Recently, a popular concept sector has shown some interesting trends. On Monday, there was a surge with limit-up stocks, continuing to strengthen on Tuesday, but today, clear divergences appeared. The leading stocks at the front continued to hit the limit-up with one-word boards, but the trailing stocks started opening high and then falling, or opening low and falling further, with many stocks dropping sharply.

From a quantitative perspective, this kind of one-word limit-up run looks glamorous but hides risks. Stocks that rise continuously without sufficient turnover are often at risk of a big drop once the one-word limit-up pattern breaks. High positions are often vulnerable to large corrections. This is a harsh but true rule.

However, this situation also creates an interesting betting opportunity. According to market principles, stocks that have experienced significant declines and divergences at high levels today sometimes have a higher risk-reward ratio than those continuing the one-word limit-up trend. Why? Because the one-word limit-up run, while impressive, requires extremely quick reactions and channeling efforts that ordinary retail investors can't keep up with. Conversely, stocks with divergences, if they can recover and repackage tomorrow, shifting from weakness to strength, present a real opportunity.

The key tomorrow depends on whether the trailing concept stocks can achieve a recovery and repackage. If they do, it could signal the start of a new rally; if not, it might be a fleeting moment. In the current market environment, rather than blindly chasing high, it’s better to wait for a rebound opportunity in those stocks that have undergone sufficient correction, as their risk-reward ratio is often more favorable.