Navigating Market Trends: Uncovering the Untapped Potential of Tech Stocks and Strategic Insights on Dogecoin.

Good evening, everyone!

I’m thrilled to meet with all of you here at Diamond Ridge Financial Academy as we dive into cutting-edge investment ideas and strategies. With daily learning and practice, I hope we can all sharpen our skills, grow our wealth steadily and eventually achieve financial freedom!

Last night, we reviewed the performance of the UK stock market in 2024 and compared different industries. The results showed that returns vary widely between sectors, sometimes by several times. This isn’t just about the numbers, it highlights the core differences in industries and their future potential. Traditional industries, while offering steady cash flow, often have limited growth due to market saturation. On the other hand, emerging sectors, especially those driven by technology, show incredible innovation and expansion potential, becoming major drivers of market growth.

For example, fields like AI, big data and clean energy have boosted entire value chains through technological breakthroughs, creating sustained high growth. In contrast, traditional sectors are often held back by resource costs and demand fluctuations, making it hard to match the growth of emerging industries.

To earn higher and more stable returns in a competitive market, the key is to think beyond traditional ideas and pick the right industries and opportunities. This means investors need a global perspective, a solid understanding of industry trends, and a smart investment strategy.In practice, focusing on tech industries as a core investment can help you take advantage of industry shifts and growth opportunities. With the right strategy, you can stay ahead and maximize your gains in the future market.

Tonight, we’ll dive into the categories of tech stocks and their investment strategies, helping you master the art of investing in this exciting space. But first, let’s take a quick look at today’s market trends!

Today, the UK stock market saw the expected pullback. The FTSE 100 lacked clear direction in the morning, staying in a range-bound movement overall. Behind this fluctuation, the strong performance of the energy sector clashed with weak signals from the real estate market, creating a complex tug-of-war. Oil prices continued to rise, driven by China’s economic stimulus policies, boosting shares of energy giants like Shell and BP, which provided some support to the market. However, this strength wasn’t enough to offset the weakness in other sectors, especially the persistent slump in real estate.  

Latest data shows a clear drop in UK mortgage approvals, directly pressuring the real estate market.

High interest rates, combined with declining housing affordability, are causing long-term suppression of market demand. This trend confirms my earlier advice to sell real estate investments. From a macro perspective, the weakness in the real estate sector is not just an isolated issue, it also reflects the broader challenges the UK economy faces under a high-interest-rate environment.

In addition, news from the US has added uncertainty to the market.President Biden halted Nippon Steel’s plan to acquire US Steel. While the direct impact is minimal, it hints at potential tensions in international trade. These geopolitical dynamics make investors more cautious about the pace of global economic recovery.  

Intraday, under dual pressures from geopolitical and economic uncertainties, gold prices kept climbing, as investors clearly prepared for potential risks ahead. In the afternoon, panic spread further after US markets opened, causing the already weak FTSE 100 to drop sharply, highlighting the global capital market's sensitivity to short-term risks.  

Despite the overall weakness in the short term, the long-term investment logic for tech stocks remains clear. After the bearish pressure was released, US stocks saw a broad rebound driven by gains in AI and other tech stocks.

Investing in tech stocks isn’t really mysterious, the logic behind it is quite simple. Every wave of technological revolution drives new industrial changes, bringing fresh products, consumption patterns and market structures. This in turn, leads to a sharp rise in profits and market value for related companies. The key to opportunities in tech stocks lies in the power of tech innovation to shape the future, a principle repeatedly proven in history.  

NVIDIA is the perfect example. Ten years ago, it was just a company focused on graphics cards, with a market largely limited to gamers. However, the rise of artificial intelligence and the explosion of AI computing demand made GPU technology a core driver. NVIDIA capitalized on this, not only taking the lead in technology but also securing the future of the industry. Over a decade, its stock price skyrocketed 300 times, driven by the combination of technology and market recognition. This success wasn’t accidental but rather a reflection of the cyclical growth pattern in the tech industry.

The high growth potential of the tech sector comes down to two main factors, efficiency revolutions and demand reshaping. On one hand, technological advances optimize resource allocation, increase business efficiency and boost productivity. On the other, new technologies create new consumer scenarios and market demands. From smart devices to virtual reality, electric vehicles to precision medicine, each tech breakthrough opens up a new market. This dual supply and demand resonance makes the tech industry an engine of economic growth.  

For example, the widespread application of AI has not only transformed production processes in manufacturing but also driven major changes in fields like medical imaging, financial risk control and autonomous driving. Blockchain, as a revolutionary value transfer protocol, has completely disrupted traditional financial transaction models and shown great potential in areas like supply chains and cross-border payments. The metaverse on the other hand, is a blend of technology and culture. From immersive socializing to trading virtual goods, it is slowly building a whole new economic system.

Tech stocks cover a wide range of areas. To make it easier to understand, we can divide the tech sector into different dimensions

First is hardware and infrastructure, which form the foundation of technological growth. Companies in this field focus on producing high-performance computing devices, chips and network infrastructure. Typical examples include NVIDIA, TSMC and Qualcomm. NVIDIA is known for its GPU technology, which has become indispensable for AI training and inference as AI demand surges. Similarly, TSMC, with its advanced chip manufacturing capabilities, has become the backbone of the global semiconductor supply chain, supporting smart devices, 5G and autonomous driving.  

Over the next 10 years, as the digital economy, IoT and AI continue to expand, the demand for hardware and infrastructure will keep growing. This will not only drive business growth for these companies but also serve as a key driver for the tech sector's overall growth.

