Fragmented and completely exhausted!

Overnight U.S. stocks continued their rally, which also stimulated the early trading of NVIDIA’s industry chain. Riescon D large orders surged sharply, and the optical fiber and optical communication sectors accelerated in the morning. The core popular Longfei Optoelectronics’ Q shares hit a new high on the second board. However, the overall hidden risks lie in the AI hardware branch, where PCB-related developments have fallen short of expectations. Subsequently, funds in the computing power collaboration sector attempted to seize liquidity in the morning. China NJ, benefiting from European power infrastructure, led the rebound and moved onto the board first. The heavyweight Sunshine DY and ND Era surged significantly. The entire energy storage and photovoltaic equipment sectors collectively moved. Meanwhile, funds were siphoned from AI hardware, causing Changfei GX to break the limit. However, there was no consensus in the energy storage sector either. In the afternoon, funds rotated into chemicals and oil stocks for recovery. Until the late trading session, short-term sentiment funds began to scramble for computing power collaboration stocks, betting on a rebound and recovery tomorrow. Although the index broke above 4130, individual stocks generally declined, with the yellow and white lines diverging. Overall profit-making ability was poor, and the market remained in a high-speed rotation.

Overall, after two consecutive days of rebound, the market has some profit-taking needs. Today’s correction was expected. Fortunately, all three major indices stayed above their moving averages, stabilizing and resonating with a potential breakthrough to new highs. I remain firmly bullish, so the sectors with active funds today should be closely watched.

Now, let’s review each sector:

1. Smart Grid: The trend was in line with expectations. The core sentiment stocks, ShunNa Co., also led a recovery in the morning. However, the performance of the medium-cap China West D was somewhat disappointing. The overall sector should lower expectations and expect rotation, seeking grouped stocks or focusing around ShunNa GF for consolidation.

2. Computing Power Collaboration: The trend was consistent with yesterday’s forecast. Sector rotation showed divergence, with core capacity China NJ quickly rebounding and maintaining sector heat. Low-priced stocks like Fengfan GF also provided strong momentum through single large orders, indicating a good sector hierarchy. After the index stabilizes, a large positive resonance candle is needed to confirm the main trend strength, with China Neng J as the core anchor.

3. AI Intelligent Agents (Lobster Concept): Due to official media comments yesterday, network sentiment was fully risk-off, increasing sector divergence. Currently, only core sentiment benchmark Ningbo JG remains active. However, “raising lobsters” has become a market trend, with local governments supporting it. The market reaction was somewhat overdone, and more news is expected to stimulate further. Tomorrow, a rebound is likely, depending on whether Ningbo JG can weaken and then strengthen to lead the sector back.

4. AI Computing Hardware: Today’s performance was also normal divergence. The upcoming NVIDIA GTC conference is expected to be a catalyst. I remain bullish, but the trend should follow a trend-based approach. Today’s market saw increased volume, so divergence was not obvious. Continued attention to volume is necessary. The focus remains on optical communication-related stocks, with China Huagong KJ as the core anchor. After Huagong’s consolidation, look for low-priced carriers to support further growth.