[Red Envelope] Buy Huasheng Tiancheng, clear out Aerospace Development! A new hot spot is here! How did we profit against the trend in an extreme market this week?

Hello everyone, I am Xiaoxin. My trading system can be summarized with words like “timing, main theme, leading stocks, low frequency,” which is the Long Kong Long model. [Taogu Ba]
Follow me, and let’s catch the leading stocks together. If there are true leaders in the market that I haven’t shared, just unfollow!

1. Leading Stock Practical Trading Analysis

Friday pre-market plan:

1. Huasheng Tiancheng: Focus on near the 5-day moving average on Monday, take profits on Tuesday when it hits high; watch for bidding on Friday, and seize opportunities at the close.

Trading logic:
(1) From a fundamental perspective: Huawei’s Ascend 950PR is about to launch, carrying Huawei’s strategic mission to fill the gap in domestic high-end inference. There are 21 Huawei Ascend intelligent computing centers nationwide, with Huasheng Tiancheng leading the construction of 15 of them, making it the highest-level “Tongzhou Gongji” partner in the Ascend ecosystem.
(2) From a technical perspective: Recently, it has shown a strong trend—initial surge, break, first downward shadow, rebound with limit-up, then a shakeout—climbing strongly along the 5-day moving average; its August 2025 leading stock trend has attracted popularity, topping multiple app popularity charts, with unbeatable popularity. It has become a core group in computing power.
(3) Operation logic: As a strong trend stock, buy points appear near the 5-day and 10-day moving averages. On Monday, buy deep near the 5-day; on Friday, after sideways adjustment, buy near the 10-day. Also, consider the potential launch of Huawei Ascend 950PR over the weekend.

2. JuFei Optical Fiber: Bidding buy, temporarily trapped

Trading logic:
(1) From the theme hype perspective: On Thursday, LED panel concept exploded, with over 20 stocks hitting the daily limit. This theme hasn’t been hot for two or three years. It started at the oil retreat point on Thursday and may become the main market hype next. However, Friday’s performance was below expectations. Whether it can rebound remains to be seen. In a market dominated by quantification, many themes follow the pattern of “explosion on the day—profit-taking the next day—re-ignition after a day or two.” For a theme to become a main line, it must first be tested by quantification.
(2) From a fundamental perspective: The company is a leading domestic backlight LED packaging enterprise, with about 18% overseas business. It has successfully solved advanced packaging technologies like 400G silicon photonic module flip-chip, system-on-chip packaging, and optoelectronic coupling stacking, and has begun system testing on the client side.
(3) From a technical perspective: Recently, it has shown very strong momentum, leading the LED panel concept, with high trading volume and deep involvement of large funds. If LED panels are expected to be the next hype direction, JuFei, as the leader, naturally becomes my top choice.
(4) Operation logic: The deep water buy of strong stocks often indicates a divergence opportunity, so I bought directly at bidding. I didn’t know the big gap down was due to a clarification announcement released before the market open.
Reflection: Being trapped that day is normal. Even after seeing the clarification, I still bought directly at the big gap down. The buy point within the pattern depends on the market. Main players often use clarification announcements to shake out shares, especially for strong stocks. Without such announcements, it’s hard for main players to acquire enough chips at low levels. It seems I need to wait a couple of days—one, because LED concept is expected to rebound in two days; two, to avoid abnormal movements.

3. Aerospace Development: Dropped sharply after Tuesday’s bidding, but I believe the logic is sound—market influence caused it. So, I took profits at high on Friday.

Trading logic:
(1) Commercial aerospace has been frequently active recently, climbing along the 5-day line in the past few days. Especially on Monday, Western Materials and China Satellite both surged, indicating another wave of hype in commercial aerospace.

(2) As the absolute leader in commercial aerospace, Aerospace Development hit the limit on February 25 and has been climbing along the 5-day line for three trading days. As a major leader, it is expected to have a “dragon return” pattern, making it an unavoidable stock in commercial aerospace hype.
Operation logic:
Bought on Tuesday to anticipate a “dragon return,” sold on Friday because the trend of commercial aerospace deteriorated after Tuesday’s big decline. The pattern held on Wednesday and Thursday because I believed in the buying logic, overcoming the “result-oriented” emotional trap (see the previous main post for what “result-oriented” means).

Follow me to see pre-market plans first-hand; I will share them daily in the comment area!

