Computing power, chip, and communication sectors hit new highs. Can tomorrow's index break 4,200?

The volume still remains above 3 trillion, just one step away from a breakout, with active capital trading. Today, technology stocks led the gains, and we’re only one step away from a breakthrough. Tomorrow, funds are likely to attempt a breakout. The double top resistance is still somewhat difficult to overcome; if there’s a pullback, it’s the best time to buy in, because funds will still try to break through the expected 4200 double top. [Taogu Ba]

Auction: Dongyangguang 3.04 billion, stock positive news (expected to open flat tomorrow)
Tongding Interconnection 30k, Corning plans to expand optical connection capacity tenfold (expected to open high or flat tomorrow)
Tianmai Technology 486 million, M&A restructuring
Fuda Alloy 120 million, computing power (expected to open flat tomorrow, not worse than expected)
Yesterday’s strong stocks in auction: Tongfu Microelectronics, Yingxin Development did not meet expectations; China Great Wall and Datang Power met expectations.

Market Overview:
Up 3,246 stocks, down 1,801 stocks, 99 stocks hit the daily limit, 4 stocks hit the limit down, a significant retreat of 1, with an overall strength of 74. Based on the above market data, combined with Zhuque Road’s market trend, hotspots, rhythm, and comprehensive analysis, the current index is in an upward high-level oscillation with a pre-breakout trend. Today’s volume was lower on the rise, and the capital’s intention is very clear: to break through. Currently, it’s just one step away from a breakout, and the left-side resistance isn’t that strong anymore. If a direct breakout occurs, the 4200 resistance will turn into a solid support, so the core of technology stocks should be held firmly, and avoid losing chips easily. If there’s a pullback, it’s the best time to reverse and add positions, as funds will continue to attempt to repair and break through.**

Minor Trend:
Currently, the main carriers are the three major technology sectors: computing power, communication, and chips. The trend is relatively healthy. Tomorrow is critical: whether to leap over or pull back for further repair. Regardless of the path, the core positions in technology must be well-held; otherwise, when the breakout is confirmed, there will be no chips to accelerate, making it very passive. Today, one point is not very good: for example, Litong Electronics, as a core in computing power at a high level, showed weakness today. To break through, Litong Electronics must first show a stance; it can’t let Fuda Alloy, which is at a low level, lead the sector with a flat top, pushing the index higher. Low levels can’t drive the market either. Fuda Alloy is also not expected to underperform tomorrow. Computing power, communication, and chips are all at new highs, and a breakout of the index should be inevitable.

Sentiment Analysis:
Yesterday, the high-level stock Yejian Intelligent was suspended, and today it opened slightly lower. It quickly rallied at the open, which is a positive feedback for sentiment. Today, the yellow line stayed above the white line all day, with a relatively large gap, indicating top sentiment. Jin Tanglang also opened up short-term space; after a 5-limit suspension, two waves again hit 5 limits, providing positive feedback for short-term momentum.

Hot Sector Analysis:
Computing power, communication, chips, new industrialization, power, commercial aerospace

Most Strong Sub-sector in Computing Power:
Data centers, core: Fuda Alloy

Liquid Cooling:
Tenglong Co.

Computing Power Leasing:
Hangjin Technology

Communication:
Optical fiber concept: Hangdian Co.

Optical Modules:
Dongshan Precision, Huashengchang

Optical Fiber Concept:
Tongding Interconnection

Electronics Distribution:
Honghe Technology

Robotics:
Daye Co.

Chips:
Storage chips: Shengshi Technology, Chengbang Co.
CPU: China Great Wall

New Industrialization:
Yuhuan CNC

Power:
Datang Power

Commercial Aerospace / Clean Rooms:
Jintanglang

Sector:
Computing power logic DeepSeek financing is showing the market that even the most cost-conscious in computing power are increasing their reserves. This is the key behind the surge in domestic computing power. When large model companies, cloud providers, AI applications, and enterprise clients all start competing for computing power, prices will naturally fluctuate significantly. Fluctuations lead to long-term procurement, and long-term procurement creates locked-in pricing needs, which gradually develop into a trading market.

