The big A opens lower and closes higher, showing resilience. Stocks sell off and buy back to get back in the game.

Today’s Index [Taoqiu Bar]

Today’s index first fell and then rose, showing remarkable resilience.
Morning session (9:30-11:30): Influenced by the sharp drop in U.S. stocks, the escalation of conflicts in the Middle East, and oil prices breaking above 112 USD per barrel, the three major indexes opened significantly lower (the SSE Composite opened down 0.75%, the ChiNext/Startups Index opened down 1.26%). Individual stocks once approached their “ice point” (advance/decline ratio: 448:4864).
Then, driven by defensive “safe-haven” sectors such as non-ferrous metals, gold and precious metals, and oil & gas, the index rebounded quickly, and the SSE Composite turned positive.
Midday (11:30-14:00): The index consolidated with volatility; sector rotation accelerated. Commercial aerospace, agriculture, and pharmaceutical commerce relay gains strengthened, while power, photovoltaics, and lithium batteries continued to weaken.
Late session (14:00-15:00): Funds flowed back to the technology main theme. Semiconductors, optical communications, and innovative drugs rose slightly, the index’s decline narrowed further, and the SSE Composite held above 3920 points.
Here you can see that after today’s major split in the power sector, many sectors wanted to take the opportunity to surge. But throughout the day, it was hard for funds to focus; it was mostly quantitative “pump” moves stimulated by news, and sustainability was also insufficient—like a rotating fan, one sector after another.

Today’s trading volume:
In the morning, there was an expansion of over 100 billion, but by the close the whole day only expanded to 63.7 billion, with a total of 1.93 trillion. Based on the momentum in the morning, the whole day actually should have stood above 2 trillion; the result is that volume after the afternoon relatively shrank compared to the morning—this point is worth noting and thinking about. In other words, after the index stabilized in the afternoon, incremental funds did not keep pressing forward. This also needs attention tomorrow.

Today’s market sentiment:

The number of stocks hitting limit-up and limit-down is basically flat, but it’s not easy to trade. Prior hot-spot regions crashed, and the new direction isn’t very focused.
Throughout the day, there were 76 stocks hitting limit-up, but 16 also hit limit-down—ice and fire on both ends.

Check the morning session:

First, thank you to the brothers who rewarded during the morning session. Your support is the motivation for me to keep updating. Since I only saw later that the points reward reached 1000, the “easter egg” was sent late.

From the perspective of the morning session, I was relatively pessimistic about today’s price action. The external news environment was tight, compounded by the drop in U.S. stocks and Japan/Korea. Here, our A-shares directly opened lower, and within the first hour before the open it surged and then fell back, with a very strong selloff. At one point, it made me think my prediction of the intraday tape was extremely accurate—also why I sold out and then saw it rise again. But I didn’t expect that A-shares would show such strong resilience. The rise of gold and precious metals pulled the index back up.

For power, my original prediction was that it would be a “tightly held” trade. But the news about the regulator extending supervision before the market opened at Yu Neng (Yunnan?) should not yet have been released when I wrote the morning notes—I must have written before it came out. Once the market opened, power basically collapsed; there was basically no resistance. Here, whether there was news or not is actually easy to judge. As mentioned multiple times before, there are three core stocks—

First is Huadian Liaoning. I’ve always said its position is a bit lower, but this one represented sentiment and went straight to the bottom limit—this was the first point that dragged down the sector.
Then is Huadian Energy. This stock is the trend core with 24 consecutive positive days. Earlier it had strong resilience; every time it would be “rescued from deep waters.” Today it also resisted a bit before going to the bottom limit. This was the second collapse point.
Finally is YN Energy Holding. This stock is the “pivotal” one for the power sector. I’ve said many times before that it must not be weak; it must hold sideways. Today, the extension of regulation led funds to get “stuck” out of their positions, dragging the sector down.
Add to that: Guangxi Energy as a lagging “catch-up” leader did not open with a strong one-word limit-up either. This clearly shows the problem—when the sector is no longer working, there’s no one-word move to give guidance.
These four points indicate that the sector can’t be chased. The three major “anchors” and strength markers all failed.
Everyone must watch flexibly and use things flexibly. It’s not that a decline automatically means it’s time to bottom-fish. You need the right prerequisites. When a sector collapses—especially like an avalanche—you definitely need to avoid it first. This morning, I truly didn’t foresee this situation. I wrote a direction one, and it had some misleading effect because I hadn’t seen the news about the regulator extending supervision for Yu Neng. I was fixated on oil prices instead…

