3.30 Tomorrow's Market Core Strategy

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The essence of short-term trading is “making quick money by leveraging trends”—borrowing thematic heat, borrowing capital synergy, and borrowing trend inertia.

You must adhere to three iron rules:

Only trade strong stocks, do not trade weak stocks;

Go long online, stay cautious offline, exit when the line breaks, and act quickly;

Focus on the core, stay away from distractions.

1. What is the core, and what are distractions?

2. How to identify and operate on the “core”?

Step 1: Identify the strongest sectors of the day

After 30 minutes of market opening, check the “sector gainers” on Tonghuashun or Eastmoney.
Exclude one-day wonders, choose sectors that have policies, events, and logical catalysts for sustained growth.
Focus on sectors with at least 3 stocks hitting their daily limit, and a complete tier structure (with first and second boards).

Step 2: Find the core within the strongest sectors

Leading stocks: The stocks with the highest consecutive limits in the sector (e.g., 5 consecutive limits).
Popular stocks: The stocks with the largest trading volume and highest discussion in the sector (not necessarily the highest consecutive limits).
Trend stocks: The large-cap stocks in the sector that steadily rise along the 5-day/10-day moving averages.

Step 3: Execute the ultimate discipline of “focusing on the core”

Only buy the top performer: If conditions allow, only buy the highest-ranked stock in the sector. If you are reluctant to buy the leader, it’s better to skip that sector.

Buy on disagreement, sell on consensus:

Buying point: When the core leader shows its first healthy disagreement (e.g., a sharp decline at the open quickly pulled back to the moving average, or a limit break quickly recovered).
Selling point: When the core leader accelerates and the consensus is bullish (e.g., after consecutive limit ups, the first volume explosion, or a large volume stagnation at a high level).
Exit on limit break: For consecutive limit leaders, if they cannot hit the limit on that day (limit break), exit immediately the next day if it doesn’t recover, without holding on to hope.

3. How to completely “stay away from distractions”?

Proactive filtering: Only include core targets in your watchlist, and ignore stocks on the last few pages of the gainers list.
Reject temptation: When you see distractions suddenly surge, ask yourself: “Is it a leader? If not, what’s the purpose of the surge?” (The answer is usually: to unload).
Position constraints: Even if you want to try small positions in distractions, strictly limit the position in any single distraction to no more than 2% of total funds to eliminate the possibility of significant losses.
Post-trade reflection: If losses come from distractions, highlight them in your trading journal to reinforce the muscle memory that “distractions = losses”.

Core mindset

In the short-term market, capital and attention are scarce resources that always concentrate on the brightest spots. The “core” enjoys liquidity premiums and emotional premiums, while “distractions” endure liquidity discounts and selling pressure fears. Your task is not to find undervaluation, but to dance with the strongest funds in plain sight, and to be the first to leave before the music changes.

Remember: In short-term trading, every pity and gamble on distractions is a betrayal of your principal. The biggest profits come from the core, while the biggest losses often stem from not cutting losses on distractions.

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There are only a few stock selections in a day, memorizing the buying points is not difficult; otherwise, you can jot them down and look at them while trading, buying when the strategy provides a buying point, and leaving it empty if it doesn’t. This is much more efficient than most people who are busy doing various things every day.**

Today’s holdings: Jinkong Electric
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Yesterday’s strategy:**

1 Shen Nan Electric A’s collective volume was insufficient; Guangxi Energy had enough, but it didn’t get in until the end of the session, which was a bit slow; Jinkong Electric also met the criteria, so I bought it at the limit.

I initially wrote about 3 into 4 for Rongjie shares, New Energy Taishan, and Hunan Development, but considering the market sentiment and potential for increased divergence, the risk was quite high, so I deleted them. Otherwise, today both Rongjie shares and New Energy Taishan would have met the strategy.

