Introduction: This article is a personal investment summary, intended for investment communication reference only. It does not constitute any investment advice and should not be used as a basis for trading. Please bear the operational risks yourself and proceed with caution when entering the market (It is recommended to read“Private Equity Champion’s Narrative” to understand the logic).
Follow the backup account to prevent disconnection1. Review Today, the three major indices continued to perform strongly, showing an overall upward trend. The Shanghai Composite Index successfully broke through the 3800-point mark, becoming the focus of the market. The main driving force behind the strong index was the leading stocks in the domestic chip sector, with the brokerage sector playing a supportive role. However, behind the overall rise of the indices, individual stock performance showed significant divergence. Micro-cap stocks weakened overall, with more than 4200 stocks in the two markets rising less than 2%, and the number of declining stocks reached 2210, indicating an imbalance in the market structure. In terms of trading volume, the total reached 25.467 trillion yuan, an increase of 122.7 billion yuan from the previous day, showing a clear recovery in market activity. On the market, the concept of self-controllable technology resonated with the index trend, becoming the core theme of today’s rise. Among them, the domestic chip and computing power sectors performed the most prominently, contributing a total of 42 stocks that hit the daily limit, with a total limit-up amount of 105.677 billion yuan. The domestic chip sector was particularly strong, with 26 stocks hitting the daily limit, contributing 88.7 billion yuan; the computing power sector had 16 stocks hitting the limit, amounting to 16.977 billion yuan. From the limit-up tier, the domestic chip sector mainly consisted of first boards, with the Sci-Tech Innovation Board contributing 6 limit-up stocks; in the computing power sector, YL shares achieved a five-day limit-up, WT Development and HG Environmental Energy advanced to two boards, with another 13 being first boards. In terms of market capitalization structure, there were 5 limit-up stocks with a market capitalization exceeding 100 billion yuan, and 7 with a market capitalization over 50 billion yuan. Among them, H Wuji-U, with a circulating market value exceeding 520 billion yuan, became the absolute core of this sector. The domestic chip sector is overall in the early stages of activation, and it is expected to enter a phase of differentiation next week, with the market gradually eliminating the weak and retaining the strong. From the current style, the trend of large-cap, high-market-value stocks is dominant. High-priced stocks are relatively weak, such as HS Tiancheng, which only maintained a fluctuating trend today, passively following the market. In contrast, low-priced stocks like FZ Technology, ZK Shuguang, and those that have strengthened again after adjustments, such as Haoshanghao, performed more prominently and showed more initiative. In comparison, the stablecoin concept failed to maintain its strength, continuing a divergent trend today, with only 4 stocks hitting the daily limit, among which YY shares achieved a four-day limit-up, T Rongxin and ZY Capital advanced to two boards, and HY Technology was a first board. It is expected that the subsequent market will enter a phase of individual stock clustering, and the sector as a whole will struggle to form a collective force. In terms of sentiment, after being at a freezing point for several consecutive days, there has been some warming. All high-profile stocks with three boards or more advanced, but the overall sentiment recovery is more reflected in yesterday’s trending stocks, such as Y Weike, WL Electric Drive, and HS Tiancheng, which all showed signs of stopping the decline and rebounding. Currently, the market’s profit-making effect is mainly concentrated in the blue-chip direction, while small-cap thematic stocks still face significant pressure. Some previously strong stocks, such as JM Health, fell to the limit down after breaking the limit today, and JS Media, GJ Precision, and D Zicheng also showed significant negative feedback, indicating that the sentiment recovery is still not comprehensive, and market structure divergence remains significant. 2. Tomorrow’s Plan During yesterday’s review, I had a strong feeling: the current market adjustment is not a simple pullback, but a structural reshuffling process. Today, the results of this reshuffle have begun to emerge—the domestic chip sector has officially started, and is expected to become the core theme of the next stage of the market. Unlike before, this round of domestic chip market stocks is mainly concentrated on the Sci-Tech Innovation Board. This round of rise is based on blue-chip stocks, with institutional funds as the main driving force, and participants also have certain threshold requirements. Since it is dominated by large stocks, even if you miss the current starting point, there are still opportunities to enter the core targets; the key is to choose the right entry timing and avoid blindly chasing high prices. From a logical driving perspective, the catalyst for this round of market is the upgraded model released by DeepSeek. This model is compatible with domestic chips, further opening up the development space for domestic alternatives. The first batch of compatible chips includes HG Information, H Wuji, Huawei Ascend, Shudu Technology, Zhonghao Xinying, and Zhongke Jiahe, which will become the focus of market attention and core targets for capital speculation in the next stage. In terms of speculation style, since it is institutionally led, the style of this round of market is distinctly different from emotional speculation. It emphasizes logical support, values the cost of building positions, and tests investors’ patience and determination. This is not a short-term game, but a mid-term opportunity that requires in-depth research and reasonable layout. Today marks the first day of the domestic chip sector’s activation. Even if you temporarily miss out or fail to enter the front-line targets in time, there is no need to be overly anxious. There will still be opportunities to participate; the key is to be prepared, clarify the logic, and find the right rhythm. Opportunities are always reserved for those who are prepared; grasping the rhythm will allow for steady progress. 3. Personal HoldingsDelivery: On August 20, I opened two positions in WL Electric Drive at 33.14, with a total position of 20%, average price 33.14, and today’s delivery price 31, resulting in a final loss of -6.5% (this stock has been problematic for me, and I will completely blacklist it). Holdings: I hold 6 positions in Huawei Ascend computing power and 4 positions in photovoltaic battery equipment (added 2 positions), with results to be announced after delivery! PS: Last night, while chatting with a friend, I predicted today’s domestic chips and software due to DeepSeek-V3.1. I also communicated in the comment section of last night’s article, but the content was harmonized. “Entropy” is always conserved; I did my best, and if it gets harmonized, so be it, as long as it doesn’t affect my progress. Today, I cleared out Wolong and added to photovoltaic batteries. I saw that the group leader also came to support Ascend computing power on the leaderboard, let’s go! Tips: Dear readers, due to updates in WeChat push rules, please promptly click the “❤” at the bottom right, and also click “Trend Dragon Notes” business card to set it as a star “⭐️“, so you can receive articles immediately.