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Yesterday's market action left some investors anxious about missing the rally, but looking at today (November 12), they may feel somewhat relieved about "not having chased in." The market keeps oscillating between "appearing ready to rebound" and "unable to gain momentum," making the choice of whether to enter or exit, stay or leave, a dilemma for many.
Standing in mid-November, with policy bottom taking effect and market bottom following suit, major funds have stopped hesitating and switched to a heavy buying mode, while opportunities are also spreading relatively wider.
In this round, humanoid robots led the gains, with companies like Fulai New Materials率先 doubling. After that, optical communications and semiconductors kicked in, with companies rebounding one by one. Under the main theme of oversold rebound, a batch of stocks have already broken through their downward channels ahead of others. Which types of stocks will be able to stage even bigger rallies going forward?
Major Funds Continuously Add Over 10 Billion Yuan, Heavy Positions in Companies Like Eoptolink
Although the market returned to adjustment on November 12, the rebound pattern of this round has not been broken. The solid large bullish candle on November 4 has established a major turning point for the near term, and it also serves as a key reference point for whether the market can strengthen or weaken going forward.
In recent days, the willingness of funds to go long has been strengthening. From November 9 to November 11, major funds recorded net buying exceeding 10 billion yuan for three consecutive days. On November 4, the day of the big rebound, net buying by major funds reached 25.3 billion yuan.
Now let's look at individual stocks. During November 9 to November 11, multiple stocks received net accumulation by major funds for three consecutive days. Eoptolink Technology Inc (SHE: 300502), Zhongji Innolight Co Ltd (SHE: 300308), Suzhou Dongshan Precision Manufacturing Co Ltd (SHE: 002384), Suzhou TFC Optical Communication Co Ltd (SHE: 300394), and WUS Printed Circuit Co Ltd (SHE: 002463) saw combined net buying exceeding 10 billion yuan, with several of them gaining more than 20% during the period.
These stocks share common price action characteristics: they have formed low-level turning points and broken above the upper rail of their downward channels. For example, Suzhou Dongshan Precision Manufacturing Co Ltd has shown such a pattern, and Zhongji Innolight Co Ltd, Eoptolink Technology Inc, Suzhou TFC Optical Communication Co Ltd, and others have exhibited similar performances.
Under the current main theme of oversold rebound, more stocks are breaking out of turning points and breaking through downward channel lines. Besides those mentioned above, there are also Cambricon Technologies Corp Ltd (SHE: 688256), Ruijie Networks Co Ltd (SHE: 301165), MetaX Integrated Circuits Shanghai Co Ltd, Shennan Circuits Co Ltd (SHE: 002916), and others. These stocks have mostly shown initial stabilization and rebound recently.
However, some stocks have gone further after breaking out, entering an accelerated right-side main upward wave, such as Ningbo Dongli Transmission Co Ltd (SHE: 002164), Baiyang Co Ltd (SHE: 002696), Wentou Holdings Co Ltd (SHE: 600715), and Ningxia Yinglite Chemical Co Ltd (SHE: 000635), among which Ningbo Dongli Transmission Co Ltd has already doubled since late September.
Breaking above the upper rail of a downward channel is one of the early signals of a trend reversal, but it is not a necessary factor for launching a further counterattack. It can be understood as a trend breakthrough, rather than an inevitable condition for an imminent surge. In many cases, stocks experience false breakouts during declines — this is merely a rebound trap during a downward continuation, which is actually a dangerous signal.
The Puzzling Joyoung Co Ltd and the Speculation on "Yang"-Related Stocks
In recent years, A-shares have frequently seen a phenomenon of "speculating on the next year's zodiac animal at year-end." Previous cases like Tubao Baby Co Ltd, Shenglong Co Ltd, and Sichuan Development Lomon Co Ltd have become "key examples." Now it is the turn of "Yang"-related names, with some stocks whose names contain "Yang" characters being heavily speculated. This trend has persisted for quite some time.
Joyoung Co Ltd (SHE: 002242) is a typical example and one of the sentiment leaders. On November 12, as the market adjusted, the company bucked the trend to hit a new high at one point, surging over 200% since September 11, launching a super main upward wave against the market trend.
Looking further, over the past two months, fund speculation on "Yang"-related stocks has spread amid divergence. Shandong Oriental Ocean Sci-Tech Co Ltd (SHE: 002086) is another continuously surging stock similar to Joyoung Co Ltd. On November 12, it hit the 10% daily limit against the market trend and reached a new high, surging over 140% since October 26.
But this is not over yet, as low-position concept stocks have also started to rise. On November 12, Daxiyang Group Co Ltd (SHE: 002799), whose stock price is at a relatively low level, also hit the daily limit against the market trend.
According to incomplete statistics, there are about 70 A-share listed companies with "Yang" characters in their names. Besides Joyoung Co Ltd and Shandong Oriental Ocean Sci-Tech Co Ltd, many other stocks have also risen strongly recently.
Dispersed industries, niche themes, low correlation, and lack of fundamental support are characteristics of most of these stocks. The rally driven only by sentiment and concepts makes it "impossible for many people to even bring themselves to buy."
In this year's third-quarter report, Joyoung Co Ltd saw a decline in performance, and recently major shareholders have cashed out and reduced holdings. Baiyang Co Ltd reported a loss in its third-quarter earnings. The concentrated speculation on "Yang"-related or homophone stocks in the market has coincidental factors, and some stocks have the support of hot themes, but behind it is more of a passive choice under the current vacuum of main themes and unclear opportunities in A-shares. Funds are not buying "who is best" but rather "who is easiest to speculate on" — this itself is a form of speculation.
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