Yes. The officials are personally involved, and they’ve provided the roadmap. If you still don’t know how to invest, you really shouldn’t buy.
Currently, there are 133 trillion yuan in resident deposit accounts. 83% of this 133 trillion is held by 3.1% of the people, while the vast majority of people have very little money. Because the lower limit for deposits of 0.3% of that 3.1% is 15 million, and for 0.03% of that is 50 million. These people are not retail investors; they are all smart people from various industries. Can you convince them to invest in a casino-like stock market?
The current stock market still enjoys a shocking atmosphere, listening for the wind as if it were rain.
If the market rises for a day, it’s an epic bull market that’s about to come; if it falls for a few days, it’s going to go cash, that’s what a stock master understands and does. What's the use of a transaction volume of 1.6 trillion? The ones making money are still those cunning old hands working behind the scenes; is this enough?
If a bull market were really that easy to come by, like that toothless old man in Shanghai bragging that it would reach 14,000 points in a few days, then what is the disparity between the rich and the poor in this world? Wouldn't everyone just follow the emperor to the heavens to eat strawberries grown by the queen mother? If making money in stocks relied on being in cash, then you could just watch the live lottery draw on CCTV every day to win the jackpot?
Deep Seek is just an appetizer for this year; it merely opens the curtain for the performance of Chinese technology.
Many people, when questioning this bull market, always look for particularly one-sided angles, such as where the funds came from, why foreign capital is not optimistic, and how the economy is so poor.
But everyone overlooks that the overall director of this bull market is slowly making moves.
The first wave of placements in the second half of last year was the massive introduction of policies across various industries, including support for the capital market, but these are just the prelude; the main character hasn’t arrived yet.
At the beginning of this year, the responsible regulator, Lao Wu, said that big events won’t wait for the New Year; we strive to make progress every day. Many people thought Lao Wu was just referring to some reforms in the capital market that needed to be launched early. In fact, the capital market is just cooperating; the real big move is outside the capital market, which is the launch of Deep Seek, released heavily before the New Year.
This is the first major move that shakes the whole world. Once it’s made, it directly subverts the original AI industry, allowing everyone to step away from the path of computing power and opening new doors to the AI world. This directly shakes the foundations over in America.
The stocks that everyone started to position in March, Zhongyida and Hongbaoli, have already doubled, and this is observable. The circle has been continuously verifying it, including the recently mentioned Ningbo Ocean Shipping and Lianyungang, which have also made considerable gains, proving the author's strength! In May, I will select a medium-term target with good reasons.
(1) This leading company has attributes and possesses core technology in the entire industry! Awarded the first prize for scientific and technological progress!
(2) The company has multiple main profit sources, has achieved an absolute competitive advantage, and has stable cash flow!
(3) Bottom accumulation + high concentration of chips + limit-up replication model, combining institutional and retail investors, weekly breakthrough platform, dragon head shape, strong control by main forces. Tomorrow will start the strategy layout; friends who want to profit should keep up with my rhythm!
I won’t mention the name of this strong stock here. Friends who want to follow up on the layout can join the official account: Junyou Yijian, reply with: Opportunity to engage! True success comes from long-term accumulation and gradual change. Those seemingly casual successes often hide speculation and fleeting fates. Deeply aware that retail investors should not be misled, I am willing to share!
But this is just the beginning; just after the New Year, the overall director's chess game began to unfold continuously. Just the day before yesterday, news broke that Google would be sanctioned and possibly pushed out of China, fully promoting HarmonyOS; yesterday there were two weighty pieces of news: one is an investigation into Apple's 30% tax, and the other is the upcoming release of the LPU chip.
This is fundamentally a full-scale tech war. The confidence is very strong; we can do without Android, we can get rid of Apple phones, and we can completely do without Nvidia; ChatGPT is not even a big deal.
Originally, after Trump came to power, he actually released a relatively friendly attitude towards us, but from our side’s reaction, we no longer want to concern ourselves with his attitude. We are tired of having our fate in the hands of others, always waiting for others to make the first move, always acting based on others' expressions. We don't want to live like this anymore; this time we will take the initiative ourselves.
The key is that we now have such confidence. In the past, they could choke us in certain fields; now we are basically self-controlled, and not only self-controlled but can also produce results that can shake the world at any time.
This is also the true core of our capital market's bull market. Once Deep Seek is out, don't doubt the bull market anymore; if you still doubt, that's just foolish. You can say that policy support may not yield results; you can say that capital can concentrate and also withdraw, but now that substantial results are starting to come out, if you still doubt, then there's really no need to trade stocks.
