March 23rd: Tomorrow's Core Market Strategy

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The essence of short-term trading is “leveraging trends to make quick money”—using hot topics, capital synergy, and trend inertia.

You must adhere to three iron rules:

Only trade strong stocks, avoid weak ones;
Go long online, observe offline, exit if breaking support, buy and sell quickly;
Focus on core stocks, stay away from miscellaneous ones.

1. What is the core, and what are the miscellaneous stocks?

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

Step 1: Identify the strongest sector of the day

30 minutes after opening, check the “Sector Gain List” on Tonghuashun or Eastmoney.
Exclude one-day speculative themes, choose sectors with policies, events, and logical continuous catalysts.
Pay attention to sectors with ≥3 stocks hitting the daily limit, and a complete echelon (first limit, second limit).

Step 2: Find the core within the strongest sector

Space Dragon: The stock with the highest consecutive limit within the sector (e.g., 5 consecutive limits).
Popularity Dragon: The stock with the largest trading volume and discussion, not necessarily the highest consecutive limits.
Trend Dragon: The solid stocks in the sector that steadily rise along the 5-day/10-day moving average.

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

Only buy the first place: If conditions permit, only buy the top stock in the sector. If you dare not buy the leader, do not trade this sector.

Buy on divergence, sell on consensus:

Buy point: When the core leader first shows healthy divergence (e.g., rapid rebound after a sharp dip at open, quick recovery after a breakout failure).
Sell point: When the core leader accelerates and consensus turns bullish (e.g., first large volume after a continuous straight-up limit, or a huge volume at a high level showing stagnation).
Cut loss immediately if the stock breaks support: For stocks with consecutive limits, if they fail to hit the limit (break support), exit the next day without hope.

3. How to thoroughly “stay away from miscellaneous stocks”?

Proactively block: Only keep core targets in your watchlist, do not look at stocks on the last pages of the gain list.
Reject temptation: When miscellaneous stocks suddenly surge, ask yourself: “Is it the leader? If not, why is it rising?” (Usually: to unload).
Position constraint: Even if trying a tiny position to test miscellaneous stocks, strictly limit single-stock position to no more than 2% of total funds, to prevent large losses.
Review and reflect: If losses come from miscellaneous stocks, record it in your trading log, reinforce the “miscellaneous = loss” muscle memory.

Core philosophy

In short-term markets, capital and attention are scarce resources, always gathering where the brightest spots are. “Core” stocks enjoy liquidity and sentiment premiums, while “miscellaneous” stocks bear liquidity discounts and panic selling. Your task is not to find undervalued stocks but to dance with the market’s strongest funds and leave first before the music changes.

Remember: In short-term trading, every pity or luck on miscellaneous stocks is a betrayal of your capital. The biggest profits come from the core, and the biggest losses often stem from refusing to cut losses on miscellaneous stocks.

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There are only a few stocks to choose from each day; memorizing buy points isn’t hard. Otherwise, you can copy the strategy and buy during trading based on the signals. If there’s a buy point, buy; if not, stay out. It’s much more efficient than most people busying themselves with random activities daily.

Today’s holdings: Huadian Liaoning Power

Yesterday’s strategy:

1. Huadian Liaoning Power met the buy point and hit the limit early in the session. Although later affected by market sentiment and pulled back, it’s a blessing in disguise—just like yesterday’s break of ReesKanda, which also hit the limit and then surged away.

2. Shaoneng Co. barely met the criteria today, but priority was Huadian Liaoning Power, so only traded Huadian Liaoning Power today. Guangdong Electric Power A also failed to get a position, so it followed the sector rally and closed higher.

3. Meili Yun did not hit the limit all day, pass.

Tomorrow’s strategy:

Market analysis for March 20

1. Sentiment cycle positioning:

Today’s market shows an “intensified divergence of indices, widespread decline in individual stocks, and capital clustering in a few sectors,” an extreme structural pattern. The Shanghai Composite fell 1.24%, losing the 4000 psychological threshold; Shenzhen Component Index dipped 0.25%; ChiNext rose 1.30%, briefly up over 3% intraday. Total market turnover expanded to about 2.29 trillion yuan, with about 175.9 billion yuan more than yesterday, indicating fierce battle between bulls and bears.