Direction two is the “war” direction. Today, the aluminum sub-sector was still fairly strong. It showed a strong one-word limit-up move. There were three one-word boards, but the sector “fermentation” wasn’t especially great—meaning it was mostly a quant “one-day tour.” I also consider this a trading mistake today. When I saw aluminum’s three one-word boards—Minfa Aluminum Industry, Changlu Aluminum, Tianshan Aluminum—especially Tianshan Aluminum had also opened with today’s largest single gain in earnings, my indicators reflected it and I bought the stock that opened best among the one-word boards, Liyuan Shares. But later I found the fundamentals of this stock are very poor; this is also something that requires reflection. Even though it was capped today, whether it gets a premium tomorrow is hard to say. The quality is relatively poor.
Yesterday I did work on the aluminum direction, but I didn’t do the homework on this stock; I traded Minfa and Changlu—both opened with one-word boards, and I couldn’t get into them either. Next time, I still need to pay attention.
For industrial metals, the index strength was the strongest on the day after precious metals, and the aluminum sub-sector was even stronger. It’s just that the spread/divergence was still limited; tomorrow it’s basically an arbitrage expectation.

Direction three: gives lithium batteries + lithium mining.
Today the sector adjusted normally. The core stock Rongjie Co., Ltd. got replaced by Menovo Pharmaceuticals for the 4-to-5 stage, but the whole day it still stayed strong with sideways consolidation. The sector doesn’t have much of a problem here. This direction is mostly driven by institutional funds, so it’s more likely to trend up with consolidation; many core stocks didn’t have much negative feedback.
Haike New Energy closed up about 3%. Most core stocks closed in the red, with no negative feedback. This proves the sector’s staying power is still decent; going forward, it will likely continue to participate in rotations. The “horn of counterattack” should be the day Rongjie once again flips and turns into a涨停 (limit-up) again.

In summary, you still need everyone to lower expectations. Most sectors opened lower, but that also means opening lower is actually an opportunity. Right now, that’s the “nature” of A-shares: open lower then rise; or open higher then fall—this is the same kind of script. But the position still needs to be controlled. If you control the position, you control the risk, and your intraday execution will be more at ease. Going all-in makes it very easy to have your judgment swayed by emotions. Today, with the market opening lower and then selling off, it would cause misjudgment.

Position plan: basically accurate.
Haike New Energy—from the angle of the open, taking profit at +3 points after the spike was correct, because on Friday it was chased up, and it only had 4 “thicknesses/steps” underneath. Here there isn’t much room to maneuver, so you can’t be too laid-back about it. Taking 7 along with you is enough. From the close perspective, the stock still hasn’t finished moving yet.
Menovo Pharmaceuticals—this is a trade I stated clearly: it’s defense-first. The pharma sector naturally has defensive attributes. It’s now shaped into the highest board, but the one with convertible bonds can’t really run too high. I estimate it will be about the same tomorrow. Step by step, see how it goes.
ReSheng Technology—today had a major mistake. When the overall market sold off, I still had the idea of locking in gains and not wanting to leave the position while losing money, so I exited at the 0-axis. I didn’t expect that right after I exited it would jump up directly. After that, I then chased in with one trade and then slapped the board with another. That’s an unavoidable move. It’s also because I saw Shenjian getting stronger and Xibu getting stronger, so I went to pick it up. In the comment section, some brothers said I should have taken Shenjian—that is correct. Shenjian should have a stronger level of identification. But personally, I still wanted to trade the SPX direction theme marker, and I can’t refuse this reSheng’s pattern. This stock is currently the only commercial aerospace-related name that can break through the prior high with just a small high opening tomorrow. There’s also a test on the west side. I made about 6 less today… And there are brothers with a bigger mindset than mine; many of them ate 10 points completely.

