Commercial spaceflight is booming again! Is Chen Xiaoqun redefining space development?

1. Investment Principles [Taogu Ba]
①Trend. Always remember to follow the trend, avoid wishful thinking about tops and bottoms or price swings. Only enter when genuine funds are flowing in. Top traders make decisions based on the most authentic market feedback. An excellent trader is also a strong follower.
②Hotspots. The lifeline of ultra-short trading, the consensus of funds, the gathering place of sentiment. Its essence is not the hotspot itself, but the convergence and explosion of “trend.” Major themes are usually accompanied by massive trading volume, with core stocks leading strongly, and the ladder structure complete and orderly.
③Good mindset. In the short-term ecosystem, betting is the cruelest, profits and losses are just clouds in the sky. Constantly reflect on the correctness of your trades. The key is to manage your mindset well: care for yourself in adversity; stay calm in prosperity.
④Patience and focus. Patience helps avoid many traps; unwavering focus allows rapid growth. The market is always there, opportunities are always present. Always protect your principal, and most importantly, reduce mistakes.
⑤Friendship with time. If there is a shortcut to success, it is time. Are you willing to spend more time than others to do one thing with all your heart? If you view investing with a ten-year perspective, you won’t be troubled or confused by short-term gains or losses.

Flowing water does not compete to be first; it strives to flow endlessly. Trading is not about speed but about long-term compound growth. Let’s encourage each other!

2. Position and Today’s Operations

Xinwei Communication (+7.6%, one-tenth position)

Today’s sector performed strongly, and as a core target, it broke the adjustment trend and surged. As a trend in commercial aerospace capacity, trading volume has remained in a comfortable range. Continue holding.

Aerospace Development (+10.9%)

In the early trading session, Aerospace Development was the market’s stabilizer. After the market recovered, commercial aerospace outperformed, pulling volume and sentiment from the water. The leading stock accelerated its strong upward move, and in the afternoon, the market surged with increased volume, more funds flowed into tech sectors. After Zhongchao Holdings hit the limit down, Aerospace Development followed with a limit down, then exited on the trend.

China Western Electric (+1.6%)

After hitting the limit down yesterday, it maintained narrow fluctuations today and exited with a red finish in the afternoon.

3. Market Analysis

Summary:
Today’s market bottomed out and rebounded, showing a volatile recovery with a broad rally. Early on, photovoltaic, AI applications, and chemical sectors led the rotation and strength, but due to shrinking trading volume, the index briefly dipped near the 4000-point mark. Subsequently, the explosion in commercial aerospace ignited short-term sentiment. The veteran leader Aerospace Development accelerated its limit-up, boosting sector enthusiasm, increasing market volume, and further repairing market sentiment.

In the afternoon, hot sectors continued their rotation, with some divergence in the commercial aerospace sector. Aerospace Development once hit the limit but then recovered, indicating potential for further upside. Space photovoltaic, data center concepts continued to strengthen, and gold concepts led liquidity outflows. Hunan Gold rebounded strongly and hit the limit, helping the market digest previous panic sentiment. The session closed with a broad rally on reduced volume.

4. Sector Review

——Commercial Aerospace——

1. SpaceX is applying to launch and operate a constellation of up to 1 million satellites, and plans to build an orbital AI data center network.

Limit-up: Aerospace Development1, Zhongchao Holdings2, Julli Rigging1, Runbei Aerospace1
Dongfang Tantalum1, Aero Engine Control1, Tongyu Communications1, Jiangshun Technology1
Parker New Materials1, Shenjian Shares1, Jintuo Shares1, Anfu Technology1

Repeatedly mentioned in previous reviews, commercial aerospace is expected to be the main driver of sector rotation after releasing liquidity. Recent holdings are also concentrated in this area.

After the market recovery signals, the old main theme, AI applications, led the rotation and became active first, while the commercial aerospace sector continued to attract funds and outperformed. Subsequently, Aerospace Development accelerated its limit-up, becoming a short-term sentiment anchor, directly driving the sector higher and quickly releasing profit potential.

In the afternoon, some small-cap stocks in the sector briefly rose then fell back, with reduced strength. Aerospace Development also pulled back after hitting the limit. However, large-volume buying after the pullback suggests potential for further market movement. As a high-capacity sector, as long as funds are willing to continue, a rally driven by group cohesion may re-emerge. We should follow the trend. But in a weak market, the tendency to chase gains and then cash out remains, so caution is advised regarding acceleration.

——Space Photovoltaic——

1. Elon Musk: SpaceX and Tesla are increasing photovoltaic capacity.
2. Musk stated at Davos that establishing solar-powered AI data centers in space is a natural step.

Limit-up: JunDa Shares1, Shuangliang Energy1, YuJing Shares1, GuoSheng Technology1
Woge Photonics1, Aotewei1, Lushan New Materials1, Foster1
Jingjing Technology1, HaiYou New Materials1, Zerun New Energy1, Dike Shares1

As an emerging extension of commercial aerospace, space photovoltaic has taken the lead after the sector heated up, with all first boards, mostly rebound structures. Most targets are mainly held by institutions, so close attention should be paid to volume turnover and fund absorption.

——AI Hardware——

1. Many transformer factories are operating at full capacity, with some orders for data centers scheduled through 2027.

Limit-up: Hang Electric Co., Ltd.3, Shun Na Shares2, Sanbian Technology2, Robotech1
Tiantong Shares1, Far East Shares1, Taihao Technology1, CIMC Group1
Binglun Environment1, Kaiwang Technology1, Zhongheng Electric1, Tianwei Video1
Yigor1, Dongyang Sunshine1, Wanze Shares1, Kerui Technology1, Jinshi Technology1

In the afternoon, as the index rose, the sector continued to strengthen. Under the low-volume environment, the main rhythm in tech sectors remains rotation and lagging behind.

——Others——
AI Applications: Zhejiang Wenlian1, Mingdiao Shares3, Yuejian Intelligence1, Huasheng Tiancheng1
Consumer: Hengdian Film & TV4, Huangtai Distillery4, Xinhua Department Store2, Cai Bai Shares1
Chemical: Hongbaoli1, Wanfeng Shares4, Baichuan Shares1

5. Big Picture

After nonferrous metals futures stabilized and stopped falling, the A-share market showed clear signs of recovery, with overall bullish sentiment quickly returning. After successfully holding the 4000-point level, the market rewarded those who held through the downturn with a recovery bonus, with over 4500 stocks rising broadly again.

The shortcoming is that trading volume remains low, and the rapid sector rotation pattern has not improved significantly. In trading, remember to follow discipline when chasing gains.

6. Final Words

Thanks to a few good friends for their all-in-one service: @Phoenix Rebirth, @Stock Pits, @Qingmu i.