In fact, every continuously strong sector tends to experience a sharp decline around Thursday or Friday; this is a historical lesson that cannot be ignored. Generally, stocks in the back row should be sold at the high point on Thursday, while strong stocks in the front row should be sold by Friday morning at the latest. These are common general rules.
This round of robot concept stocks has three main characteristics:
1, the combination of robots+large-cap stocks is very strong. The core leading stocks are all hitting the daily limit, so smaller stocks can perform freely. This is similar to the industrial giant Foxconn, which has a market value of trillions and can easily hit the daily limit; it would be unreasonable for smaller stocks not to rise.
Top Group, Sanhua Intelligent Control, and Inovance Technology: These three stocks are the core targets of the robot sector, and they often hit the daily limit. Therefore, other robot stocks are unlikely to perform poorly. Especially Top Group, which has more than doubled since its low point, is the leading stock. Sanhua is also not far behind, with very stable shares. In contrast, Inovance, which is a genuine robot stock, has seen a smaller increase. This may be mainly because Inovance has a larger market value exceeding 200 billion, making it harder for it to rise significantly.
2, the combination of robots+Yushu concept is the strongest: Recently, stocks like Shoukai Co., Jingxing Paper, Wolong Electric Drive, and Jinfeng Technology, which have performed well, are directly or indirectly invested in Yushu. This is because Yushu is expected to go public in the 10-12 months of this year, making it worth speculating on. If the concept of investment in Yushu goes crazy, should those with real cooperation with Yushu, such as Changsheng and Shuanglin, also see a boost?
Shoukai Co.: This round of market activity is likely mainly driven by the news of Yushu’s upcoming IPO, with Shoukai being the first to benefit. It has seen a strong performance with consecutive gains of 6+5 daily limits. The first wave was a 6 consecutive limit, and the seventh day saw a break. The second wave cannot exceed 6 consecutive limits, so after a 5 consecutive limit, the drop on Friday is already the limit of what can be achieved, and it is time to end.
Jingxing Paper and Jingxing Convertible Bonds: These are also stocks that started on the same day as Shoukai and are part of the investment concept. Originally, this stock had the support of convertible bonds, making it very suitable for speculation, but it was overshadowed by the weaker Shoukai. However, after sufficient consolidation, seeing Shoukai’s continued strength, it has also risen a few limits, which is reasonable. This is because similar stocks have a correlation.
Both of these stocks are part of the Yushu investment concept, but their industries are unrelated to robots. They are completely different from Wolong and Jinfeng, as these two are very pure robot concept stocks.
Wolong is in the motor sector and is also invested in Yushu and Zhiyuan, making it a very pure robot concept stock, and its performance is also very stable. Jinfeng is a leader in PEEK materials and has also seen a trend of early increases.
3, the concept of robots+Zhang Jianping is active: Zhang, the leader, made a huge profit of 5 billion on Cambricon, gaining fame again, and the robot concept stocks he holds have also been collectively pursued by the market.
The strongest Zhejiang Rongtai has nearly tripled from its low point. The similarly named Rongtai Co. is slightly weaker. Ningbo Huaxiang is a slow bull trend, while Longxi Co. is speculating on bearings. Hanwei Technology and Zhongjian Technology are both breaking through trends.
Strategies and Thoughts for Next Week: In the future, there should be a rotation and supplementary rise pattern; a broad market surge like last week is unlikely to continue. Especially, previously lagging stocks are the preferred targets.
After Friday’s sharp decline, it is expected that the robot sector will continue to decline on Monday, but by Tuesday or at the latest Wednesday, it should stabilize and stop falling.
Aggressive chasing strategy:Stocks that directly reverse and hit the daily limit on Monday are the most worth participating in, followed by those that reverse and hit the daily limit on Tuesday or Wednesday.
After a big drop on Friday, those who dare to directly reverse and hit the daily limit are mostly not bad; they must seize the opportunity and have enough momentum.
Defensive low-buy strategy:For stocks still at low levels, some previously lagging star stocks that saw a significant drop on Friday are very worth preemptively positioning at key technical support levels.
Changsheng Bearings: The first tenfold robot leader, which was once very popular at the beginning of the year, has recently seen serious stagnation. On Friday, it broke below the 5, 10, 20, 30 day short-term moving averages, while the 60 day line is around 90 yuan, with about 3% distance remaining, which is worth paying attention to and positioning.
Shuanglin Co.: Also a tenfold robot stock, its popularity may not be as high as Changsheng, but after the annual report and the transfer of rights, it has been oscillating sideways for nearly 5 months, with the annual line about 10% below, which may provide some support and is worth continuous tracking.
Julu Intelligent: It only hit the daily limit on Thursday, but was affected by the market’s sharp decline. If it can strongly reverse next week, it would be impressive.
Wanma Co.: It was still very strong on Friday, and next year is the Year of the Horse, so it deserves a closer look.
