Still at a disadvantage, still holding and waiting!

Overall, after two consecutive days of broad market decline, today’s pullback was expected. However, the weak opening and lack of support during the decline did show some weakness. The market was mainly driven by sporadic gains in the power and optical fiber sectors, with the power giants Huadian and Liaoning approaching 200% gains over 30 days, indicating increasing divergence in the future. Optical fiber also continued its strong run for three days, which calls for some divergence as well. The overall trading volume is still insufficient, and there is no sign of reversal yet. Moving forward, the market may continue to revolve around groupings, but high-level groupings are already losing momentum. Attention should be paid to high-low switching!

Now, let’s review each sector:

1. Power Grid Cooperation: Yesterday was a peak, and today’s divergence was expected. Due to the market’s weakness, funds were temporarily regrouped during the session, which lifted some lagging stocks with large-volume rebounds. This also overextended expectations for the next day. It’s likely that tomorrow some mid-cap stocks will trigger a “nuclear button” signal. We should wait for a thorough divergence to be released before participating in the next phase. Currently, high prices lack value, so focus on the feedback from Huadian Liaoning N at the end of today’s session and the response from Huadian Energy Y, which surged late in the day.

2. AI Computing Power Hardware: A lack of volume in the index has led to underperformance of major tech stocks. However, it’s clear that funds are still focused on core stocks in recently active sectors. Longfei GuangQ, a fiber optic company, hit a new high, as did Daming L in storage chips—both historical highs. This suggests the market is waiting for a double-bottom volume reversal. The key point to watch is whether the index can increase volume.

3. AI Applications (Cloud Computing Services): Today, core stocks like Aorui D did not see expected buy-ins, confirming our suspicion that it’s difficult for this sector to break out independently. This indicates limited significance for this sector. There may still be some institutional groupings in certain stocks, but participation is less smooth, so overall expectations should be lowered.

4. Commercial Space: The sector attempted two liquidity grabs throughout the day. In the morning, it took advantage of the divergence between power and fiber optics, then was diverted by batteries. In the afternoon, it again grabbed liquidity from the power sector. It still has a chance to act as a leading sector, helping the index rebound, especially considering the previous oversold condition and the upcoming SpaceX IPO catalyst. Focus on whether this sector can resonate with the index’s dual support levels and strengthen the market, with a target of further rising to the level of KeJ.

Today’s volume contraction isn’t a concern. Technical traders outside the market have been waiting for a second dip to fill gaps, which was successfully done today. Coupled with the easing of external geopolitical tensions, the impact on the market is now minimal. The outlook remains bullish. Watch whether the index can increase volume tomorrow and whether funds can focus on a profitable sector. If the index continues to weaken, the market will likely stick to power sector groupings, ready to switch to new high-low carriers. Follow the index trend, but remain optimistic about big tech. Short-term, fiber optics and storage are somewhat tired, so watch whether the commercial space sector, which showed movement today, can support liquidity.

Personal trades: Zhongli rose sharply and then sold; Huadian Liaoning Energy did not move; Damingli Technology hit new highs but did not act; added some positions in Zaisheng Technology.