[Red Envelope] Layout chemical industry on the left side 20 days in advance, enjoy the main upward trend, and fully capitalize on the cycle reversal dividend!

Short-term trading is an art. It uses the ever-changing market as a canvas, sharp insight as a brush, and decisive execution as paint. True masterpieces are not born from chasing random fluctuations, but from precisely capturing and resonating with the market’s core “strength”—drawing directions at emotional peaks, structuring layouts during sector rotations, and ultimately adding the finishing touch at the moment individual stocks lead the rally. ————Compound Artist [Taogu Ba]

Artist’s Recap: Thank you all for your support. Since entering Taogu County, I’ve consistently topped the leaderboard and am still number one on the Newcomer List! This is your recognition of me and a testament to my strength! I will continue to work hard and produce higher-quality analysis! Supporters, please like, comment, and tip to show your enthusiasm and support for the artist!

During Friday’s trading, it seemed funds were worried about the Middle East situation over the weekend. Indeed, this weekend is quite turbulent, and all related news has already been released. Undoubtedly, everyone sees this as a major negative, the biggest uncertainty factor for Monday’s market. In reality, we don’t need to worry too much. Although there is some impact, it’s likely only affecting the early trading session briefly. The index will probably open lower, as funds digest this Middle East news. Once the market calms down, the impact of this news will be relatively smaller, and the subsequent market trend will reflect the true market conditions. Everyone had anticipated this situation early on, and all necessary preparations have been made, so there’s no need to worry excessively. Just follow the market’s lead. Some sectors might even be hammered into golden pits, depending on how the war situation develops!

The chemical sector has recently led the A-share market multiple times, with all sub-sectors erupting simultaneously. Other resource sectors related to price hikes are also flourishing everywhere. While others are still rushing in due to chasing highs, the artist already advised 20 days ago to position in chemicals—starting from the bottom, gradually accumulating, then accelerating the main rally, fully capturing this wave of dividends. This is a validation of strength, a step ahead, accurately predicting the sector’s main rise. During this period, whenever the chemical sector’s brilliance was overshadowed by other tech directions, the artist repeatedly advised to position in chemicals. Early positioning is based on very solid core reasons: on one hand, the sector’s valuation is at a long-term low after adjustments, combined with expectations of performance recovery, offering high safety margins; on the other hand, international turmoil has caused demand for materials to surge across industries, with supply-demand imbalances likely to trigger price hikes. Stocks within related resources have huge upside potential. Past movements of the chemical sector fully confirmed the artist’s predictions—from being unnoticed and ignored to exploding, with investors rushing in. From lurking to explosion, from undervaluation to valuation recovery, and then to price realization—perfectly timed. While the market was still slow to react, we had already built positions at the bottom. When the sector accelerated, our accounts had already secured substantial profits. When funds rushed in, we took profits and exited. This wave reflects the artist’s deep research into market cycles and precise grasp of sector trends. Positioning 20 days early is a victory in trend prediction, a resonance of cognition, rhythm, and certainty. We will continue to leverage cognition and rhythm to accurately catch the next turning point, always staying one step ahead of the market!

The Thursday recap about phosphorus chemicals clearly indicated that Jinjingda was showing signs of replacing Chengxing Shares. This was communicated in advance—did the market prove the artist’s prediction? Did Jinjingda successfully hit the limit up, while Chengxing diverged? Was the forecast spot-on? This is a validation of strength! Multiple accurate stock movement predictions have already demonstrated the artist’s capability. If you paid attention to the recap, you wouldn’t have picked the weaker Chengxing the next day. Yesterday’s stock movements also aligned with expectations. Why could we tell in advance that Jinjingda would rise to replace Chengxing? Details matter. During Thursday’s pre-market, it was already evident that Chengxing’s buy orders were weakening significantly, while Jinjingda’s remained steady. The core strength of the sector—buy orders—was actually less for one than the other, indicating differing expectations among funds. These signals are what the funds are telling us and what we need to notice. Recognizing core stocks and predicting trends are essential skills for short-term trading. The artist’s analysis always shares these insights, making the recap a premium content piece. Everyone should read more and discover opportunities from it.

The recent abnormal movement in the environmental protection sector, as shared by the artist, also included measures on how to respond to such situations—directly betting on the leading stocks. Today’s pre-market trading already provided enough profit opportunities for exits. Not only does the recap tell everyone about individual stocks, but it also combines real market conditions to teach some methods. Isn’t this selfless attitude worth some encouragement and support? Although the sector didn’t fully ferment the next day, there was no A-shares sell-off either. Entering would have allowed successful exits, just as the artist predicted.

