3.25 Tomorrow's Market Key Strategy

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The essence of short-term trading is “leveraging trends to make quick money”—using thematic heat, capital synergy, and trend inertia.

You must adhere to three iron rules:

Only trade strong stocks, avoid weak ones;
Go long online, observe offline, exit if breaking support, buy and sell quickly;
Focus on core stocks, stay away from miscellaneous ones.

1. What is the core, and what are the miscellaneous stocks?

2. How to identify and operate on the “core”?

Step 1: Identify the strongest sector of the day

After 30 minutes of opening, check the “Sector Gain List” on Tonghuashun or Eastmoney.
Exclude one-day speculative themes, choose sectors with policies, events, and logical catalysts.
Pay attention to sectors with ≥3 stocks hitting the daily limit, and complete tiers (first limit, second limit).

Step 2: Find the core within the strongest sector

Space Dragon: The stock with the highest consecutive limit-ups within the sector (e.g., 5 in a row).
Popularity Dragon: The stock with the largest trading volume and discussion, not necessarily the highest consecutive limits.
Trend Dragon: The solid stocks in the sector that steadily rise along the 5-day/10-day moving averages.

Step 3: Execute the ultimate discipline of “focusing on the core”

Buy only the first place: If conditions permit, buy only the top stock in the sector. If you dare not buy the leader, do not trade this sector.

Buy on divergence, sell on consensus:

Buy point: When the core leader first shows healthy divergence (e.g., sharp drop at open quickly recovered to the moving average, or rapid rebound after a breakout failure).
Sell point: When the core leader accelerates and consensus turns bullish (e.g., first massive volume after a continuous limit-up, or large volume at a high level indicating stagnation).
Cut loss immediately if the stock breaks support: For stocks with consecutive limits, if they fail to hit the limit the same day (break support), exit the next day without hope.

3. How to thoroughly “stay away from miscellaneous stocks”?

Proactively block: Only keep core targets in your watchlist, do not look at stocks on the later pages of the gain list.
Resist temptation: When miscellaneous stocks suddenly surge, ask yourself: “Is it the leader? If not, why is it rising?” (Usually: to unload).
Position constraint: Even if trying a tiny position to test, strictly limit single miscellaneous stock to no more than 2% of total capital, to prevent large losses.
Review and reflect: If losses today come from miscellaneous stocks, record it in your trading log, reinforce the “miscellaneous = loss” muscle memory.

Core philosophy

In short-term markets, capital and attention are scarce resources, always gathering where the most dazzling. “Core” stocks enjoy liquidity and sentiment premiums, while “miscellaneous” stocks bear liquidity discounts and panic selling. Your task is not to find undervalued stocks but to dance with the market’s strongest funds in full view, and leave first before the music changes.

Remember: In short-term trading, every act of sympathy or luck towards miscellaneous stocks is a betrayal of your capital. The biggest profits come from the core, and the biggest losses often stem from refusing to cut losses on miscellaneous stocks.

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There are only a few stocks to choose from each day. Memorizing buy points isn’t hard; otherwise, you can copy them during trading, buy when strategy signals appear, and stay out when it doesn’t. This is much more efficient than most people busying themselves with random activities daily.

Today’s holdings: China Power LiaoNeng (no action)

Yesterday’s strategy:

1. China Power LiaoNeng opened slightly lower but overall met criteria. Those flexible enough would buy, and the strong limit-up meant no selling. Sometimes, the leader has more pattern, and losing out on the last limit-up only costs part of the profit, but you gain a big streak of consecutive limits in the middle.

2. Liaoning Energy is coal + power. From the coal sector perspective, the strategy doesn’t fit; but from the power sector, it does. The key is whether capital recognizes its power concept. If so, it will accelerate tomorrow.

Tomorrow’s strategy:

Market analysis for March 24

1. Sentiment cycle positioning

Today, after yesterday’s bottom, the market rebounded comprehensively, showing typical “volume contraction and broad rise” features.
Shanghai Composite closed at 3881.28 points, up 1.78%; Shenzhen Component up 1.43%; ChiNext up 0.50%.
Total market turnover was 2.08 trillion yuan, down 348.7 billion from yesterday.
Over 4,865 stocks rose, with limit-ups surging to 83, and only 1 stock hit the limit-down.

