4.7 Midday Market: Suddenly, a Spring Breeze Overnight. Are Domestic Computing Power Capable?

[TaoGuba]

The broader market

We actually weren’t prepared to welcome such a big taco.

A two-week period can bring many things, and it also allows us to complete the early-stage launch phase of a new cycle.

Just look at the bottom-funnel cost positions peak—you can tell they don’t have enough shares here. Once it goes up, it’s all overhead pressure.

So under a normal expectation, any new capital that comes in here would understand this as the rebound reaching the upper band of the box that forms the sideways structure.

It should be sold, then return to the lower band, and then buy back.

But now we’ve encountered such good news. If a ceasefire for two weeks really can happen, and then the talks begin at the table afterward—

If the strait opens up slowly, then there’s no need to pull back again to the “golden right leg” here.

So today it exploded in volume. Look at this breakout: the turning-point fund is starting to buy.

Look here—this is still the fund at the end of the rebound starting to sell.

In the end, it formed a high-volume bullish candle.

But if the share-closure didn’t form, and the news disrupted the rhythm—can this be a reversal?

Then you need to see whether tomorrow and the day after, in the future, it keeps running upward above the top of this big bullish candle.

Bullish vs. bearish candles aren’t important. This gap must not be filled. It’s best if it runs above today’s closing price.

So this can be considered the start point of the reversal.

Then you need to keep increasing volume to consume the trapped-share overhead above.

Making money effect

Strong repair

Still disgusting

It’s still a market controlled by quant models

At the low end, a batch of “ordinary profit” limit-up surges

At the high end, the direction of sentiment—where the top-end crowd was holding—falls apart

Weakness—sports weakens

Changfei Optic Fiber, despite the broader market and sector being this strong, is still weak

A single-round rally of consecutive limit-ups—Wanfangde and Tianyao have negative feedback

This means: high-end sentiment is bad; only the high end can represent sentiment.

Today the making-money effect is good, but it’s all low-end and oversold rebound.

From a sentiment perspective, the market doesn’t accept that this is the main uptrend. It’s still understandable as chaos here.

It’s been two days of continuous repair; tomorrow it should create more divergence again.

It’s already symmetric: two days of pre-holiday divergence, then two days of post-holiday repair, and yet it gave such a big bullish candle.

Run quickly—this is the mindset of the early-acting profit-taking capital.

Themes

At the open, the strongest is pharma

I thought this was going into the third stage.

But at the open, Wanfangde is not right—it had no reason to open lower.

So now we can only understand it like this:

Looking at the pharma sector, there’s no effective shift into the third-stage phase.

Using identification and anchoring, it’s like this:

Because it’s earlier than the names—Meinuohua—due to the premium, it’s being driven by quant models and retail topping the one-word limit-up.

This was clarified last night. It only has Farsense, Guosheng, and Tianyin Electromechanical.

So no Meinuohua.

The market doesn’t recognize Meinuohua’s “driving along” impact.

At the open, Baihua Pharma’s buy order is the biggest. Although it’s about equity, the brand name is in pharma.

So if you look only at Meinuohua: trying to shift into the third stage—there’s no new high.

The “pivot” for phase two is the positioning of Wanfangde, whose trend is below expectations.

Phase-two catch-up: Tianyao began to make way for phase-three catch-up.

At the open, the first strongest is pharma. After it gets pinned by computing power, the whole sector starts to diverge.

Domestic computing power

After hyping it for 2 days with deepseek, it finally exploded today.

Hangsteel opened with a one-word limit-up.

Then it started to ferment.

Computing power is still stronger than software, but these two share the same logic.

Here, computing power is already counting in the phase-three that didn’t finish running continuously.

Or is it low-end strong vs. high-end—Aoruid, Hongjing, and Zhongxin Oriental—
Software: Blue-color Media.

Overseas computing power

On the sub-sector side, rotation continues. Today, optical modules are strong, PCB circuit boards are strong.

Changfei Optic Fiber is still weak despite the background of a big rally—14% surge in Hong Kong stocks. It’s really weak.

Today Yi Zhongtian rebounded along with the broader market—they’re the weights.

Overall, during the whole morning, capital is still fermenting. It’s still an oversold rebound.

But yesterday it was about beating up—buying oil and chemicals.

Today it’s no longer about that. It’s buying tech—within tech, it’s still buying oversold rebound names, and it’s seeing who got hit the most and is hit to the right level.

Key stock commentary

HuaSheng TianCheng

Why is it him, not TuoWei?

Because his current share structure is far better than TuoWei’s.

Non-key stock commentary

Meinuohua

Nothing is decided yet—I’ll take another look this afternoon.

With pharma moving like this, he might not necessarily have a premium tomorrow.

Especially since he doesn’t have much in terms of good news—he’s just retail’s faith.

Tianyao Pharmaceutical Industry

Nothing wrong at the open.

The issue is: the first time it tried to break the board, it wasn’t right—it chose to go weak voluntarily.

Once it breaks below the moving average, it can’t get back. Then you can just take it off your watchlist.

Changfei Optic Fiber

I already felt it was weak yesterday; today it feels even weaker.

But as long as it hasn’t broken below the 5-day line, you can’t say the trend is going bad.

However, when the crowd is focused and visible today, if you’re not up, what environment are you waiting for to go up?

So taking it off the watchlist as a response is relatively reasonable.

Aoruid

Why is it him, and it’s a choice between him and Dashengda—not Meiliyun?

Because Meiliyun’s share structure is chaotic.

Dashengda has said that its “stock behavior” is hard to put into words.

And the auction is also not as good as Aoruid’s opening.

Plus, Aoruid is a deepseek concept.

But at the time of the opening, domestic computing power was weaker than pharma.

So it’s not a key focus—this is a 10cm direction, preparing a right-side new high breakout.

It represents whether capital has given up on the oversold rebound and its stance on whether to use a trend main-advance pattern instead of a reversal from a consecutive-limit-up pattern.

Here, in fact, it’s capital using the window of the oversold rebound—

to run a full cycle of the third stage.

At the same time, it’s also fermenting the low-end first-stage theme arbitrage.

After this rebound ends, if there’s again divergence, and if it can resonate—

then with the current high-end two themes, light and pharma, going into a fading phase—

during the decline after this fade, the “fading-exhaustion plus resonance” theme that follows down one more leg may have a chance to become the main line of the second cycle.

Isn’t it that for the old cycle, after the downtrend’s second leg and exhaustion, the best themes are the ones that resonate—aren’t those the best?

For the quarterly big-cycle switch: either wait for the downtrend’s second leg, or wait for the downtrend’s third leg.

And within a quarter, when the first-cycle and second-cycle transition—once you’re at a downtrend-to-repair turning point, it’s enough to try-and-test.

The same applies to the transition between the second cycle and the third cycle.

Today, it’s very likely to close with a “bright-headed” bullish candle and a strong close.

Whether today is an effective turning point needs tomorrow to disprove or confirm—truly.

But today’s first board is worth taking as a first-hand position.

No matter whether it becomes a reversal, tomorrow’s momentum will likely continue as inertia and give a pull-up rally—most likely.

Capital has started doing low-high rotation again. It’s switching to AI applications.

Won’t they keep playing like this after quantification? I’ll sort out the cycles tonight.

This run—one week ago, like playing whack-a-mole—its fate has been full of bad luck.