2 Yesterday, the external market fell sharply, especially the communications sector. Mingpu Optical & Magnetic opened slightly lower, so I exited immediately at the opening.

Tomorrow’s strategy:
**
Market analysis for today (March 27)**

1. Emotional cycle positioning

Today’s market, after yesterday’s volume contraction and general decline, welcomed a low open and high close with a volume contraction and general rise, confirming that sentiment has entered a transition period between old and new main lines. The Shanghai Composite Index closed at 3913.72 points, up 0.63%; the Shenzhen Component Index rose by 1.13%; the ChiNext Index increased by 0.71%. The total turnover of the two markets was 1.85 trillion yuan, a decrease of 90.3 billion yuan from yesterday, continuing to be below 2 trillion for two consecutive days. Over 4300 stocks in the market rose, with 78 hitting the limit, and 5 falling to the limit, with a sealing rate of 83%.

Core emotional indicators show the market is in a transition phase of “old main line retreating, new main line rising”:

Profitability is improving but structure is diverging: The rise-and-fall ratio is about 4:1, the number of limit hits is rebounding, but the consecutive limit upgrade rate is only 30% (10 limit stocks on the previous trading day, only 3 upgraded).

Capital attack direction has clearly switched: Main funds have significantly flowed into lithium batteries (+14.95 billion yuan), innovative drugs (+6.83 billion yuan), and other growth tracks, flowing out of the previously strong power sector.

Cycle judgment: After experiencing the first major divergence of the power main line, today’s market features “index volume contraction rebound, funds switching between high and low, new main lines (lithium battery/medicine) exploding, and old main lines (power) diverging,” announcing that sentiment has entered the first major divergence repair and main line switching period after the main upward wave. The core drivers have shifted from “electricity collaboration” to a dual drive of “lithium battery production recovery + innovative drug BD explosion.” We are at a critical node where “old cycle leaders are topping out and new cycle leaders are testing the waters.”

2. Consecutive limit tier and core main line analysis

Consecutive limit tier

Today, there are a total of 10 consecutive limit stocks, with a consecutive limit upgrade rate of 30% (excluding ST stocks).

4 consecutive limits (market’s parallel height dragon, new main line established):

Rongjie Shares (002192): Lithium mines + negative materials + annual report growth. The new total leader of the lithium battery sector, strongly upgraded to 4 limits, leading the sector’s limit surge.

New Energy Taishan (000720): Cables + optical fibers + state-owned enterprises. A living dragon in the power equipment branch, maintaining limits amid sector divergence.

Meinuohua (603538): Weight loss drugs + innovative drugs + raw materials. The new total leader of the innovative drug sector, achieving 6 limits in 5 days, opening up space for pharmaceutical stocks.

3 consecutive limits (vacant):

2 consecutive limits (7 stocks, new main line tier taking shape):

Lithium batteries: Shida Shenghua (603026) (electrolyte, 6 days 3 limits).

Power/Green Energy: Guangxi Energy (600310), Jinkong Electric (000767) (high-low switching living dragon in the sector).

Innovative drugs: Wanbangde (002082) (4 days 3 limits).

Chemicals: Jinmei Technology (600844) (5 days 3 limits).

Others: Shenjian Shares (002361) (commercial aerospace), Dadongnan (002263) (electricity collaboration application).

High-position limit break/trend core (old main line retreating):

Huadian Liaoning (600396): Former market total leader, limit broken yesterday, up 1.24% today, turnover rate 25.48%, transaction value 3.43 billion yuan, entering high position oscillation.

Core observation: The market’s consecutive limit height remains at 4 limits, but the leaders have completed their transition. Rongjie Shares (lithium) and Meinuohua (medicine) have become the dual leaders of the new cycle, with New Energy Taishan barely maintaining its status as a living dragon in the old main line. The tier shows a structure of “4 limits dual new dragons, 2 limits multiple directions,” indicating that funds have actively attacked low-position lithium batteries and medicines after withdrawing from high-position electricity. The attack formation has shifted from single-core to dual-core drive.

