2.27 Tomorrow's Market Key Strategy

The essence of short-term trading is “leveraging momentum to make quick money”—using themes and hype, capital cooperation, and trend inertia.[Taogu Ba]

You must adhere to three iron rules:

Only trade strong stocks, avoid weak ones;

Go long online, observe offline, cut losses if breaking support, enter and exit quickly;

Focus on core stocks, stay away from miscellaneous ones.

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

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

Step 1: Lock in the strongest sector of the day

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

Step 2: Find the core within the strongest sector

Space Dragon: The stock with the highest number of consecutive limit-ups within the sector (e.g., 5 consecutive limit-ups).
Popularity Dragon: The stock with the highest trading volume and discussion within the sector (not necessarily the most consecutive limit-ups).
Trend Dragon: The large-cap stocks in the sector steadily rising along the 5-day/10-day moving averages.

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

Buy only the first place: If conditions permit, only buy the top stock in the sector. If you’re not confident in buying the leader, better not trade in that sector.

Buy on divergence, sell on consensus:

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

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

Proactive blocking: Only keep core stocks in your watchlist, avoid stocks on the last pages of the gain list.
Resist 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 miscellaneous stock to no more than 2% of total capital, to prevent large losses.
Review and reflection: If losses come from miscellaneous stocks, record it in your trading journal, reinforcing the “miscellaneous = loss” muscle memory.

Core philosophy

In short-term markets, capital and attention are scarce resources, always flocking to the brightest spots. “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 in full view, and leave first before the music changes.

Remember: In short-term trading, every act of sympathy or luck with 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.

Today’s holdings: Yunnan Energy Holdings

Yesterday’s strategy:

Yunnan Energy Holdings buy conditions:

1. Scenario A (gap up 2-5%): Turnover >3% in the first 15 minutes; price retraces without breaking the opening price; try small positions.

2. Scenario B (gap down or flat): After a sharp decline below -5%, a series of large orders push the stock back up quickly. Follow along mid-move.

3. Do not participate: Gap up >5% with straight volume surge.

Actual today:

Opened up 0.09%, then large orders quickly pushed higher, fitting Scenario B—buy on open upward movement.

Tomorrow’s strategy:

1. Core sector screening for tomorrow’s market limit-ups

a. Market leader

Yunnan Energy Holdings (001896): 6 consecutive limit-ups. Concept: Power + equity in computing power. The sector with the highest short-term space, determining market sentiment.

b. The strongest main line (AI computing hardware) core

Shennan Circuit (002916): 2 limit-ups in 3 days. Concept: AI server PCB. The authentic sector leader, catalyzed by Nvidia’s earnings report.

Hua Electric (002463): First limit-up. Concept: AI server PCB. Industry leader, hitting a new high today with huge turnover, central core of the sector.

Jepter (688025): First limit-up (20cm). Concept: CPO/Optical communication. 20cm flexible target, representing strength in optical modules.

c. Secondary main line (price-increase resources) leader

Chengxing Shares (600078): 3 consecutive limit-ups. Concept: Phosphorus chemical. Sector with high turnover leader.

Jinzhongda (002470): 3 consecutive limit-ups (6 days, 4 limit-ups). Concept: Phosphorus chemical / new fertilizers. Sector strength leader, today a straight-up limit.

Zhangyuan Tungsten (002378) / Yunnan Germanium (002428): 2 limit-ups each. Concept: Small metals (tungsten/ge). Strategic resource themes.

d. Other high-recognition limit-up stocks

Farsight (000890): 4 limit-ups. Concept: Optical fiber cables. Independent high-standard limit-up, but weak sector influence.

Gannan Energy (000899): 2 limit-ups. Concept: Power. Follow-up rally after Yunnan Energy Holdings.

Market pattern summary: Today’s core revolves around “AI computing hardware” and “price-increase resources” as dual main lines. Nvidia’s earnings report ignited the AI hardware line (PCB/CPO), becoming the strongest new direction; phosphorus chemical and other resource lines continue to be strong under policy and price-increase logic. Yunnan Energy Holdings anchors the market space.

2. Core buy/sell strategy for tomorrow (February 27)

Core idea: eliminate the weak, focus on the new main lines. Tomorrow, observe the sustainability of AI computing hardware and the competitive landscape of the dual leaders in phosphorus chemicals.

(1) Overall strategy and observation points

Sentiment anchor: Watch Yunnan Energy Holdings’ opening premium and support. If no premium or quick drop, market sentiment may retreat, and reduce positions accordingly.

Main line confirmation: Focus on AI computing hardware opening strength. Indicators: whether Hua Electric and Shennan Circuit open high and stay stable, and if there are new sector leaders.

Risk signals: If the number of stocks hitting the limit down sharply increases (>15), or if collective “kill switch” signals appear in high-flyers, go completely to cash.

(2) Conditions for buying/selling core stocks

1. Yunnan Energy Holdings (001896) – Market leader

Buy tomorrow: Do not open positions proactively. Just observe sentiment. In extreme cases, if early panic causes a deep drop (below -7%) and within 10 minutes there’s a strong rebound, try small positions.

Sell/hold tomorrow: If holding, if the stock cannot stay in the green or hit the limit within half an hour of opening, sell in parts. If triggered by a kill switch, cut losses immediately.

2. Hua Electric (002463) – AI computing core

Buy tomorrow: Confirm sector and stock strength. (1) Sector: AI hardware sector opens strong, with more than 3 stocks hitting the limit in the first 30 minutes (excluding Hua Electric). (2) Stock: high open 2-5%, retrace without breaking the opening price, turnover >2% in first 30 minutes. Enter near the moving average after conditions are met.

Sell/hold tomorrow: As a core trend stock, hold along the 5-day moving average. If it surges over 8% and stagnates, or if the sector weakens, take partial profits. Stop loss: break below today’s limit-up price.

3. Shennan Circuit (002916) – Authentic AI computing limit-up high standard

Buy tomorrow: If it shifts from weak to strong, with high open (+3% or more) and quick surge to limit within 15 minutes, with stable sector performance, consider buying.

Sell/hold tomorrow: If it opens weak (gap down or flat) or cannot quickly hit the limit, consider exiting promptly.

4. Chengxing Shares (600078) / Jinzhongda (002470) – Phosphorus chemical dual leaders

Buy tomorrow: Only participate in the stronger one. Watch their bid and opening trend. If Jinzhongda continues to hit a straight limit with large orders, watch for Chengxing’s shift from weak to strong (high open +3%+ and quick limit). If Jinzhongda opens down, abandon both.

Sell/hold tomorrow: If holding, stay with the stronger. If the stock cannot hit the limit and the other weakens, sell immediately.

5. Zhangyuan Tungsten (002378) / Yunnan Germanium (002428) – Small metals limit-up stocks

Buy tomorrow: Only if the sector strengthens. If multiple small metals stocks open with first limit-ups, and the stronger (likely Zhangyuan Tungsten) opens high and hits limit quickly, buy lightly.

Sell/hold tomorrow: If it breaks support, sell immediately.

Disclaimer: The stocks and opinions involved do not constitute investment advice. They are personal review notes; trading profits or losses are at your own risk. (Stock market risks, invest cautiously.)