The Approach to SWancor New Materials
Recently, I've been frustrated about 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, with Saili Medical not yet finished and now Lianhuan Pharmaceutical breaking out. So, let's look for big-wave opportunities—recent big winners have all followed this extended-wave pattern.
Apart from pharmaceuticals, financial and securities stocks in bull markets also deserve attention, as they can produce big winners. They may underperform normally, but in bull markets, they often surge violently. DZH (Dazhihui) hit the lower limit today—let's see if it holds in the next couple of days. Nanhua Futures is a wave-trading stock; watch its support line, usually the 20-day moving average.
Beyond these, this week revealed a new trend: M&A (mergers and acquisitions). This kind of speculation isn’t new—there are often consecutive limit-ups, with both peaks and troughs—but recently, the momentum has been unusually strong. For example, Zhiyuan Robotics’ entry into SWancor New Materials’ shareholder platform triggered four 20% limit-ups and even revived the robotics sector. This likely reflects the intentions of underwater capital. So, my earlier mention of a robotics rebound wasn’t baseless—it’s just that Zhongda Lide is now outperforming Hangchi Advance. In short, keep an eye on the robotics rebound.
Another M&A case is SDIC Zhonglu. I hesitated to buy at the limit-up on Friday, but today’s premium confirms the current M&A hype, leading to the following strategies:
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Directly target the strongest—SWancor New Materials. Buy on dips when it opens; it’s unlikely to form a short T-shaped limit-up, so there should be dip-buying chances. If it does form a short T-shape, still buy lightly, keeping some dry powder for lower prices (total position: 10-30%). Stocks with this kind of momentum and breakout status rarely collapse straight into an "A-shape" drop—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 selling, it might be in a distribution phase, allowing for swing trades (selling high, buying low) over a few days for solid gains.
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Use SWancor New Materials as a benchmark for other M&A plays. For example, last night’s market news mentioned Degold’s M&A resumption. Today’s buy queue was thin, but I still entered at the auction, resulting in a first-day T-shaped limit-up—not super strong, but these "divergence boards" are worth joining. After all, isn’t buying on divergence the point? Especially since M&A stocks are in favor now.
Follow the market’s prevailing trends. Recently, weak-to-strong transitions have become rarer—today, only Kelu Electronics showed a clear broken-board rebound limit-up, surging from underwater to +3%. So, it’s time to shift to other hot strategies.
The auction showed stablecoins performing poorly; rare earths were okay but unclear for buying after recent highs. Thus, RDA’s Shanghai Ganglian isn’t ideal now. The robotics sector remains viable, as does controlled nuclear fusion. Seeing SWancor New Materials’ unexpected four limit-ups justifies playing Degold. Other sectors are unclear—if buying, focus on dip-buying in robotics or nuclear fusion. If no good targets appear, stay patient. As I always say: if you lack a proven strategy, don’t force a trade. Buying a stock with less than a 60-70% success rate is just gambling—the odds of profit are slim.