Second is software and services, the critical link that turns tech into user value and drives industry digitalization. Key companies include Microsoft and Adobe.  

Microsoft, through its Office suite and Azure cloud services, has become a cornerstone of enterprise digital transformation. Adobe, with its Creative Cloud platform, has revolutionized content creation and distribution.

In AI, companies like Palantir use big data platforms to provide deep analytics for businesses and governments, helping improve decision-making. Another example is C3.ai, which offers platform-based AI solutions to help traditional industries achieve digital transformation. These companies have highly sticky business models and strong scalability, making them the most stable part of tech investments.

Apart from that, there are emerging fields like AI, blockchain and the metaverse. These niche markets represent the direction of future growth.  

AI is deeply impacting healthcare, finance and education, while also injecting new energy into traditional industries like transportation and retail. Blockchain is redefining how value is transferred, playing a key role in areas ranging from digital asset trading to supply chain tracking. Take Coinbase as an example, it has become a major gateway in the blockchain space through digital asset trading and on-chain applications.  

As for the metaverse, it’s capturing the attention of younger generations while creating unprecedented opportunities for hardware manufacturers, virtual content providers and participants in the virtual economy. Companies like Meta and Roblox are building new virtual worlds and in doing so, unleashing enormous economic potential.

It’s worth mentioning that the scope of tech stocks goes far beyond this. Clean energy, biosciences and smart manufacturing are also important areas. For example, Tesla is leading the new energy wave with its electric vehicles and energy storage technologies. CATL (Contemporary Amperex Technology) is a leader in lithium batteries, while Plug Power focuses on hydrogen energy, driving the global energy transition.

In biotech, Moderna has achieved breakthroughs with mRNA vaccine technology, while CRISPR gene-editing technology is opening new doors for precision medicine. The smart manufacturing sector is equally impressive, with industrial robots and the Industrial Internet of Things widely adopted. Companies like Siemens and ABB play a huge role in advancing intelligent production.

When investing in tech stocks, different investors can choose strategies based on their risk tolerance. For those with a low-risk appetite, trend stocks like NVIDIA, Microsoft and TSMC are ideal choices. These companies hold dominant positions in their respective fields, with business growth driven by global tech trends. Their profitability and stock performance are expected to continue rising steadily. For instance, NVIDIA’s GPU technology sees sustained demand in AI and autonomous driving, providing a solid foundation for its future growth.  

For investors with higher risk tolerance seeking high returns, stocks with short-term breakout potential, like Trump Technology, may be worth considering. Although this company has experienced volatility due to policy uncertainty and market controversies, its business is now shifting toward a more promising direction as the policy environment becomes clearer. While short-term fluctuations may occur, such companies could see a revaluation as US policies stabilize further.

In actual trading, technical patterns are a very important reference. I usually combine trends and key levels to determine entry and exit points. For example, the recent movement of Rolls-Royce is a good example. After two days of adjustment, it regained the 21-day moving average. Today, it came back to test the moving average, confirming the support. In this case, the likelihood of hitting the historical high of £6 has greatly increased.

Now, let's look at Dogecoin. Its technical pattern is even clearer, with the 21-day moving average almost becoming the dividing line for this coin. Above the moving average, a price retest of the moving average is a typical bullish signal; however, if it drops below the moving average and the rebound fails, it could be a good shorting opportunity. As shown in the chart 1 and 2 above, below the 21-day moving average, the red candlestick pattern completely engulfs the green one, leading to a pullback. Technical patterns give us clear trading signals, but what's even more important is the support from market trends and the fundamental logic behind it.

As I've mentioned before, before Trump took office, Dogecoin was a good buy on dips. For those who followed the trading tips recently, the returns have already exceeded 30%. This isn't just based on technical analysis, but a combination of macroeconomic and market sentiment factors. Why choose Dogecoin? The reason is actually quite simple.

First, Dogecoin is essentially a community driven digital asset with a huge user base and strong network effects. The community's activity and ongoing innovation inject strong vitality into Dogecoin. This gives it better risk resilience compared to some coins that lack consensus and it also has the potential for above expectation growth in certain market conditions.

Second, the overall environment in the crypto market is also worth paying attention to. With Trump's presidency approaching, his policies may have a far-reaching impact on the crypto industry. Although specific policies have yet to be finalized, the market has already started reflecting expectations, which is one of the reasons for Dogecoin's strong performance recently. Based on technical analysis, Dogecoin's price has broken through the 21-day moving average and the current pullback is a great opportunity to add more.

For investors, opportunities are for those who are prepared. If you need more specific trading tips, you can contact my assistant for real-time guidance. Remember, whether it's stocks or crypto assets, the real winners are always those who grasp the trend and go with the flow.

That’s all for tonight’s share. I hope these insights help you better understand the development logic of the tech industry and how to use quantitative trading systems to precisely capture investment opportunities. The benefits from technological changes are unquestionable, but the key is whether we can grasp these trends.

Next week, we will continue to dive deeper into the competitive advantages and potential opportunities in different industries. Using a scientific approach to portfolio investing, we'll help everyone manage risks while achieving steady and consistent growth in returns. In this process, if you run into any confusion or have questions about specific strategies, feel free to ask me for advice. I’m more than happy to discuss, learn together and move towards higher investment goals with everyone.

Through tonight's content, please think about:

1. What are the investment potential and sub-investment areas in the tech industry?

2. Why is Dogecoin worth holding? How should we proceed from here?