04.07 Review: The First Day of Recovery

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Abstract generation in progress

Declaration: the following is my personal thinking, not investment advice [Taoguba]
Limit-up situation

Two consecutive limit-ups

2nd board advances to 3rd board

3rd board advances to 4th board
None
6th board advances to 7th board

Limit-up gets sold off

Top twenty by decline

Yesterday’s limit-up—ChiNext

Today’s limit-up—ChiNext

Price movement situation
There were 101 limit-ups and 18 down-to-limit

I. Market

About tomorrow

The top concern is that Jin Yao Pharmaceutical can withstand the pressure from abnormal trading and keep stringing together limit-ups. Here, we’ll see whether it looks like a new cycle is beginning. If it can still deliver limit-up after limit-up with performance that exceeds expectations, then overall sentiment will warm up and recover. After regulation, it won’t be easy to take action—let’s see what the feedback is like. In the low positions, continue to watch whether there will be catch-up gains.

Branching into fiber optics: Huiyuan Communication hits a one-price limit-up; Xinneng Taishan accelerates; after Farsong manages to hold back abnormal trading, there’s still a chance to surge higher even with the one-price limit-up. As for the trend names, Hengtong and Changfei Optical surged high and then pulled back—tomorrow, we’ll continue to watch where the rotation among the front-runners for “phone replacements” goes. After a small peak in chemicals, it also comes down to watching the strongest 1-to-2 setup. Tomorrow again, we’ll see where the rotation lands.

At night, the news from the US and Iran is somewhat bearish, and the US stock market fell sharply. If stocks that were originally strong end up gapping down tomorrow, there’s still a chance to surge higher. A-shares have their own trajectory, so teachers don’t panic. Tomorrow morning at 8:00, get up and check whether it’s actually reliable and whether the move got done.

II. Operations

The first day when sentiment warms up—watch it again for one more day.

Wishing you all the best

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Investment is a lonely practice of cultivation. You have to be able to hold onto prosperity, and also to endure loneliness

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