The logic of price increase remains the main theme, with internal direction shifting in a timely manner!

Index Level: [Taogu Ba]
Shanghai Composite Index 4162.88, +0.39%, opened low and moved higher, retested the 5-day moving average (4128) then V-shaped reversal, three consecutive positive monthly candles.
Yesterday was a typical structural market with Shanghai strong and Shenzhen weak, high-low switching, and clear main themes of price increases. The Shanghai index opened low and closed higher, while the ChiNext was weak; this also involved AI hardware surging excessively, Nvidia plummeting causing US concerns over AI bubbles, combined with US-Iran conflicts, leading funds to withdraw from high-level AI hardware and flow into rare metals, electricity, and domestic computing power sectors, with profit focus concentrated.

Volume and Liquidity:
Total transaction volume and sentiment: 2.51 trillion yuan, steady, with extremely ample liquidity. The comfortable zone is between 2.5 trillion and 3.2 trillion.
Number of advancing and declining stocks: 3,271 up, 1,884 down, a broad rally pattern.
Sentiment indicators: 75 stocks hitting daily limit-ups (non-ST), 0 hitting limit-downs;
Complete ladder of consecutive limit-ups (7, 3, 2, 1), 83% limit-up rate, short-term sentiment slightly warm.
Yesterday was a bit naive on my part; Yunnan Energy continued to strengthen, funds have already chosen the leading stocks, Monday will be key to observe the performance of the leaders. The first breakout target in the Year of the Horse with over 7 limit-ups, and the current theme looks promising, led by strong electricity sector gains yesterday. Market sentiment has strengthened, Monday’s performance is crucial. If Yunnan Energy continues to advance on Monday, it will ignite market enthusiasm. The market has been suffering for a long time; I hope this breaks the deadlock!

I was watching the market intermittently on my phone all day yesterday, so operations were passive; I just summarized the key points when I was already on the highway.

Although simple, the market is basically following this pattern! Maybe brothers didn’t pay much attention to this part.
First, it’s clear that AI hardware faces adjustments, but strong stocks can still maintain some structure, and if most are bought near moving averages, there can still be profits. But this was something I pointed out before I started watching the market; many stocks are still following this trend, like Dongcai Technology, Hengtong Optoelectronics, etc. Since the overall direction is that AI hardware is facing short-term adjustments, our focus should shift towards capital inflows. Don’t be stubborn, don’t superstitiously cling, follow the trend!
The first paragraph also clearly states that with US-Iran tensions heating up, resource and chemical sectors rotate; resource sectors include metals, coal, and oil, which are ultimately the strongest directions in the market.

Positioning Plan: I mainly provide the overall pattern.
Runze Technology, I didn’t sell after it surged, nor did I sell after it pulled back; continue holding, currently 13 positions. Can be flexible. Yesterday’s strong performance in domestic computing power is understandable; such a large market cannot be achieved overnight. But the logic of domestic computing power and token export remains unchanged, and funds are still attacking this direction. Huasheng Tiancai opened strongly in the morning, along with Capital Online, Wangsu Technology, etc., which also showed upward momentum. However, after Huasheng Tiancai’s limit-up break, the computing power sector started to retreat. The 5-day moving average still offers support here!
Dongcai Technology, likely to pull back today, briefly broke below cost in the morning, started to rebound at noon, and finally closed in the red; currently 8 positions. No need to rush with such stocks; the trend remains good, so a bit of structure can be maintained.
Fenghua Gaoke, I continue to hold the pattern. The first is that the MLCC price increase trend remains unchanged; second, it’s also part of domestic computing power. It’s just consolidating now, waiting for a breakout. Currently 3 positions.
Tongguang Cable, opening lower as expected, no upward push, so I exited during consolidation below. Actually, a one-day pattern could also work; if Yunnan Energy advances on Monday, this stock may push higher.
Runtu Shares, exited on a red day, not strong enough, I accept the loss. Loss of 7%.
Farsight, opened with a limit-down, rested in the service area, then recovered, I sold at a small loss, no point in holding.
Overall, yesterday was still profitable, which is good; no new positions opened. Many stocks I considered buying, like Huasheng and Junda, but since the market now involves routine volume-based exits, I skipped low buying opportunities.

The same old saying: we come to this market not for short-term gains but for long-term stable profits! If you can’t hold through oscillations, you won’t catch the main rally. But once the trend turns bad, stay away and don’t hold illusions.

Section 2: Main Sector Themes: Three major directions lead the rally, high-tech sectors retreat collectively

1. Absolute Main Theme: Rare Metals (Non-ferrous) — Leading logic: strategic resource scarcity + price increase expectations (tungsten, rare earths, lithium, molybdenum);

Zhangyuan Tungsten 7 days, 5 limit-ups, and the small metals sector has been fermenting all day. As US-Iran tensions rise and AI bubble fears grow, resource sectors are safe havens.

Northern Rare Earth, China Aluminum, etc., hit daily limit-ups. Core stocks include: Zhangyuan Tungsten, Northern Rare Earth, China Aluminum, Shengxin Lithium, Zhongwuguang High-tech.
2. Secondary Theme: Power (Green Power / Thermal Power) — Supporting computing power + performance-driven logic: high power consumption of AI computing + tight power supply and demand + state-owned enterprise reforms;

In the computing power sector, besides leasing, Huawei’s supply chain is also strengthening, especially Tuo Wei Information hitting the limit-up without hesitation and showing strong all-day limit-up performance.
Yunnan Energy Holdings 7 consecutive limit-ups, becoming the top space in the market.
Power sector also combines risk aversion logic, as the end of computing power is electricity! US is short of power, and our token export supports the power direction.

3. Third Main Theme: Domestic Computing Power / AI Applications — Leading logic: domestic substitution + explosive demand for computing power leasing; funds shifting from CPO / optical modules to leasing, liquid cooling, and domestic AI chips.

Two lines in computing power: one is cloud computing, the other is Huawei’s supply chain.
Core stocks: Tuo Wei Information, Huasheng Tiancai, Yunnan Energy Holdings.

4. Underperforming Sector: High-level tech hardware (capital outflow) — Leading logic: previous large gains, profit-taking; Nvidia chain, CPO, PCB, optical modules all retreating.

Representatives: Zhongji Xuchuang, Xinyi Sheng, Hudian Shares, Shenghong Technology.

Stock rises and falls are cyclical; avoid fixed thinking, follow the market. Logic is one aspect; when hype is high, everyone claims their logic is solid, but A-shares are driven by funds. Following fund flows is the best approach! No matter which sector rises, you might wonder why the logic seems so strong—perhaps you didn’t notice before. Price increases are driven by capital, and once the internet popularizes the logic, prices continue to rise. When everyone knows the logic, the stock peaks. Those still believing are waiting for the next rise.

Switching from sesame to watermelon!! 100 points or refuel! Long-term persistence is needed. If you want answers, I want data. Mutual support, thank you!!!

Writing is not easy; brothers, please like, tip, comment, keep going, push for broadcasts, thank you. I have no theory, only practical operation.

Let’s sail together in the stock market.

Respect the market, follow the market.
Focus on main themes, pay attention to core.
Don’t rejoice at rises, don’t mourn at falls.
Water of the Three Thousand, strive for a sip.
Plan your trades, unify knowledge and action.
Always remember: stable profits.