Is the verification opportunity for the "Strength Pyramid" here? Let's see how AI applications perform tomorrow.

Short-term trading is an art. It uses the ever-changing market as a canvas, with keen insight as the brush, and decisive execution as the pigment. True masterpieces are not born from chasing random fluctuations, but from precisely capturing and resonating with the market’s core “strength”—drawing directions at emotional peaks, structuring layouts during sector rotations, and ultimately adding the finishing touch at the moment individual stocks lead the rally. ————Reinvestment Artist [Taogu Ba]

Artist’s Recap:

Thank you all for your support, consistently ranking first on the Emerging List! I hope the family members who like the artist can give a like, boost, and support with tips! I will also listen to everyone’s opinions and gradually improve the structure of the recap posts, aiming to add some specific trading ideas for individual stocks. If you’re interested, please support quickly!

Is it accurate? Yesterday’s recap clearly mentioned there would be disagreements today. Today, the market has shifted from rotation to focus, and some previously rotating sectors showed divergence. For space photovoltaics, I also warned everyone about the risks in advance. Yesterday’s breakout failures indicated that today’s divergence is likely to continue. Am I the mastermind behind this? The content of the recap is carefully thought out before being written. I hope everyone can review it seriously—not just read the words, but also think together. Only by forming your own logical thinking can you grow better.

Yesterday, I also provided reference ideas for AI applications, such as considering turnover arbitrage—like the two one-word and one-word turnover in the ChiNext, observing the strength of turnover boards. Did everyone follow the instructions after reading the recap? If yes, please give a like, comment, and support! Unfortunately, I overslept this morning, and when I woke up, I missed the best opportunity.

Do you remember the first article I wrote when I first arrived? It immediately described how to judge the strength of the main sector. Looking back now, does the AI application sector give a similar feeling? AI applications have hit the daily limit surge for two consecutive days. Next, we just need to wait for tomorrow’s strength confirmation. If the sector can continue to maintain its effect tomorrow, then the market’s main sector we’ve been waiting for will arrive, right?

Let me review the strength characteristics of leading stocks again. If tomorrow confirms that the AI application sector continues to ferment and strengthen, then we can compare these five features to find the strongest individual stocks for shorting! Waiting and waiting, finally an opportunity to verify the content of the first article I shared. Interested family members can also go back and read that first article to see if what I said back then holds true tomorrow!

Market Analysis for Today:

Today’s index mainly fluctuated within a narrow range. Without additional volume or pre-holiday effects, maintaining a strong upward attack is unlikely. From the recent trend, the main task is to stabilize and oscillate. The index remains steady, but the themes are strong. The market has shifted from the previous rotation pattern to gradually focus, with funds starting to concentrate and seek the main line of the market. From the current results, the main line has been identified.

In sectors, AI has continued to strengthen for two days, leading the gains all day. Inside the sector, there are still daily limit surges, and the theme is gradually fermenting and spreading, indicating a market main line. The computing power sector, stimulated by favorable news and the continued fermentation of AI, is also showing strength. In the CPO sector, Yi Zhongtian mainly plays a role in maintaining the index, while Longfei Optical Fiber performed outstandingly in optical fiber. Space photovoltaics and commercial aerospace sectors, as expected, experienced pullbacks.

Artist’s Sector Talk:

1. AI Applications

Due to the positive news from ByteDance’s multimodal model Seedance 2.0 and Qianwen, the AI sector has performed strongly for two consecutive days, with daily limit surges. The story started fermenting from yesterday’s AI animation dramas, evolving from animation to film and television, cultural media, intellectual property protection, and even the gaming sector. The entire theme is rapidly fermenting, with a clear profit-making effect. After a brief rotation, the market is now focusing on AI application themes. Yesterday, I was skeptical about the sector’s strength, but early in the morning, many stocks in the sector hit the one-word limit, which confirms the sector’s strength. I also provided reference ideas yesterday, such as considering turnover arbitrage—like the two one-word and one-word turnover in ChiNext, observing the strength of turnover boards.

