[Red Envelope] The rhythm extrapolation continues to verify, oscillating market has methods, continue searching for the next "Sungrow Power" and "Huagong Technology"

1. Positions (sorted by holdings): [Taogu Ba]
On Monday, during market panic, I was actively bullish and long. Yesterday and today, the continuous rebound slightly narrowed the battle lines;

1. Xinyi Sheng: 20%, no reduction yesterday, but re-entered;
2. Shenghong Technology: 15%, still tracking the 20-day moving average;
3. Sunshine Power + Dey: 10% + 5%, Sunshine Power positioned at the bottom with 30%, reduced holdings after continuous rebound this week;
4. Hunan Yuneng: 5%, bought at low on Monday, with continuous positive candles, today cut some positions after a high surge;
5. Demingli: 5%, bought at low on Monday, with continuous main upward trend, today reduced two-thirds;
6. Industrial Bank Silver Tin: 5%, pulled back to the 60-day moving average;

Unfollowed:
Hudian Co.: Watched at the close yesterday, unfollowed after a surge in the morning;

2. Review:

The index, as mentioned over the weekend and before Monday’s pre-market, is expected to recover in the first half of the week and fluctuate in the second half.

I specifically reiterated and reminded yesterday noon that Wednesday might be a small high point:

The overall structure still maintains the high-level sideways consolidation within the 3,000–4,000 point range since March. We will observe and analyze the larger structural trend again around mid-March (next week).

This is a screenshot from the weekend main post, where I clearly stated that the spring market is characterized by high-level sideways box consolidation. Therefore, when the index retreated to support levels on Monday, it was a buying opportunity, successfully repairing the past three or four days.

This highlights the advantage of learning together here: by understanding the large structure of the index, you can maintain a macro perspective. So, in situations like Monday’s panic sell-off to support levels, you won’t panic with the crowd but will instead be excited and actively bullish.

I continue to believe that the main structure remains sideways consolidation, and we should look into next week. As I’ve said early on, this spring correction will likely last until mid or late March.

Have you noticed? Our analysis and views are always projected well in advance—never hindsight. Since I started analyzing markets in Taoxian in 2025, all my index projections have been shared a month, half a month, or a week ahead of time, repeatedly validated by the market. That’s our strength. Elsewhere, you might see “hindsight calls”: bullish when it rises, bearish when it falls; bullish at open, then bearish intraday, and so on. But here, I never do that. All our forecasts are pre-planned and fixed, and markets tend to develop according to our projected paths.

3. Future strategies:

The approach I’ve been emphasizing recently:

1. Either quietly accumulate at low levels, waiting for a big bullish candle, like Sunshine Power bottoming last week or Hunan Yuneng testing lows this week;
2. Or recognize the signals indicating the end of sideways consolidation, such as Huagong Technology’s breakout on February 24 or Demingli’s on March 4;
3. The only caution is after a continuous rise, be wary of chasing high—like Huagong, which surged to a high and then sharply dropped today, or Tiangfu, which previously surged to high levels and has recently undergone multiple corrections. Be cautious about chasing highs.

In summary, based on the weekend projection, the market will likely rise first and then fall this week, leading to more sideways movement in the second half, like today.

However, the overall market structure still points to mid-March, so even if there’s a pullback today or tomorrow, I believe the correction will be followed by further recovery. Overall, this market remains playable. As long as we follow the methodology above, combined with our index projections and signals for bottoming and initiation, I think next week still holds promise.

The specific rhythm of the market will be further analyzed and shared tomorrow before the market opens—so everyone, remember to learn together!

Next week, we will continue to work together, seeking new logical directions, actively identifying the next “Huagong Technology,” the next “Sunshine Power,” and the next “Hunan Yuneng.”

Also, I hope everyone who reads this can like, support, and tip our main post. Your support is my motivation to keep sharing.

Finally, thanks to those who supported and tipped in the last main post: @Mikalangjiri @YuanXiaoer @LaoLaiZongHeng @Iamgroot @FenshenZhan @LashouPipiXiong @Mikalangjiri @66Yue7788 @WanshiRuyi6688 @TiandaoChouqin188 @ShunShi86Fen @JinYuJing @LanAnshj