[Red Envelope] 3.16 Plate Smashing Taurus Chemical, Low Buy Jian'an Guoji. Master the Essence of Short-term Trading in Chaotic Markets, Stabilize Your Account!

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Today’s operations: All trades are simulated for market review and learning purposes only, not real trading guidance.

Trading account:

Sold: Golden Bull Co., Ltd. near the breakout point in the morning, partially unfollowed, red 12 points. (Focus on the moving average last Friday)

Bought: Jinan Guoji, focus on the moving average, red 11 points. (Intraday activity involved)

Trend account:

Sold: Chuanrun Co., Ltd. chased high and unfollowed, green 5 points

Holdings:

Dawi Technology, green 14 points (wait for market rebound to unfollow)

Hequan Intelligent, green 1 point (been watching for a long time, continue to observe the pattern)

Intraday thoughts:

Jinan was relatively resilient last Friday, added to my watchlist. When the market dipped at open, Jinan showed support. Once the moving average was reached, I entered decisively (negative 1 position). PCB rebound logic. After buying, I posted a follow-up. 2-3 points are tradable. When A-shares drop, those with resilience indicate strong capital recognition. Also mentioned before the market opened, my top three preferred sectors are savings, PCB, and autonomous driving. Logic is solid. (How to judge buy/sell points, all explained in previous posts. If you still don’t understand, you’re not reading carefully.)

Golden Bull opened 15 minutes before the market as a limit-down, then was snapped up to zero, which is expected. Keep an eye on it. If strength is enough, it will quickly rally within minutes of opening. Baichuan, this contrarian, grabbed 6 points to fake a breakout, leading to a backstab sector. (Recently kept backstabbing and trapping new buyers.) Without Baichuan and Golden Bull, I would still be observing the pattern. With this troublemaker, I took profits early. Sure enough, Baichuan dragged the sector down today. Golden Bull’s movement looked like a staged dump.

Market review:

1. The electric sector was highly divergent last Friday. If no strong recovery today, it’s basically over. No point chasing. Moreover, the orders from Zhongnan Kai are decreasing, with many negative feedbacks. Shunna’s upper limit was somewhat awkward, meaning little was done. Computing power has seen some inflow. The internal competition is heading toward an abyss.

2. The chemical sector’s opening was somewhat expected, especially Baichuan being snapped up to 6 points. I don’t trust Baichuan; it’s been repeatedly manipulated to fake high opens and trap buyers. Gold Bull gave me a different expectation. Last Friday was a big wipeout; today opening at zero indicates divergence isn’t too large. After opening, it surged, Baichuan also surged. I prepared to reduce positions. Baichuan kept backstabbing sectors. Gold Bull also hit 4 limit-ups, so I exited before it finished rallying. Today Baichuan also dragged the sector down from a potential limit-up to down 6 points.

3. The deep-sea marine sector pushed over the weekend, so there was likely action today. But no chasing, as explained in yesterday’s post.

4. Cross-border payments, fermenting over the weekend, opened high but the back end was not optimistic. Sinopec kept exploding, indicating funds are still cautious.

Today, both electric and chemical sectors underperformed, causing the market to drop sharply. Institutional stocks like savings and tech lines started to rescue. Only low buys in the morning were cost-effective. Chasing high in the late session led to a retreat.

Market summary:

A-shares bottomed out and rebounded today, Shanghai weak, Shenzhen strong, sector rotation. The day unfolded in four clear phases: “weak open → sharp bottom → midday stabilization → afternoon recovery → late rebound.”

Early trading saw divergence. The Shanghai index was dragged down by cyclical sectors, falling over 1%. Stocks broadly declined, with a weak advance/decline ratio. Market sentiment was cautious and bearish, with strong wait-and-see mood. The ChiNext was relatively resilient and stabilized first.

In the afternoon, a key shift occurred. Funds flowed out of cyclical high positions and into tech growth sectors. Semiconductors and chip-related sectors strengthened across the board, driving the index up. As profit-taking increased, market support strengthened, and panic quickly eased.

By the close, indices stabilized with gains. The number of rising and falling stocks reversed, sentiment improved across the board. Panic selling cleared, funds flowed back into main themes. The Shanghai Composite closed slightly lower, Shenzhen and ChiNext rose, with ChiNext leading. Total market turnover was 2.34 trillion yuan, completing the “cautious — recovery — warming” cycle.

Continued focus:

Today’s market was not promising. During the retreat phase, avoid overanalyzing. Focus on breakout stocks, look for low-entry points during recovery.

Tomorrow’s trading ideas:

Future trading strategies, including short-term and low-buy wave approaches, will be shared in the morning thoughts. Overnight expectations will be included in the daily review; if absent, it indicates no strong outlook.

Other technical posts: ↓↓↓↓↓↓↓↓↓↓↓↓↓↓

• From Quantitative to Short-term: Core flexible techniques for chaotic trading, risk avoidance, account drawdowns, and steady gains!

• Very detailed breakout + swing trading manual: Price discovery through bidding, intraday buy/sell capture, a trading system even beginners can understand!

• Core insights on swing trading strategies!

• How to improve win rate on breakouts, handle bad boards and high-volume boards the next day?

• Only operate within recognized patterns.

My position management:

1. When the main trend is clear, I usually hold 2-3 stocks in my account, all from the same sector, including top and bottom performers. I also keep 1-2 layers for replenishing positions.

2. During normal market conditions, I reduce to a maximum of 2 stocks, with half a position reserved for adding.

3. In chaotic markets with many anticipated news, I diversify positions, e.g., if I like 4 sectors, I split into 2-2-2-2, leaving 2 for replenishment. This hedging within my understanding involves choosing stocks that can be quickly short-term profitable or defensive. Don’t buy and hold blindly. Beginners should stay on the sidelines or hold light positions.

My positioning strategy:

1. In good markets, I typically hold 8 layers, with 2 for flexibility. During average markets, I cut to half. When weak, I keep only 2 layers.

2. For stocks I believe can trend, I open around 7 layers, gradually lock in profits down to 3-4 layers, then look for main upward moves. For rebound stocks, I usually open around 4 layers, avoid adding, and roll profits down to 2 layers.

3. For breakouts, I open large positions, mainly full positions for arbitrage. If unfamiliar with breakouts, don’t do this. I research thoroughly before trading. Beginners should start with one layer, gradually add as they learn. My full positions are feasible because my breakout account funds are not large.

Thanks to family members who supported me in the last post: @繁华易冷 @發cai @墨长渊 @小学弟 @二娃 and 大地 @那富婆对我说 @披萨汉堡

Thanks to those who tipped in the last post: @杰捉妖股

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Whenever there are good intraday opportunities, I’ll share thoughts. We don’t speculate before the market opens. Focus on low buys during steady trading. All pre-market guesses are empty talk. Follow the intraday signals. Our Long Army fans don’t gamble with probabilities.

In trading, there are no standard answers—only rhythms that suit you. Strictly follow your plan, avoid greed, chasing highs, or blindly following. The core stocks added are all logically screened and validated by the market. Hope this helps everyone avoid pitfalls and eat more gains!