[Red Envelope] 2026.3.5 Review: Major A-shares oversold rebound, main trend still far away

A simple like keeps the gains coming; ask questions and enjoy long-term benefits! Hello everyone, I am Wan Gu Zhang Qing. [Taoguba]
1. Morning Thoughts
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**First, let’s look at the morning thoughts, clearly pointing out that the oversold rebound of the US Nasdaq index is likely to stimulate a similar oversold rebound in the A-shares, mainly in the technology sector. The subsequent trend also verified this view. However, the market opened too high this morning, with Japan and Korea surging wildly, causing the Shanghai and Shenzhen indices to open nearly one percent higher today. This high opening was bound to be hammered down. Nearly 5,000 stocks rose in the morning, making the oversold rebound a bit excessive. The current market sentiment feels extremely polarized—either soaring or crashing, which is very unfriendly.

The opening auction at 9:20 showed the top three sectors were AI and artificial intelligence, but later fermentation was driven by MLED concepts. The distinctions are becoming more and more detailed. Today, the first board formula did not include related targets, only a misinterpretation with Zhang Yue Technology, whose funds probably thought today would be a day to play AI applications. I mentioned yesterday that if no related targets are found in the formula, you can look at the bidding for stocks in Tonghua. There, you can see clearly the direction indicated by Huacan Optoelectronics, which is all about optoelectronics—buying stocks in this sector is the right move.

Today’s power grid sector also performed strongly, with Shun Na leading in bidding, but I usually only look at the top three in bidding, so I didn’t highlight this. However, it did ferment, just not as strongly as Huacan Optoelectronics. Both the daily limit formula and bidding for stocks include Hanlan Cable, which meets the bidding indicators and patterns, making it undoubtedly the best choice for today’s bidding solution.

Today’s oil and gas sector was quite funny—Molong opened higher than Intercontinental, directly blocking Intercontinental, but Molong itself lacked momentum. After hitting the board, the sector did not flow back; Intercontinental was later pulled up again, but the overall trend was over. The board was smashed open after hitting the high, and the sector could only turn to other directions. Molong didn’t benefit either and was also smashed down. The gameplay between these two in the oil and gas sector is basically ruined—this is even before futures have plunged. If futures really dive later, this sector will be in trouble.

Also, yesterday I mentioned Yunnan Energy Holdings, which follows a trend-based grouping strategy. The play yesterday was to buy high and sell low. Today, it provided over 8% space for this strategy. Many people probably only buy low and don’t sell high, even chasing the high. I can only say that’s a complete misunderstanding of trading. Stocks under regulatory oversight rarely surge significantly, but they are very safe. The daily movements are mostly early morning sell-offs and late-day buying, similar to Fenglong back then, but Yunnan Energy still has a previous high that hasn’t been broken. Its trend is somewhat tangled, but the high-low strategy still yields decent profits.

And yesterday I mentioned Huagong Technology, which today directly hit the strong board. Although it was smashed later, as long as it didn’t break the five-day moving average, there’s still hope. This was a preemptive move. Today I noticed a problem: when Huagong surged, some people in the comments said they bought in today. Did I say it was a buy point today? I never said it was a buy today. Those who missed the buy opportunity yesterday and bought on the surge today are completely wrong—this does not meet any buy point in the trend trading system. Even if they make money, it’s wrong. The market always teaches lessons to those who make mistakes. Today, it was dropped by over five points. Those who bought early should sell some now and wait for the five-day line to break before selling the rest, as it’s still supported by the moving average and has potential ahead.

So, impulsiveness in the stock market is not advisable. You must strictly follow your trading system. Buying without a buy point can lead to profits, but losing money will be very painful—losses and self-blame. I believe some people lost money on Huagong Technology today. Stocks with eight consecutive days of gains are currently the strongest trend in the market. If you can’t profit from such stocks, how can you profit from others? Not controlling your impulses means you won’t make money at all.

