February 12th, the market performed better than expected / Let's see tomorrow if the volume can continue to increase.

Good afternoon, everyone! [Taogu Ba]

As I wrote at noon,

Here are the clearer signals of profit-taking and loss effects in the early trading session:

Profit-taking signals:

1. Dawei Technology’s overnight order increased by 2.423 billion (computing power)
2. Yunnan Energy Holdings’ overnight order increased by 1.805 billion (electricity + computing power)

These two signals are very obvious; the opportunities are in computing power and electricity.

Loss effects:

1. iReader Technology’s overnight order decreased from 6.5 billion yesterday to 2.156 billion
2. Huanrui Century, which hit the daily limit with high turnover yesterday, was directly pushed to the floor
3. Bona Film’s large volume surge was crushed by large sell orders at the floor

With this kind of action, the recovery expectation naturally diminishes, and the decline continues.

Last night, at the end of trading, Dukeculture was sold off before the bidding ended, cutting losses.

In short-term trading, the key is to be relatively sensitive during the session. If sensitivity is low, it’s easy to jump from one trap to another.

Themes:

Computing Power:

Whether it’s the previous photovoltaic sector or recent AI hype, repeated reminders emphasize the importance of observing computing power (data centers). The more an app or AI is used, the higher the demand for computing power.

The sector’s strength remains with Dawei Technology. Tomorrow, it will likely continue a one-word limit-up, as it seems to be the leading stock across the Spring Festival.

During the session tomorrow, if the computing power sector shows minor divergence, during the Spring Festival: updates on DS and increased interest in SD usage will boost the sector.

After the Spring Festival, this direction can still continue to profit (be patient).

Mainly computing power, supplemented by AI applications.

Sub-sectors include liquid-cooled servers, transformers, and optical fibers—all upstream AI hardware.

Electric Power:

Yesterday after market close, the State Council issued opinions on improving the national unified electricity market system.

Yunnan Energy Holdings opened with a limit-up at the start of the session (electricity + computing power).

The end point of computing power is electricity (which also involves power grid equipment, interconnected).

Talking about these two themes together suggests an idea: dual-concept stocks.

I thought of this early in the session, and during bidding, I searched for dual-concept stocks.

Jinkai New Energy (electricity + computing power) was too aggressive in the bidding, opening with a limit-up, expected to continue tomorrow.

Another sub-sector is optical fiber, which covers a broad range, involving both computing power and electricity industries.

During the session, a stock called Tefa Information, which experienced a turnaround with high turnover, was traded.

Within the sector, the best trend was Longfei Optical Fiber, followed by stocks like Tanfeng Communication, Changxin Bochuang, Tongding Interconnection, Zhongtian Technology, and Hengtong Optoelectronics.

Commercial Aerospace is temporarily avoided; the idea has been discussed before (the sector has too many high-position trapped positions). Consider a wave after the sector index surpasses the January 13th downtrend.

Although some individual stocks occasionally tempt with false signals, the sector effect cannot be formed.

However, today the chemical sector experienced unusually large divergence during the session.

Baichuan Shares did not open with acceleration (recent days, company executives have been reducing holdings).

Also, was it affected by Tianji Shares?

During the session, Jinniu Chemical also hit the limit down.

Only Zhejiang Longsheng performed slightly better (more resilient). As a beneficiary of industry-wide product price increases.

Tomorrow, observe the feedback. If the sector does not rotate and recover, just watch whether Longsheng continues its trend—strong stocks stay strong, weak stocks retreat.

AI Film & Television:

掌阅科技 will open with a limit-up tomorrow; observe its feedback to see if the sector recovers during the session.

At the close, Decai Shares surged, with some preemptive positions. Focus on these two.

Also, check if there are any floor-level rebound stocks in AI Film & Television in the early session (this can also be observed).

Focus on active moves, not passive ones.

Today, I saw a funny coordinated move:

When Lio股份 surged, some AI marketing stocks (like Blue, Zhejiang Wen, Tiandi) also rose.

Lio股份 has liquid-cooled server concepts, not just AI marketing.

Today, those chasing AI marketing will realize after hours that the bottom-fishing surge was quick to run, and those chasing high will have to cut losses tomorrow.

Unless AI short dramas and films have a decent rebound (bringing AI marketing along with them).

Key is to watch the feedback from掌阅科技. Whether it can lead AI short dramas after opening with a limit-up, and observe the linkage after the market opens.

Tomorrow’s Expectation:

The past two days of holiday market activity have already given me some gains. Overall, the computing power layout is fine.

If the market continues to expand volume tomorrow, hold stocks and wait for gains (reduce positions during intraday divergence).

Index resistance: 4142-4154 (if no volume, rotate around 4142); with volume, look at resistance near 4154.

This volume should at least push the market back above 25 trillion, meaning tomorrow’s volume should be at least 390 billion (less likely).

If the market shrinks in volume and falls below 20 trillion, breaking support at 4119 or even 4108 points, it may not recover.

Keep 2-3 stocks with the highest profits, and clear others.

Recently, themes are rotating; no sector has sustained strength. When one sector is strong for two days, the third day often shows divergence.

Today, the computing power sector showed a strong-strong structure (not yet at a climax).

Tomorrow, expect normal divergence. The only way to resolve strong divergence is with increased market volume.

Volume expansion weakens divergence; volume contraction amplifies it.

On the last day before the holiday, I hope everyone can get some red envelopes. If the market remains weak, don’t force it (to avoid losing money and ruining the holiday mood).

Today’s Operations:

Stop-loss: Dukeculture

Take-profit: GCL System Integration

Reduce positions: Haoliang Data (sold off after hitting the limit, no re-entry after rebound)

T+ trading: Litong Electronics, Wangsu Technology, Data Port

New positions: Zhangyuan Tungsten, Tefa Information, Zhejiang Longsheng (loss)

The biggest mistake today: not adding to Lio股份 for T+ trading (missed its other theme: liquid-cooled servers).

Last post before the Spring Festival:

A few heartfelt words:

To do well in trading, daily review and summary are essential.

This way, the next day’s analysis and plans are basically in place.

Then, based on the plan, observe stocks and sector expectations and market sentiment after the session, combined with overall market volume, to execute trading strategies.

If you only react on the spot without sensitivity, it’s hard to make consistent profits.

Don’t expect to make money every day; as long as you can be profitable each month, that’s enough to surpass 99% of the market.

Everyone’s personality is different; you don’t have to do short-term trading.

For those who don’t watch the market in real-time, choose the right direction and 1-2 stocks for swing trading.

On this road of the stock market, constantly summarize market patterns—market is the best teacher.

Finally, I wish everyone a happy Spring Festival in 2026, may you get rich next year, have your wishes come true, and keep going!