Today’s “easter egg”:
I didn’t see the morning session rewards when I refreshed earlier, so I didn’t send it. Later when it refreshed, I saw it, so I sent it late.
After the bidding (pre-market auction), when it came to stock picking, I was somewhat surprised. I selected both Hangdian and Farsuccess Victory. These two represent fiber optics. But Xinengtai was opening very poorly. This shows Xinengtai is still moving as power grid equipment rather than fiber optics—otherwise it couldn’t be pushed down to the limit-down today!
Here, Farsuccess Victory and Hangdian both are breakout patterns and they fit my buy point well, but in the morning I didn’t go in. Because today I needed to avoid the technology line, and I was still affected by the external market. However, quants don’t care about this; they directly hit those two stocks to limit-up, then went to lift Longfei and Hengtong onto the board. Those were slower.
I originally thought the technology line would crash. But after the divergence, funds started attacking, including when there were price-increase related news—Hong and the electronics board represented by it also showed performance. In other words, the technology line still had funds using identification to guide the sentiment. Demingli in storage was the same.
Right now, it’s mainly that the sector effect is rather weak—most of the time it’s an “outperforming expectations” play centered on identification-core names.

Today’s sectors:

In pharma today, under Menovo Pharmaceuticals’ lead, a batch of stocks pushed to two consecutive limit-ups. The downside is that the number of stocks getting to the first limit-up was much fewer. Also, the “sword-bearing guard” Wanbangde cut its board—this also signals that Menovo Pharmaceuticals’ board may be the prelude to a cut tomorrow.
You don’t need to tangle too much with the pharma sector. Just watch Menovo Pharmaceuticals. Only if Menovo Pharmaceuticals keeps going beyond expectations will there be a chance for arbitrage below. And today, besides one one-word board stock, Haitai Xinguang, there weren’t any 20cm board candidates—so it’s already time to switch from “keeping the weak” to “staying with the strong.”

Optical communications was an unexpected point for the counterattack today. Hangdian and Farsuccess Victory are both 2-wave patterns, which drove the sector to keep attacking. The core, Longfei, kept pushing to the board; Hengtong continued to board up.
Zhongli reversed back from profit (反包), while other stocks were mainly prior identification names.
Tomorrow, anchor on Longfei’s strength and look for the advancement opportunities of Farsuccess Victory and Hangdian. Late-session significance isn’t that big.

As for aluminum, it’s highly likely to be a one-day tour. Tomorrow, if it can continue to打出 strength, then we’ll see. I’m not very optimistic about its persistence.

Commercial aerospace needs to be taken seriously. When I re-visited (re-capped) the trade, I said Shenjian is the “starter” leader that begins commercial aerospace before the others.
Tomorrow’s key points: whether Aerospace Power can strongly attack. Today’s representative is it.
For Hengheng Design (中衡设计), it would be best if it can push out a one-word board.
Shenjian faces pressure to pass the prior high tomorrow; it’s better to break the board and rest for a bit while maintaining a red closing. Then ReSheng Technology should be a “weak-to-strong” replacement for Shenjian tomorrow, continuing to go to the board and generate sector strength. That kind of movement is healthier for aerospace. Xibu can continue to be “rescued from below”; as long as it flushes and clears when boards break, it’s OK—it’s almost the same as the first-wave move.

Brothers who want to make progress: swap sesame for the watermelon!! 100 points or keep fueling it! You need long-term persistence. You want answers, I want data—support each other. Thank you!!!

Writing isn’t easy—brothers, like, reward, comment, keep it up, and urge the broadcast. Thanks. I don’t have theory here—only practical execution.

The sea of stocks comes with companions; set sail for a long journey.

Respect the market, follow the market
Focus on the main line, watch the core
Don’t be happy because it rises, and don’t be sad because it falls
A vast river of water—aim to scoop up just one ladle
Planned trading, knowing and doing aligned
Always remember, stable profits