Avoiding risks by abandoning three levels, GCL System Integration alone opens a new door

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Today the market plunged sharply. Yesterday, I abandoned three stocks’ attention, reducing risk. First, I gave up on Western Materials, gradually reducing my position.

In the chart above, the main reason for reducing and eventually unfollowing is that Western Materials rose yesterday, suddenly surged with volume to hit the daily limit, showing accelerated volume. We know that acceleration is the second component of a trend (a trend consists of path and acceleration). In the next chart, after hitting the limit, it moved sideways for 1+2 periods, and in the morning, it didn’t reach the 5.7 high, which we interpret as a non-9010 limit-up. Usually, after a break, positions are reduced, so yesterday’s break prompted immediate reduction and unfollowing. Today’s rapid limit-down was unexpected, but avoiding risk is a natural instinct of professional investors. The speed of the limit-down reflects the combined force of bears (my point: avoiding risk and limit-down are two parts; avoiding risk is about risk management, while limit-down shows bearish strength). Of course, it doesn’t mean it’s over; in this small cycle, the risk feels higher: a sudden limit-down, leaving people stunned!

Second, I unfollowed Yunnan Energy Holdings. Looking back at yesterday’s intra-day discussion, some followers have learned to confirm dynamic values.

Yesterday, Hang Electric and Yunnan Energy Holdings also unfollowed consecutively—three in a row (Western Materials, Hang Electric, Yunnan Energy). This avoided today’s big drop. Interestingly, Yunnan Energy and Hang Electric hit new highs today, illustrating I mentioned: breaking out of the width. Students learning XI can unfollow yesterday and today. Hang Electric unfollowed yesterday because it moved in a 3+2+1 pattern without hitting the expected consecutive limit-ups. Why unfollow Yunnan Energy Holdings?

As we said, when the expected consecutive limit-up breaks down, if it doesn’t hit the limit-up yesterday, it enters a break (断板). The chart below shows this.

For students who attended my first live class, you should remember: the core strategy divides into continuous limit-up core and break core (断板ACB). If it’s a break core (断板ACB), then a massive volume on the break (天量) indicates the largest bull-bear battle of the day. Before close, it’s hard to determine whether bulls or bears dominate. What to do? Simple: observe during the day, and decide during the morning auction. If on the day of the volume spike, the opening auction shows a positive balance and the price exceeds yesterday’s high, then you can infer that yesterday was a volume spike day. In other words, based on current understanding, the ratio of bulls to bears during a volume spike needs confirmation by the next day’s auction: positive balance and price above the highest point of the volume spike day. Let’s check yesterday’s volume.

In the chart above, the first break at 7 into 8, meaning if today it opens with a positive balance and surpasses the previous high, it indicates a break day in the ACB core strategy. This morning’s auction was critical. It opened at 9:25 with a negative balance of -1.77%. Honestly, I was disappointed. A low open indicates the bears’ force from yesterday has not been exhausted, so I can’t follow it today. A low open shows more bearish than bullish sentiment. The rise afterward indicates a weighted upward move, so within this small cycle, I can’t follow it. Yesterday’s unfollowing and today’s lack of re-following emphasize that some students only see dynamic volume but forget the underlying logic of positive balance and volume spike inference. Just a reminder.

It might be because of my system—sometimes the indicators are numerous, and I don’t remember all at once. For such delayed attention signals, I prefer observation.

Actually, today’s opening was off. The stocks I observed yesterday, by 10 AM, hadn’t met the indicator requirements. These are selected from 20 consecutive limit-up stocks. Only when the market is very weak do their dynamic values lag, since dynamic values are calculated after market close. For example, escalating US-Iran tensions, tense Middle East, rising global risk aversion—all these can delay dynamic value signals. Dynamic values are like a pressure test and feedback on news and sentiment, the most direct reflection of news sentiment. No matter how you interpret the news, the final judgment depends on whether the dynamic value pattern emerges, not your personal interpretation.

