[Red Envelope] Pre-scripted moves + precise top and bottom escape, see how Old Cat captures the intraday highs and lows!

Trading is like playing chess; each move is a form of cultivation. The board is a silent battlefield, emotions are the hidden chess notation, and capital flow is the key to breaking the game. True winners do not greedily hold the endgame but make decisive moves at critical nodes to set the pattern. [Taogu Ba]
--------Old Cat Recites Poetry

Thank you brothers for your support. Currently, we are still ranked second on the Newcomer List. Every point of new sharpness value is thanks to the strength of our brothers. I also hope brothers will continue to like and comment more, so Old Cat can continue to show off for a few more days😄

2026-2-6 Review

1. Market Review

【For those unfamiliar with the①②③ zones, please refer to the post on February 2】

We previously explained the characteristics of the Shenzhen Component Index’s①②③ zones, and have repeatedly reminded everyone of the rhythm at key resistance and support levels. Although the market has been weak overall these days, if you grasp this rhythm well, you can still outperform most players. As we mentioned before, resistance in zones ① and ③ is relatively strong, while zone ② has weaker resistance. The market tends to oscillate mainly within zone ②. From recent performance, this trend is fully in line with expectations, which demonstrates the charm of chip analysis. But it’s also important to understand that as the oscillation in zone ② prolongs and trading volume accumulates, the resistance formed will also increase, whether as support or resistance. Currently, with the strength at this level, it’s still far from zone ①. Zone ① remains a strong resistance area that requires significant volume to recover quickly. With only five trading days before the holiday, and considering the pre-holiday effect, the probability of large volume surges in the coming days is low; it might only happen one or two days before the holiday (with some funds taking the lead) or after the holiday when funds gradually flow back. Therefore, the chance of recovering zone ① in the next two or three trading days is low. Once market liquidity begins to recover, a reversal condition can form.

However, as the strength of zone ② gradually accumulates, and without strong external forces (such as the recent strong external influence from the US stock market), the subsequent performance of this zone will tend to be mild. That is to say, even if zone ① cannot be recovered, the oscillation in zone ② tomorrow will also be relatively mild. Today’s market saw several waves of intraday attempts driven by hot topics, all of which were relatively hot-spot oriented, increasing overall market risk appetite. This was achieved despite the US tech stocks closing lower after hours, indicating that even if US stocks continue to fall tonight, it is within expectations, and tomorrow’s negative feedback on A-shares will show diminishing marginal effects. So, there’s no need to worry too much about a big drop caused by zone ① resistance tomorrow. Overall, a mild oscillation is expected. Currently, the index is roughly in the middle of zone ②, with limited room up or down, supporting a sideways trend.

Of course, these are objective analyses based on intraday market performance; future trends may also be influenced by news. If there are significant changes, I will try to update everyone over the weekend.

2. Short-term Sentiment

In recent days, we have repeatedly said that since the sharp decline in precious metals ended, the relay sentiment has released a wave of risk. The subsequent upward trend is gradually recovering. Looking at the performance of stocks hitting the daily limit the next day, the high-level妖股 (hot stocks) groupings, and the fact that stocks that hit the limit and then broke off the next day all rebounded, it’s evident. For example, yesterday’s Hang Electric, Mingdiao, JuLi Squeeze, and the more recognizable Tanaka Precision, all showed rebound patterns after breaking off, indicating a rise in risk appetite and increased tolerance. But currently, the short-term theme sustainability is weak, lacking continuous themes as carriers. Funds can only continue to group recognizable stocks, chase patterns, or trade independent logic, all of which are high-reward but also high-risk operations, with a gambling nature, suitable only for experts. For most short-term traders, there is still a lack of clear right-side opportunities for relay buying. This will improve only when themes show sustained strength. So, for now, the theme game is a somewhat wasteful phase of sentiment, tempting but hard to find high-confidence entry points. Those not skilled at chasing shortcuts should continue to wait.

During today’s trading, I reminded many times that all hot spots are weak rebounds, lacking strong offensive attributes, still oscillating, and lacking right-side opportunities. The closing confirmed these judgments.

3. Sector Review

1. Chemical Concepts

Today’s chemical sector mainly moved based on a price increase logic. BASF announced an 11% increase in TDI prices in Asia-Pacific, triggering a sector rally. Currently, this appears to be a short-term news-driven response. The medium-term logic is unclear, so after this short-term boost, the sustainability is uncertain. From this performance, it’s one of the few sectors with volume-driven upward moves today, showing some initiative. There may be some continuation tomorrow, but generally, the chemical sector tends to favor trend-following rather than relay chasing. Trend-following strategies are more suitable for left-side trading, while chasing on the right side has a lower cost-performance ratio. For short-term relay traders, it’s not an ideal sector choice. Left-side traders should wait for a healthy pullback to find a good rhythm point. Tomorrow’s focus is on weak funds leaving strong stocks.

2. Robotics Concept

The direction that performed relatively strongly today, with many stocks hitting the daily limit, is driven by Elon Musk’s statement that the company will convert the production line at the Fremont factory in California, originally used for Model S and Model X, into a dedicated manufacturing facility for Optimus humanoid robots. This is also a short-term news stimulus. There is no clear long-term or medium-term expectation support. The sector’s index performance shows a plateau oscillation, with no obvious volume-driven breakout. The initiative exists but is limited; further fluctuations are possible. If volume increases again, attention should be paid. If tomorrow shows weakness, the short-term value is limited.

3. AI Applications

After the sharp decline caused by negative news two days ago, there have been partial recovery attempts yesterday and today, but the strength is weak. These are clearly weak rebounds, driven by the positive news of Qianwen’s money-spending mode, but overall, the rebound lacks sincerity. We previously mentioned that the biggest issue is the limited short-term window for AI during the Spring Festival, and whether the festival exceeds expectations or can feed into post-holiday trends remains uncertain. So, the short-term rebound strength is limited, and as the window narrows, further recovery may occur, but reversing in the short term is quite difficult. During recovery, individual stocks perform randomly, with no collective sector recovery, which tests stock selection skills. Future game strategies in this sector will also be challenging.

4. Commercial Aerospace

On Tuesday, the sector showed a strong start, raising expectations of sustained breakout. However, over the next two days, it was dragged down by negative news from AI applications and space photovoltaic sectors, missing the best window for continuous explosion. The outlook shifted to oscillation. Today’s performance was normal, with sector differentiation rather than a broad rebound. The overall strength is not very high; it’s a benign oscillation, not a downturn. No sustained breakout expectation has formed yet. A volume-driven bullish move is needed to trigger further explosion. Until then, it’s better to play on the left side, engaging in early rebounds and avoiding chasing after unvolume-driven surges. A volume breakout is necessary for a sustained rally. From a medium- to long-term perspective, commercial aerospace still has strong industry logic and warrants continued attention, but be mindful of a high buy-low-sell-high rhythm. Today’s second half saw Shenjian, Galaxy Electronics, JuLi Squeeze repeatedly attempt to hit the daily limit but failed to lift the rest, indicating limited confidence. The sector is likely to continue oscillating and accumulating strength. Aerospace news is frequent; keep an eye on news catalysts over the weekend.

5. Glass and Fiberglass

The sector today was weak and oscillating, showing a relatively weak performance, heavily influenced by overall index pressure. It’s not yet broken; future rhythm depends on the overall index outlook. This sector is quite sensitive to index movements; only when the index shows a rebound space can the odds increase.

Overall, the market remains in a weak oscillation phase, with poor theme sustainability expectations. Pre-holiday trading was sluggish, making it difficult to support large-scale trends. Sentiment risk appetite has increased, but sustained short-term opportunities depend on themes strengthening.

Welcome all kinds of exchanges, discussions, and questions. Any questions in the comment area will be answered seriously. Feel free to ask anything. If you like my articles, please give a small like or encouragement, or leave more comments—even just a check-in or a single like—knowing someone is watching is a great encouragement.

Finally, I want to especially thank all brothers who have supported and rewarded me. Thank you for your recognition and encouragement. Wishing everyone’s accounts a long rainbow!

@Tianxin Wu Yanzu @Xiao Lanzu 0310 @Xingaoyi @Xiakemao @Galaxy Wandao @Ritian @Zhanlong Wushuang @Bate Fulai