The intraday profit-making effect is concentrated in the AI application and media sectors. Was your arbitrage smooth today? Check out the insights on convertible bond arbitrage!

First Like, Then Read. Although the market indices fluctuated little today, the profit-making effect was highly concentrated in AI applications and the cultural media sector. Especially, nearly all the stocks on the second board were dominated by media stocks, making it easy to reach a climax, but funds are likely to be cashed out the next day.

The overall market showed a pattern of shrinking volume and oscillation, with structural differentiation. Today, the cultural media (AI applications) became the strongest main line intraday, and many stocks with consecutive limit-ups were also highly focused on this direction. Be cautious of profit-taking the next day after a climax today! A new node is likely to emerge on Thursday or Friday, or after the holiday—let’s watch for specifics then. Currently, the main strategy is rotation or arbitrage!

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[Taogu Ba]

I. Today’s Operations

1. Unfollow Shanhe and Tuori, buy high-quality blue chips and Light Media, buy high-quality Kunlun and Tefa
2. Arbitrage in Hong Kong stocks: Yuewen Group, Hongji, and convertible bonds!
3. Focus on low-priced stocks: Kailong and Hengtong!
4. Summary for today: Focus on arbitrage

II. Brief Market Closing Summary

1. Index performance: The market oscillated narrowly throughout the day

2. Volume change: Shrinking volume did not trigger panic; it’s a healthy adjustment.

3. Market sentiment: More stocks declined than rose, but the number of limit-up stocks remains active. Funds flowed out from high-position sectors like new energy and military industry, concentrating on low-position AI applications and cultural media sectors.

4. New nodes may appear on Thursday or Friday, or patiently wait after the Spring Festival! Recently, rotation is dominant. Focus on intraday strength and trend-based long positions. Today’s strong stocks may not be strong tomorrow, and weak stocks today may not be weak tomorrow.

III. Brief analysis of the core sectors within the consecutive limit-up stocks

1. Cultural Media / AI Applications (Absolute Main Line)
Today’s strongest trend, driven by ByteDance Seedance 2.0 (video generation) technological breakthrough and the hot pre-sales during the Spring Festival season.

Film and TV theaters: Bona Film, Huanrui Century, Shanghai Film, Hengdian Film. Direct beneficiaries of the Spring Festival box office expectations. Watch for profit-taking at high levels!

Short dramas/games: Chinese Online, iReader Technology, Gravity Media, Long Yun Shares. Benefiting from the application of AI-generated content (AIGC). Be cautious of intraday surge and profit-taking!

Digital Cultural Creativity: Jiechengtong (copyright operations), Fengyuzhu (digital display), Rongxin Culture (children’s publishing)

2. Technology / Communications (Computing Power and Hardware)
Computing Power / Optical Fiber: Changfei Optical Fiber (fiber optic cables), Dawi Technology (computing power leasing). The boom in AI applications increases demand for underlying computing infrastructure.
Consumer Electronics: Zhaochi Shares (smart display terminals).

3. Others (Chemicals, Pharmaceuticals, Construction)
Chemicals: Baichuan Shares (chemical materials), Jihua Group (dyes).
Pharmaceuticals: Zende Medical (medical devices).
Construction: Yabo Shares (BIPV building photovoltaics), Decai Shares (building decoration).

4. Commercial Aerospace: Dingguo Jichuang (commercial aerospace concept).

Others — continue rotation. Tomorrow, focus on which stocks are the first to hit the board and their themes. Quickly lock onto the main theme stocks, convertible bonds, and Hong Kong stocks to seize opportunities. Currently, there is no dominant main line for sustained growth; focus on intraday strength and quick entries. Ensure there’s intraday “honey” (profit) for safe and happy trading!

IV. Recent core stock logic analysis of several trends

1. Light Media

Light Media hit the 20cm limit-up today, mainly due to the resonance of the Spring Festival pre-sale + AI technology breakthroughs discussed last week. Today’s a preemptive move by funds. Be cautious of profit-taking the next day; it may only last 1-2 days.

