[Red packet] Reappeared on April 8, preliminary price trend confirmation, the perfect time to find the next "Demingly"!

1. Key Stock Highlights: [Taoguba]

1. Storage: Demingli identified March 4th as a signal for the start of a major upward wave. The first quarter’s performance led the way, and the main upward trend has not been broken. It remains worth attention and close tracking.
2. New Energy: Tianhua New Energy, Zhongda Mining, and other new energy sectors broke out of bottoming structures ahead of the market. These sectors are still worth attention and monitoring.
3. Optical Modules: Zhongji Xuchuang, Xinyi Sheng, both lifted off their bottoms before the market, still worth attention and tracking.
4. Upstream of Computing Power: Yunnan Germanium, FJ Technology, and other upstream hardware sectors saw strong surges today, hitting the daily limit, indicating they are leading segments in the computing power sector. Still worth attention and monitoring.
5. New Directions: ********, the next Demingli, initially hidden, no comment for now;

As always: The market never disappoints those who truly understand it, but it always takes profits from those chasing gains and panic selling.

2. Index Rhythm:

1. Major Structural Path:

Pre-春节 (Spring Festival), I had already made predictions. From January to mid-March, the main structure was expected to be a high-level sideways consolidation within a range. In late March, caution is needed for a potential breakdown of this range, risking a phase adjustment.

This has been confirmed by the market.

Further structural analysis this week suggests two main routes: the first, a benign correction bottoming around 3800 points, and the second, an extreme route breaking below the annual line.

As shown in the chart:

The support levels for these two routes were predicted before the Spring Festival, and I reiterated them yesterday.

As shown, the first route, predicted during the Spring Festival, expected a correction wave starting mid-March, dropping to around 3800 points, then forming a bottom and moving upward.

The second route, also predicted during the Spring Festival, expected a correction wave turning into an extreme one-sided decline, falling to the trendline connecting 2689 and 3040 points.

Although the possibility of the second, more extreme route (indicated by the yellow arrow) continuing to new lows cannot be completely ruled out, overall today, the probability of the first, benign route (also indicated by the yellow arrow) seems higher.

If it’s the first route, it’s similar to April 8, 2025, just not necessarily an exact replication of last year’s K-line pattern. The key is that if this is a healthy correction, after recovery, retesting the lows could form a double bottom, and the second retest might not see much further decline. So, these days, the low points are in the bottom zone.

This explains why, yesterday and this morning, during the market panic, I kept saying in the comments that I was not panicking. My subjective bias favors the first, benign route, as I’ve been saying—expecting a bottoming and rebound rhythm this week. And today, this has largely been validated.

Those who follow me know I’ve been predicting the overall market trend more than a month in advance, such as the spring rally, which I forecasted during the Spring Festival to be sideways until mid-March, then entering a correction wave in mid-March.

I never blindly bullish before a correction, nor do I follow the crowd to be bearish during sharp declines. Instead, I’ve been mapping out the market’s main trend a month ahead, like a construction blueprint, which the “main players” basically follow throughout the year. This might sound like a joke, but those who’ve followed me for over half a year or a year know it’s not. The index movements have been unfolding according to our predictions.

The key now is whether the index will make new lows this week. As long as it doesn’t, the first, benign route remains valid.

It’s also important to note that the support lines in the prediction chart are fixed, but the yellow and blue arrows do not represent space or target points. Don’t interpret the arrows as indicating where the market will rebound; they only represent rhythm, not specific points or ranges. Each arrow signifies a phase rhythm, nothing more. To pre-judge each correction’s timing and extent, it’s best to learn and practice together.

3. Sector Directions:

Since the spring rally, I’ve emphasized that the market is structurally driven, with some sectors and stocks rotating and adjusting, leading to sectoral and stock-specific movements. Some sectors and stocks will start earlier than the overall market, which we need to identify.

For example, on February 24, I identified Huagong Tech as a major upward wave signal, and on March 4, Demingli as another.

Notice that the index started a downward trend on March 3, but Demingli only launched its main upward wave on March 4. This illustrates the characteristic of a sector rotation.

As shown in the above chart, I believe it’s still worth continuing to identify new directions that start ahead of the market.

Currently, sectors that are still leading the bottoming process include storage, computing power, optical modules, upstream hardware, and new energy.

Of course, which sector remains the strongest still requires everyone to identify and find for themselves.

As I mentioned during the trading session, human nature is prone to gains and losses. Before a correction is fully repaired, most people are influenced by market sentiment and may panic sell in the morning. Once the correction is successfully completed, they fear missing out and chase higher at the close.

This highlights why we need to proactively and objectively analyze market trends. Rational prediction and analysis help us avoid being manipulated by public sentiment and market tricks.

In extreme scenarios, the main subjective view of a benign trend may fail, but the overall big picture—whether the market rises or falls—relies on pre-judgment and objective analysis. I hope everyone can see the value in our approach. During extreme market conditions, everyone finds it difficult; emotions run high, but maintaining confidence in our analysis is crucial. Thanks for supporting each of our main posts.

Summary: Tomorrow, I still lean toward expecting a recovery, so there’s no need for excessive panic. Focus on identifying sectors that are more resilient, adjust positions accordingly, and track the strong sectors. Some sectors and stocks have already bottomed, started early, and even launched major upward waves ahead of the market.

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