Core sentiment indicators confirm the market entered the “recovery phase after tide retreat”:

Profit-taking effect returns: The ratio of gainers to losers is 15:1, limit-up stocks exceed 100, and market sentiment jumps from bottom to euphoric.

Capital flow concentrates: Main funds end continuous net outflows, significantly flowing into sectors like power, communication equipment, and military industry, with power sector net inflow over 3.5 billion yuan. Yesterday’s contrarian sectors like oil & gas, coal are among the few declining areas.

Cycle judgment: After yesterday’s panic selling, today’s rebound is driven by external market recovery and policy stimuli (electricity cooperation, defense budgets). But trading volume shrank significantly, indicating the rebound is mainly driven by on-site capital replenishment and oversold bounce, with limited new capital entering. The ChiNext index once fell nearly 2.5%, only to close slightly red, showing growth and track stocks are not strongly supported by funds. The current sentiment is “weak recovery,” with market confidence not fully restored, and bearish forces temporarily subdued but not gone. Overall, it’s still in the early stage of post-tide recovery—fragile and unstable.

2. Tiered limit-up stocks and core main lines analysis

3. Tiered limit-up stocks

Today, 6 stocks hit the limit-up, with a 40% upgrade rate.

Seven-limit (market leader):

China Power LiaoNeng (600396): Green power + electricity cooperation + state-owned enterprise. Absolute space leader, opened high and quickly hit the limit-up, upgraded to 7 limits, fully opening market height, becoming the only benchmark through the ice point.

Three-limit:

Zhongli Group (002309): Photovoltaic equipment + perovskite + space photovoltaics. Today’s one-word limit-up, the only 3-limit stock outside ST stocks, consolidating its position in the PV branch.

Two-limit:

Liaoning Energy (600758): Coal + power + state-owned enterprise. Power sector’s rebound leader, accelerated to hit the limit-up today.
Zhejiang New Energy (600032): Green power + hydrogen energy + Zhejiang state-owned assets. Followed with 2 limits.
Tuori New Energy (002218): Space PV + perovskite. Followed with 2 limits in PV.
Xuelang Environment (300385): Environmental protection + restructuring. Independent logic, representing environmental repair direction.

High-level trend core (not limit-up but highly popular):

Zhongnan Culture (002445): 7 limits in 12 days. Independent restructuring logic, merging power assets.
Shaoneng Shares (000601): 4 limits in 5 days. Power + electricity cooperation concept, today’s rebound limit-up.
Yuedian Power A (000539): 3 limits in 5 days. Power trend mid-tier.
Yaxiang Integration (603929): 4 limits in 8 days. Semiconductor cleanroom trend leader, hit a new high with limit-up today.

Core observation: The market’s limit-up height is entirely led by China Power LiaoNeng, with tiers concentrated in power and related new energy sectors. Zhongli Group, as the only 3-limit stock, is somewhat isolated but represents the PV branch. Many high-level trend stocks (Zhongnan Culture, Shaoneng, etc.) show strong momentum, indicating funds are exploring multiple dimensions within the main line.

2. Market main line analysis

Strongest main line: Power (green power / electricity cooperation)

Driving factors: The National Data Bureau announced vigorous promotion of “electricity and computing synergy” projects, ensuring that new computing facilities at hub nodes use over 80% green power. Policies elevate power to a core infrastructure in the AI era.

Performance: Sector explodes with limit-ups, nearly 20 stocks hitting the limit. Leader China Power LiaoNeng (7 limits) opens space, with Liaoning Energy and Zhejiang New Energy (2 limits) following, Shaoneng Shares (4 days 4 limits), Yuedian Power A (3 days 3 limits) strengthening, and multiple stocks like Jinkai New Energy, Huayin Electric Power, Disen Shares (20CM) hitting first limits. The tiered structure is complete, with deep capital involvement and solid logic, making it the only sustained and sector-effected theme in the current market.

Secondary/rotational themes:

Military industry: The sector collectively strengthens, with Great Wall Military Industry, Hunan Tianyan, Construction Industry hitting limits, driven by steady growth in defense budgets and geopolitical events.

Environmental protection: Xuelang Environment 2 limits, China Tianying first limit, representing oversold rebound.

Optical fiber/communications: Longfei Optical Fiber, Tongding Interconnection hit the limit in the afternoon, extending the computing infrastructure theme.