Many people do not understand what the current market is doing. It's increased in volume but seems to be stagnating; if it were to adjust, it doesn't seem to drop deeply. In fact, changing perspectives makes it easier to understand.
This year, the market is a year of great liquidity, with capital flooding into A-shares and Hong Kong stocks. But the first step to enter the market is to have chips, preferably cheap ones.
So, funds have started to sweep the market, beginning with the most core technologies. After a period of time, the chips in technology are no longer cheap, so we begin to rotate. Using rotation to collect cheap chips from other directions.
So, seeing that photovoltaic and lithium batteries moved today, and pharmaceuticals moved a few days ago, last week liquor and real estate also moved. Retail investors chase technology at high positions while funds sweep large blue chips at low positions.
Retail investors hold large blue chips while funds aggressively pursue technology. The two ends of the seesaw are sweeping the market, making the overall adjustment of the market very limited, with strong support. A drop of twenty points feels like the sky is falling.
In summary, wherever the chips are cheap, that's where to sweep; where there are many retail investors, choose to avoid. I mentioned before that below 3300 is a unilateral buy, and above 3300 is to pick up wherever it’s cheap. The index adopts a method of rapid decline + slow climb in waves, so everyone feels like they are losing money.
After selling out of fear of adjustments, you find that it doesn't drop much, and when you buy, it doesn't rise. It’s quite frustrating. That’s because you’re in someone else’s game; others are watching the money and chips in your hands, making their moves accordingly. Someone might ask, what to do?
From a higher dimension, looking at the chips just above 3300, do you want them or not? If you want, hold on to them; if not, just throw them away, or exchange for the chips you fancy. It's not that complicated. Just don’t think 3300 is cheap today and then think it’s expensive tomorrow; who else would you fleece?
All problems that cannot be solved in the investment circle can be viewed from a higher dimension, and there will naturally be answers. Don’t always think you are the smartest one; grasp every high and low point.
I have said many times that A-shares must study sectors, not the overall market; it's meaningless.
Second, A-shares are patterned.
There are four major drops each year: late April, late August, before and after National Day, and before and after the Spring Festival.
The reasons are the annual report, mid-year report, and quarterly report; everyone needs to avoid risks and steer clear of ST. Look at Hengjiu Technology and Tiensheng Co.
Aren't these two major stocks already ST?
Risk avoidance is about avoiding ST stocks; no one cares about performance as long as it’s not ST. After the earnings season ends, the music will continue, and the dancing will resume. Wait until mid-August before coming out to avoid risks; as long as it’s not earnings season, no one cares about performance.
Third, A-shares are patterned; after National Day, it’s technology, the internet, liquor, pharmaceuticals, large consumption, and digital currency. It’s like this every year.
For example, after the National Day in 2021, pharmaceuticals and the Metaverse surged, and the media followed the internet. Wasn't it the same in 2022? Just look at the Traditional Chinese Medicine sector line; wasn't it the same in 2021 and 2020?
After the National Day two years ago, the Metaverse was renamed Xinchuan; this year it’s called robots, but isn’t it all the same as the Metaverse that surged after the National Day in 2021? Aren't they all those stocks? At that time, the Metaverse also benefited the media and gaming, with the media and gaming industries surging. Isn't robotics the same?
Starting in December, I bought liquor, food and beverages, and commercial goods. After New Year's, I bought seafood, hotel pre-prepared dishes, and tourism for cinemas; this is the Spring Festival market. Tourism and cinemas are also before the Spring Festival, before May Day, and before National Day. After New Year's, seafood and hotel pre-prepared dishes are part of the Spring Festival market, and as the New Year approaches, it’s time to clear stocks as favorable news materializes.
After the Spring Festival, minerals, PCBs, and other raw materials rose, and engineering construction kept rotating. Didn't Zhejiang Construction Investment rise after last year's Spring Festival?
Is this a major stock in engineering construction? Didn't it also rise for two months after the New Year last year? What about this year? You can check it out yourself.
Which year hasn’t been like this? After April 27 last year, the market bottomed and started to rise; various batteries, cars, electricity, and chemical fibers all surged until mid-August. Then semiconductors took over. After National Day, there was a big drop. After National Day, the internet and pharmaceuticals began again, marking a completely new cycle.
So for the next three months, focus on robots, artificial intelligence, computing power, automotive electronics, and then move to semiconductors around mid-August.
After the semiconductor phase ends, go cash and wait until after National Day to explore pharmaceutical and Metaverse-related concepts. This is a yearly pattern where the market drops sharply before earnings season; April sees the sharpest declines because annual reports are the most important. The mid-year report in August is usually the weakest, and the rest depends on the month for growth.