Another stock, Firefly Communications, opened high and then sold off without support. It broke the five-day line intraday but later recovered, yet I don’t want to watch it anymore. It closed more than two points below the waterline. In today’s market, such a trend is unacceptable, so I directly removed it from my watchlist. From what I see, the three stocks I mentioned yesterday are all trend stocks, two of which can make money. Huagong Technology also gave a chance to smash the board, while Firefly only opened high and closed below the five-day line. Even with a flat position, you can still profit.

I didn’t buy all three stocks because I dislike stocks with previous highs, including Huagong, which had buy points in the formula long ago. I only entered after it broke the previous high yesterday, which gave the chance to smash the board today. Breaking the previous high is a very important concept in the stock market—breaking or not breaking shows two different attitudes. Among these three, Huagong Technology, which broke the previous high, has the best profit effect. This is the law of the strong dominating the market in A-shares. Don’t fear high prices; fearing high only leads to buying junk stocks.

2. Auction Analysis
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**Today, Huacan Optoelectronics and Zhaochi Co., Ltd., ranked first and second in bidding, both indicated the same direction—adding first boards with over 500 million in orders, which has guiding significance. They point to the optoelectronics sector. Although there are no corresponding targets in the formula, Tonghua’s bidding for stocks shows many optoelectronic stocks, which today hit twenty limit-ups. You can estimate how strong this theme will be tomorrow based on Huacan and Zhaochi’s order books, and how many first boards will open tomorrow. The third in bidding is Zhineng Zikong, a two-day limit-up stock, not aligned with the first two, but it also showed some fermentation after yesterday’s volume. The fourth is Shun Na Co., Ltd., also with over 500 million in orders, guiding the electric power sector, which is very strong today. Among the limit-up stocks, Hanlan Cable is included, and bidding for stocks also shows this. The fifth is Wangli Security, which also indicates a direction but seems not to have fermented yet. So, I usually focus on the top three in bidding; the others may not ferment strongly or may be too weak to justify action. Today’s electric power sector is a special case.

3. Limit-up Tiers
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**This limit-up tier list is a bit funny, which is also why I’ve been reluctant to chase limit-ups recently—there’s no real profit effect. The second-tier stocks hit the highest limit-up in the market—long time no see.
Second-tier
Shun Na Co., Ltd., electric power attribute, today’s bidding guide, with good fermentation, watch the order book tomorrow.
Jicheng Electronics, electric power attribute, a later-stage electric power stock.
Hanlan Cable, electric power attribute, a core in the front row, also in today’s formula and bidding.
Zhineng Zikong, AI sector, today’s bidding guide, some related stocks fermented, but Zhang Yue Technology seems to have missed the benefit.
Tongguang Cable, electric power attribute, 20cm elasticity, a result of market sentiment spilling over to the main board.
Zhuolang Intelligence, AI, aligned with Zhineng Zikong.
Wangli Security, real estate attribute, no fermentation.

4. Trend Stock Comments
Huagong Technology, a true star, with eight consecutive days of gains, still gave a chance to smash the board today. The strongest trend in the market, but for outsiders, there are no buy points today—only sell points. The first movers can do T. Although it dropped today, it still strongly supports the five-day line, with potential ahead. No need to worry about other stocks like Firefly Communications or COSCO Shipping Energy, which are still in motion. They haven’t fully broken the five-day line, but I have a cleanliness obsession—if a stock is strong, I don’t want to see weak ones. Both these stocks had buy points on the five-day line today.

5. Market Summary
Today, the Shanghai and Shenzhen markets still opened high and then declined. When it surged earlier, I thought it was different this time, but it still fell back later. Although there was a rebound oversold in the big A-shares, with 4,000 stocks rising, the overall rotation was still dominant, with no clear main line. Even the MLED concept that exploded today needs to be observed whether it can sustain tomorrow. Oil and gas still performed well, just a bit better than a one-day theme, lasting one more day. I was right—bad sectors are hard to improve. Even before futures plunged, the sector was already weak. If futures really dive later, it will be even worse. The Two Sessions are already underway, and the external environment is improving, but the main trend hasn’t emerged yet. This results in a market with little significant profit opportunity. Trend-following is better, but chasing limit-ups based on recent heights is very difficult. Many stocks are actively breaking off the limit-up trend, indicating the environment is very unfriendly to limit-up chasers. The high limit-up heights of second-tier stocks make it seem like today’s market is at a low emotional point.