Photovoltaics: Zhongli Group 3 limits, Tuori New Energy 2 limits, but some differentiation within the sector, with Chint Power Systems declining yesterday.

Tide retreat sectors: Yesterday’s contrarian sectors like oil & gas and coal became the few declining sectors today, with CNOOC, PetroChina, Sinopec falling over 5%, all three major oil companies declining. This indicates funds are shifting from defensive sectors to offensive power themes.

Conclusion: The market’s main line is highly concentrated in “power (electricity and computing synergy),” which is a new consensus driven by clear policy guidance. Military and environmental sectors are in sentiment recovery phases. Old cycle sectors like oil, gas, and coal retreat after their good news is priced in.

3. Key sector focus for tomorrow

Tomorrow is critical to test this “weak recovery” phase. Focus on three key points:

Point 1: Strength and sustainability of the power main line

Watch targets: China Power LiaoNeng (space dragon), Liaoning Energy (rebound dragon), Jinkai New Energy / Shaoneng Shares (trend mid-tier).

Logic: After today’s peak, whether tomorrow’s market differentiates or continues to strengthen will determine the height of this main line and profit potential.

Key signals:

Strong: China Power LiaoNeng upgrades to 8 limits; at least one 2-limit stock (Liaoning Energy/Zhejiang New Energy) upgrades to 3 limits; new first limit stocks support the sector.
Weak: China Power LiaoNeng breaks support or opens significantly lower; Liaoning Energy and others follow with large gaps; sector may disintegrate, sentiment dip again.

Point 2: Overall market volume and profit effect

Watch targets: Total turnover, number of gainers, number of limit-down stocks.

Logic: Volume contraction indicates weakness; only with increased volume can we confirm new capital inflow.

Key signals:

Strong: Turnover exceeds 2.2 trillion yuan, over 4,000 stocks up, only a few stocks at limit-down.
Weak: Turnover drops below 2 trillion, gainers decrease sharply, more limit-down stocks, indicating a lack of strength and possible correction.

Point 3: Can ChiNext and growth stocks stabilize?

Targets: ChiNext index, CATL, Sungrow, etc.

Logic: ChiNext reflects risk appetite; weakness here suppresses the overall rebound.

Key: Whether ChiNext can volume-break above the 5-day moving average.

4. Tomorrow’s strategy and risk control plan

Core strategy: Focus on the highest potential stocks and the strongest sectors at the front. During the volume-contraction recovery, only trade the most recognizable limit-up stocks, avoid mid-tier, follow-the-leader, or non-mainstream themes.

1. Core stock buy/sell rules

(1) Market leader: China Power LiaoNeng (600396)

Positioning: The only space sector stock (7 limits), sentiment leader.

Sell point (if holding):
If it cannot hold the limit-up within 15 minutes after opening or breaks support with no recovery, exit immediately.

Buy point:
Market conditions: Fewer than 10 limit-down stocks at open, no panic.
Sector conditions: Power sector opens with at least 2 stocks hitting the limit-up (non-ST), forming sector support.
Stock conditions:
Pre-market: Open more than 3% higher, volume > 120 million, showing strong acceptance.
Intraday: Strong early rise, no prolonged downward oscillation.
Volume-price: Sufficient turnover, with trading volume at limit-up reaching over 70% of yesterday’s (about 1.2 billion), avoiding risks from volume contraction.

Final buy: Only when all conditions are met, buy at the moment of strong limit-up.

(2) Power sector rebound: Liaoning Energy (600758)

Positioning: The strongest 2-limit stock in power, direct rebound target of China Power LiaoNeng.

Sell point: If not hitting limit-up, sell; or if sector shows widespread support failure, exit promptly.

Buy point:
Preconditions: China Power LiaoNeng opens without hitting the limit (below -5%), and the power sector is strong overall.
Stock conditions:
Pre-market: Open more than 5% higher, indicating market recognition.
Intraday: Rapid rise after open, smooth intraday, no large pullback.
Final buy: Buy only when intraday shows strong lift and hits limit-up for the first time. Do not participate in low buy-in or halfway entries.

2. Risk control rules

Hold cash (if any of the following occurs):
China Power LiaoNeng hits limit-down (gap down > -5%).
Market opens with more than 15 limit-down stocks.
Power sector opens without limit-up support, and yesterday’s limit-up stocks open more than -3%.