After a peak yesterday, the robotics sector continues its momentum today. The strength of Wolong is undeniable, and last night, analysts were optimistic about the main rise of robotics, with the robotics sector index reaching a new high, being the only sector willing to actively expand its heights.
The core capacity is supported by Wolong, and the sentiment is driven by Shoukai, indeed, it seems right everywhere, so the strongest in the early session is still robotics.
Last night, the semiconductor equipment data was relatively good, with early session gains in photolithography machines (resins) and semiconductors, but it did not receive the blessing of the index, as the financial sector remained inactive.
Thus, in the first hour of the early session, the index showed a fluctuating pattern, with expectations of potential downturns, and hard technology computing faced pressure, leading the market into a disordered rotation.
The robotics sector is experiencing a consistent trend after its peak, and it is normal to see differentiation and divergence today.
Then the rotation began; are we looking to rotate into consumer sectors that go against the index? The expectations have diminished, and everyone is cashing out.
Rotating into digital currencies? That’s an old theme, let’s see the rebound.
Then the old routine, rotating into solid-state? High positions have turned into low positions being passively pushed back, and high positions are not showing any response, which is not useful.
It’s unclear what the second hour will bring; the big financial sector started to rally, and the overall market began to expand, causing the technology sector to move collectively, disrupting the rhythm.
This is just my subjective opinion; the index is unpredictable, and the movements are too erratic, so I can only take it step by step.
The mainstream remains in the technology sector!
Computing power: It is currently at a high stagnation, with low positions catching up, which is what value investors often refer to as sector valuation elevation. High positions have been raised and are taking a breather, while low positions are benefiting from the rise. However, the profitability effect of the sector is clearly weakening, and what we need to watch next is whether companies like Hanwang, Yi Zhongtian, and Shenghong can continue to reach new highs. Before that, making money in this direction is quite challenging, so some funds have started to cut back, such as SMIC, Huahong, and Zhongwei in the semiconductor sector.
Robotics: It remains the strongest direction currently. Today’s differentiation is a normal expectation; as long as there is no major divergence, and Wolong has not provided significant negative feedback, the sector still has opportunities, but internal high-low rotations are necessary.
Yesterday, the robotics sector looked strong, and Changying had not risen before; it had good support during the session, so I took a position. If it can open high today, it indicates a significant issue.
With the core not providing negative feedback and maintaining fluctuations, engaging in low-position arbitrage is far more cost-effective than betting on high positions for a new round of main rises.
Photolithography machines (resins) and semiconductor chips: This deserves special mention because it is where institutions are clustered, engaging in high-low rotations of technology hardware.
This is similar to computing power; it eats the index, and in the future, during the next round of main rises in the index, it will undoubtedly have its place, as it did not move much during the last round of index elevation.
Yesterday, I took Y Yatong, which clearly correlated with storage. I realized from yesterday’s pullback that the unified large market and low-price attributes stimulated it, but today, with a divergence in sentiment, it couldn’t hold up. However, the photolithography machine was indeed competitive in the early session; why did it open low? The expectation was for a high open yesterday, and today’s low open is below expectations, with no guiding funds at the opening, leading to a quick follow-up.
The rise in this wave was entirely due to the strength of semiconductors; latecomer funds only remembered it, and the first board to rise was storage. But it was too late; if the opening did not show distinctiveness, the market sentiment would scatter, and when looking back to ignite follow-up, there would be no funds to take over.
In the first half, nothing was visible, so I dared not easily adjust my positions, taking a trend stock in consumer electronics, trying to cluster with institutions. The logic is correct.
We are not far from the end of September when Huawei Harmony will be fully adapted; can consumer electronics and Huawei Harmony create another wave of excitement?