3.26 The market correction may take another month

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Market Overview [Taogu Ba]
Today, the market did not rise as expected but closed with a bearish candle, filling yesterday’s gap.
As mentioned in previous reviews, if the bull market is still ongoing, the index still needs to move downward.
Before moving down, it must fill the upper gap, so either there will be a rebound tomorrow or C5 will complete. Afterwards, there will be wave B and wave C, which could take at least another month longer than initially expected…
In the short term, since electricity stocks didn’t weaken completely today, the market is likely to fluctuate again, so tomorrow’s close is expected to be higher.

Profit Style
Trend Style: 55, favoring stocks that are currently trending for profit. (Unique index: 0 means profit effect is concentrated on stocks with recent continuous gains; 100 means profit effect is concentrated on pure trend stocks.)

Hot Topics
The market turnover reached about 1.96 trillion yuan, supporting 1-2 sectors for speculation.

  1. Today, there was divergence in the electricity sector. Leading stocks like China Power LiaoNeng broke their limits at the close, but Hunan Development and Min Energy advanced, maintaining a complete low-level electricity echelon. Since the sector index didn’t weaken, the market is unlikely to decline, so as a main theme at this stage, it needs some recovery tomorrow.
  2. The optical communication sector also showed divergence today, but the continuous gains echelon surprisingly held up. Xineng Taishan continued to hit the limit with a straight line, making it the best sector to resonate with the market. Supported by trend stocks, it now has the qualification to compete with electricity stocks.

Short-term Continuation
Although China Power LiaoNeng broke limits today, the enthusiasm sparked by yesterday’s reverse JG 8-limit rally remains strong.
The most evident sign is that the profit style is returning to continuous gains.
Since C4’s rebound is not yet complete, tomorrow’s move should target the middle rather than the low end.

Currently holding: Short.

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