Main line market analysis

Strongest main line: Lithium battery industry chain—new main line established

Drivers: 1) Production data exceeded expectations: In March, domestic battery sample enterprises’ production increased by 21.93% month-on-month; April is expected to reach 204 GWh, a month-on-month increase of 4%. 2) Supply tightening: Zimbabwe’s lithium export ban continues, and Australia’s oil crisis raises concerns about lithium mine production cuts. 3) Price rebound: The main contract for lithium carbonate on the Shanghai Futures Exchange has broken 160,000 yuan/ton.

Performance: The sector exploded comprehensively, with Rongjie Shares (4 limits) as the total leader, Shida Shenghua (2 limits), Ganfeng Lithium, Yongxing Materials, Shengxin Lithium Energy, Haike Xinyuan, and over 10 stocks hitting their limits. The sector received a net inflow of 14.95 billion yuan from main funds, becoming the strongest direction of the day.

Secondary main line: Innovative drugs/biopharmaceuticals—trend strengthening

Drivers: 1) BD transactions exploded: By 2026, China’s total BD package for innovative drugs has reached 57.1 billion USD, surpassing last year’s total level. 2) Earnings inflection point: Several leading pharmaceutical companies reported better-than-expected earnings. 3) Patent expiration catalyst: Novo Nordisk’s semaglutide patent expires in China.

Performance: Meinuohua (6 days 5 limits) is the height leader, Wanbangde (4 days 3 limits), Shuanglu Pharmaceutical (3 days 2 limits), Ketuo Biotechnology (20CM limit), Lianhuan Pharmaceutical, and Kanghong Pharmaceutical have also hit their limits.

Divergence/retreating main line: Electricity (electricity collaboration)—retreating at a high position, living dragons at low positions

Drivers: Policy catalysts are still in place, but there are substantial profit-taking at high positions.

Performance: The sector’s divergence has intensified, with high-position stocks retreating: Liaoning Energy fell to the limit, with significant declines in Energy Saving Wind Power, Hunan Development, and Zhejiang New Energy. However, there are still low-position living dragons: New Energy Taishan (4 limits), Guangxi Energy, and Jinkong Electric (2 limits) maintained their consecutive limits. The sector overall shows a high-low switch, with significant capital outflow.

Rotating secondary lines: Chemicals (methanol price increase), commercial aerospace, semiconductors (partial recovery).

Conclusion: The main line of the market has completed the transition from “electricity shining alone → lithium batteries and medicine dual-driven.” Funds have realized profits from the high-position electricity sector and are aggressively attacking low-position sectors with strong fundamental catalysts in lithium batteries and innovative drugs. The market’s risk appetite remains, but the attack direction has fundamentally shifted.

3. Key observation points for anchoring sectors

Next week is critical for testing the quality of this round of “main line switches,” and you need to closely monitor three anchor points:

Anchor point one: The continuity and strength of the new main line, lithium batteries

Observation targets: Rongjie Shares (total leader), Shida Shenghua (following dragon), Ganfeng Lithium (mid-cap).

Observation logic: Today’s lithium battery sector reaches a peak; early next week it needs to be observed whether it accelerates or diverges.

Key signals:

Strong signal: Rongjie Shares strongly upgrade to 5 limits, Shida Shenghua continues limits, and the sector has new first boards assisting.

Weak signal: Rongjie Shares break limits or open significantly lower, and the sector opens high and then low, with batch limit breaks appearing. This indicates insufficient strength in the new main line.

Anchor point two: The retreat and pullback of the old main line, electricity

Observation targets: Huadian Liaoning (previous leader), New Energy Taishan (living dragon), Liaoning Energy (limit down leader).

Observation logic: Whether the electricity sector will completely retreat or will there be a pullback.

