Tuowei Information shows unusual movement at the close, Taijia Shares perform again

$Tuowei Information (sz002261)$ suddenly surged at the end of the trading day, the reason is unknown, but the leader is always the leader. Once it started, it immediately drove Taijia Shares to hit the daily limit, Huasheng Tiancheng also quickly surged in a straight line, Zhongcheng Shares and Digital China almost moved in unison to lift the stock, and their charts are very similar. Based on the activity in the closing minutes, it’s unclear what happened, but if something did occur, it warrants active attention. The principles have been explained countless times: communication is the main line without question, and computing power is also a target within the broader communication sector. So, there’s no problem here, because the sub-sectors within communication are constantly switching—just like the early days of commercial spaceflight, where each sub-sector had to be copied over and over. Today’s communication leader, Changfei Optical Fiber (sh601869), has already broken below its support level, so the sector will likely see new sub-sectors emerge to take over. This is the cycle of death and rebirth: when a dragon dies, a new one is born. If your understanding of the broader communication sector is insufficient, you can refer to yesterday’s post by @SkyFlyFloor. Otherwise, it’s a bit difficult to explain.

As the main theme of the market, communication sub-sectors will keep rotating, but overall, they will oscillate within this line, creating opportunities in different segments. Of course, fiber optics are not completely finished, because many of the targets here are companies involved in both electrical wiring and fiber optic production. So, this process is not over quickly; it’s likely to be slow and repetitive. During the midday review, I mentioned the power sector, but remember, the power sector might be vying for a secondary main line—possibly replacing oil rather than displacing communication. This needs to be clear: the rise in power might be part of this wave, but a larger wave may still be coming, just like last April’s power sector rally, which only became truly spectacular in July. That was the main line. So, for now, we should still consider it as a secondary main line.

Looking at today’s performance, the market’s main force is still strictly controlling the rhythm. Just consider the two oil-related news items: the first was positive and caused a rally, but the subsequent news was immediately negative. This indicates that these news events are fully controlled and reflect the will of the market’s main force. Oil has upward momentum but is being suppressed by the main force, so the secondary main line of electricity remains relatively reliable.

Today, the key point of the news is uncertain—perhaps it’s intelligent computing, perhaps electric computing, or maybe communication. But as previously mentioned, it might be necessary to discuss the bigger picture today.

One of the long-standing themes has been the “parent-child” concept. Now, with support for private enterprises, many directions that state-owned enterprises lack motivation to pursue are being explored. The “parent-child” hype has never stopped, so this time there might be opportunities for private companies. Of course, the opportunities still fall within the eight sectors previously mentioned; based on yesterday’s discussion, it’s likely still related to 5G and other communication sectors.

With this guidance, it seems that the short-term trend will benefit less than the medium and long-term. Remember this clearly, because the pressure everyone feels is very strong. Today, only 8 stocks hit the daily limit, and among these, very few can advance to the next level on the following trading day. Yesterday, 62 stocks hit the first limit, and today only 4 achieved a second-level breakout. Most of these are also punished after hitting the limit, such as the new LED concept, which today fell sharply. Therefore, in the short term, position management when chasing gains is very important.

That’s all for today. More detailed analysis of the news will be provided after the weekend. Thanks to @Oliviajing, @BraveBullWithDreams, @SkyFlyFloor, @EmptyMountainNoSnow, @MiguoDuoDuo, @Kkkkkkkk8, @YaoOYao, @YiYi, @MaoMao66, @SunTowardsSunshineAndRainbow, @HisSurnameYang, @LegendaryBlueStarKing for their support and encouragement.

Keep going. On Monday morning, I need to visit the hospital, so I might be back a bit late. I hope to continue focusing on the main line without wavering. If there are any other updates, I will communicate promptly over the weekend.