Early morning, the artist selected key news and the most promising stocks from related positive concept sectors. For example, in Huawei’s segment, three stocks—Jin Modern, Xinju Network, and Puyuan Information—were chosen. They provided entry opportunities at the open and quickly hit the daily limit-up. Followers who saw this could profit from it. Isn’t it worth setting the artist as a close watch? Act quickly!

Today’s market analysis: Looking at the index, after three days of moderate volume increases, combined with the overnight plunge of Nvidia-related stocks in the US, the index opened sharply lower. However, subsequent gains were driven by sectors like computing power. I’ve emphasized before that the current index level is relatively safe, so the morning’s low opening was a good entry point. The total market volume was 2.48 trillion yuan, slightly reduced, which is expected after three days of increasing volume. Overall market sentiment remains positive, with 75 stocks hitting the daily limit and no limit-down stocks. Compared to earlier short-term sentiment, this is a significant improvement. The height of the daily limit hits also increased, with Yunnan Energy Investment reaching a new high.

In sectors, the price hike theme performed strongly, with small metals leading, especially tungsten; the power sector also continued to strengthen due to policy incentives and rising electricity demand from computing power. The overall trend is shifting from hardware to application in computing power, with domestic providers gaining further favor. The micro-cap stocks also showed signs of support, stabilizing the index and preparing for next week’s two sessions.

Artist’s Sector Commentary:

1. Resource Price Hikes After experiencing volume divergence, Jinjingda successfully re-closed at the end of the day. Chengxing Shares was suspended today. Small metals surged collectively, with rare earths also recovering today. The logic remains consistent with the price hike theme and is closely related to international situations. Currently, different themes have varying strengths, but the trend is evolving, with rotation naturally occurring. Stocks that have already surged significantly should be approached with caution—consider partial exits—while others like dyes and fertilizers in chemicals still have value for low-entry positions. Overall, resource price hikes are driven by expectations of a return, and there’s still room for further play.

For stocks, look for strong trending targets, and consider high-low trading along moving averages. Good trend stocks include Hongda Shares, Jiangshan Shares, Zhongxi Youse, Shenghe Resources, etc. Also, consider low-priced rebound stocks.

2. Computing Power Today’s strength in computing power is solid, including Huawei-related stocks that had news yesterday. Overall, the sector is performing well, with some explosive moves. At this point, it’s more about taking profits and reducing positions, as continuous explosive growth is unlikely. Although trading volume has rebounded compared to before, widespread breakout remains difficult. After two days of rising, next week likely sees some divergence and correction, which is also an opportunity. The Huawei sector performed especially well today, guiding us toward domestic computing power. Future policies may heavily support computing infrastructure.

Core stocks include Huasheng Tiancheng. Monitor whether its strength diminishes. During divergence, if your holdings underperform, consider switching to core stocks. Also, look for suppliers of computing power models and intelligent computing centers, and buy on dips.

3. Commercial Aerospace Expectations for commercial aerospace remain steady, with oscillation cycles. During these fluctuations, it’s hard to predict which stocks will lead, but recent market rotations have attracted attention to this sector. With next week’s two sessions, there’s a trading opportunity, though stock selection is challenging. Consider participating in previously leading, stable stocks.

4. Power Sector The power sector has recently gained momentum, becoming one of the strongest themes in the market. Its rise is driven by policies supporting new power systems and grid investments, evolving into a promising growth track. The sector’s structure is complete, with strong sector effects. The trend is clear, but recent profit-taking has been significant, so short-term profit realization is expected. The overall trend remains upward, with opportunities to bet on sector leaders during divergence and low-position rebounds to catch sector rotations.

Key stocks include Yueneng Power. Watch for any negative feedback on Yueneng as a market indicator. Other potential rebound stocks include Ganneng, Nanjing Power, and Fuling Power.

Daily morning updates include key news and selected core stocks. Follow the artist, stay on track, avoid getting lost. The morning content is mainly my market expectations! Please like, tip, or support the post!

Having heard too many grand theories and market principles, many still don’t know how to implement them. That’s why I share my “Strength Pyramid System,” which can help you grow. It’s worth taking seriously. Those seeking zero-cost gains will remain at the surface of trading, unable to grasp the core profit logic. My intention is to help those who follow this post avoid confusion. But the market will evolve, and so will our “Strength Pyramid” system. In the future, as market conditions change, I will add new “dimensions” to make it more adaptable to different cycles.