A once-in-a-lifetime great opportunity has arrived

The broader market has continued to fall; today it finally moved upward. Logically, it comes down to one judgment indicator—also a frequently mentioned observation point: the expansion in trading volume. Sure enough, today the trading volume expanded. Then everything will become stronger: a white spot long-bodied bullish candle combined with a surge in volume of 800 billion has already said everything. Today is the focus for both the mid-term and swing-trade crowd, so no matter what kind of player you are, you should make your move today. [TaoKuba]

   You need to know that this current round of market action originates from the Fed cutting interest rates. And a Fed rate cut will lead to a depreciation of the US dollar and an appreciation of the RMB. So if that’s the case, then everything makes sense. The beneficiary directions of RMB appreciation include bulk commodities, banks, insurance, and securities firms—also real estate, tourism, and imports of technology products, as well as industries like aviation and papermaking, etc. So basically, today’s upside already explained all of this.  

This chart is almost synchronized with the stock market. So when the RMB appreciates, stock prices rise; when the RMB depreciates, the stock market falls—this is almost an unchanging truth. As for the news, it only serves to provide an explanation for this. Looking back at the news, it says the US and Iran reached an agreement, and the war is over—so everything is wonderful.

      One of the main reasons our stock market can perform well in the future is the continued appreciation of the RMB. There are many key factors here. Among them, Trump’s visit to China will be a huge positive. If it can succeed, it could be like a second reform and opening-up. When our domestic economy entered a crisis, the Third Plenary Session of the 11th Central Committee in 1978 kicked off reform and opening-up. World leaders came to China for visits, and our leaders also visited other countries. Ultimately, it helped facilitate the normalization of relations between China and the US, ushering in a sweeping reform and opening-up. Another was China’s accession to the WTO in 2001. Now it’s been more than 20 years since then. This time too, starting from last winter, leaders from various countries have been visiting, for the purpose of the final US presidential visit to China—timing is already set for mid-May. So right now, it’s highly likely the two countries will get along. And for the two countries to get along, at the very least there should be表现 in the stock market. The earlier “dumping” was also to maintain a healthy market presence before Trump’s visit to China.  

   Regarding the diplomatic direction, there are a few things today that some people might overlook. One is Spanish Prime Minister Sánchez’s visit to China; another is the Foreign Minister visiting North Korea. Taken together, it’s highly likely that the world is going to have peace. So there’s no need to worry too much. At present, everything can still be positioned for upside. But the path to go long is a bit winding. Today the broad market already has a somewhat exuberant sentiment. Yet today it closed at the halfway line (six-month moving line). Usually it won’t just break through immediately, so it might churn for a few days.  

      Previously, I gave many explanations for this direction. If the US-China talks succeed, then the subsequent Chinese stock market could be much higher than today’s highs. There’s nothing wrong with this round of decline—when you look back, it even feels a bit laughable. Many targets will make new highs. Even those that have already surged tenfold still have room to move up. So it’s best not to mess around. Most retail investors’ losses come from messing around. Most stocks will move higher. Having good picks but not watching them is also a pretty good choice—of course, that excludes short-term trading experts. Other people don’t have that skill. Forget it.  


        Today is basically a blooming garden—there are almost no falling sectors to be found. Some of the stocks that rose earlier have had a pullback. Yesterday I said it very clearly: the leader won’t die. But as for this leader, it’s likely to be some large-cap targets; small caps are easier to get “A-ed.” Today, the comparison between Feiteng Fiber and $Faye Sheng (sz000890)$ is extremely obvious. This is the kind of extreme situation that easily appears in this kind of market. It’s very normal.  

    Coming back to the order book: today’s gold metals rising, tech moving higher, and other sectors like brokerages and insurance also rise for the same reason. Today’s “opening move” $Western Gold (sh601069)$ with a one-word limit-up—by itself it already has positive feedback from gold to the dollar. The key is the earnings report it released last night, which makes it more valuable than other gold stocks. Internet insurance follows right after, for the same logic. As for the tech direction today, $Shannon Chip Creator (sz300475)$ hit the 20CM daily limit-up. The reason is that Shannon Chip Creator is a company that represents domestic sales for South Korea’s SK Hynix, so it still follows the same logic. In the AI direction, $Blue Focus (sz300058)$ also hit a big limit-up—again, it’s essentially the same logic. The ultimate demand for compute power will lead to a much larger selection in the chip direction in the future. So the bottom logic is here: what’s needed is AI chips—what’s needed is CPO, PCB, and liquid cooling. So today, Yizhongtian and Han Wang and Hai Wang are all working hard.  


   No matter what other direction it is, basically it all comes down to this reason. If you jump out of this reason, it’s basically nonsense, or your perspective is just a bit too small. For retail investors, you don’t need to compete with quant funds on speed, or with institutions on information, or with brokerage-related funds and veteran speculators on money. The only thing you can compare is how well you can judge the main force’s predictions. That’s where a very hard-core bottom-level logic is needed to support it. So if you can understand the selection of today’s targets, the difficulty isn’t that high. If you just stare at one single stock, that’s like trying to climb a tree to catch a fish by going the wrong way. If you listen to news and rumors, you’ll basically be behind institutions.  

    As for the selection of today’s targets—if you look closely, it’s basically directly related to FX, which is Western Gold. The others are derivatives. But for this kind of situation, then you should keep a tight focus on Western Gold. If there are other followers, that’s also fine. However, gold is heavily affected by futures price fluctuations, so you only need a modest attention and don’t overthink it. AI has fallen for long enough—so here you can take a closer look; there will be plenty of good picks. The same is true for others too, like that insurance and brokerage sector—about the same. As for the non-ferrous metals direction: after $Orient Tantalum Industry (sz000962)$ at 59.95, I stopped paying attention last time. But today it really came back. So there are plenty of good picks—don’t rush. Everyone should take your time tonight and find them carefully. There are just too many things with solid logic.  

     That’s enough for today. Quickly like, comment, and tip Cui Bo. Thanks @Kongshan Bujian Xue @TianKong Fei Di Ping @YanLe @TingMao @ErJin Ting Yu Seng Lu Xia @Li Ming lm @FangZhang—this person is vengeful @Pei County citizen @Holy Light Envoy @His surname is Yang @Construction site player @Just be happy aa @Gui Ye happy @Fisherman frying green vegetables for the tips and催播. Thanks.  

Boost it. Now the催播 leaderboard is already fourth. I hope you can push a bit harder.

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