Key signals:

Strong signal: Huadian Liaoning halts its decline and stabilizes, New Energy Taishan continues to upgrade, and the sector sees a rebound limit rise.

Weak signal: Huadian Liaoning continues to decline, New Energy Taishan breaks limits, and no limits appear in the sector, confirming a complete retreat of the main line.

Anchor point three: Whether the overall market volume can expand

Observation targets: Total turnover of the two markets.

Observation logic: The current volume of 1.85 trillion cannot support multiple main lines strengthening simultaneously.

Key signals: The turnover needs to return to above 2 trillion yuan to support the market’s further development. If it continues to shrink, the market will revert to a rotation pattern.

4. Tomorrow’s strategy and risk control plan

1. Core target trading strategy

(1) New main line total leader: Rongjie Shares (002192)

Positioning: The only 4-limit stock in the lithium battery sector, the new height leader in the market.

Selling point for tomorrow (if already held):

Specific operation: If it cannot strongly seal the limits within 30 minutes after the market opens, or if it breaks the limit and cannot recover during the time frame, exit immediately.

Buying point for tomorrow:

Market conditions: Less than 5 stocks hitting the limit down at the market open, with no panic sentiment.

Sector conditions: At least 3 stocks in the lithium battery sector quickly hit their limits at the open, forming a sector effect.

Individual stock conditions:

Bidding: High open of +5% or more, trading volume greater than 300 million yuan.

Time frame: Strong momentum after the market opens, with effective upward movement without long periods of underwater oscillation.

Volume-price core: Focus on the quality of the limit, rather than just the volume. If it accelerates with shrinking volume, it needs to be extremely strong in the time frame; if it follows the rotation route, it requires sufficient turnover (the trading volume at the limit should reach 60%-80% of yesterday’s level).

Final buying point: Only consider entering at the moment when the stock price hits the limit strongly and all conditions are met.

(2) New main line following dragon: Shida Shenghua (603026)

Positioning: The leading stock of lithium battery electrolytes, with 6 days of 3 limits, confirming the strength of the sector.

Selling point for tomorrow (if already held): Must sell if it does not hit the limit.

Buying point for tomorrow:

Market conditions: Less than 10 stocks hitting the limit down at the market open.

Sector conditions: The lithium battery sector is overall strong, and Rongjie Shares does not show a nuclear button at the open.

Individual stock conditions:

Bidding: High open of +3% to +7%, trading volume greater than 120 million yuan.

Time frame: Rapidly surges to hit limits after the market opens.

Volume-price: The trading volume at the moment of hitting the limit must reach over 50% of yesterday’s trading volume.

Final buying point: Only consider entering at the moment when the stock price hits the limit strongly and all conditions are met.

(3) Old main line living dragon: New Energy Taishan (000720)

Positioning: The only 4-limit stock in the power sector, a highly active living dragon of the old main line.

Selling point for tomorrow (if already held): Must sell if it does not hit the limit. If it weakens rapidly at the open, it should be stopped immediately.

Buying point for tomorrow:

Preconditions: The old leader Huadian Liaoning does not show a nuclear button (>-5%) and has signs of stabilization in the time frame.

Sector conditions: The power sector has a recovery action, with at least 1 stock that fell sharply yesterday rebounding to hit the limit.

Individual stock conditions:

Bidding: High open of +3% or more, trading volume greater than 150 million yuan.

Time frame: Rapidly surges after the market opens with smooth movement.

Volume-price: The trading volume at the moment of hitting the limit must reach over 60% of yesterday’s trading volume.

Final buying point: Only consider entering at the moment when the stock price hits the limit strongly and all conditions are met.

2. Risk control discipline (critical during the switch period)

Conditions for staying in cash (any one met leads to cash observation):

Rongjie Shares are subjected to a nuclear button in the bidding (low open -7% or more).

The number of stocks hitting the limit down at the market open exceeds 15.

The lithium battery sector has no stocks hitting limits at the open.

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