Communication, communication, or communication

In the market, communications continue to exist as a leader that drives the direction of the market, and the communications bellwether remains unchanged as $Zhangfei Optoelectronics (sh601869)$. This topic has been discussed for several months already; in the subsequent direction, we still can’t see who is able to replace communications. The communications main theme was first raised last year when doing $Capital Opening (sh600376)$. At that time, satellite license plates were issued, and then the logic led to this communications main theme. After that, it was the commercial spaceflight direction. Actually, this line has never been fully played out, and it gives a feeling of ongoing follow-through. Many past things have been discussed here, and that’s not the focus. The focus is that, currently, the trend of communications is that when the market is at its most sluggish and lifeless, fiber optics is still continuously strengthening. If this can continue to be the core and ultimately achieve a turnaround, then afterward it will keep expanding. If there is no expansion, then it will focus on the core. If there is expansion, then directions like computing power, CPO, liquid cooling, PCB, 5G/6G, WiFi 6, and even eSIM cards will all expand as well. And right now, everything is still being sold off aggressively. So the only thing that guards the final core is here. [Taoguba]

When you talk about this direction, a more vivid image would be an empire—constantly being attacked by enemies around it, with large tracts of territory falling into enemy hands. Even the capital isn’t safe anymore. Although there are still a few generals leading troops to fend off attacks everywhere, they still can’t stop these enemies’ fierce offensives. Right now, all the final elite forces have been gathered in the capital. The capital has already been taken, and the soldiers have retreated to the imperial palace grounds. At this time, the most elite palace guards—meaning the emperor’s personal troops—begin迎敌. Basically, it’s victory in every battle. But because the number of the palace guards and imperial guards is too small to form effective results, although they can win, other armies still can’t come to rescue. This has led to the fact that the war can still be contained within the palace grounds, and the capital can also be held. However, the battle results can’t keep expanding. In other regions, territory is still being lost continuously. Even though some famous generals are still achieving victories again and again, there are still more generals failing. What’s needed now is more generals to come to the capital, to the palace grounds, to gather effective forces there to launch a counterattack. Currently, the palace grounds’ strength is gradually becoming stronger, but the counterattack still isn’t strong enough. What’s needed is more generals to break through and converge.

        Currently, that’s Zhangfei Optoelectronics. Its emperor’s personal troops are the communications line. The famous generals on the outside are directions like computing power, CPO, and so on. The electrical power sector was relatively fierce before and has been injured and is currently recuperating. The medical sector is also mostly not doing well. But today, computing power suddenly leaked news that “Aeying Starbow” is mobilizing and preparing on the outside, giving the feeling that it’s about to restore its former might. Other related commanders are also continuously making thorough preparations. Among them, Yunse Zhiliantian is the first to mount up and charge out first, as if “Thunderbolt Fire” has been reborn. Of course, after this offensive makes a small win, we still need to see whether next week’s major battle will continue. If next week is still getting more and more victorious, then there may be new developments—until the capital is liberated, the first merit will belong to whoever leads the charge.  


     Today is the last trading day before the holiday. It’s also like what I said yesterday: there will likely be a relatively risk-avoidant pattern. In today’s early session, there were major negative shocks in the medical sector. If the medical sector’s negative news is completely over, then it’s likely that technology will have good news and may strengthen. But that “ceiling” of Jinyao Pharmaceutical is still the highest leader—this is a bit like stubbornly refusing to move upward. Even so, a negative shock is still a negative shock; it can’t turn into good news. This is probably because the main players can’t run away, so they end up being forced into “hard top” action. Of course, it’s also the collective choice of many risk-avoidance funds. So today, it ends up making it so that other stocks with positive catalysts can’t strengthen either—so the only outcome is that everyone continues to weaken together.  

     Of course, no matter what, today is still continuing to shrink volume. In this kind of situation, any rise is fake and any drop is fake, because only with volume is there trading, and only then do sell-off cutting-loss orders appear. If you pull up with high volume, it can work; if you drop with high volume, it can also work. The problem is that it’s rising and falling with no volume at all—this is the biggest issue. So position management still needs attention; don’t be too blind. Because today’s early session was the beginning of the tariff war, and that was still in the medical direction. After that, it might be other metal manufactured products or others. That means that if 4.7 is concerned, it still needs to reappear. Of course, this is not necessarily about the trade war, but rather because when there aren’t enough sell-off cutting-loss orders, there’s no clear bottom. Once there are enough sell-off orders, then the bottom will be seen.  


       That’s all for today. Quickly like, comment, and give awards to Cui Bo. Thanks @He Xing Yang @Li Ming lm @Holy Light Messenger @Zitan Zhu @Ground of Sky Flying @Going One Way, Toward a Long Rainbow @Construction Site Player @Sangyu Feiwan i @smile Zhang @Happy Everything aa @Sister Dong @wjf0888 @daylightx for the award and for催播. Thanks  

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