It can only be said that the market is no longer what it used to be. Although oil and gas stocks are still holding the fort, not all limit-ups are oil and gas. It seems everyone is losing interest in chasing limit-ups—stocks are moving sideways, breaking off, and trending away. Recent breakout players are suffering—each breakout seems to explode. Without clear bidding guidance, it’s better not to chase limit-ups now. The environment is too unfriendly; high prices are hard to reach, and chasing limit-ups often results in explosions. Only when the main trend appears will it improve. I’ve been waiting a long time, but the main trend still hasn’t shown up—still distant.

6. Best Bidding Solution
Today’s best bidding solution is Hanlan Cable from the limit-up formula. Its bidding guidance, indicators, and patterns are all perfect. It opened high and hit the second board today. Based on the sector fermentation, it should open a first board tomorrow. If you’re interested in my trading system or have questions, check out the five detailed posts below. They contain valuable insights and most of your questions can be answered there. Highly recommended. Stock selection formulas, trading systems, and basic questions answered inside!

Good content post eight, about the auction system and trading process issues

[Red Envelope] Content Post Ten, Software Trading System, Little Known

[Red Envelope] Content Post Eleven, Auction Trading System (Updated)

[Red Envelope] Content Post Thirteen, The Path to Mastery

[Red Envelope] Content Post Fourteen, Trend Trading System (Enhanced Version)

7. Daily Reflection
I will keep saying this so everyone who reads it understands my true intentions!

Regarding these trading systems, I have some words to share. These systems are my heartfelt gift to everyone. They are not perfect treasures, far from it, but they are still worth cherishing. What are they, and why are they worth cherishing? I see them as a platform—like Taoguba itself—a bridge for communication. Through these systems, those who trust me can test them in real trading, encounter problems, and give feedback. I then try to find solutions. In this process of communication, we can bring ourselves closer, and these systems can keep improving.

Maybe these systems aren’t yet at a high level, but I believe with everyone’s effort, they will eventually help us ride the waves in the stock market. There’s a saying in the market: retail investors are the main force, but because of lack of unity, they can’t break out. My dream is to unite everyone through these systems. As long as we reach a consensus and everyone recognizes these systems, we can become a powerful force in this market. This consensus isn’t based on premium seats or hype, but on the shared effort to build these trading systems. I believe this is the best way to forge consensus.

On the day we succeed, we will be the most beautiful scenery in the market. I initiated these systems, but ultimately, you will perfect them. Here, I sincerely ask everyone: if you agree with these systems, actively participate. I believe the future market will have a place for us. In the Ming Dynasty, Hu Zongxian wrote a poem for Hai Rui and himself to clarify his resolve. Inspired by his wisdom, I also found a poem to express my own resolve.

“Gift to Fellow Stock Traders—System’s Heart and Will”

I dedicate my sincere craft to forge the blade,
Opening sources, hoping friends will meet again.
Not seeking perfection to shock the universe,
But building bridges to pass the wild geese and swans.
Practical testing reveals true knowledge,
Feedback carves jade into perfection.
Gathering strength from scattered sands,
A shared vision shines bright and clear.
Not envying fame or hollow praise,
But wishing unity to build a strong fortress.
Today we walk the thorny path together,
Tomorrow we look upon clear skies afar.

8. Acknowledgment List
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Today, another Gold Fan—@Avatar and Nezha—thank you for your strong support!
Gold Fans, remember this moment. Thank you for your support: @Beginner Crossing the River @I1Turtle @Shadow Stone @Ydf0358 @Haoyoulai Little Ma Ge @Tan Biao @Buwei Qingku @Lanmiao Jiang @BBB Bi

Finally, as always, my closing words: if you find this helpful, please give a free like and follow. If you can, support more—future content will include more insights and system improvements. Your support is my biggest motivation. Wishing everyone a long rainbow in the market!