The Approach to SWANC (Shanghai Wanye New Material)
Recently, the most frustrating thing was missing the three consecutive limit-ups of Lianhuan Pharmaceutical’s weak-to-strong transition, which is a classic second-wave trend. The pharmaceutical sector’s tendency to produce big winners still deserves attention—innovative drug stocks keep emerging, Saili Medical hasn’t ended yet, and now Lianhuan Pharmaceutical is breaking out. So, let’s look for opportunities in big wave trends. To sustain a bull stock, it’s mostly about riding these big waves lately.
Apart from pharmaceuticals being a hotbed for bull stocks, the financial and securities sectors in a bull market also deserve attention, as they can produce big winners. Normally, they’re not remarkable, but in a bull market, they can be extremely volatile. DZH (Dazhi Hui) hit the lower limit today—let’s see if it holds in the next couple of days. Nanhua Futures is a wave-trading type; watch the support line, usually the 20-day moving average.
Beyond what’s been mentioned, this week has seen a new trend emerge: M&A (mergers and acquisitions) plays. This kind of speculation isn’t new—there are often consecutive limit-ups in this theme, with both highs and lows. Recently, the sustainability has been surprisingly strong. For example, Zhiyuan Robotics’ entry into SWANC’s shareholder platform unexpectedly triggered four 20cm limit-ups and revived the robotics sector. This was likely the intention of underwater funds. So, my earlier mention of a robotics rebound wasn’t baseless—it’s just that Zhongda Lide is the current leader, not Hangchi Advance. In short, keep an eye on the robotics rebound.
Another M&A play is SDIC Zhonglu. I originally planned to buy at the limit-up on Friday but hesitated. Today’s premium confirms that the M&A theme still has momentum, leading to the following strategies:
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Directly trade the strongest—SWANC. Buy on dips when it opens; it probably won’t form a short T-shaped limit-up, so there should be chances for low-entry purchases. If it does form a short T-shape, still enter but with a smaller position, saving some funds for lower buys. Total position: 10-30%. Generally, stocks with this kind of momentum and phased innovation don’t crash immediately—there’s usually at least a one-day profit window. The key is to be bold yet cautious, exiting quickly if things turn sour. If it stabilizes quickly after high-level negative feedback, it might be in a distribution phase, allowing for swing trades (selling high, buying low) over a few days, which can be quite profitable.
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Use SWANC as a reference for other M&A plays. For example, last night’s market news reported Degold’s M&A resumption. Today’s buy orders were thin, but I still entered during the call auction. It formed a first-day T-shaped limit-up—not super strong, but these kinds of divergence boards are worth participating in. After all, buying during divergence is the game, right? Especially since the M&A stock sentiment is still decent.
Trade whatever the market favors. Recently, the probability of weak-to-strong transitions has decreased. Today, only Kelu Electronics showed a clear broken-board rebound limit-up, with a weak-to-strong surge from underwater straight to +3%. So, it’s time to switch to other popular strategies.
The call auction showed stablecoin trends weakening; rare earths were okay, but it’s unclear which stock to buy—they’re overbought short-term. So, RDA’s Shanghai Ganglian isn’t a good buy now. The robotics sector is still viable, as is controlled nuclear fusion. Seeing SWANC’s unexpected four-limit-up streak, Degold became a play. Other sectors are unclear—if buying, focus on low-entry robotics and controlled nuclear fusion. If there are no good targets, just wait. As I always say: If you don’t have a proven strategy, don’t force a trade. Normally, if a stock doesn’t have a 60-70% win probability, it’s mostly a forced trade with low profitability.
