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AUO and UMC Break Their 5-Day Lines: Take Profits and Stay Flexible as the Index Nears 5 Wan Points

AUO and UMC should be sold for profit, not stopped out, once they break the 5-day line, because margin traders, foreign investors and investment trusts are all selling together, while the index nears 5 wan (ten-thousand) points on weak volume and weak advancers versus decliners, so trading must stay flexible.

Key ideas

  • UMC took profits earlier at about 160, and today it fell to 147.5, back to the monthly line. The ideal path is to consolidate and stabilize between the monthly and quarterly lines, with a target of about 160 to 170. Margin traders, foreign investors and investment trusts are selling at once, so don't catch the falling knife for now, and take profits on AUO because foreign investors are selling it too. UMC's bond issue is to raise money for expansion, which reflects good orders and is not bad news.
  • Read news with your own logic: "weakening panel demand" is a reason found only after a big run-up, and buying AUO and Innolux is a bet on the plant-sale and advanced-packaging themes. If the logic doesn't hold, don't buy; if it does, trade along with it.
  • Market volume is about 9000 yi (hundred million), under 1 trillion, and advancers versus decliners are 627 to 615, so trading is flexible: sell half of Elite Material on a higher open, take some profit on stocks coming off disposition status if the main players don't support them, and exit TSMT too if it prints another upper shadow. Selling doesn't mean you must switch into another stock right away.
  • Compeq (2313) consolidated near cost, then closed higher on volume, clearing trapped overhead volume before challenging a bigger trapped zone. TSMT has already traded 1 wan 9000 lots, and the speaker says reaching over 2 wan lots would look even better, a volume-on-volume advance. Nan Ya's reports show a top target price of 325, so take profits if a black candle with an upper shadow appears between 300 and 325.
  • The Taiwan dollar is still appreciating, and the speaker believes foreign investors have not pulled out. When main players keep selling UMC but can't sell it down, he trades against them, and his real target is 6 wan points, with 5 wan points just a step along the way.
雷老闆 RemusLength 39:24Boss Remus's Stock Market Zap Series Ep 71
Episodes

  1. September 2026

    1. After Taiwan Stock Turnover Tops 1 Trillion: Judging a New High, and Trading UMC, Connectors and Chip Packaging/Testing
    2. AUO Profit-Taking, Acer's Shortage Call and Mid-Autumn Reversal Talk: Responding with Moving-Average Exposure and Defense Points
    3. Stock Rotation After Taiwan's Market High: AUO Volume Surge, ABF Names and Profit-Taking Rules
    4. Valuing Gold Circuit and Taiwan Union, Origin-Washing Doubts, and a Stock-Switching, Profit-Taking Discipline
    5. CCL Revival and ITEQ's Limit-Up Lift PCB Stocks Toward Prior Highs: Stock Switching and Profit-Taking Near Prior Highs
    6. Mid-Autumn Turning-Point Talk, Where MediaTek's Pullback May Stop, and How Much to Trim the Index Position
    7. AUO Chase Discipline: Buying Near the Quarterly Line, Stop-Losses and Trading in Low-Volume Markets

  2. October 2026

    1. Picking Stocks and Taking Profits After the Taiwan Index Breaks 5 萬 Points: Sector Rotation, the Valuation Method and Buying Dips
    2. AUO and UMC Break Their 5-Day Lines: Take Profits and Stay Flexible as the Index Nears 5 Wan Points
    3. Passive Components and Glass Fiber Cloth Rotation: A Bullish Taiwan Stock Playbook with Profit-Taking and Defense Levels
    4. Taiwan Stocks Consolidate at Highs: Sector Rotation, Position-Level Discipline and Stock Scenarios
    5. A 1000-Point Drop Isn't Overheating: Memory and Optical Bad News, Moving-Average Trimming Discipline, and Buying the Pullback
    6. Read the News Objectively, Avoid Linear Thinking: CCL Price-Hike Rotation, and Caution on King Yuan Electronics and Nan Ya at High Levels
    7. Pullback Plan Amid Persistent Foreign Selling: Cutting Exposure, Taking Profits in PCB, Waiting for the Monthly Line
    8. Taiwan Stocks Back Near the Quarterly MA: High-Level Volume, Foreign Selling and Investment Trust Support
    9. After the PCB Show: Material Shortages, Price Hikes, and the Signals to Wait for Before Turning Bullish
    10. PCB Stocks Plunge: Rumored Order Cuts at Taiwan Union Technology, Foreign Selling, and Indicators for Bottom-Fishing
    11. Memory Stocks After Earnings: Buy the Range, Not the Bottom, with Cash-Level Control in a Low-Volume Market