2. Weekly Trading Review

Monday: Bought Huasheng Tiancheng
Tuesday: Bought Aerospace Development, sold Huasheng Tiancheng
Wednesday and Thursday: Rest
Friday: Bought Huasheng Tiancheng and JuFei Optical Fiber, sold Aerospace Development

Self-evaluation of trading:
(1) This week’s trading was still low frequency, only involving Huasheng Tiancheng, Aerospace Development, JuFei Optical Fiber. I advocate low frequency trading—only act on pattern opportunities, not forcing trades or trading just for the sake of trading.
(2) The three stocks traded this week are all core stocks with certain popularity: Huasheng Tiancheng is a trend group in computing power; Aerospace Development is a veteran leader in commercial aerospace; JuFei Optical Fiber is a leading stock in the LED concept.
(3) All trades are supported by logical reasoning, shared in the review posts. They are rational trades, not impulsive. As long as the trading is rational, outcomes are left to the market.
(4) All trades followed the pre-market plan, adhering to the principle of “knowing and doing.”

The market this week was quite extreme, with very high volatility. On Monday, influenced by external conflicts, it opened sharply lower but closed positive, earning respect for the big A-shares. On Tuesday, it surged sharply; Wednesday saw further decline; Thursday and Friday saw some recovery. For those who didn’t trade oil and gas stocks on Monday and Tuesday, losses were likely. Repeated chasing and selling could lead to big losses. I am not very interested in themes relying on external news, so I didn’t trade oil and gas. Even without trading oil and gas, I managed to profit, thanks to my four trading principles. Although the gains were modest, given the extreme environment, avoiding losses is already good. Overall, I am satisfied—this satisfaction comes not just from profit but mainly from the rationality of my trades. As always, as long as the process is correct, the outcome is left to the market.

3. Dragon Hunting Trilogy
   (1) From the emotional cycle perspective:
   Still in a chaotic stage. After Yunnan Energy Control’s 7-day limit-up was broken, the limit-up space was severely suppressed. No 5-day limit-up stocks appeared this week. Quantitative sideways phase, with width but no height.
   (2) From theme hype perspective:
   Oil and gas surged on Monday and Tuesday, followed by electric on Wednesday, LED and electric on Thursday, and chemical, electric, and computing power on Friday. After the divergence in oil and gas on Wednesday, the continuous hype in electric and computing power indicates the market is favoring Yunnan Energy Control, or that its unexpected performance is driving related themes. Next week, focus on electric and computing power.
   (3) From individual stock perspective:
   Electric and computing power are increasingly recognized by the market, with Yunnan Energy Control as the clear leader.

4. Leader Commentary

5. Yunnan Energy Control: First limit-up with a straight line above the previous high, showing a strong chip structure of a major leader; 5-limit-up with a straight line opening with high volume, then weak to strong transition from 5 to 6, passing the “crossing the tribulation” test, with potential to become a big leader; proactively breaking through the 5-limit-up space, facing abnormal movements at 7, with a deep long leg on Monday and warnings of suspension, already a breakthrough leader; sideways adjustment from Monday to Thursday, resisting extreme market conditions, a “crossing the heaven tribulation.” On Friday, with market recovery, it surged again, successfully crossing the tribulation, and on Wednesday-Thursday-Friday, it also drove the electric theme, evolving into a big leader.
   Trading aspect: Its role is more about breaking the pattern—leading the market sentiment to warm up. When the market shifts from chaos to a main rise, a giant breakout stock appears first, then a true big leader. For example, before Jierong Technology, it was the 8-limit-up of WoLe Home that ignited the scene. As a giant breaker, the risk-reward at this position isn’t great, and there is suspension risk, so I chose to wait and watch.

6. Market Risk Reminder
   (1) The index remains in a bearish trend. Thursday and Friday are likely oversold rebounds, but after two days of rebound, it reached the 5-day line and the dense chip area on the left, so a decline is likely tomorrow.

(2) US tech stocks perform poorly, and A-shares tech stocks are under pressure:

6. Tomorrow’s Observation Focus
   (1) Whether Yunnan Energy Control will announce suspension tonight; if yes, it will impact sentiment significantly.
   (2) How sustainable the electric theme is, judging by the trend of Zhongjun China Xidian.
   (3) The extent of external influence on big tech stocks and the overall market.

7. New Theme Outlook: National Lobster Farming (Fortunately, I buried Huasheng Tiancheng on Friday)

Brief Market Comment Today:
Yunnan Energy opens big, electric and computing soar together!

That’s all for today! Thank you all for your recognition and support!
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