Follow the rotation. Livermore: 3.16 Review Record

Simply put, today’s market situation. [Taogu Ba]

The market rotation is still good; the market themes are constantly rotating. If you focus solely on one theme and hope it continues to rise, the result may be a surge followed by a retreat to the original level. During this process, the market will choose other themes to push higher. For example, the computing power theme was very strong recently, but now it has weakened, and the rebound strength has diminished. The market is now shifting towards PCB concepts, storage chip concepts, and other sectors. Last week, there was also a wind power rally. These are all repeated patterns of rising sharply and then weakening. So, for these trends, it’s best to take profits after a surge and leave. Don’t always expect these themes to continue doubling; out of ten themes, only one might show such a pattern, and within that theme, only one or two stocks out of twenty or thirty will stand out. If you can’t precisely pick that stock, it’s better to take profits after the theme peaks.

Currently, focus on the PCB concept, storage sector, and some raw material sectors. These are areas that haven’t risen recently or have been consolidating after a decline. The computing power sector can wait for a rebound; recent sharp drops or stable but unfallen sectors are all influenced by market sentiment. Especially when storage and other hardware start to rebound, the market will naturally drive some computing power stocks to rebound as well. The market cannot bypass these sectors. Computing infrastructure is the current fundamental trend. If it cannot rise, then the main upward movement of other tech themes will be invalidated, and even the power sector may be discredited.

When the market rotation allows for continued upward movement, stay optimistic. When the rise can no longer be sustained, exit the market. Missing out is better than facing a decline. After all, the market is rotating, and opportunities exist.