[Red Envelope] 3.5 Spot Trading: Market opens high and pulls back, is tomorrow's divergence a prelude?

Hello everyone, you can call me Xiao Shuai because I like Kobe and basketball, so I chose this name. I mainly focus on momentum-based emotional trading, targeting leading stocks, with a unique approach of super-expectation + exclusivity. I hope we can improve together and exchange ideas. Trading principles: plan your trades, follow your trading plan, profit based on cycles, and unify knowledge and action. ****[Taoguba]
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Today’s operation: Holding cash and observing…

First, let’s look at the morning plan:

It clearly states the current market situation: disorderly rotation, unpredictable rallies, and difficulty in building positions. If you run too slow, you miss arbitrage opportunities.

After the morning auction ended, divergence appeared between oil and natural gas, with related sector themes like the swing in computing power technology stocks, which surged higher. The panel stocks fermented strongly throughout the day, representing a direct burst of quantitative trading on the day, but couldn’t continue the next day. Buying in on the day can be arbitraged.

The market continued to rebound with decreasing volume. Huasheng Tiancheng opened high and then fell, Yueneng Holdings fluctuated all day. This pattern didn’t break new highs, so beware of a dip tomorrow. Yesterday, I mentioned that Huasheng Tiancheng and Dongbai Group’s pattern on December 26 look very similar—they both opened high the next day and then dropped sharply. Today’s the same script; I hope no brothers fell for it.

In the late session, a news item caused Intercontinental Oil & Gas to retreat, and Shandong Molong’s stock was halted. Once such news or small articles come out in these sectors, it can easily trigger turbulence and stampede events. Near the close, they pushed Aerospace Development to play the divergence for tomorrow, with the expectation of capital grouping. Why Aerospace Development? Because only commercial aerospace hasn’t rotated yet. As Aerospace Development’s stock rose without followers, it then fell back sharply in minutes, repeating the big wheel pattern.

Although the market is rotating disorderly, there are still arbitrage opportunities within existing themes. Here’s a summary for everyone.

1. War Concept:
This has been the hottest theme in the past two days, strongly influenced by news. Personally, I avoid it because I dislike stocks that are too linked to futures and external news. I missed the gold and silver rally phases, and I also didn’t participate in the decline. From my system and pattern, today’s Intercontinental Oil & Gas fits the core theme of low buying on sentiment. It looked good in the afternoon, with no major issues in its trend, but a news item at the close caused it to drop sharply, and Shandong Molong also opened wide. Short-term, Shandong Molong is stronger, but the core capacity is still Intercontinental Oil & Gas. Tomorrow, it’s likely to open lower. If you believe the war isn’t over and there are more news, you can buy on dips, but I will continue to avoid it.

2. Smart Grid:
It has been strong for two days. Today, a 20cm consecutive limit-up in Tongguang Cable within the sector. This is a relatively strong sector after Huawei’s Ascend line. Hanlan Co., China Western Electric, and Dongfang Electric are leading within the sector. But that doesn’t mean you should necessarily chase tomorrow; you need to know when to act, not blindly rush in.

Today’s rebound was a weak, low-volume bounce, and it fell back at the end. Tomorrow, a divergence continuation is expected. So, smart grid stocks will likely face profit-taking pressure, which is an opportunity for the theme to lead. Watch the performance of core stocks; if they hold divergence well during the day, you can buy. If not, wait for a dip at the end of the day for a potential rebound the next day.

Note! This is just an arbitrage idea to help brothers who are itching to trade but hesitant to open positions. Continuing to hold cash will be tough for some. If you do trade, control your position size—small losses or small gains are acceptable. This is definitely not the time for full positions.

Until now, I’ll give a thumbs-up and look forward to tomorrow’s morning plan!!!

Finally, thanks to the two teachers @默期 and @小小江湖逍遥客 for the support coupons. Wishing both teachers daily income of ten million!!!

Thanks to @三月轻语 for the points tip. Wishing the teacher’s account remains stable and grows tenfold in a year!!!

A few words from the heart:
There are many teachers who write daily review articles better than me, and many big players with larger funds. But in Taoxian County, few do what I do—breaking down and explaining everything daily, then verifying with small accounts in real trading. Most are just armchair strategists. Recently, many brothers following my ideas to eat big gains are not few.

Ultimately, stock trading still depends on yourself. Daily review the market, think, compare here, and correct your actions the next day. Over time, you will make great progress. If you only follow stocks blindly, hoping for a lucky code, I suggest you close your account early. No one can save you, not even Zhao Laoge sitting beside you.

That’s all. Brothers who finish reading, please give a like. Those who have been making gains recently, send a support coupon to boost morale. Stock trading is lonely; recognition feels good. Please actively participate in likes, comments, and tips. No need to waste money here—buy some good food for yourself and your family as a reward. Trading is tough, making money is to improve life, no need to waste on me!!!