It really is like this every year; go back and review more. Apart from the abnormal conditions of those two major bull markets in 2008 and 2015, the rest have been like this! It’s like this every year; don’t overthink it. The more you think, the more mistakes you make.
Respect the market, don't let your imagination run wild, don't look at any news, never look at the overall market, just follow the rules, the market follows the rules.
Secondly, do not engage in ultra-short trades; make some fluctuations instead. Don't stare at it every day or study it daily; it’s meaningless. Various positive and negative news, what’s the use of that? The more you study, the less money you make; don’t operate frequently or trade repeatedly.
Ranking of stocks at new highs.
1. BeiGene U. Current price 238.41. (Sci-tech Stocks, Chemical Pharmaceuticals, Innovative Drugs)
2. Wanda Bearings. Current price 230. (Construction Machinery, Robots, Forklift Bearings, Specialized and Innovative, Beijing Stock Exchange)
3. Demingli. Current price 157.5. (Semiconductor Chips, Annual Report Pre-increase, Artificial Intelligence, Data Centers, Specialized and Innovative)
4. Siweite W. Current price 105.21. (Sci-tech Stocks, Semiconductor Chips, Large Fund Holdings, Annual Report Pre-increase, Security)
5. Lintai New Materials. Current price 91. (Automotive Parts, Annual Report Pre-increase, New Energy Vehicles, Beijing Stock Exchange)
6. Ailis. Current price 78.36. (Chemical Pharmaceuticals, Sci-tech Stocks, Annual Report Pre-increase, Innovative Drugs)
7. Haibo Sichuang. Current price 71.18. (Power Equipment, Solid State Batteries, DeepSeek, Energy Storage, Smart Grid, Sci-tech New Stocks)
8. Star Map Control. Current price 65.45. (IT Services, Artificial Intelligence, DeepSeek, State-owned Enterprise Reform, Commercial Aerospace, Beijing Stock Exchange)
9. Ousheng Electric. Current price 44.49. (Small Appliances, Robotics Concept, Elderly Care Concept, Cross-border E-commerce, Smart Wearables)
10. Baotong Technology. Current price 38.78. (Gaming, Industrial Internet, Annual Report Pre-increase, IP Economy, Robots, Artificial Intelligence)
11. Yaxiang Integration. Current price 34.52. (Construction Decoration, Specialized Engineering, Annual Report Pre-increase, Chips, Flexible Screens)
12. Chongqing Department Store. Current price 31.12. (General Retail, Xiaomi Cars, E-commerce, High Dividends, Western Development)
13. Bai'ao Chemical. Current price 30.91. (Agricultural Chemical Products, Cross-industry Mergers and Acquisitions of Semiconductor Companies, Lithography Machines, Chips, Disinfectants)
14. Sanxiang New Materials. Current price 27.94. (Minor Metals, Solid State Batteries, Integrated Die Casting, Rare Earth Permanent Magnets, New Industrial Materials, Nuclear Power)
15. Lingge Technology. Current price 27.92. (Solid State Batteries, Specialized Equipment, Lithium Batteries, Physical Processing, New Industrialization, Beijing Stock Exchange)
16. Tietuo Machinery. Current price 24. (Construction Machinery, Asphalt Mixture Mixing Equipment, Specialized and Innovative, Fujian Free Trade Zone, Beijing Stock Exchange)
17. Wantong Hydraulic. Current price 23.75. (Reducers, Hydraulic Cylinders, Military Industry, New Energy Vehicles, Specialized and Innovative, Beijing Stock Exchange)
18. Kai Te Co., Ltd. Current price 23.63. (Automotive Parts, Sensors, New Energy Vehicles, Energy Storage, Beijing Stock Exchange, Xiaomi Cars)
19. Chunguang Pharmaceutical. Current price 19.82. (Specialized Equipment, Robots, Company Name Change to Chunguang Intelligent, Cheese Packaging Equipment, Beijing Stock Exchange)
20. Feilong Co., Ltd. Current price 16.96. (Automotive Parts, New Energy Vehicles, Military Industry, Chips, Xiaomi Cars)
21. Hechang Polymer. Current price 16.95. (Modified Plastics, New Energy Vehicles, Xiaomi Cars, Beijing Stock Exchange)
22. China Galaxy. Current price 16.66. (Securities, State-owned Enterprise Reform, Central Securities Holding, Large State-owned Firms)
23. Guangdong Expressway A. Current price 14.73. (Transportation, High Dividends, State-owned Enterprise Reform, Shareholding Securities Firms, Guangdong-Hong Kong-Macau Greater Bay Area)
24. Shanghai Bank. Current price 9.36. (Banking, High Dividends)