Yesterday, I also considered war risk, so I added a time protection rule: avoid attention before 10 AM to delay focus and reduce risk. Sure enough, after the market opened, everything fell.

Yunnan Energy Holdings opened weak and fell!
Xinjing Road, no dynamic value before 10 AM, fell!
Litong Electronics, no dynamic value before 10 AM, fell!
Roman didn’t enter the double break, abandoned!
Western Materials, requires phased reduction, no T trading, already prepared for withdrawal!

Finally, only Hanlian shares entered the focus after double break. The most impressive is GCL, which directly showed a dynamic value. But due to market risk, students are reminded to delay attention to Hanlian, as today’s market showed a large daily reversal pattern, as in the chart below.

In the chart above, I clearly indicated there would be another deep correction in the afternoon. That’s the power of the three-board strategy. When you see the market heading for a second big drop, you can plan accordingly—such as delaying buying points. Even if you are bullish on Hanlian, can you delay? Let’s look at how to confirm the market’s three-board strategy, which we’ve learned to recognize at a glance. The chart below shows this.

At noon, we can observe the above phenomena: the market’s three-board strategy as follows:
1. The green bars’ decline is 1+2; the long green bars are getting larger. The red bars show 2+1; combined, this indicates a four-cycle decline in the minute chart. Also, the length ratio of green to red bars shows green is longer, indicating a downward shift of the center of gravity.
2. The index price, the blue line in the chart, clearly shows that before close, bulls tried to rebound, but the index still didn’t surpass the morning high. As we discussed, if the stock or index doesn’t go higher, it’s either too low or too high. Coupled with the red-green bar pattern, a reverse C pattern is very likely. Not certain, but at least you should plan your trades accordingly—such as delaying trades or using options hedging. The three-board strategy is the simplest. It may take some time to learn how to avoid tops and bottom picks.

Therefore, I once said the biggest treasure map is Shenzhen’s three-board strategy. Today, you can use it to do three things:
1. For stocks you like that show double break, the market’s three-board strategy suggests delaying focus because market declines trigger investor fear, leading to continuous selling. You can estimate that by the end of the day, their prices should be lower than during the session.

2. For stocks you thought you might miss, the last half-hour of a sharp decline often causes overselling, creating opportunities for catching the bottom.

Some students act quickly and bought in yesterday.

3. When your stock trading is stable, you can also learn to hedge with XI options. The focus and unfocus points of options are generally aligned with the market’s rise and fall. For example, if at noon you see a reverse ACB decline, indicating B risk, and B might repeat A, you can consider using options to short or hedge. The potential of options is hard to imagine.

In the chart above, the put options surged fourfold during the day. Could options yield a year’s worth of stock gains in one day? If you’re unsure, you can lower the multiple. At 11:25, we predicted the market would decline. At that time, the option price was 1.35. By afternoon, it soared to 3.17, equivalent to a stock. If you have a directional expectation, buying at 1.35 and selling at 3.17 yields a 134% increase—almost a year’s stock return in one day.

In the future, you should learn the three parts of XI: first, the stock trading system; second, the market’s three-board strategy; third, options. Many students dislike high leverage, so I usually don’t teach options. For most, mastering the first two parts—stocks and the market’s three-board strategy—is enough.

Starting today’s review: there are 31 stocks with consecutive limit-ups, mostly oil and shipping stocks. I currently don’t analyze stocks closely tied to external market fluctuations because their volatility coefficient is too high.

I checked, and all the limit-up stocks are related to war tensions. Tomorrow, there will be no new limit-up stocks; only stocks with dynamic values in the first board or double break stocks for low-day trading. I will share early morning insights in the comments.

Market’s three-board strategy:

In the chart, by the second afternoon when the index hits a new low, we see the red bars lengthening, indicating an oversold condition, prompting funds to rebound. Meanwhile, the green bars did not expand, showing a divergence—suggesting a strong rebound is likely tomorrow.

Currently, the major cycle remains intact; it’s still a small cycle decline—risky but with opportunities.

That’s all for today’s XI review. These are my personal opinions, for reference only.

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