Since the market is already focused on AI, our attention should naturally follow. After two days of limit surges, divergence is likely to appear, with internal sector differentiation. Funds will focus on core leaders. For us, it’s important to find the core leaders within the sector. During sector differentiation, try to participate in the core stocks of each sub-line. If the core leader continues to hit the one-word limit without giving opportunities, consider participating in turnover arbitrage. I’ve listed specific stocks in the AI sector, mostly core stocks in various directions. You can choose those with entry opportunities to participate.

This fermentation mainly divides into several sub-lines (some with overlapping concepts):

A. IP-related stocks like Chinese Online, Rongxin Culture, Hengdian Film & TV, iReader Technology, Bona Film;

B. Security and compliance-related stocks like People’s Daily Online, Xinhua Net;

C. Short drama production stocks like Jucheng Holdings, Chinese Online, Huanrui Century, iReader Technology.

2. Commercial Aerospace:

The commercial aerospace sector experienced a sharp pullback today. Many family members might be surprised by the extent of this correction. If you look deeper into the reasons, you won’t be surprised. Tomorrow, the Long March 10A maiden flight test will be conducted at Wenchang Launch Site in Hainan, focusing on suborbital recovery and the Dream Ship escape system, using sea-based capture and recovery technology. Not everyone has full confidence in each launch, so some funds withdrew early today, causing the large decline. Regardless of whether tomorrow’s launch is successful, some funds with doubts about the launch have already exited, which actually reduces selling pressure tomorrow. There’s a high chance of divergence in the morning, followed by waiting for the test results. During divergence, observe whether some stocks are actively repairing, and play the game accordingly. We cannot predict the launch outcome; it’s purely a gamble. Those lacking confidence can wait for the news before considering participation.

3. Technology:

The top priority for the tech sector now is to stabilize the index. Without sufficient volume, sustained explosive growth is difficult. Meanwhile, the market is focused on AI applications, so the tech sector naturally will show differentiation. Yi Zhongtian in CPO showed profit-taking today. Longfei Optical Fiber hit two consecutive limit-ups, and Hengtong Optoelectronics is trending well—consider low buying along the five-day moving average. The rise in computing power stocks is also influenced by AI fermentation, as AI’s continuous iteration relies on underlying computing power. Core stocks like Tongtong Electronics and Dawi Technology are key. If opportunities arise, consider low buying on dips or high-low trading around trending stocks. Overall, the tech sector is mainly oscillating, maintaining the index, and participating during pullbacks.

4. Robotics:

The plant-like sector always offers hope when despair hits. In the afternoon, the core stock Wuzhou Xin Chun touched previous highs, and Wanxiang Qianchao later hit the limit-up. Funds are gradually entering the robotics sector. Careful family members will notice occasional movements in this sector recently, mainly supported by performance and long-term logic. During extreme market conditions, the robotics sector was also hammered down. Now, with the index stabilizing, the sector is slowly rebounding. For stocks with performance support, patience is needed. Participate in trending stocks with strong fundamentals, like Wuzhou Xin Chun, by low buying along the trend line.

5. Space Photovoltaics:

I already clarified yesterday that the space photovoltaic sector might face divergence tomorrow, and today’s divergence was quite significant. On one hand, funds are doubtful about the technology and future industrial scale, and on the other, some are expecting to cash out. The core stocks like GCL System Integration, JunDa Shares, and Amton are relatively resilient. During divergence, focus on core stocks, as I’ve always advised. Currently, the market is more focused on AI applications. In the short term, a major recovery is unlikely. It’s better to withdraw temporarily and wait for significant divergence in AI themes before playing the capital flow. There’s no need to ignore the main market line.

Every morning, I share news and selected core stocks. Follow the artist, keep up, and avoid getting lost. The morning content is mostly my analysis of expected sectors! Please like the posts, support with tips, or send points!

Many are tired of hearing big principles and market theories. Still, many don’t know how to implement them. That’s why I share my “Strength Pyramid System,” which can help you grow. It’s worth your serious attention. Those who always want to get everything for free will only stay on the surface of trading and miss the core logic of profit. The purpose of sharing is to help those who follow this post not to be confused. But the market will evolve, and so will our “Strength Pyramid” system. In the future, as market conditions change, I will add new “dimensions” to it to better adapt to different market cycles.