3.24 Recap: Holding Positions During Divergence, When the Reversal Wave Rises

Don’t look outside the market for logic, only look inside for signals! Focus on window signals, extreme node trading! [Taogu Ba]
Always watch for strength, choose strength, and act strong!
Every day before the market opens, these three soul-searching questions must be etched in your mind:

1. Is there a main theme right now?
2. Is today a key node?
3. Is there a buying point today?
Today the market surged, individual stocks generally rose, and those earning profits in big tech shouldn’t get cocky because today is a window for taking profits at the high. If you hesitate with a bit of luck still in mind, fantasizing in big tech, chances are tomorrow you’ll give back today’s gains along with your principal.

I already expressed this view in the comments of yesterday’s article this morning. From now on, I’ll take some time every evening and morning to analyze in real-time some valuable new developments in the market and outside. Friends who are interested, please stay tuned.

Currently, in Taoxian, few are willing to openly share their true thoughts, and even fewer are willing to stop and listen. If you think my sharing is worth a look, consider following me. Among the vast crowd, we’ve at least recognized each other’s faces.
As my followers grow, my energy as a practical trader is limited. In the future, I may not be able to cover everything, but I will dedicate more time to those who follow me. After all, all pursuits in this world should be mutual.
You come, I’m here; you follow, I respond.
That’s enough.

1. Today’s Operation: Core Lock-in, Trial and Error for Rebound

Today “LiaoNeng” still offers a buy point, but I already added to my position yesterday, so “LiaoNeng” is now resting. There are two key issues worth discussing:

1. What if many people are afraid to buy at high levels?

Some people not only fear buying high, but also buy many smaller stocks at the back end. The principle is well known now—it’s everywhere on the internet. Whether it’s miscellaneous stocks or small followers, they are all tools.

What is a tool person?

They are like bodyguards with swords—when the boss is in danger, they step in front to take the hit. When the boss is enjoying good times, they stand aside and watch, sometimes getting a little soup as a reward. So, you can clearly see whether you want to go to the core or to the followers.

First, resolve the cognitive blind spots, then participate bravely. After making a few trades, you’ll find it incredibly satisfying.

2. How to hold on during market stalls?

Today many people sold “LiaoNeng” when it hit the limit down, then regretted it and turned to follow a back-end stock, only to get hit with a big drop and have to make provisions the next day.

How to solve this?

First, you must believe in your own pattern. If you trust your method, you won’t look at other back-end stocks because you are a discerning trader with taste and aesthetics—besides the core, you look down on everything else.

Second, when “LiaoNeng” hits the limit down today, you need to understand: is it an active or passive limit down? If it’s active, then it’s weak and you can unfollow; if passive, then you need to see the bigger picture. For example, why did “LiaoNeng” hit the limit at 9:45 and then recover at 10:03? Overlay the Shanghai Composite’s trend and it’s obvious: at 9:45, the index dropped from high to near zero, and “LiaoNeng” hit the limit; after 10:01, the index rebounded from zero, and “LiaoNeng” quickly recovered. Passive limit downs are not unmanageable unless systemic risk appears—then it’s time to run.

Today I also added “Korey,” here’s the logic:

Today’s opening indicates divergence in the power sector, so buying at every moment when balance is broken is my opportunity window. Suppose “LiaoNeng” hits the limit down today, then the likely rebound will be in today’s first board tomorrow. Next, stock selection: “Korey” opened at 6.66%, quite strong. As a core stock from 2017 Xiong’an, plus today’s power sector, it’s worth watching.

The timing window for attention was shared in the first moment in yesterday’s review comments at 9:30 am.

That’s today’s trading—simple, pure, and extreme.

2. Index Style: Relay Still the Main Theme

The index opened sharply higher, still resonating with the Nasdaq. My prediction last night was a high open followed by a decline, but after the market dipped at open, around 10 o’clock it started to rise, indicating that the funds that cashed out at open had left, and new funds came in. Basically, there’s no major concern for the market today.

Honestly, I still lean towards a bearish outlook for the index. The black swan of US-Iran conflict has not yet landed. Trump is talking, Persia keeps denying. It’s possible, as Persia says, that Trump is just waiting for a timing window to launch another attack. Keep an eye on this. Overall, I still see relay as the recent style—active, bullish, focused.

3. Thematic Direction: Power Sector Clear, but Watch for Rebound Waves

Yesterday the market fell for three consecutive days, sentiment hit bottom, but there was no new theme yesterday. As I mentioned, compared to traditional Middle Eastern oil and chemical products, this can be classified as new energy. The recent movements in photovoltaics, coal, and others all fall under the current main theme.

From a macro perspective, the power sector’s main line: from “YuNeng” to “HuaYin,” then “ShenNa,” “Huaneng,” and “LiaoNeng,” went through five stages—very clear and defined.

Some friends don’t understand this; that’s a lack of knowledge. Others understand but can’t act—lack of focus. They keep their eyes on the back end, ignoring the main line when it appears.

But one point needs special mention:

I didn’t include “YuNeng” in this main line during the 3.18 review. Later, some followers asked about it. My initial logic for “YuNeng” was based on computing power, later on smart grids, so we see it has little impact on “HuaYin” and “ShenNa,” and the connection is mismatched. That’s the issue. But it’s not critical—how you define it is fine.

In trading, you’re always breaking balance at key nodes, targeting critical points. As for cycles, main lines, downturns, or ice points—these are too abstract and lack standard answers. That’s why there are countless waves and many chase emotional cycles, seeming to understand a lot but ultimately unable to escape losses. The reason is that these concepts have no standard answer.

Many followers say I am a leading stock picker, but that’s not true. I don’t care if it’s the leader or not. I care about the window it appears in and the node where it develops—these form the market signals. When a signal appears, I will target it. Its identity doesn’t matter.

4. Timing Nodes: Rebound Waves Rise, Core Lock-in

Looking at yesterday’s negative feedback of 71 stocks, only 12 opened green, and none hit the limit down. The bullish sentiment remains valid.

According to yesterday’s definition of the “LiaoNeng” node:

· First board (3.14): First node, trial and error point;
· Second board (3.17): Confirmation of positioning;
· Third board (3.18): Weak to strong addition;
· Fourth board (3.19): Breaking the dragon gate, a test of gold;
· Fifth board (3.20): Breakthrough confirmation, but with market divergence;
· Sixth board (3.23): Divergence turns to consensus, confirmation buy point.

Today, as long as there’s no major divergence, it remains an entry point and a lock-in point. We need to watch for a second major divergence, which would mark the third stage of the stock—breaking through past that point makes it a monster; failing to do so ends it. Don’t fantasize or be subjective—just observe market signals.

5. Strength in Stocks: Batch Rebounds, Stay Alert

First, the auction: three power stocks hit the limit-up with a combined buy amount of 1.58 billion. The direction was set at open, very clear.

The core stocks like “ShunNa” opened at 0.43%; “ShaoNeng” at 2.32%; “HuaSu” at 0%, all have already rebounded during the session. Rebounds lead to consecutive boards, core stocks, dynamically selecting the strongest. Today’s rebounds are batch: “ShaoNeng,” “ZhongNan,” “HanLan,” “Jieneng,” “HuaSu,” “HuaYin,” “Jinkai,” “RongSheng” all successfully rebounded.

But one point to note:

When a theme shows batch rebounds, it’s also the most dangerous time. Because if they all rebound massively, the probability of a big negative feedback tomorrow increases—unless the core has already become a monster, then it’s less affected. Either way, stay alert—this is a critical moment.

It meets all our pattern conditions: clear main line, defined nodes, supported by bidding signals, complete echelon.

6. Tomorrow’s Outlook (March 25): Watch for Second Major Divergence

“LiaoNeng” continues to shrink volume and accelerate, with 7 consecutive boards, fully opening the power sector space. But the higher the position, the bigger the waves. For tomorrow’s forecast, set some observation points:

1. Core target expectations: “LiaoNeng” is expected to continue accelerating tomorrow. But after consecutive acceleration, a second major divergence could occur at any time. If a second divergence appears with large gap (e.g., limit down without recovery, huge volume stagnation), consider partial profit-taking. If it continues to accelerate to the limit, the pattern can still hold.

2. Continuation of rebound wave: The batch rebound stocks today, if they weaken significantly tomorrow or show negative feedback, it will affect the entire sector’s sentiment. If they continue to strengthen, the sector’s heat can be maintained.

3. Rebound leader relay: If “LiaoNeng” diverges, funds will flow to low-priced rebound stocks. Watching whether the first board “Korey” can continue to hit the limit is an important indicator of rebound sentiment.

4. Strategic preparation: Currently, profits are substantial. The main task is to protect profits. Don’t predict the top; follow the market. When the second major divergence appears, it’s a signal to gradually retreat.

Finally, remember: trading is not about prediction but response. We can’t predict whether “LiaoNeng” will become a monster, but we can respond well to each market signal. The power sector is still there, but when rebound waves rise, divergence is not far behind. Stay alert—when it’s time to leave, don’t hesitate.

Decades in the market, seasons in the stock market. Sharing the same struggles, meeting a few like-minded brothers makes this journey less lonely. Thanks for your support, grateful for the companionship.

Thanks to @ZhouDazhang @WenYishou6666 @QianLongZaiYuan2026 @XiaoZiJinYouDaMengXiang @ShuLiMiLeLu @DongMian16 @XiangZhangWang @LaoShengChuangJiangHu @Dahan

@YingZhouQinLongSima @ShanghaiJin @ZuiAiHuaHua @DaYinNianJinGang @L丅R @WuDaoChanZhong @QianXing000 @YunMenXinQing @JinTianFanBeiHaha @ZhouDazhang @ChuXinZhongZhang @GuangMingCaiHongQiao @LianNa @ybzyhybzyh @RuShengYouFu @FengJiuJinYi @ShuLiMiLeLu @HuaGe @DaDaoShunShi @ChiZhongShui @ZhuiMengDeHuangJinJiuCai @Adyzhong @ShaNi @ShengGuo @XiangZaiChaoJia @HaiChanZhuaNiuLong @HaiShiHuiXiangNi @YuLongZhiDian @GuShiDaBenNiu @ShangShanRuoShui2017 @XiangZhangWang @YuShengHua @JiDeHuoZaiDangXia @YiPengTianTianKuaiLe

· Market risks are inherent; invest cautiously. The content of this article is solely the author’s personal market review and opinions, not constituting any actual investment advice, guidance, or promise.

· Any specific stocks mentioned (such as “HuaYin,” “ShunNa,” “Huaneng,” “LiaoNeng,” “YueDian,” “ShaoNeng,” “JiaWei,” “GuangAn,” “JiXin,” “LiXin,” “AoRui,” “DongFang,” “YuNeng,” “Korey,” etc.) are only used for case analysis and logical deduction, not recommendations to buy or sell. Investors operate at their own risk.

· Short-term trading is highly volatile, influenced by market sentiment, funds, policies, and other factors, with high uncertainty. Historical patterns like “4-board curse” may not repeat in the future, and past successes do not guarantee future results.

· Every investor should make independent judgments and be responsible for every trade in their account. Avoid blindly following the crowd, especially after significant gains, as chasing high carries great risk.