10 to 200K Second Doubling Challenge Day 7 Tomorrow Will Be the Real Test

Today’s Review:
Good afternoon, everyone!
Yesterday, the market accelerated downward, and today’s correction unfolded as expected, with the overall rhythm in line with our predictions. However, there is an underlying concern—trading volume has significantly shrunk, with the total daily turnover just over 2 trillion yuan. In this low-volume correction state, if the index continues to push higher tomorrow, it’s likely to face resistance and a potential pullback, making tomorrow a critical test.

We need to closely observe whether today’s recovery is just short-term capital arbitrage during oversold conditions, or if the market’s bullish momentum remains strong enough to turn divergences into consensus during the session, avoiding a repeat of yesterday’s decline.
If core sectors like power and AI hardware cannot sustain their strength, and external incremental funds remain hesitant to enter, everyone must carefully control their trading pace and not be fooled by superficial market recovery.
So, today’s trading should only be a light position test.

Core Sector Analysis:

1. Power Sector: Still the Main Theme
   Early morning attempts by military and pharmaceutical sectors to recover failed, confirming that in this low-volume environment, funds prefer to regroup around the main themes. Here’s a breakdown of high-flyer stock strategies: sudden movements triggered by large gains do not necessarily mean the end of the trend. Take Yunnan Energy Investment as an example—despite triggering volatility and multiple warnings from the company’s secretary about suspension risks, it ultimately did not halt trading. This case can influence sentiment for other high-flying stocks with similar triggers. For such stocks with large gains, as long as there’s no extreme loss effect and profits are secured, avoid selling prematurely.
   Holding through intra-day fluctuations is tough, but conviction is key. The market’s strength depends on brave participants willing to be “pioneers” in high-priced stocks. When these funds can enjoy dividends rather than being trapped in “suffocation kills,” external funds will be more willing to join the high-level regrouping, restoring profitability and shifting sentiment from hesitation and doubt to active participation in trending or consecutive-limit stocks.
   In the power sector, stocks like Jinkai New Energy and Energy Saving Wind Power are typical trend-following targets. When selecting stocks, focus on high-recognition targets such as leading stocks with continuous boards, capacity-backed core leaders, and popular old leaders. Consider low-priced rebound plays only after these. Avoid mid-tier stocks within the sector, as they tend to be the first to face pressure during corrections—either target absolute high or low positions.
   Future power sector movements can be monitored through Huadian Liaoning Energy’s feedback. If it replicates Yunnan Energy Investment’s strong trend, the power theme cycle will continue, and it’s not advisable to be overly bearish. Today, after initial divergence in the morning, the power sector recovered in the afternoon to a climax, suggesting a high probability of consensus tomorrow. Be cautious in the early session when following power stocks, and wait until the afternoon or near close to consider deploying in trend stocks that have tested divergence.

2. AI Hardware Sector: Watch External Linkages and Core Stocks
   Tomorrow’s movement depends on overnight US tech stocks’ feedback. If US tech stocks remain weak, reduce expectations for AI hardware. Conversely, if they strengthen collectively, focus on stocks like Haixing Shares and Yunnan Germanium. Only if these two stocks actively lead and lift the entire AI hardware sector can this become a strong intraday theme tomorrow; if they underperform and external tech stocks are weak, chasing AI hardware involves higher risk.
   Sub-sectors to watch include fiber optics, chips, optical modules, clean rooms, and computing power leasing.

3. Robotics Sector: Short-term Play
   After yesterday’s surge, the robotics sector failed to sustain momentum, and the profit-taking effect did not spread further. Within the sector, stocks like Kai Kai Shares and Jinfeng Technology, which indirectly hold significant stakes in Yushu Shares, may outperform other stocks if the theme reactivates.

Tomorrow’s Market Outlook:
If trading volume cannot effectively expand, watch out for the risk of the index pulling back after a rise. Resistance is around 3900-3955 points; support is at 3824 points. The higher the index climbs, the greater the divergence pressure.

Sector rotation will continue, with main theme consolidation becoming more prominent, primarily focusing on power and supported by AI hardware. As for the chemical sector, unless crude oil prices continue rising, expect the rotation frequency and strength to diminish in the short term.

Practical Trading Tips:
Many ask how to quickly identify high-recognition regrouping stocks. Here are two simple methods:
First, refer to index 883410 (recent multi-board stocks), which includes stocks with recent consecutive boards, trend continuation after breakouts, or new limit-ups—an important pool for high-recognition stocks.
Second, monitor market hot lists. The ranking of trending stocks and their thematic attributes can clearly reveal the rhythm of sector rotation and new trends.

In today’s quant-driven market environment, don’t panic or resist. The key is understanding how quantitative funds operate. Quantitative trading relies on programmed conditions; as long as we avoid blindly chasing momentum and focus on core trend-following stocks, stable profits are likely. Anchor your stock picks on core stocks, and when unexpected strong moves occur, follow decisively. That’s the survival strategy in today’s market.

I share market insights, trading strategies, and market feedback because I’ve actually profited under current conditions. While I can’t guarantee perfection in every trade, my risk control—especially in limiting drawdowns—is much better than most investors. When it’s time to cut losses, I do so decisively. Whether you’re doing ultra-short or short-term swing trading, the core is understanding the current market’s profit-driving dynamics.

Today’s Trades:
Yunnan Energy Investment: Buy on dips below.

I like this stock for a low-open, high-rise move. If it hits the 5-day moving average tomorrow, I’ll add more and do a quick trade. It might be a buy-then-sell or sell-then-buy move. I’ll update you tomorrow.

Today’s Actual Trading: