2.25 Review: 24.6 trillion in volume supports the market sentiment rebound; cautiously chase the rally under structured analysis

Volume surge! A-shares’ trading volume nearly hits 2.5 trillion yuan, with the index shifting from the lower boundary to the upper boundary of the box range. Is a breakout imminent, or will it continue to fluctuate? Funds are fiercely competing between “resources” and “computing power.” Instead of chasing daily hot spots with limit-ups, it’s better to focus on areas where capital is steadily accumulating and have logical long- to medium-term growth potential. [Taogu Ba]

Following the Trend
Today’s index performance is actually better than yesterday. If yesterday lacked strength, then after further volume replenishment today, it feels more stable and stronger. Although the three major indices experienced some pullbacks after rising, they still closed collectively higher. The total daily volume was 24,625 billion yuan, an increase of 2,605 billion yuan. After returning to 2 trillion yesterday, today continued to approach 2.5 trillion. While still in a consolidation phase, the current index has gradually moved from the lower boundary to the upper boundary of the box range. The next step depends on whether it breaks through or continues to fluctuate.

The thematic sectors continue to evolve structurally. Today, mineral resources led the gains, chemical sectors continued their upward trend, oil and gas retreated, and computing power continued to adjust.
The entire mineral resources sector hit the daily limit with 17 stocks, totaling 44.434 billion yuan in limit-up gains. Jiangwu Equipment led with 4 limit-ups in 5 days; the rest are first-time limit-ups. The focus remains mainly on precious metals, but today rare earth permanent magnets showed divergence, with Northern Rare Earth and Baogang Steel hitting the limit.
The chemical sector showed continued differentiation, with 13 stocks hitting the limit today, totaling 15.928 billion yuan. Jinzhen Da led with 3 limit-ups in 5 days; others had 2 limit-ups, with 8 stocks at the first limit-up. However, after Yun Tianhua broke the limit in the afternoon, it suggests that after two days of strength, the sector will likely continue to show divergence.
Domestic chip stocks also rotated today, mainly in the afternoon, with 9 stocks hitting the limit, totaling 5.29 billion yuan. Shikong Technology and Zhengzhong Design had 2 limit-ups; the rest are first-time limit-ups, with relatively moderate strength.
Yesterday’s oil and gas concept stocks mostly retreated today, with only Intercontinental Oil & Gas and China Merchants Steamship advancing; the rest broke their limits.
In the computing power sector, yesterday’s performance was mainly in optical communications, which saw some correction. Tianfu, Changfei, Hangdian mostly declined, with only Electronics Fabric resisting, with Zhelang and Honghe hitting the limit. Honghe also saw some late buying, while International Refractory Materials and Shandong Fiberglass fluctuated and closed.

Market Sentiment Fluctuations
Market sentiment continues to warm up. For two consecutive days, there has been a broad rally, and the indices have risen for two days in a row. Today, although the number of limit-ups decreased, volume further recovered. With volume, the market becomes more active.
On the speculative side, sentiment is also starting to improve. Today, Yunnan Energy Investment advanced 5 limit-ups, with only three stocks hitting the limit-down, all in short-term sectors. They also all opened in the middle of the session, releasing liquidity. Considering that the overall market hasn’t broken through significant resistance, the possibility of sharp declines remains low, and sentiment is expected to continue improving.

Tomorrow’s Outlook
Under the structural evolution, if the wrong sector is chosen, even if the market surges significantly on that day, the feeling will be completely different. For example, if one invests in oil and gas or optical communications today, it might feel quite cold.
Overall, the market remains in a rotation within a broad consolidation. Quantitative factors and sentiment are the most unstable elements during this rotation, and they are also the easiest to cause damage to chasing strategies.
Therefore, yesterday’s reflection still applies: focus on repeated capital inflows and logically develop in the computing power sector. Today, it still seems necessary to continue this approach. Although many chemical stocks hit the limit-up, their total turnover still doesn’t match Shenghong Technology’s. Where is the capital sedimenting? Opportunities are likely there—just need to pay attention to the rhythm.

Trading Tips
Today, I continue to proceed cautiously. For Hengdian Shares, after feedback was not good on Changfei, I chose to take profits at around one point.
I opened two new positions: one was buying low on Runze Technology to bet on the recovery of computing power, and the other was placing an order in the morning for Jinzhen Da to arbitrage the chemical sector’s leadership, which was only completed near the end of the afternoon.

Post-market holdings: Jinzhen Da, Runze Technology.

Data Summary

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☑ Disclaimer: The above is only a personal review note. Any opinions or individual stocks mentioned are for illustration purposes only and do not constitute investment advice. Please do not follow blindly. Trading involves risks; invest cautiously!
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