined to take profit when breaking the board with more than 7 points drop, and later due to index, sentiment, sector factors, divergence turns to convergence, then decisively follow and buy back. Many find this hard to do, as it’s a psychological barrier that must be overcome.
12 Painful Lessons
(1) During decline, clear out the so-called leader stocks immediately; suppression is highly probable, catching the bottom is unlikely!!!
(2) Those sudden explosive stocks are just catch-up rallies, fake prosperity created deliberately by funds; once the leader collapses, these junk stocks are worthless.
(3) Decline phase usually lasts 3 days, at most 5 days.
(4) Maintain at least 3 days of cash during decline!!!
(5) Clearly distinguish between decline and strong divergence phases. During decline, leaders are suppressed on the same day, with no escape; the next day, they often hit the limit down again. The strongest catch-up stocks may break the board and fall back, with some room for recovery, but likely to drop again the next day. During strong divergence, leaders turn over fully on the same day, sometimes with a late drop to limit, but the next day they tend to weaken and rebound (with differences in strength); many thematic stocks catch up, leading to significant differentiation, with funds favoring weaker stocks to stay strong, leaving some survivors; the next day, survivors may turn from weak to strong, continuing to rally and lead the market.
(6) After decline, it’s the chaos period, characterized by fan rotation: semiconductor (chips), smart grid, robotics, chemicals, precious metals, consumption, commercial aerospace, AI applications, etc., rotating over 2 themes daily.
(7) The chaos phase is a structural market, showing “two good days, one bad day, two steps forward, one step back,” normal fluctuations. Hot sectors lack persistence, but core themes repeatedly attract funds.
(8) The chaos phase is like whack-a-mole: strong today, follow today, cash out tomorrow; timing is key—correct timing means a bull market, wrong timing means a bear market.
(9) Transition from chaos to strength has high success rate; from chaos to weakness, low success rate.
(10) Transition from decline to chaos requires a “bottoming” move; similarly, from chaos to main upward phase also needs a “bottoming” move.
(11) Ultra-short operations focus on buying today, selling tomorrow, favoring “weak to strong,” not recommended to buy on the left side at low points; prefer weak-to-strong or stronger stocks.
(12) During chaos, reduce participation in stocks with 3 or more boards (excluding core sectors), as they risk further decline.
(13) During chaos, stocks with 3+ boards (excluding core sectors) that fail today will be targeted for next day night trading core button.
(14) Stocks with major negative news after market close will be targeted for next day night trading core button.

13 Acknowledgments
Thanks again to the ZhiJia team for their concerted effort, continuously delivering 15 high-quality posts, very powerful!!! The ZhiJia team is growing stronger, their combat effectiveness increasing!
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