10-20W Second Doubling Challenge Day2 Back to the Hell Difficulty Before Bull Market

Today’s Review: [Taogu Ba]
Good evening, friends!
You all can probably feel how difficult the market has been lately, without me even saying it. Many stocks have been halved within a month.
In the current market environment, no matter how many trading plans you prepare in advance, they often become ineffective during actual trading.
Market rhythm keeps changing, and to follow the trend, you need to rely more on real-time judgment and understanding of the market.
At this stage, I recommend everyone to control their trading frequency. Unless there is a clear increase in volume or an effective recovery trend emerges, for most people, staying out of the market and resting is a safer choice.
The power sector, which has been adjusting for two consecutive days, saw a expected recovery today, but it did not form a full rebound.
Only the wind power sector performed strongly, making it one of the few directions maintaining an upward trend in the sector index.

Regarding individual stocks:
Xihua Technology hit 3 consecutive limit-ups.
Energy-saving wind power rebounded strongly.
Xiangming Intelligent saw a significant increase.
Xihua Technology also boosted the new registration-based IPO stocks.
Based on past patterns, these stocks are likely to accelerate the next day, but given the overall weak market, the premium space tomorrow is uncertain.
A very obvious problem in the current market: you can catch the limit-up on the day, but the next day’s continuation is weak, with insufficient premium, making it easy to miss the peak or see a quick pullback.

Identifying popular stocks for grouping:
Chemicals: Sanfangxiang, Chitianhua, Jinzengda, Luhua Technology, Jinniu Chemical, Jilin Chemical Fiber (with wind power), Zhongfu Shenying (with wind power)
Wind Power: Xihua Technology, Energy-saving Wind Power, Xiangming Intelligent, Jilin Chemical Fiber, Zhongfu Shenying, Shunna Shares, Huadian Liaoning
Photovoltaic / Energy Storage: GCL System Integration, Guosheng Technology, Farsight, Chint Power
AI Hardware: Zhuolang Intelligent, Yaxiang Integration
Real Estate: Jingtou Development
Registration-based IPOs: Gude Electric Materials, Nabaichuan, Kema Materials, Mirui Technology, Xihua Technology, Shuangxin Materials
As mentioned before, the current market is in an awkward state of “not falling deep but not rising much.”
Although there has been some early recovery, some stocks have not achieved the expected premium, such as Huadian Energy, Shunna Shares, etc.
The core issue remains insufficient volume; without volume support, any rebound appears weak,
easily leading to quick pullbacks after rises, creating a “fast rotation, day-trading” fan-like market.
Once this situation forms a vicious cycle, it becomes even harder to see strong volume-driven recovery, and any upward surge can be quickly reversed.

If the power sector can sustain a strong recovery, it will significantly boost overall sentiment.
In the next one or two days, focus on observing the feedback from the power sector.
However, since there was some increase today, tomorrow is likely to see some profit-taking or divergence.
With profits in your holdings, I suggest following the principle of “not dropping sharply and not exiting easily.”
The market’s future likely has only two paths:

1. The power, computing power, AI hardware, and chemical sectors weaken overall, switching to 1–2 new low-priced themes;
2. Remaining within current sectors, repeatedly grouping around high-recognition stocks to follow the trend.
   When will this grouping of stocks end?
   Most likely, it will wait until the day the market sees widespread volume and a broad rebound.
   Until then, funds have no better options and will continue to operate around these resilient, somewhat divisive but not sharply falling stocks.

Tomorrow’s Expectation:
Recently, the market has been shrinking in volume continuously. Friends who read my articles often know what I mean.
My rule of thumb: “Watch grouping stocks on low volume, follow trend stocks on high volume.”
If volume continues to shrink tomorrow, focus more on those few grouping stocks (listed above).
But given the current market, I still recommend everyone stay out of the market; experienced traders can do as they wish.
To summarize, there are three main strategies in the current market:

1. Stay out of the market (the best option).
2. Stay in grouping stocks but pay attention to rhythm, or one mistake can lead to a series of errors.
3. Hold stocks in resilient sectors and wait for rotation to buy low and sell high.

Today’s Trades:
Chitianhua: Sold in three parts. Might have sold too early; if you’re still holding, good luck.
Jinniu Chemical: Sold in three parts.
Dongshan Precision: Bought at low. Slight loss at close, but if the market rebounds tomorrow, I believe it will follow. Will decide tomorrow whether to hold or sell, wait for my update.

Today’s Actual Trading: