[Red Envelope] 0310: Buy the dip and hold ShunNa, lock in GCL-Poly, and by the way, discuss quantitative factors to avoid being squeezed!

Since entering Tao County’s public real trading since March, in 7 trading days, there have been 6 wins and 1 loss. This week also continued the winning streak, with strategies announced before the market opens, real-time operations shared during trading, and post-market analysis and review provided to everyone. I have always been dedicated to sharing insights like Ma Qian Pao.

Perhaps due to my personality, I don’t beat around the bush. Being true to myself, I believe I will also be liked by you all.

Without further ado, let’s talk about today’s trades.

1. Shun Na Co., bought on dips during the trading session.

2. GCL System Integration, sold half yesterday, bought back yesterday’s position today.

Let’s discuss the logic.

First, participating in Shun Na is essentially about riding the wave of Yunnan Energy’s rebound.

I’ve been telling everyone these days that going forward, we should ignore intraday fluctuations and focus on daily K-lines for Yunnan Energy. However, the volatility of Yunnan Energy won’t be very large because it needs to control 200% abnormal movements and 20% within three days. So, the main focus will be on the overall trend around Yunnan Energy.

From recent market movements, you can also feel that the consistency of quantitative selling is stronger on stronger stocks, with intraday sharp recoveries, like yesterday’s oil and gas, and today’s lobsters.

Everyone hopes for a main rally similar to the accelerated phase of commercial aerospace, but when you want to go long, quantitative models will precisely sell to you. The core reason is that current quantitative models are very strong, and their collective buying and selling are highly correlated with indices and sectors.

For example, if oil and gas or lobster concepts open at extreme values, the quant models will consider the deviation too high intraday. The judgment factor here is the gap from the previous day; if the gap is too large, it triggers a sell-off. You can observe the oil and gas and lobster sector indices from yesterday and today.

If the deviation is upward or downward, and the downward deviation is too low, it will trigger ultra-low buy signals. Yesterday, the oil and gas sector was heavily sold off at low points, and today, the same happened with oil and gas. Essentially, that’s how it works.

From a short-term sentiment perspective, stronger stocks get sold off more, weaker stocks get sold off less.

But whether it’s oil and gas or lobsters, fundamentally, they are in small rotation cycles.

What we need to do now is simple: don’t chase the obvious strong stocks. Just monitor the overall sector trends for any issues. For example, since the power sector rally started after the New Year, whether it’s due to war conflicts or lobster sectors, the core remains within the power cycle, driven by Yunnan Energy. So, focus on the dynamics of Yunnan Energy. If it doesn’t underperform, continue to play according to its cycle. Based on this logic, look at the daily K-line of sectors.

Does this make things clearer?

Sometimes, we focus on very short cycles, but in reality, these small cycles are all contained within the larger power cycle.

Since March, when I entered Tao County, you can see the stocks I participated in—whether sharing opportunities related to Yunnan Energy or playing around the power sector—I’ve achieved a winning streak even in the first week of March.

Today, I participated in Shun Na. Although Shun Na can be seen as a rebound of Yunnan Energy, the motivation to go long after Yunnan Energy hasn’t changed. Han Lan’s high position and abnormal movements haven’t changed either. So, the logic of the electric power sector remains unchanged.

Therefore, when you expand your view from small cycles to the larger Yunnan Energy cycle, your perspective broadens significantly. Don’t get caught up in the rhythm of oil and gas peaks or lobster peaks—that’s a mistake.

Today, I mainly want to discuss a quantitative trading factor. But more importantly, it’s about micro-manipulation, questioning, understanding, and mastering quant strategies. Don’t see it as opposition; just understand and use it.

I hope to continue our winning streak this week. The detailed review and analysis will be handled by me; your only task is to like the posts. As usual, 150 likes would be appreciated. Thank you all.

Thanks to everyone who rewarded me in the previous post.

@炒过去炒未来 @苏世绫 @淘红利 @淳仁 @桑德瑞 @明小少 @橙子啊z

Let’s aim for 150 likes, and before tomorrow’s market opens, I will continue sharing real-time trading updates. Thank you, friends!