Hexun Investment Advisor Wang Yu: A surge of 56 points, the market is still likely to focus on rotation and recovery.

Today’s market action opened higher thanks to positive catalysts from overseas, but afterward it didn’t continue to push with increased volume. Whether looking at trading volume or the momentum for longs, there was no further strengthening. As noted by Wang Yu of Hexun Investment Advisory, among the two relatively strong themes at the open—innovative drugs and computing power—the leading stocks that saw bid-up activity in the opening call should have reclaimed momentum (a reversal rebound) and should have gone to limit-up (涨停). However, compared with that, they weren’t proactive enough; they all saw pullbacks to different degrees, which meant the strength of the sector was indeed limited.

Then there was disagreement in commercial aerospace. Shenjian failed to meet expectations from the very opening call onward, which led to other companies in the sector seeing consecutive兑现 at the open. Until the afternoon, while each sector showed strength, it still didn’t continue to strengthen further. During the period when the index rebounded and filled a gap, there was some repair and an attempted push higher, but it still couldn’t form a coordinated surge. Compared with the rebound in the index, the number of rebounding stocks and the average share price—based on this performance—were still quite good. But all day there were 38 stocks that hit the sell-off after limit-up (炸板). Compared with yesterday, that’s more than double. Yesterday was also a day when the index kept falling, which led to more stocks hitting sell-off after limit-up. Today, however, the index surged strongly, yet the number of sell-offs after limit-up was even higher.

From this point alone, it’s clear that the effect of going long today was indeed not good. The next market is likely to continue focusing on rotation-based repair. Everyone should be careful about chasing after a spike. Also, a quick reminder: currently, the market’s highest-level board is 4 boards. The next levels are 2 boards. If I fail tomorrow due to the private message, the second board to third board (二进三) setups below can be considered as well—since the negative feedback from the high-profile names has been continuing for three days straight, and short-term market sentiment has been stuck at a freezing point for consecutive days. There will be time windows afterward when attempts at repair may occur.