Review: Why AI Hardware Became the Last Safe Haven Amid Market Fluctuations?

Hello everyone, I am Xiao C.

Looking at today’s market, if you only focus on the indices, it seems like a festive and harmonious scene; however, for those engaged in short-term trading, today might feel quite bland, even a bit “chilling”.

In summary, today’s market can be described as:the indices are setting the stage, but the sentiment is tearing it down.

1. Core of the Market: A Tale of Two Extremes

This morning, the indices opened high and continued to rise, exceeding expectations. Logically, with such a strong market, various sectors should flourish. However, the reality is that the market did not produce a clear leading stock; instead, high-position stocks are still retreating.

This **”sharp rise in indices + retreating sentiment”** often leads to the easiest losses. Because the indices are rising, you fear missing out; but when you jump in, you find nothing but discrepancies.

2. Sentiment Thermometer: The “Nuclear Button” of High Stocks

The biggest negative feedback in sentiment today came fromChina Water.

At the market open, China Water not only failed to show any premium but was also directly pushed down to the limit. This is a very bad signal, indicating that funds have no confidence in the “second wave” or “rebound” of the old cycle.

Although there were attempts during the day to “bounce back” and mimic previous high-low scripts, they ultimately failed to recover. What does this indicate? It shows that the current market has a very low willingness to engage in high-position stocks; even if funds are bullish, they are reluctant to touch these “outdated high stocks”. As long as it remains on the limit down, the height of the stock ladder is suppressed.

3. Main Line Analysis: The Struggles and Divergence of AI

Now let’s take a look at the absolute main line—AI.

1. Opening Below Expectations: The AI sector opened weakly this morning.

2. Strong Recovery: However, funds quickly flowed back, initiating a very strong recovery. This indicates that people are still reluctant to part with this major theme.

3. Afternoon Decline: Unfortunately, the good times didn’t last long; in the afternoon,BlueFocus began to weaken. Although there was no significant plunge, the entire AI smart sector experienced varying degrees of pullback.

This is a typical case of **”aesthetic fatigue”**. The same logic, if traded for too long without more substantial positive stimuli, will naturally lead to a depletion of bullish momentum.

It is worth noting that amidst the divergence, theAI hardware branch (computing power, servers, etc.) showed the strongest performance. This once again confirms my judgment: when the software side is oscillating at high positions, funds instinctively switch to the hardware side, which has performance support and is relatively lower in position, to hedge risks.

As formilitary industry, it opened below expectations today and remained flat throughout the day, neither rising nor falling. This indicates that it is currently just a marginal player, with insufficient attention from funds.

4. Strategy for Tomorrow: Eliminate the Weak, Retain the Strong, Defend and Counterattack

Since the indices surged and then remained flat in the afternoon, it indicates hesitation among the bulls. Based on today’s market characteristics, tomorrow’s strategy is clear:

1. Avoid Purely Sentimental High Stocks: Do not bet on weak stocks turning strong before China Water stops falling; the risk-reward ratio is extremely poor.

2. Focus on “Hardware”: Since the market has identified AI hardware as the strongest branch, tomorrow can focus on thefirst board or1 into 2 opportunities in that direction.

3. Watch More, Act Less: Various sectors in the market are rotating and trying, but no true leader has emerged. At this time, frequent stock switching is most dangerous, as it can lead to losses on both sides.

Summary: As long as the indices do not collapse, opportunities will certainly exist, but one must shift focus from “high positions” to “low positions”, from “pure sentiment” to “logically supported hardware”.

Wishing everyone great profits tomorrow!

(Disclaimer: This article is merely a personal review record and does not constitute any investment advice. The stock market carries risks; please invest cautiously.)