The asset management giant BlackRock’s CEO recently made a judgment that computing power futures may be born. He believes that the global demand for computing power is so huge that, in the future, traders will be able to trade computing power through futures markets. This is not an AI bubble; on the contrary, it is a supply shortage with demand growth far exceeding expectations.

Core of High-Level Technology:
High-Level Computing Power: Litong Electronics, Shengshi Technology, Fuda Alloy, Shengyang Co.
High-Level Communication: Honghe Technology, Woge Optoelectronics, Dongshan Precision, Guangxun Technology, Huashengchang
High-Level Chips: Jintanglang, Shengshi Technology, Woge Optoelectronics, Huayuan Holdings, Dongshan Precision

Summary:
In the past two days, the index has opened high and moved higher, with continuous bullish candles led by technology. For brothers who haven’t taken action, it’s indeed a bit painful to watch. Seeing others retreat makes it even more painful. Actually, this market condition isn’t because you didn’t do well yesterday or are afraid to chase today; it’s because of not predicting or not executing before the holiday. So, doing what at what node is very important. The rest is up to the market. Some people look down on Shengyang Co., but in these two weeks, it hasn’t been much worse than your chopping around, because market rotation is very fast—yesterday storage stocks rose, today fiber optics, and Shengyang Co. also dipped at the end of the day. But the logic hasn’t been fulfilled; it’s just that the difficulty of betting is increasing. Stock trading isn’t that hard—identify the core hotspot early, and get in early. For example, yesterday’s Shengshi Technology, today’s China Great Wall. Even if the positions aren’t perfect, the core remains the core. If you get a good position, it might be beyond expectations. So, brothers, learn the big money approach, pay attention gradually, and avoid missing out. Tomorrow carries some risk of divergence, so it’s better to act on what was clear yesterday. Today is somewhat difficult; tomorrow’s difficulty is greater than today’s. Trust early, trust fast. In the big A T+1 market, the competition is always about who acts first. The market always rewards foresight and early action. The 30 trillion market isn’t short of opportunities; what’s missing is your ability to identify hotspots and the rhythm in time. Later, look for a breakout at a relatively low level to new highs.**

A question for everyone:
The index is just one step away from a breakout. Can it break 4200 tomorrow in one go? Feel free to share your insights, I will join the discussion, and let’s exchange ideas together.**

What is the correct short-term path? It might be simpler than you think—forget about all those so-called strategies, tactics, and indicators. For us, trading only needs to solve three questions: buy or not? What to buy? When to buy and sell? Are these not the questions we think about every day? Thanks to my master, I am fortunate to also be in contact with some other big players. The trading systems we once admired are actually not complicated but very direct and effective. So I want to share my trading system here, and I believe everyone will gradually realize what the right path is!

The core of Zhuque Road’s system is only five words:
Trend (decides whether to buy or not), Hotspot (decides what to buy), Rhythm (decides when to buy or sell).

Trend:
What is trend? It’s not the candlestick’s red or green, nor the indicator’s golden cross or death cross, but the consensus direction of funds, the flow of sentiment, and the resonance of fundamentals and policies. Trend is the ultimate carrier of all trading logic.

Hotspot:
Once the trend’s direction is clear, we no longer blindly follow the market. When the wind is favorable, where should we aim our bullets? The answer is hotspots. Hotspots are the three-dimensional presentation of fund consensus because the essence of the stock market is fund-driven, and hotspots are the strongest magnets attracting funds. Retail investors who don’t understand hotspots will always be paying for others’ bull markets. In A-shares, never waste too much time and capital on non-mainline stocks. Ninety percent of your profits will come from the hotspots you’ve participated in.

Rhythm:
Rhythm is the top art in trading. It doesn’t teach you what to buy but answers the soul-searching questions of all traders: when to enter? when to exit? If trend is the timing, hotspots are the terrain, then rhythm is the harmony—your mastery of trading rhythm determines success when all conditions align.

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Sincerely wishing all brothers supporting Zhuque Road: continuous limit-ups! Long-term prosperity in the stock market! Wishing you wealth and good fortune!