March 24 Although repaired as scheduled / Unfortunately still low volume

Good afternoon everyone!! [Taogu Ba]

The market accelerated downward yesterday, and today it corrected as expected.

The hidden risk in the market is low volume.

If trading volume remains below 2.4 trillion and the market rises again tomorrow, it will likely face a pullback.

Tomorrow will be the real test.

It will test whether the recovery today was just a result of oversold conditions being temporarily bounced back, or if after divergence, funds remain strong and the market shifts from divergence to consensus without repeating yesterday’s situation.

The prerequisite is that GJD (market insiders such as securities, insurance, and banks) continue to support the market.

If these three sectors show inconsistent support, and other incremental funds do not enter the market, be cautious of the rhythm and don’t be fooled by superficial market appearances.

Themes:

Still focused on electricity.

In the early trading session, the military industry and pharmaceuticals showed weakness, but this was a false sign of failed recovery.

Going forward, the market will continue to see low-volume trading, returning to a consolidation and grouping pattern.

Here’s a breakdown for some friends, especially regarding high-level stocks:

When a certain stock like XX triggers unusual activity due to a significant rise, it doesn’t mean it’s dead.

For example, Yunnan Energy Holdings triggered unusual activity but did not halt trading (even though the company’s secretary kept announcing potential suspensions).

Throughout the process, there was no suspension.

Later, some other stocks that triggered unusual activity may see large gains influenced by market sentiment, but regulatory issues won’t necessarily impact them.

For instance, Zhongfu Shenying, which I previously participated in, triggered unusual activity, then adjusted for a few days, and today surged nearly to new highs.

So, for stocks with excessive gains due to unusual activity, as long as there are no extreme signs, try not to sell for a quick profit.

It sounds simple, but in practice, it’s difficult—sometimes a sudden fluctuation causes traders to sell impulsively.

Additionally, the market needs some brave players (like me) willing to participate in high-level stocks.

The final outcome is a sweet reward, not a slap, which encourages more funds to participate in high-level grouping stocks.

This change in profit effects will lead inside and outside funds to reassess the market.

From skepticism and disbelief, funds will gradually be pushed to pursue such continuous limit-up or trending stocks.

For example, in electricity, stocks like Jinkai New Energy and energy-saving wind power are typical trend-following stocks.

Choose stocks with clear grouping recognition, such as leading limit-up stocks, core holdings, veteran leaders, and low-priced rebound stocks.

When selecting, avoid stocks in the middle of the sector that are neither high nor low—preferably at the extremes.

Looking at the feedback from Huadian Liao Neng after this wave, as long as it can mimic Yunnan Energy Holdings’ subsequent trend, the electricity sector will continue to perform.

Don’t be too quick to turn bearish.

Just pay attention to the daily rhythm, especially in the current low-volume market.

Today, the electricity sector showed early divergence (in the morning), then a market correction and recovery.

Tomorrow, expect a possible consensus, but be cautious about early morning continuation.

Observe the divergence strength during the day, and consider taking positions in the afternoon or near the close—especially in stocks that have shown trend confirmation after divergence.

Themes:

AI Hardware

Watch the US tech stocks’ feedback in the early session tomorrow.

If overseas tech stocks don’t strengthen, lower expectations.

If they do rise overall, then monitor two stocks: Haixing Shares and Yunnan Germanium.

See if these stocks can lead the sector and drive AI hardware stocks higher.

If they can, AI hardware will be relatively strong intraday tomorrow.

If not, and overseas tech stocks don’t perform as expected, be cautious about further follow-up.

AI hardware includes: fiber optics, chips, optical modules, clean rooms, and computing power leasing.

Robotics saw only a one-day rally without further expansion of profit effects.

Within the sector, Shoukai and Jinfang are stocks with larger indirect holdings in Yushu.

If these two stocks can repeatedly perform well, they are likely to become more active.

Tomorrow’s expectations:

If the market cannot further increase volume, watch for a rhythm of rising and then pulling back.

Resistance levels: 3900-3955 points; support level: 3824 points.

Any further rise tomorrow should be cautious of resistance levels, as divergence increases the higher the market goes.

Themes still revolve around rotation and grouping within rotation.

Mainly electricity, supplemented by AI hardware. Chemical sector (unless oil prices rise further) is expected to have reduced rotation frequency in the short term.

Some friends often ask how to identify grouping stocks with high recognition.

The simplest way is to look at 883410 (recently multiple limit-ups), which includes stocks that have recently hit limit-up, been halted, or are still trending or hitting new highs.

Next, check the hot search rankings—see which stocks are trending, what themes they represent, and this helps identify the feedback from new and old hot stocks.

Also, as I replied last night in the message area, some suggest using quantitative models.

I want to say: unless your account funds are managed by a quantitative firm, the so-called quantitative models are just hype.

Brokerage quantitative models are backtest data, not tools for market response.

Market changes still require your own post-market review and feedback.

Furthermore, don’t panic or blame the current quantitative market; instead, understand its规律.

After all, they are just programs set by programmers with specific conditions.

As long as you avoid blindly chasing stocks (like following random tips), focusing on trend-based grouping stocks can still be profitable.

At least, with a core stock selection aesthetic, some unexpected behaviors (subconscious execution) can occur.

I can share some ideas, strategies, and market feedback—at least I am among those making money.

While not perfect, my drawdowns are better than most because I cut losses decisively and don’t hesitate.

So, whether ultra-short or short-term swing trading, try to understand the current profit-driving “changes” in the market.

Today’s operations:

Stop loss: Chint Electric

Reduce holdings: Huadian Liao Neng

Open new positions: Yunnan Energy Holdings, Yunnan Germanium

Today’s portfolio update: