[Red Envelope] Don't panic yesterday, today it's candy, but some people are eating noodles on the European line with a 3.5 review.

First, give a thumbs up and then watch, earning millions daily! [Taogu Ba]

Here’s a summary of the market, all based on simulated trading, purely personal analysis, not investment advice. As market volatility intensifies, only with clear logic can we stay steady and go far. Remember: the market always puts risk first. Only by surviving can we wait for the bloom.

The three major A-share indices all rose today. By the close, the Shanghai Composite rose 0.64%, closing at 4108.57 points; the Shenzhen Component rose 1.23%, closing at 14,088.84 points; the ChiNext Index rose 1.66%, closing at 3,216.94 points. The combined trading volume of Shanghai, Shenzhen, and Beijing markets reached 24,128 billion yuan, a slight increase of 246 billion from yesterday.

Most industry sectors closed higher, with optical optoelectronics, power grid equipment, education, communication services, computer equipment, and semiconductors leading the gains. Gold, rare earths, small metals, and petrochemical sectors declined the most.
In individual stocks, over 4,000 stocks rose, with nearly 80 hitting the daily limit. Optical optoelectronics saw a surge of limit-ups, with Longteng Optoelectronics, Jucan Optoelectronics, Huacan Optoelectronics, Jufei Optoelectronics, Lianjian Optoelectronics, Leiman Optoelectronics, Ruifeng Optoelectronics, Absen, and Medikai hitting the limit. Power grid equipment continued its strong momentum, with China Xidian hitting a new high limit, and Hanlan Cable, Jicheng Electronics, and Shunnao shares hitting two consecutive limit-ups. The computing power leasing concept also surged, with Meili Cloud and Tongniu Information hitting the limit. The CPO concept remained strong, with Kaige Precision Machinery reaching a new high. Quantum technology stocks were active, with Shenzhou Information hitting the limit.

Looking back at today’s market, yesterday’s bottoming with a long lower shadow suggested a potential bottom. I mentioned there was no need to reduce positions further; the market was basically at its bottom. Today’s worst-case scenario was a continued small lower shadow with little movement or a direct rise in positive momentum. Because of the meeting, the market opened 27 points higher, with only a few hundred stocks in the entire market in the red early on, and most stocks showed some recovery. Of course, there were rebounds of varying degrees, but I believe that’s not the key. The important thing is that the market has bottomed out and is gradually digesting the recent impact of the war. The trend is shifting towards the meeting. Today, chemical, electric power, and semiconductor sectors led the inflows, indicating a clear return of funds to normal. The market saw 79 limit-ups and 7 limit-downs throughout the day. Sentiment is gradually recovering. At this position, there’s little to worry about. Some stocks can be held, and as they rebound, take profits gradually and optimize your positions.

【Old Strategy for Swing Positions】

1. Qihoo 360: A small positive line today. The current range should see a breakout in the next couple of days. Watch how high the positive line can go. If a big positive breakout occurs, the third wave might break 17. We’re waiting for a trend reversal here—just a big positive rebound.
2. Leading Stocks: Already bottomed yesterday, clearly so today. The pattern here is a typical V-shape. A big positive line is possible, pulling back to the previous support level. If it hits the limit, luck might be on your side for quick gains over 10%. Be prepared for the first big positive line; the worst case is a retest of the bottom, then a rebound to break 10+. Understand that this possibility exists.
3. Yixintang: Basically bottomed, fitting the current market. Most stocks are following the trend now. Whether diverging or leading early, after a decline, they tend to follow down. But strong stocks recover quickly, sometimes in days with big positive lines. Weak stocks may take longer or only show small positive moves. Strong stocks might rebound past previous highs and make money; weak stocks may form bottom patterns. So, some stocks are just waiting for a rebound.
4. Daye Shares: Also clearly bottomed, but the rebound might not be as optimistic as you think. I believe this big positive line has a high chance of retesting the support. Wait for the rebound before making moves. Don’t participate in such stocks in the short term; it’s unnecessary. I’ve traded them before and lost money when breaking down. If you’re reluctant to sell, wait for a V-shaped rebound, but it will be slow. The future trend is uncertain; take it step by step.
5. Geer Shares: Continue waiting for a big positive line. Wait until it returns to the previous support level. These stocks’ short-term movements are influential. Even if they pull back, the trend will change significantly in the coming days with a large volume positive line. If you like big stocks, you can hold long-term. No problem.
6. A certain health-related stock: Continue waiting for a strong rebound. The control is precise; it should rebound in the next few days. I mainly wonder if two consecutive big positive lines can be formed. I want to close it early; one big positive line feels a bit insufficient. The sector isn’t a hot spot or volatile. You can hold for the swing if you like. No big losses expected; just watch for gains. It’s mainly about time cost.

【New Strategy and Short-term Play】

Yesterday, I locked in profits and sold off Intelligent Control. Today, it hit the limit again. I almost made a fortune. Recently bought Huayin Power, which also hit the limit after three consecutive days of 28% gains. Good trades don’t need many attempts; they’re quick to profit. Of course, stay steady and avoid impatience.
· Jiangnan High Fiber: The chemical logic remains unchanged. Today, it returned slightly above cost with a small profit. Closing around 4 points is good. Wait for a limit-up breakout. Stocks that are hard to lose money are easier to profit from. Soon, the phrase “No one in the world doesn’t know you” will be relevant.
· Beinaimei: I mentioned recent resistance at the top. Today, it dipped slightly without breaking previous lows, but that doesn’t mean it can’t drop further tomorrow. I think the decline is limited. A big rebound with a positive line will come, probably tomorrow, signaling a bottom. Then, it can turn around. Watch if related concepts can break out. Many wonder if recent negative news caused the decline. If so, it’s not just a small issue. The main force might be pushing down. The situation is uncertain; opportunities still exist. I see a high chance of a W-shaped bottom. Let’s wait for a big positive line before making decisions. Stories tend to repeat.
· Xingye (unlisted): Added a bit yesterday. Today, a rebound of about 4 points is good. Continue waiting for a breakout. No need to mention the logic; no obvious mistakes. Recent dips lost about 10 points; today, it recovered a few. The breakout should resolve soon. First, clear the good stocks now, let the account recover premium, then move to the next step.
· A certain stock on Friday: A small positive line appeared today. Usually, at this bottom level, a big positive line will emerge. Just give it time. Next week, it should be resolved. Hold steady and wait for the bloom. Everything is inevitable.

Conclusion】

Yesterday’s bottoming and rebound clearly indicated there was no need to panic and reduce positions. Today’s positive line confirmed that judgment. Sometimes, market panic is precisely the starting point of opportunity. Learning to handle difficult moments is a crucial lesson in this market.

The market’s return is just the beginning. Don’t rush to throw all your punches. Eat well, review thoroughly, and don’t be led by daily ups and downs. Opportunities are always present; patience and discipline are what’s needed.

First, stabilize yourself. Then, talk about making money. Let’s take it slow together.

The simplified version of the Government Work Report is here! Less than 1,000 words. Find the keywords yourself and see if it helps your investments.

Talking on paper, reflecting inwardly. The market is unpredictable; take care of yourselves. Wishing everyone calm and composed. — Dayun Pen