4.7 Reflection

4.7 Fully invested in Jinyao Pharmaceutical

1、In the morning, fully invested in Jinyao Pharmaceutical. As for the logic, it is as follows:

The core point of the main contest is that market sentiment shifts from a consolidating structure into a higher-level and large-stage momentum advance phase

1.1、According to the previous big-picture view, around the year-end aerospace cooled off; Yuanneng Holding went to a 7-board, then shifted into consolidation; Huadian Liaoneng touched the 9-board, completing a move into a smaller-level sector upswing. Currently, Jinyao Pharmaceutical is at the 7-board. Personally, I believe sentiment is still in the gradual strengthening stage within the big cycle

Here, the key basis for judging that big-picture sentiment is gradually trending upward is that although the power direction is cooling off and A-kills are causing a significant money-losing effect, judging from the overall feedback from the space boards, the space boards still show absolutely no negative feedback at this moment

After Yuanneng Holding broke its board and stopped, the transition space boards basically consolidated sideways; then they made new highs; and finally led to Huadian Liaoneng breaking through 7 boards to touch 9 boards. After Huadian Liaoneng broke its board, although the power sector’s A-kill was extremely severe, the space boards still did not see an A-kill. Mein uohua consolidated sideways, and Shenjian Co. also consolidated sideways. Currently, Jinyao Pharmaceutical is at the 7-board height, and it has not ended yet

Overall, looking at the current consecutive boards, it still looks like a mild upward structure. Therefore, here I judge that the overall big-level direction still moves forward while oscillating and reversing

So the core logic for today’s contest involving Jinyao Pharmaceutical is that it can continue to drive sentiment to expand upward further

Yuanneng Holding at the 7-board, Huadian Liaoneng touching the 9-board—if you participate in Jinyao Pharmaceutical, then it must be a bet that the space height can break through the 9-board suppression and keep moving higher, so only then does this trade have participation value

And if Jinyao Pharmaceutical wants to break the 9-board height, it necessarily must break the market suppression under the current consolidation structure

The current market suppression has two points: individual stocks and the sector

Individual-stock direction: At the individual-stock level, there are two types. Small-level leaders generally end after two rounds of strong divergence; big-level leaders normally can withstand four rounds

But the problem right now is that after two rounds of strong divergence, the individual stock starts breaking its board and ends, and it cannot turn stronger. This inability to turn stronger has a very big impact, which is the suppression of the sector structure

The sector-structure suppression is that, currently in the market, besides the technology-trend themes that oscillate and reverse repeatedly, there is no theme that, after launching continuous divergence, flows back again to strengthen

Whether it is aerospace, power, lithium batteries, or previously other sectors such as chemicals, it is the same. These sectors basically start with divergence, then fall all the way back to the end

Judging from the morning’s structure, Jinyao Pharmaceutical currently can be said to have completed the first step of the individual stock: it held through the second round of blowout strong divergence and strongly sealed the 7-board

So what needs to be observed next is whether, in terms of the sector direction, the theme started last Wednesday, had divergence on Thursday, continued with mid-strong-level divergence on Friday—today it did not continue to weaken further. Instead, after divergence at the open, it moved into a weak repair trend

For the afternoon, the key focus here is whether, after the leader has already completed the move a leader should have, the junior followers can keep up, ferment, and come in to assist the leader

Once the sector can be strengthened here, it means that after successfully passing today’s “trial by ordeal” coming out of the consolidation structure, it will most likely transition into a main-advance structure afterward. Then the market’s overall trading space and the overall money-making effect will gradually improve

From a personal perspective

First: Today the power sector fully stopped falling and repaired; the money-losing effect ended. In a situation where one side rises and the other falls, the convergence and ending of the money-losing effect corresponds to an improvement in the money-making effect

Second: The space boards still have no negative feedback

Third: Resilience is being reinforced. Tongda Shares and Xintonggang blew up with failed-board “big losses” on Friday; today they rushed back to repair. At high absolute levels, stocks like Farsing and Guosheng High-Tech are strengthening. In the second wave, Xinneng Taishan accelerates. All of that corresponds to the strengthening of the money-making effect

In addition, the leader stock also shows that Jinyao Pharmaceutical quickly held through divergence, and on the sector side, the medical theme today has not continued to adjust for now, but instead is moving into repair

Therefore, based on these data, personally I remain extremely optimistic about the future market. I believe there is a strong chance that sentiment will shift from consolidation into a main-advance accelerated phase

Of course, the detailed part still needs to be observed through the afternoon’s feedback, and then you can make a response plan for tomorrow