Adjustment after reaching a new high, make a note of it

Today is yet another thrilling day. The relief after surviving a disaster, to some extent, also influences personal progress. [Taogu Ba]

Mainly, it’s still the repeated reminders from my mentor about risks. Actually, it’s really addictive; during participation, it’s unconscious, especially when viewing the market after some profit cushion, it’s easy to become numb and overlook market signals. Even the review isn’t as serious, naturally thinking the market should keep rising like this, not realizing that the slaughter knife is already at the neck. Those who chased highs earlier are generally unlikely to have a good outcome.

This wave of market movement still needs to be summarized, by posting and organizing the process, using words to integrate the market’s operation into my trading model. Even if this is a rare market environment in many years.

But I believe that whether it’s a bull or bear market, the essence of opportunities still remains similar. After so many years of properly following my mentor to engage with the market, the gains are relatively positive, though not in the form of formal value investing. Purely from market fluctuations, emotions, and cost-effectiveness, these dimensions are used to gamble on the market, and it’s good to review and summarize from time to time. Also, reviewing the old to learn the new, to see if it can trigger weak or oscillating environments.

Currently, the market has a bullish atmosphere. To say it plainly, a bull market is really tough, after all, my trading account is still losing. Up to now, I’ve adjusted to executing according to plan, not chasing after gains (within 3%), not cutting losses on dips (not fearing divergence points, but I still haven’t done well here; currently, it’s a rhythm of divergence switching stocks, which still feels not quite right. Previously, I mostly cut stocks, but now I think it’s also because of the confidence given by a big bull market). The mode, as my mentor requires, is simply summarized—this time I’m trying it out…

Trading on a 30-minute or higher timeframe after oversold resonance with a strong direction, the buy points are when it erupts and quickly goes up, and the first divergence low buy-in. Stock selection criteria are extreme volume + prominent targets in the front row of the big pull, mid-tier, theme-related ETFs. Based on different levels, the position sizes vary, and the strength of the theme at initiation depends on the attacking strength of the central army funds.

In the recent two cycles within the model, the daily level oversold after the index divergence on November 21, 2025, and the recent daily oversold on March 24, 2026, are usually expanded from smaller to larger levels, which should be judged based on volume and overall market environment.

My mentality has improved a bit compared to before; I can better do only what I understand, rather than forcing opportunities outside the pattern. Avoiding impulsive single trades and last-minute decisions. But the foundation is still relatively weak; when necessary, I either ask my mentor or copy homework. But I have to say, copying homework in the stock market is really complicated. Especially for someone like me who seems to understand a bit but copied because I didn’t understand at the time… Buying but handling it according to my own view, is actually worse than not understanding at all—just following. Because it’s not truly my inner thought, many times I have no idea, and then buying just lets my thoughts get disturbed.

In 2025, the wave was more aesthetically pleasing and relatively easier, with the main line being commercial aviation. But in the wave of March 24, 2026, due to April’s earnings issues, the dominant funds leaned toward value investing, with fundamental attributes. So, there’s not much to borrow in terms of sentiment, which makes participation difficult for me. For example, the objectively aesthetic target back then was Changfei Optical Fiber, initially looking at double tops, then continuing to strengthen—objectively, it was strong. But at various emotional nodes, I was afraid to touch it, fearing high, thinking it was driven by institutions, with various reasons…

But some experts around me can still find entry points from an emotional perspective. After all, at that time, CPO, Guang, also started to show prominence, standing out independently. From sector strength and fund strength, these are objective facts. Based on the results, I can only tell that it’s strong now, and the buy point was also set in hindsight. The performance line itself is difficult, so I resorted to participating in relatively clear rhythm lithium batteries and commercial aviation.

And then today, I have to say, my mentor is my mentor. Last Friday, on 508, divergence was repaired that day, strengthened on Monday, diverged again on Tuesday, and repaired again on Wednesday. Actually, because I held some profit cushions in my holdings, I was relatively relaxed and numb. But I have to say, profits are starting to oscillate.

Initially, I held stocks like Weixing, Boyun, and Zhensheng. Before the oscillation, my account almost broke even… But when the oscillation started, I began to switch stocks. I thought it was internal rotation. But as I kept switching, my account was actually retreating. In the process, I replaced Weixing with Shenjian, then cut Shenjian and switched to Western, then Boyun, then Zhensheng, then Weixing again… Flipping back and forth, the stocks I held were because there was no sustained positive feedback, so I thought of switching to stronger ones. Later, I felt the amplitude was a bit large, so I wanted to switch to more stable ones. The entire thought process evolved like this—when I started switching, it was a small signal that the market was becoming unstable. Everything was actually in sync.

A winning stock uses growth to explain everything; a main rally makes profits explain everything.

Looking back, last night I reread my mentor’s posts repeatedly. At first, I didn’t think it was certain, but several top traders around, including Sister Xue, also started planning to hold more active positions. This made me sense a slight risk signal. Although, looking ahead, even if I don’t move, I can still make money because there’s an expectation of new highs in the index.

But since I can detect it early, I should try to hold some profits and be more proactive. This morning, I sold a bit, and surprisingly, when the market opened and I cleared my positions, the trades popped back up… had to log in again… that was a bit painful.

As for the market outlook, I haven’t experienced a proper bull market yet. What my mentor teaches is that a bull market often has long declines; this is just a feature of the candlestick pattern. Based on my understanding of the market, first, emotions need to be vented. As a mid-range, today’s negative feedback in commercial aviation is not small. The effect of losing money starts from the middle, and signals of high points also appear gradually. Today’s sell-off was quite fierce. According to usual rhythm, high points should be fully vented before it’s considered over.

On a small scale, if tomorrow’s recovery attempt happens, it should theoretically continue to fall. But in a bull market atmosphere, if it continues to fall tomorrow, and the external environment is also quite hot, others are quietly rising, are we just going to fall straight down? That’s unreasonable. The market always has bottom-fishing, quantitative T+ trades, and when a big gap down opens, there will be high perceived value, then early buyers get shaken out. When volume diminishes at double-top-like points, it’s easier for divergence to form on indicators. From both profit-taking and emotional cycle perspectives, they are interconnected.

My expectation here is for oscillation and adjustment, which may also trigger oversold signals. The subsequent strong moves should be observed and participated in according to the rhythm.

The recent abnormal movements in the robot stocks, especially in commercial aviation, will still be quite hot in the coming months. Judging this requires considering the rhythm of adjustments, and more rationally, after a volume increase in the correction, a main rally will be a good entry point~

Stocks are becoming more and more interesting. Continuous self-cultivation, the process of taking hits and self-coherence, summarizing. But I might not always summarize well—every time it’s a battle between rationality and impulse, mutual examination. No wonder others sometimes look at me with a strange eye~