Core sentiment indicators confirm the market is at a “differentiation at the freezing point”:

Loss effect exploding: Only 620 stocks rose, 4,530 declined, with a ratio of about 1:7; over 86% of stocks closed in the red.
Capital flow extremes: Main funds heavily flowed into photovoltaic equipment (+7.281 billion), communication equipment (+5.439 billion), batteries (+4.091 billion), and other growth sectors, while large outflows occurred from IT services, semiconductors, software development, and other sectors. The market shows a typical “siphon effect”: a few sectors celebrate, most stocks bleed.

Cycle judgment: Over two days, more than 4,500 stocks declined, and sentiment has reached “double freezing point.” However, the ChiNext index, driven by heavyweight stocks, defies the trend and strengthens, indicating funds are attempting a “high-low switch” amid extreme pessimism, withdrawing from the old cycle (chemical, computing power applications) and clustering in “new quality productivity” related hard tech growth sectors (photovoltaic, CPO, power). Currently in the “end of the tide’s structural testing” phase, the overall bearish pattern remains, but some profit opportunities are brewing.

2. Analysis of consecutive limit tiers and core main lines:

3. Consecutive limit tiers (highly clustered, severe gaps):

5-limit (highest marker):
Shenzhen Huafa A (000020): Shenzhen old reform + LCD display. Accelerated single limit, lacks sector support, pure chip game, third-tier stock.

Huadian Liaoning Power (600396): Green energy + hydrogen + state-owned enterprise. As a “power-electrical synergy” and high-standard in the power sector, today’s volume limit makes it a core target for funds during the tide retreat.

3-limit:
Shaoneng Co. (000601): Power + energy storage + biomass power generation. Follows Huadian Liaoning Power closely, sector effect obvious.

Dashengda (603687): Planning GPU + perovskite equipment. Independent logic, accelerated single limit, suspected third-tier stock.

2-limit:
Dongfang Xinneng (002310): Power + major asset restructuring.
Huadian Energy (600726): Green power transformation + thermal power + state-owned enterprise.
Guo Xin Nengyuan (600617): Natural gas + Shanxi state assets.

High-level break or big drop: Sanfangxiang, Langke Technology, ReesKanda, and other previously popular stocks continue to adjust, with loss effects spreading.

2. Market main lines (new energy leading, old cycle collapsing):

Strongest main line: Photovoltaic/energy storage industry chain. Driven by news like “Tesla plans large-scale procurement of Chinese photovoltaic equipment,” the sector exploded. Many stocks like Shangneng Electric, Shouhang New Energy (20CM limit), Chint Power, Guosheng Technology hit the limit, becoming the core driver of ChiNext’s rise.

Secondary main line: Power (power-electrical synergy). Sector remains strong, led by Huadian Liaoning Power (5 limits), Shaoneng Co. (3 limits), with stocks like Zhaoxin Co., Yinxing Energy, Guangxi Energy hitting the limit. Logic based on policies (new power systems) and defensive attributes (high dividends).

Branch line: CPO / optical modules. Driven by AI computing power demand and technological iteration, stocks like Yuanzhi Technology (20CM intraday limit, stock price surpassing 1,000 yuan), Zhongji Xuchuang, Xinyi Sheng surged.

Retreat direction: Computing power leasing, cloud computing, chemicals, chemical fibers, and other sectors collectively declined sharply, with stocks like CreaData, Dongfang Guoxin, Jinniu Chemical, Xinghua Shares falling or hitting the limit, indicating strong profit-taking from the old cycle.

Conclusion: The market’s main line is highly concentrated in “new energy (photovoltaic, energy storage, power) + hard tech (CPO),” which are safe havens during the tide retreat, combining “policy certainty” and “high performance growth.” Sectors lacking fundamentals or with discredited logic are being ruthlessly abandoned.

3. Key observation anchor sectors:

Tomorrow is critical to test this “ice point trial,” focus on three major anchors:

Anchor 1: Strength and sustainability of the new energy main line

Watch targets: Huadian Liaoning Power (space dragon), Shaoneng Co. (follower), Shangneng Electric / Shouhang New Energy (20CM flexibility).

