After six consecutive weeks of short-term sideways movement and rotating hot air fans without a clear trend, where will the next breakthrough direction be?

1: Six consecutive weeks of no significant whack-a-mole market trend
Recently, everyone has noticed that the index has returned near previous highs, yet market sentiment remains very poor in the ultra-short term. Many students are even starting to doubt themselves. In fact, if you look closely at the recent performance and feedback from top trading players, as well as the龙虎榜 (Dragon and Tiger List), you’ll see that many top-tier liquidity providers and big players have mostly taken a break—like the most active groups from previous months, which are now hardly visible on the list. It’s all about quantitative battles. The recent index distortion, divergence between the index and ultra-short sentiment, shows that the ultra-short market has been dominated by quantitative strategies for six weeks, with no significant hype, internal competition, or sudden sell-offs. The market’s behavior is what it is—no matter who comes in, it doesn’t change. Over these days, although the index has returned near previous highs, a closer look reveals that it’s mainly driven by heavyweight institutions and medium-to-long-term funds expanding their capacity, with no relation to ultra-short traders.

Comparing the index with a more realistic indicator of short-term market sentiment, such as the December commercial aerospace cycle index, reveals the difficulty of the past six weeks. The style is the key—those who have been making profits recently are mainly from the medium-to-long-term style, such as the storage three dragons, the Pingtan cycle, and the commercial aerospace cycle, which have been sideways or oscillating, unrelated to those who missed the boat.

So, stay calm. Market cycles repeat. As long as the focus from October to December remains on core themes—like storage three dragons, the Pingtan cycle, and commercial aerospace—by building enough offensive power, the ultra-short market has been quiet for six weeks, with occasional sharp drops like the first week’s Hega Holdings’ consecutive flat-kill, the third week’s Lio’s flat-kill, the fourth week’s Silver and White Silver’s flat-kill, the fifth week’s Juli Sling’s flat-kill, and the sixth week’s Zhangyue’s nuclear button. Every week, there’s a big drop of 30-40%. As long as you avoid these big pitfalls, you win. The previous months’ continuous offensive power has laid a solid foundation, making some retracements acceptable. So, stay calm. Don’t panic just because the index hits previous highs; the real ultra-short market has been at new lows all along. Everything is driven by emotional cycles— the longer the suppression, the higher the potential for a strong rebound once the market breaks out.

2: Market analysis
Earlier, the index distortion and sentiment divergence led to two days of correction. Today, after a rare new low, the sentiment rebounded and stabilized. Currently, the market is mainly in a slow trend rotation driven by institutions, with two main lines: price increase and domestic AI computing power. On Friday, the rotation within the price increase line saw divergence in non-ferrous metals and rare earths, which had been rising on Thursday. Meanwhile, the Nvidia-related PCB sector, which was relatively strong earlier, was affected by Nvidia’s adjustments, causing divergence and correction. The domestic AI computing power sector, after continuous inflows and repairs on Thursday and Friday, saw divergence and a pullback in the afternoon. Aside from these two main directions, other sectors are gradually falling behind, with poor performance. The ultra-short direction remains dominated by quantitative strategies, with no significant hype, internal competition, or hype-driven market. However, there has been a rare attempt to break the curse of seven consecutive limit-ups, such as Yunnan Energy Holdings.

Weekend external shocks may increase next week’s volatility. Gold, silver, oil, and gas will rejoin the rotation, but their movements are highly linked to external factors and futures, making them hard to predict. The key to market breakthrough next week depends on whether domestic AI computing power or price increase lines can stand out.

3: Style charm
That’s my style. But I am human, not a god. Honestly, I admit I can’t achieve a 100% win rate, and there are failures and mistakes. But overall, I follow a pattern of big wins with small losses, with a continuous upward trend. Students who follow me will improve, but beware of inconsistency—like fishing for three days and drying in two. Whatever you do, persistence is key. I especially thank my loyal supporters for their understanding and support during all market conditions—staying with me through thick and thin. Let’s keep working hard together!

New students often ask why my outlook is so broad. Sometimes, a wider perspective can lead to smaller profits, but the cycle’s height varies. During small cycles, the overall market may not be high, but in previous cases like the storage three dragons, the main rise periods, or the Tianji shares, Polyfluoro, and solid-state double dragons, the Pingtan cycle, or the current aerospace development cycle of Tongyu, the results are very different. So, objectively follow the market; leave the height to the cycle and the market. Only then can the big direction continue to oscillate upward.

My style’s charm lies in:

1. Objectively following the market with wisdom and humility:

For example, when others see clouds at the foot of a mountain and prematurely judge it as the top, they descend early, thinking they are smart. But looking back, it’s just a small smart move, and the mountain still has a long way to go. I insist on clearing the clouds at the foot of the mountain, and suddenly realize it’s a Mount Everest. Looking back, it’s wisdom disguised as foolishness! The charm of focusing on a few big waves is precisely this—objectively following the market’s height, leaving the judgment to the market. Many see clouds at the foot of Everest and, to save a few steps, prematurely guess they’ve reached the top, but only after confirming the summit do they descend. Sometimes, taking a few extra steps and waiting for confirmation of the peak can lead to a huge surprise or just a regular mountain. Follow the market objectively; every cycle is the best teacher. We are all endless learners.

2. Dialectical unity and focusing on main contradictions, constantly self-criticizing:

Sometimes, I reflect that stock market philosophy is interconnected with life. Why do core leaders and sentiment cycles keep emerging? Because, like life and philosophy, everything is sustainable and cyclical— from the universe to ants. Things develop forward and repeat. Every cycle, whether driven by institutional trends, liquidity sentiment, or quantitative rotation, is just a surface phenomenon. The real core contradiction lies in what historical mission the market is fulfilling. Believe that everything is developing upward. Maintaining positive energy is crucial, but so is the ability to constantly self-criticize. When encountering failures, like three weeks ago, actively analyze and self-criticize to improve further.

4: Final remarks
Welcome friends’ tips, likes, and support! Your support is my motivation to keep updating!

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Personal style:
Focus on the core leaders to break the market! Fewer but more precise trades! Belief in the leaders! Not 100% win rate, but overall big profits with small gains and small losses!

I declare that my personal views are for reference only and do not constitute investment advice.