[Red Envelope] Multiple top positions on the Emerging List + again accurately predicting the chemical industry trend with a double BUFF!

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 direction at emotional peaks, structuring during sector rotations, and ultimately adding the finishing touch at the moment individual stocks lead the rally. ————Reinvestment Artist[Taogu Ba]

Artist’s Recap:

Looking back on the journey, when I first arrived in Taoxian, I was nervous and wrote my first article. I wondered if I could stick to writing daily reviews. Who knew? I just kept writing. Over time, today I accidentally realized that I’ve already written my 15th article here, and I was quite surprised—have I really written so many? Time is silent. When you dedicate yourself to something, it flies by without you noticing. What has allowed me to stay fully focused and committed? Undoubtedly, it’s the support and companionship of my family. The first article I wrote was on January 31st. Since then, I’ve been twice ranked on the Emerging Leaders list, and once in second place (on the way back to my hometown by car, I missed a review and fell behind). Aside from the time spent at home during the Spring Festival, I’ve basically topped the Emerging Leaders list every period. The biggest credit definitely belongs to you, my dear supporters. It’s your support that gives me this honor! Thank you all! Thank you for your companionship and support along the way. I will continue to work hard and bring you more quality reviews! Of course, I must also boast a little—many of my review posts contain valuable insights, correct logic, comprehensive and unique thinking, detailed analysis. If there weren’t any strengths, I wouldn’t be liked, and I wouldn’t have topped the Emerging Leaders list! In the days to come, I will share all the experience and lessons I’ve learned from market struggles and successes without reservation! Support the artist more in the future! Let’s move forward together! Let’s conquer the A-shares market!

Yesterday’s discussion on phosphor chemical sector divergence expectations was validated today, including my emphasis on observing Chengxing Shares to gauge sector strength. Today, Chengxing Shares showed slight withdrawal of funds during the bidding, clearly below expectations, indicating sector strength might be weaker. The withdrawal was also promptly communicated during bidding, showing thoughtful consideration. Looking at the market later, was today’s divergence larger than expected? Yesterday’s review mentioned the same tier of companies—Guoguo Chemical, Jizhengda, Hebang Biological—encouraging everyone to compare and analyze which among these has a better chance to strengthen, and to verify your own thoughts through real trading today. I hope everyone can think independently after reading the review posts; only then can you grow. Don’t be afraid of making mistakes—those are just stepping stones to success!

Including the computing power sector, I’ve always emphasized the need for left-side trading—divergence is an opportunity. Did the computing power sector recover strongly today? Before buying or selling, we must clarify whether there are expectations for this sector’s future. If divergence exists, analyze whether it’s a healthy divergence or a sign of sector weakening. I’ve repeatedly told everyone that divergence in the computing power sector is healthy and expected; just a news spark can trigger a rally. Proof? Last night’s Nvidia earnings release caused a surge today. I also mentioned that the operation should be to buy low and trade on the left side—trust me, buying on divergence today means you’re safely capturing gains.

This morning, while reviewing pre-market news, I also noted Trump’s statement about encouraging companies to build factories and generate their own electricity. I really admire Trump now—his ideas are somewhat aligned with mine. As demand for computing power increases, the related power infrastructure will also need to improve, naturally boosting the power sector. Short-term trading requires not only mindset and skills but also sensitivity to news and the ability to dig deeper behind headlines. Merely staying on the surface is not enough.

Market Analysis for Today:

Index: The market opened slightly higher but weakened in the morning. Later, driven by strong tech sector performance, it recovered and closed at 1416.63. Throughout the day, it mainly oscillated around key levels, indicating a healthy consolidation phase. Today’s volume exceeded 250 billion, continuing three days of increasing volume post-holiday, with obvious capital inflow. With volume support, the market looks better. We’ve emphasized that current levels are relatively safe; the index is likely to remain in a range, with resistance above and support below. Market sentiment has also improved, but this doesn’t mean short-term trading is easy. Market style still favors sector rotation, and short-term chasing carries risks. The main strategy is to focus on playing divergence, paying attention to core stocks within sectors.

Sector: Sector differentiation is obvious. Yesterday’s strong resource sectors like phosphor chemicals and price-increasing industries saw divergence today. The AI hardware sector, boosted by Nvidia’s earnings surprise, saw a broad breakout, with capital flowing in. Related power sectors also rose, benefiting from increased data center power demand. AI applications and media sectors are stabilizing, mainly maintaining a steady state.

