[Red Envelope] Only what can't be defeated will make you stronger. This trend will ferment over the weekend, so be a bit more proactive next week!

This week’s market experienced a rollercoaster, starting with active oil and gas related to conflict concepts, while non-ferrous metals lagged behind. On Wednesday, oil and gas saw large fluctuations. In the following days, smart grid stocks showed a trend, with LED CPO and optical connectivity sectors active on Thursday, then adjusting on Friday. OpenClaW surged in the afternoon, fermenting over the weekend. The main index fluctuated mostly due to rotation; good news at low levels often attracted funds! [Taogu Ba]

This week mainly tried new directions with moderate results.
On Monday, I paid attention to Leike Defense, a pioneer in military industry informatization intraday, which gave a good premium the next day. I added to positions on the small red day, then sold on the upside above the moving average for T+0 trading.
On Wednesday, Hangtian Rainbow rebounded and was watched, then sold off the next day.
Thursday saw a breakout in LED stocks; I also paid attention to Ruifeng Optoelectronics midway, but it surprisingly didn’t have a premium the next day, so I switched to Huacuan Optoelectronics on Friday.
During this period, I also participated in Runze Technology, Aerospace Development, and Taijia Shares!
Taijia didn’t handle it well; sold on Thursday’s small green day, then it hit the limit down, and I thought I was catching the top, but it rebounded strongly on Friday.
Leike and Hangtian Rainbow are related to military informatization/drones, and new directions like LED CPO are intraday leaders. They hit the limit the same day, but the next day’s follow-through was weak.

This week’s new directions were mostly played with small positions. Summarizing reasons—only what can’t be beaten makes you stronger.

Over the weekend, small lobsters fermented, with many stocks already moving early in the close. Short-term sentiment indicators like Tuowei Xinwei, Hangjin Technology, Ningbo Construction, and Huasheng Tiancheng showed obvious activity, while hardware leaders had smaller rises.
Weekend fermentation doesn’t necessarily mean a good start on Monday. Whether the sector can truly strengthen during positive sentiment depends on the fermentation. If after a correction it can rebound strongly, then it’s more likely to continue;

Smart grid, or rather computational power + electricity collaboration, many stocks have shown a trend, with China Energy Construction at low levels.
Short-term sentiment is represented by Shunnai Shares, Hanlan Shares, and Yueneng Holdings. Yueneng has a suspension warning; during this period, no unusual movements are expected, but watch out in the next two days.
Strong trends are represented by China Western Electric, Tebian Electric, Baobian Electric, Dongfang Electric, and Jinkai New Energy!
After three big bullish candles, China Western Electric entered consolidation. The core is to follow the five-day moving average trend. It’s not afraid of dips, but prolonged oscillation can be tiring. Hanlan’s first wave was three consecutive limit-ups, the second wave four, and now a third wave of three. Whether it can break the script remains to be seen.
This direction has recent sustainability, but after three days of strength, a correction is expected. Since funds are heavily involved, even if it adjusts, it will likely rebound repeatedly.

LED CPO sector exploded Thursday, then adjusted on Friday. If you look at the sector, it may seem underwhelming, but focusing on core stocks Huacuan and Sanan Photovoltaic is fine. News-wise, Sanan Photovoltaic partnered with Tsinghua University and China Mobile to make breakthroughs in MicroLED optoelectronic devices and high-speed optical communication.
Additionally, there was a survey on Sanan Photovoltaic over the weekend. Whether the market recognizes it depends on the response. Only Huacuan and Sanan Photovoltaic have solid fundamentals; whether they can develop independent trends remains to be seen.

Another focus is AI technology. Recently, the strong segment is storage, driven by Baiwei Storage’s better-than-expected performance. The market is quite interesting—while US stocks like SanDisk and Micron hit new highs, A-shares have been mostly tricking investors, but recently, US storage stocks corrected while A-shares held up well. Other optical communication/fiber stocks are also adjusting. On Friday, US tech stocks declined significantly, so Monday may face pressure.

Commercial aerospace saw some activity early in the week with military informatization and drones, but the effect was moderate. On Friday, there was a focus on the “Flying Little Motorcycle,” and Aerospace Development also showed some movement in the following days. It’s a good time for left-side positioning, but major catalysts are likely to come from future news.

Using contrarian expectations this week worked well. The principle is that sectors should have fundamental logic, or individual stocks should be recognizable within the sector.
Since some sectors are too concentrated in chasing funds, other sectors have experienced sharp declines and adjustments. Currently, most patterns are still weak, even breaking the five-day moving average. Early in the session or the next day, watch for divergence and follow-up dips.
For example, GCL System Integration on Monday, Aerospace Development on Tuesday, Hui Green Ecology on Wednesday, and on Thursday, new lows with a break of the five-day line, including Taijia Shares!
These are stocks I experienced or reviewed this week; there are probably many others. If you only look at the trend, you might not hold on, as intraday closing signals are mostly bearish, but the next day often shows good recovery.

These are typical contrarian expectation plays. Next week, you can continue using this approach. To be blunt, veteran investors might not be suited for this mode because “they understand too much.”
It’s more suitable for those new to trading, who don’t know about short-term sentiment, strength/weakness positioning, or buying cheap dips.
For example, on Wednesday, I told a friend I bought some Taijia. We didn’t discuss it during the day, but that evening I mentioned I sold in the morning. He said he saw the dip and the limit down, so he bought the bottom. I told him the limit down hadn’t opened, and the next day might be a better entry point. But on Friday, he hesitated and missed it.
You can think of this as a little joke—survival of the fittest. I also wrote an article before: The main trading opportunities in this market come from dips, not rises. When it rises too much, risks increase.

That’s all for now. Next week, I plan to increase positions and be more proactive. Keep going!
$Tuowei Information (sz002261)$ $China Energy Construction (sh601868)$ $GCL Integration (sz002506)$