  3. November 2026

    1. A Broad Selloff Is Not Yet the Time to Buy the Dip: Margin and Foreign-Investor Conditions Are Still Unmet
    2. Not Buying the Dip After the Night-Session Crash: Wait for Objective Conditions, Not Feelings
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Section summaries

  1. 1:45Index Nears 5 Wan Points and Trimming Elite Material

    The TAIEX hit a high of 49968, just 32 points short of the target, but advancers versus decliners were weak. The market opened higher, then was dumped on and turned into an A-shaped reversal. Boss Lei sold half of his Elite Material position near 800, for a gain of about 50%.

    ▶ Watch from here
    Slide: Index Nears 5 Wan Points and Trimming Elite Material

  2. 4:15UMC and AUO Profit-Taking and the Convertible Bond

    UMC took profits earlier near 160. Today it broke the 5-day line and returned to the monthly line at 147.5. The ideal path is to consolidate for about 2 weeks between the monthly and quarterly lines and stabilize, with a target of about 160 to 170. Margin traders, foreign investors and investment trusts are selling at the same time, so don't catch the falling knife for now. Foreign investors are selling AUO, which is expected to swing tomorrow around the 10-day line at 37.5 to 40. UMC's bond issue raises money for expansion and signals good orders; it is not bad news.

    ▶ Watch from here
    Slide 1/2: UMC and AUO Profit-Taking and the Convertible BondSlide 2/2: UMC and AUO Profit-Taking and the Convertible Bond

  3. 10:15Read the News With Your Own Logic

    Boss Lei stresses that the stock market is a win-win market, unlike futures, which is a zero-sum game. He criticizes "weakening panel demand" as a reason found only after a big run-up; buying AUO and Innolux is a bet on the plant-sale and advanced-packaging themes. He reminds everyone to read the news with their own logic.

    ▶ Watch from here

  4. 13:35SpaceX Surge and Eternal Materials Chip Watch

    SpaceX jumped nearly 8%, putting Musk back among trillion-dollar fortunes, and the Tesla target price stays at 300 US dollars. The limit-up/limit-down radar singled out Eternal Materials (1711), whose chip structure resembles that of earlier stocks; if it pulls back slightly, it is easy to set a defensive point and enter.

    ▶ Watch from here
    Slide: SpaceX Surge and Eternal Materials Chip Watch

  5. 14:35Packaging and Testing Stay Strong; GIS-KY Hits Limit-Up

    The packaging and testing group is still strong, with Sigurd, Powertech and Ultra Chip all moving higher, and Powertech may follow a path similar to the earlier lead stock. The speaker also pointed to cash-rich GIS-KY, which gapped up to limit-up today; if you chase, you can defend today's low.

    ▶ Watch from here
    Slide: Packaging and Testing Stay Strong; GIS-KY Hits Limit-Up

  6. 16:05Kuangyang Breakout and the Red Candle Make-or-Break Line

    Kuangyang broke out successfully on volume and is worth trading, and the research team was asked to scan its chips. If Matsukawa Precision retests the top of its range it can be challenged; if chasing, defend the red candle's low, and if buying on a pullback, also defend the red candle's low, because this is a make-or-break point. The speaker compared it to pursuing a romantic interest, where it is "either success or failure." He also chatted briefly about childhood memories of Pili puppet theater.

    ▶ Watch from here
    Slide 1/2: Kuangyang Breakout and the Red Candle Make-or-Break LineSlide 2/2: Kuangyang Breakout and the Red Candle Make-or-Break Line

  7. 18:05Limit-Down Stocks Reviewed and Marketech Earnings Strengthen

    The speaker reviewed limit-down stocks such as Tsang Hwa and Chung Hwa Chemical. Chung Hwa Chemical's limit-down surprised him, and he saw no bad news. Then, starting from a futures "fat finger" error, he explained that fund-industry traders fall into two kinds: those who only place orders on instruction, and those who hold positions to earn money for the firm. He also shared his rapport from visiting Marketech while working in institutional sales: the speaker says Marketech is the largest and only distributor of ASML in Taiwan, and its earnings have indeed strengthened.

    ▶ Watch from here

  8. 21:55New Warrant Watch Segment and the TXC Case

    From the warrant buying, he judged that TXC (3042) was a short-term trade, and the stock indeed fell back quickly. He then opened a new "warrant watch" segment: for stocks with too little trading volume he won't lead members to trade them, but you can still watch whether someone is quietly buying warrants.

