Journey to Enlightenment with You: Year 1 - Emotions Are Stronger Than Expected, Fans Are Busier Than Usual

1. Introduction and Weekly Summary [Taogu Ba]

First, thank you all for your likes, comments, replies, tips, encouragement, and urging. I hope everyone won’t be stingy with their fingers—just a little movement to support Yaojie.

Wishing everyone a new year of great achievements and continued account growth.

Hello everyone, as we quickly move into the weekend, the wheel of time has rolled past the first week after the Spring Festival. Overall, the market remains quite strong. Although the first day back saw some light-shooting and quick pullbacks, this is driven by market sentiment—after all, now the market is full of smart money, and no one wants to be the “palanquin bearer.” However, the funds before the holiday showed clear signs of positioning and accumulation, taking profits early to wash out the盘 and reduce operational capital costs, which has led to new highs afterward. Since even such sharp declines have been pulled back, the overall strength of the market is evident. Over the weekend, the hottest topic is the escalation of localized conflicts (Israel and Palestine), which may put pressure on the market tomorrow. But on the other hand, the overall upward trend remains unchanged. So there’s no need to panic.

2. Overall Market Overview

1. Index Level

Friday’s market was relatively strong. It opened slightly lower but closed with a moderate positive candle. This result was not surprising, as the market has been quite strong since the holiday, with Thursday showing some resistance. The highs are almost within reach, and the key is when the breakout will happen. The market’s trading volume reached 2.5 trillion yuan, which is quite high.

2. Style Perspective

In terms of overall style, the preference still leans toward trend-following stocks. Sector rotation mainly revolves around trend-based themes (most frequently performed), with hot topics adding extra points.

3. Expectations and Judgments

New highs are imminent, and the weekend brought news of conflict escalation. But unlike previous events, which usually led to big A-shares paying the price, the major platforms show little concern about this. It indicates that such events haven’t triggered market panic. Instead, if there is a correction, it could be a good opportunity to pick up chips. A panic sell at the opening might be the best entry point, offering good value.

  
**3. Market Signs**  
  
**1. Market Sentiment**  
  
From the bidding data, sentiment shows some divergence. Some mid-cap stocks like Farsight and Hongxing Shares didn't attract enough funds to continue the streak, with bids declining steadily. After opening, these stocks fell straight to the floor. The core leader, Yunnan Energy Holdings, didn't open very high compared to the previous strong day, which was slightly below expectations. However, after a quick rally and firm stance on the板, it basically settled the market's confidence. Soon after, smaller stocks started to perform, with multiple daily limit-ups and near-limit moves. No stocks hit the limit down, and even the weakest hot stocks only saw slight adjustments, indicating a relatively strong market.  
  
The core of the rally is Hangdian Shares, which is clearly strong. As a leader, it experienced some shakeouts on the first day after the holiday and on Thursday, but these were weak and oscillated around the 10-day moving average before breaking out. Such leader stocks are not afraid of divergence; they fear acceleration. A lower opening is actually a good sign. Other core stocks include Huasheng Tiancai, etc., mostly within the strong range.  
  
Compared to the main board, the growth and flexible sectors are somewhat weaker. It has been many days since the ChiNext or the Beijing Stock Exchange saw consecutive 20% or 30% limit-ups. Currently, the main board and the growth sectors are alternating, forming a hedge. The good news is that if you are trading the first limit-up, choosing the right direction and theme is crucial, as the next day often shows positive feedback, and even after a pause, new highs are possible. There haven't been many A-shares hitting the limit down recently.  
  
**2. Sector Themes**  
  
Sector rotation continues overall, but on Friday, the rotation started to focus on leading stocks. One constant theme remains resource price increases.  
  
On Friday, the strong sectors were mainly small metals representing resource-related themes, driven by rising prices. Several core stocks performed strongly, with accelerated trends. These led the sector, followed by other themes with strong momentum. Essentially, the recent phosphor chemical and metal sectors are driven by price increase logic, with only a few trending stocks (like Jiang Tung Equipment, Zhangyuan Tungsten, Jizhengda, etc.) showing accelerated growth. Other sectors are mainly rotating around these leaders for arbitrage. The strength of phosphor chemicals has decreased significantly, indicating ongoing rotation. Other themes include lithium mining, which has some news stimuli but lacks a dominant leader, so their strength is limited.  
  
Computing power stocks are also led by major players. After Yunnan Energy Holdings hit the limit down, it quickly turned around with three consecutive turnover attempts, unexpectedly hitting new highs from low levels, igniting new enthusiasm. But this enthusiasm isn't evenly distributed—strong stocks like Wangsu Technology continue to perform well, while others that did well before the holiday are being abandoned. Essentially, old stocks are less competitive than new ones in rotation and arbitrage. When selecting stocks, focus on new stocks.  
  
Other themes include power and energy sectors, mainly revolving around arbitrage with Yunnan Energy Holdings.  
  
**3. Trading Strategy Suggestions**  
  
The overall trend remains strong, so market participation is still worthwhile. However, rotation is rapid, so it's best to buy on dips with low divergence, focusing on early morning or late-day first moves. The cost-effectiveness of chasing during intraday surges is lower.  
  
In terms of stock selection, focus on sectors like computing power and power, and avoid less active sectors. Be cautious with bidding for stocks.  
  
  
  
**4. Core Market Summary**  
  
**Please stay tuned in the comments section.**  
  
That's all...