Artist’s Sector Commentary:
1. Phosphor Chemicals
Yesterday I clearly told everyone that today’s phosphor chemical sector would show divergence expectations, and the market opened as expected. At 9:15, Chengxing Shares had a bid of 4.8 billion, which was mostly withdrawn by 9:20. Similarly, Jizhengda also saw significant withdrawal. By close, Chengxing’s bid was only 1.85 billion, Jizhengda still at 2.41 billion. Several issues here: first, during early bidding, the sector’s strength was insufficient, with only two one-word bids, and many withdrawals—reflecting some doubts among funds. Second, if too many stocks hit the one-word limit, it might turn into a pre-holiday top like AI stocks, which is contradictory. When multiple stocks in a sector are at similar levels, such situations are more likely. If some stocks are already at the top, it’s unnecessary to gamble on others that aren’t. Coupled with today’s strong tech gains, funds didn’t intend to repair during the day and only slightly flowed back at the end. Tomorrow, divergence may continue initially. Expect some correction, but divergence is mainly based on expectations.

Expanding a bit, this isn’t just about phosphor chemicals but also other metal sectors with price-increase logic, like lithium. Recently, Tianjin Babu Wei announced support for lithium carbonate exports, and the US is gradually expanding resource control lists—Gallium, Germanium, Tungsten, Antimony, Phosphorus (elemental), Silver, Uranium, etc. These are key or strategic resources. Given current international instability and geopolitical tensions, resource controls are likely to tighten, further driving prices up. It’s not just about whether phosphor chemicals or minor metals are rising more, but understanding the underlying logic behind these sector increases.

In stocks, Chengxing continues to be a one-word bid with significantly reduced bids; Jizhengda accelerates its one-word bid, showing signs of replacing Chengxing. Other stocks in the second-tier are weakening. Divergence remains an opportunity for low buying; the price increase logic isn’t over. Focus on core stocks, and after divergence fully releases, participate in some leading recovery stocks. Yuntianhua is a sector leader, Hongda is a trend-following target, and others can refer to yesterday’s list.

2. Commercial Aerospace
Yesterday’s aerospace development surged, and today’s low open and strong finish also boosted the sector. In the afternoon, amid market rotation, the sector also experienced rotation, with random lifts—mainly in aerospace propulsion stocks. Overall, it’s still a oscillation phase with sector rotation. To participate, one must do some left-side trading and betting, which tests stock-picking skills. Look for stocks gradually strengthening recently.

3. Computing Power / Technology
In the review of computing power, I repeatedly emphasized that the underlying logic is sound; short-term divergence is healthy and more aligned with left-side trading—buying low. Today, the sector saw a strong recovery. The tech sector today mainly focused on hardware, with expectations of increased orders and performance. PCB, CPO, optical modules, fiber optics, liquid cooling, and computing chips performed strongly, showing good profit potential. The current market style is rapid rotation, with frequent hot spots. Patience is key—wait for divergence opportunities.

In stocks, popular stocks like Runze Technology hit the 20% limit, and previously mentioned Dawei Technology also recovered. Huasheng Tiancheng was the strongest intraday with a 10% gain. Conversely, the previously mentioned core sentiment stock, Wangsu Technology, weakened, indicating that computing power may be trending more towards a trend. Focus on core stocks mentioned, look for low-position rebound opportunities, and since the trend is dominant, low buy and left-side trading are best. Tech stocks are familiar faces; I won’t elaborate further.

4. Environmental Governance
Regarding environmental protection, I want to mention that in the late session, the sector moved collectively, with some stocks hitting the limit up. Such collective moves often suggest that some major policies or industry news will be announced after hours. If you encounter this, and your reaction speed is quick enough, you can consider a small position to gamble. Participating in stocks hitting the limit up is ideal. The logic is that if significant policies or industry news come out after hours, they tend to ferment overnight, likely leading to good premiums the next day. You can also shift weak stocks to stronger ones the next day. Even if the gamble fails, the chance of a big drop the next day is low, making it a high-cost-effective play.

Every morning, I review news and key stocks. Support the artist, follow along, avoid getting lost. The morning content is mostly my market expectations for sectors! Please like the posts, and you can also tip or support with points!

We’ve heard many grand theories and market principles, but many still don’t know how to implement them. So I share my “Strength Pyramid System,” which can help you grow. If you’re always looking for zero-cost ways to get gains, you’ll only stay on the surface of trading and miss the core logic of profit. My original intention is to help those who follow this post not to be confused. 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 better suited for different market cycles.