[Red Envelope] The rotation of price increases intensifies; when will the market arrive?

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Market Summary:
Today, the index opened high with increased volume, sentiment showed weak divergence, and both index and sentiment aligned with expectations. On the thematic front, the cyclical price increase line opened below expectations, with significant divergence, but the divergence is not enough yet. Tomorrow, continued divergence is expected at the open. Remaining are rotations related to AI, including CPO, PCB, liquid cooling, optical fiber, Ascend, gas turbines, computing power leasing, power grids, etc., all rotating, plus non-price increase sectors like commercial aerospace and environmental protection. The 18-level fan rotation pattern is in play, but today saw inflow of new funds, making the rotation relatively strong. Tomorrow, rotation is still expected but with reduced intensity.

Market Performance:
Theme rotation, no focus; PCB, liquid cooling, gas turbines are stronger; chemical and phosphates are the strongest.

Trading Difficulty:
Difficult. (Reduce positions, moderate, difficult, hell)

Highlights:
Trend-following, mainly low buy-in, avoid buying on rising days, do not chase continuous rises.

1. Trading Review

1. The main market remains driven by price increases and tech rotation. Remaining sectors include commercial aerospace; other sectors need to wait for their turn. Today, Dalian was quite strong, represented by CPO, PCB, liquid cooling, and gas turbines. The previously strongest chemical sector opened below expectations, causing major divergence. Is the chemical sector about to be overtaken by tech again? Stay tuned for the results below.

2. Funds started accumulating towards the end of the session, anticipating the Two Sessions, focusing on this opportunity. Pay attention to timing; the Two Sessions start on March 5, and opportunities often materialize two days before the event.

2. Market Review

Today, 2,485 stocks rose, 2,870 fell, with a total turnover of 2.5384 trillion yuan, up 75.9 billion from yesterday. The index opened with a small red volume, then oscillated and stabilized. The energy cycle price increase line opened with divergence; lithium mines rose then fell; phosphate chemicals initially rose then weakened; tech segments like CPO, PCB, gas turbines, and liquid cooling showed slight strength; commercial aerospace oscillated and stabilized; environmental protection strengthened late in the session.

The day saw 61 stocks hitting the daily limit (yesterday 92), with a 73% limit-up rate (yesterday 68%), 52 first-limit hits (yesterday 57). There were 3 limit-down stocks (same as yesterday).

In sectors, gas turbines and PCB each hit 9 limit-ups; optical communication 5; computing power 2; power sector 4; Huawei Ascend 3; liquid cooling servers 3; AI-related stocks totaled 35 limit-ups, but very dispersed. Robots 3, commercial aerospace 3, phosphates 3, lithium 4, environmental protection 3. Both the overall market and strong sectors are highly dispersed.

Bid prices at the one-word limit:

3. Market Analysis
Index
Today, market volume reached 2.53 trillion, up 75.9 billion, with the index adjusting. Off-market funds continued to increase, but market feedback shows a decline, indicating increasing short-selling strength (everyone knows who is selling). Tomorrow, the incremental funds are expected to weaken in both amount and probability. However, the willingness to buy remains, so the index is likely to oscillate, with narrow-range fluctuations being the best scenario, and no systemic risk in the short term.

Sentiment
With reduced incremental funds tomorrow, the strength of rotation may weaken, increasing trading difficulty. Sentiment remains weak and divergent.

Direction
The chemical sector underperformed today, but the top stocks did not break their limits, which is somewhat unexpected. Tomorrow, divergence at open is expected to continue, with opportunities for divergence to reflow during the session. Observe stocks that hit the limit today for potential rebound, considering odds and position, preferably resonating with sectors.

Optical communication recovered again today but with weaker strength, boosted by Dalian’s strong rebound. PCB, liquid cooling servers, and gas turbines showed intra-day strength. Tech sector strength is expected to decline tomorrow, but sectors will still perform, and short-term rotation will continue.

Commercial aerospace tends to be passive and lacks continuity. The sector is stabilizing; yesterday’s limit-up was a positive signal, and today’s feedback was positive. Continue to observe aerospace momentum; if it strengthens, funds will keep trying.

4. Current Profitable Stocks Summary
1. Chemical
Chengxing Co.: Expect high opening with volume surge.
Jinzhongda: Expect large gap-up.
Liuguo Chemical: Expect low opening.
Hebang Bio: Expect low opening with oscillation.
Yuntianhua: Expect volume and oscillation.

2. Cyclical
Jiangwu Equipment: Expect low opening with downward oscillation.
China Merchants Steamship: Expect oscillation.

3. Others
Yunnan Energy Holdings: Expect large gap-up acceleration, but today was passive; may underperform tomorrow.
Hanlan Co.: Expect low opening.
Farsight: Expect sharp rise then pullback.
Longfei Fiber: Expect low opening with rise and pullback.
Honghe Tech: Expect low opening with rise and pullback oscillation.
Dongcai Tech: Expect low opening with oscillation.

Tajia Co.: Expect large gap-up.
Hua Sheng Tiancheng: Expect high opening with rise and pullback.

5. Summary
Tomorrow, the index is expected to adjust, sentiment to weaken and diverge, and incremental funds to decrease. Tech segments have mostly moved today; combined with chemical sectors, tech shows better sustainability and a stronger mass foundation, but stock picking is more difficult. The Two Sessions are approaching, so consider positioning for related concepts. This market environment is unlikely to improve with short-term focus; rotation may weaken later. The best approach is low buy-in or waiting for opportunities, avoiding chasing highs. Control drawdowns first; good opportunities may only come after the Two Sessions. Be cautious with chasing. Focus on risk control; good markets will likely wait until policies are implemented.

Wishing everyone big gains tomorrow.

Xiao Shu’s Daying Trading Philosophy:

1. Follow the trend, leverage the momentum!
2. Pre-judge, follow decisively!
3. Find the strongest, only do the strongest!
4. Actively admit mistakes, 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 danger. It amplifies market fluctuations and easily traps investors in a vicious cycle of chasing highs and selling lows, blinded by greed and panic. Discipline is key:

• Strict stop-loss, set maximum loss per trade, and exit decisively when hit—no luck mentality.
• Follow the trend, only trade clear trends; avoid guessing tops or bottoms.
• Manage position size based on market conditions and risk tolerance; avoid heavy or full positions.
• Avoid frequent trading; be patient for the best opportunities.
• Stay calm and rational, unaffected by emotions; stick to your plan whether profit or loss.
  Remember, short-term market movements are unpredictable, but for prepared traders, they are opportunities, not gambling. Steady operation and flexible adaptation are my keys to success and the foundation for future progress.

May your stocks rise like the morning sun, hitting new highs daily; investing flow smoothly, steadily earning; holdings full of potential stocks, value rising step by step; operations as precise as a master’s brush, buying and selling accurately. The market’s long rainbow, wealth rolling in, profits continuous, full harvest! If you find this helpful, please support with likes, tips, and comments—let’s build a positive community atmosphere. The environment of Taoxian is up to us! Liking, tipping, and showing appreciation are not just for entertaining the author but for everyone to help select and elevate quality content, making the community better. More premium posts mean higher standards, increasing the chance to see good stocks. We sow, we harvest!