    ▶ Watch from here
    Slide: New Warrant Watch Segment and the TXC Case

  9. 22:55Consolidation Must Eventually Pick a Side; Packaging-Testing and PCB Stocks

    He used "you can't win someone over just by buying coffee" as a metaphor for consolidation: after repeated swings it eventually picks a direction, and once it does you should strike while the iron is hot. He then ran quickly through packaging-testing and PCB names such as UMC, KYEC, Sigurd and Gold Circuit.

    ▶ Watch from here
    Slide: Consolidation Must Eventually Pick a Side; Packaging-Testing and PCB Stocks

  10. 25:15Compeq Volume Build-Up Challenges Prior High and Trapped Zone

    Hotung showed huge volume at the bottom; although volume hasn't yet exceeded the earlier level, it is about to enter a volume-on-volume phase, and the prior high is only about 20% away, so a challenge is possible. Compeq (2313) has long consolidated near cost and closed higher on volume today; after clearing the trapped volume above, it will challenge a bigger trapped zone, and the next level of 300 is not impossible, since Nan Ya also reached 300 today.

    ▶ Watch from here
    Slide 1/2: Compeq Volume Build-Up Challenges Prior High and Trapped ZoneSlide 2/2: Compeq Volume Build-Up Challenges Prior High and Trapped Zone

  11. 27:25Nan Ya Target Price and TSMT Challenges Prior High

    Nan Ya's report target price is 325; take profits if a black candle with an upper shadow appears between 300 and 325. He reminded viewers to switch stocks early and pointed out that main players keep selling UMC and ASE. TSMT has already rolled out 1 wan 9000 lots of volume, and the prior high of 250 is right ahead, so it deserves a chance to challenge it.

    ▶ Watch from here
    Slide 1/2: Nan Ya Target Price and TSMT Challenges Prior HighSlide 2/2: Nan Ya Target Price and TSMT Challenges Prior High

  12. 31:15Main-Player Broker-Branch Moves and Foreign Investors Not Leaving

    Main players keep selling UMC, and if they can't sell it down, the speaker trades UMC against them. On the other side they are buying Yageo, Kinsus and AVC while selling Fositek. The Taiwan dollar is still appreciating, the speaker believes foreign investors have not pulled out, and swinging at high levels is easy; 5 wan points may be broken soon, but the real target is 6 wan points, and he started calling for 5 wan points back when the index was just over 3 wan.

    ▶ Watch from here
    Slide 1/2: Main-Player Broker-Branch Moves and Foreign Investors Not LeavingSlide 2/2: Main-Player Broker-Branch Moves and Foreign Investors Not Leaving

  13. 33:05Trimming Stocks Off Disposition and Congratulations on Elite Material Profits

    Today stocks just released from disposition status, such as Quanxin, Xintec, Global Unichip and Landmark Optoelectronics, got no money pushing them up as soon as they came out, and the main players did not support them. The speaker sold half of Xintec above the flat price, pocketing a gain of 10-some percent, and also sold part of Elite Material. He previewed that Airoha and Aimtech come off disposition tomorrow. Elite Material is up 52%, earning 28.3 wan per lot, and held through the downgrade bad news. The speaker is a little tempted to buy Taiwan Union Technology, but with today's high open he figures taking some profit is fine too; recently almost everything has been profit-taking, and selling doesn't mean you must switch into another stock right away.

    ▶ Watch from here
    Slide 1/3: Trimming Stocks Off Disposition and Congratulations on Elite Material ProfitsSlide 2/3: Trimming Stocks Off Disposition and Congratulations on Elite Material ProfitsSlide 3/3: Trimming Stocks Off Disposition and Congratulations on Elite Material Profits

  14. 35:15Holdings Review and Flexible-Trading Critique

    Reviewing holdings: Elite Material is up 52%; Xintec failed 3 times to hold above 530, so he began exiting near there; TSMT earns 14% per lot, about 3 wan, rising slowly but steadily, and he will still leave if it prints another upper shadow. Because market volume is under 1 trillion, trading is flexible. He doesn't much like the chart pattern of Jinju, and it also ate up quite a lot of Jinju's profits.

    ▶ Watch from here

This page summarizes the video; it is not an official transcript. Original video: AUO and UMC Break Their 5-Day Lines: Take Profits and Stay Flexible as the Index Nears 5 Wan Points (雷老闆 Remus), copyright belongs to the original creator.