Analysis of today’s limit-up logic

1. External core logic: Spring Festival pre-sales exceeding expectations. Today is the first trading day after the 2026 Spring Festival pre-sale started. News indicates total pre-sale ticket revenue has surpassed 100 million yuan, with Light Media’s deeply involved films “Flying Past Life 3” and “The Silent Chilling” ranking top two in pre-sales. Market expectations for box office are very high, fueling bullish sentiment.

2. Internal core logic: AI cost reduction and efficiency increase. Besides traditional film logic, AI technology (like Seedance 2.0 model) accelerates in film production, greatly reducing animation costs and expanding valuation imagination for Light Media in animation movies. This also boosts short dramas and games.

3. Sector effect: Media leading the rally. The entire media sector performed strongly today, with the sector index rising well. As the sector leader, Light Media naturally became the primary target for funds.

4. Sector analysis
Core sector: Film and TV theaters (directly benefiting from Spring Festival box office)
Concept overlay: Media, Animation, AI applications

Personal outlook for tomorrow

Conclusion: Likely to open high. Be cautious about chasing high on the board today; focus on the sector and opening volume for support tomorrow.

1. Opening expectation: Influenced by strong buy orders today, a high open is probable tomorrow. If it opens high, watch out for profit-taking risks.

2. Key level: Indicates strong fund locking; if it falls below, it may test support around 24.5 yuan.

3. Tomorrow: If the sector opens with a large gap or high volume in the first 10 minutes, and support is good, it can be held. If it surges and then falls back, breaking the intraday moving averages, consider reducing positions to lock in profits.

4. Personal advice: Avoid chasing during the initial auction phase. If optimistic about the future, wait for intraday pullbacks and stabilization before entering. Suitable for high-position traders to buy low and sell high.

2. Wanxiang Qianchao

Wanxiang Qianchao’s limit-up today is a typical explosion of the robotics theme + high-position relay logic.

Analysis of limit-up logic

Today’s limit-up was mainly driven by two catalysts:

1. Core catalyst: Embodied Tiangong 3.0 release. Today afternoon (around 14:19), Beijing’s Humanoid Robot Innovation Center released the new general-purpose robot platform Embodied Tiangong 3.0, which directly triggered the stock price surge.

2. Theme scarcity: Authentic robot joint components. Wanxiang Qianchao is not only a leader in auto parts but also has substantial capacity in humanoid robot joint parts (universal joints, roller screws), with an annual capacity of 100,000 sets of roller screws and plans to build 1.2 million sets of robot bearings. It’s one of the few low-priced stocks in the robotics concept with strong fund support.

Sector and positioning
Sector: Auto parts (main business), humanoid robots (core theme), industrial interconnection.

Market positioning: Large trend stock. Unlike small-cap stocks driven purely by sentiment, its limit-up often involves institutional funds and sector resonance.

Tomorrow’s outlook: Don’t treat it as a stick; treat it as a core trend for rolling T+0 trading.

Focus on its volume and support; based on today’s strong limit-up and fund structure, a high open with premium is likely tomorrow, but whether it can continue to hold the limit depends on volume in the first half-hour of trading. Follow the trend, buy high and sell low based on the 5-day moving average.

Monitor volume: Today’s turnover was 4.256 billion yuan, a huge volume. If volume shrinks and rises again, it’s good (indicating lock-in); if it continues to surge (>5 billion) but cannot hold the limit, beware of main force distribution.

Sector focus: Robotics concept had its first day of explosion today. Tomorrow, observe other stocks in the sector (like Kelai Electromechanical, Wuzhou, Fengyuzhu, Changfei, Sanhua Intelligent) for sustainability. If the sector weakens overall, Wanxiang Qianchao may find it hard to stand out. The main force inside is very smart, haha.

3. Hengtong

Although not a top leader in the sector, its current trend is a core bullish trend upward.

Brief review summary: personal notes, no investment advice, trading involves risks, proceed cautiously.