Logic: After today’s climax, whether tomorrow’s market shows divergence or further strengthening will determine the height of this structural rally.

Key signals:

Strong: Huadian Liaoning Power advances to 6 limits, Shaoneng Co. to 4 limits, photovoltaic/energy storage sectors get new first-limit support, with no core stocks being hit by the “nuclear button.”
Weak: Huadian Liaoning Power breaks support or opens significantly lower; photovoltaic sector opens high but declines, with multiple breakouts or limits hit, indicating failed trial and possible return to full retreat.

Anchor 2: Performance of ChiNext and heavyweight stocks

Watch targets: ChiNext index, Zhongji Xuchuang, Sunshine Power, CATL.

Logic: ChiNext is the banner of growth style; its heavyweight stocks’ performance directly affects market risk appetite.

Key signals:

Strong: ChiNext continues to rise with volume, core weights remain strong.
Weak: ChiNext peaks and falls back, heavyweight stocks sharply retreat, indicating loosening of growth sector clustering.

Anchor 3: Overall loss effect convergence

Watch targets: Number of advancing vs. declining stocks, number of limit-down stocks (especially high-flyers like Sanfangxiang, Langke Technology).

Logic: Only when the loss effect stops, can the market effectively repair.

Key signals:

Strong: Number of advancing stocks exceeds 1,000; limit-down stocks decrease to single digits.
Weak: Continued widespread decline, increase in limit-down stocks, indicating market bottom is still unconfirmed.

4. Tomorrow’s strategy and risk control plan:

Core strategy: Focus on main line stocks, eliminate weak ones, strictly control positions, avoid chasing miscellaneous stocks at high.

In the trial period after the “double ice point,” opportunities and risks coexist. Operate only on the most recognizable core stocks within the strongest main line, with strict buy points.

1. Core target buy/sell strategy:

(1) Market space dragon / power leader: Huadian Liaoning Power (600396)

Positioning: The only 5-limit high standard with sector effect during the tide retreat, the market sentiment leader.

Sell point (if holding):
Principle: If not hitting the limit, sell. As sentiment indicator, breaking support means continued retreat.

Operation: If unable to quickly strengthen and hit the limit after opening, or if the limit is broken and cannot recover, exit decisively.

Buy point:
Market conditions: Less than 10 limit-down stocks, no panic selling.
Sector conditions: Power sector overall strong, at least 2 stocks hitting the limit.
Stock conditions:
Pre-market: Open high +3% to +5%, volume >60 million.
Intraday: Strong after opening, rapid rise, no break below average line.
Volume-price: Sufficient turnover, volume at limit should reach 60-80% of yesterday’s (about 1.45-1.93 billion).
Final buy point: Only consider “volume-driven limit-up.” When the stock hits the limit with strong momentum, buy in.

(2) Power rebound stock: Shaoneng Co. (000601)

Positioning: The strongest follower of Huadian Liaoning Power, 3 limits.

Sell point (if holding): Same as Huadian Liaoning Power, monitor the leader; if the leader weakens, sell unconditionally.

Buy point:
Preconditions: Huadian Liaoning Power must be strongly hitting the limit.
Stock conditions:
Pre-market: Open high +5% or more.
Intraday: Instant limit or rapid limit-up after opening.
Final buy point: Only consider “strong limit-up.” When Huadian Liaoning Power hits the limit, buy at that moment.

2. Risk control discipline (lifeline during tide retreat):

Position management: Keep total position within 30%, no more than 10% per trade. If market sentiment worsens (e.g., Huadian Liaoning Power is hit by the “nuclear button”), go to zero position and observe.

Conditions for zero position:
Huadian Liaoning Power is hit by the “nuclear button” (gap down >5%).
Market opens with more than 15 limit-down stocks.
Photovoltaic and power sectors weaken at open with no sector effect.

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Disclaimer: The stocks and opinions involved do not constitute investment advice. They are personal review records. Operate at your own risk. (Stock market involves risks; invest cautiously.)