[Red Envelope] March 10: Emotional recovery during the chaotic period; sector rotation is rapid, focus on strong trending stocks.

It’s been a long time since I did an in-depth review. Since the war started, the market has been completely chaotic, quantitative trading has been rampant, and the rebound attempts lack height. There’s really no need for a detailed review. [Taogu Ba]
However, today I still decided to do a deep review because I feel somewhat disconnected from the market. I only focus on the strong trend mode—it’s really just a matter of stock selection, ten minutes tops.
Let’s also keep an eye on the rebound, sector movements, and individual stocks. After skincare and relaxation, I’ve been feeling overwhelmed—since the LED two-board break, I don’t want to touch any sectors.
I’ve been watching bottom stocks every day, looking for good opportunities—whether they’ve bottomed out, whether I can buy low and rebound, or quietly lurk.
Sigh! This dog of quantitative trading has forced me, a breakout trader, to shift to mid-to-long-term strategies. Is that a form of sadness?
But! The strong trend mode is actually a variation of ultra-short-term trading, adapted to quantitative methods and market responses. It’s still ultra-short-term!

Low points are moving down, high points are moving down. It’s just a lively scene. This prosperity doesn’t belong to you and me.

Focus on sectors: Communication - Optical Modules; Computing Power; Chips; ST Sector;

There’s only one stock with three consecutive limit-ups, and I’m already cursing. What’s the point? But thinking about it, foreign markets have circuit breakers, and we’re still okay. Stay calm, stay calm!

Although the indices closed in the green with over 4,500 stocks rising, for ultra-short-term traders, today’s operation was quite challenging—only 18% of stocks with consecutive limit-ups advanced, and most of yesterday’s limit-up stocks failed to continue, with funds not choosing to chase high at the limit-up stocks but instead deploying oversold hardware trend stocks for rebounds. This pattern of “trend stronger than limit-ups” indicates a shift in the market’s main strategy, and ultra-short-term traders need to adjust accordingly.

Two months ago, I started studying the strong trend mode, and this time I finally got an early lead—harvest time! I’ve caught the early train. Just annoyed that the consecutive limit-up pattern just learned and then failed! So frustrating. But if I don’t eat the first six buns, I won’t be able to get full so quickly and find a good response mode! Everything is the best arrangement—thankful!

The divergence between market prosperity and the loss from consecutive limit-ups

The three major A-share indices have rebounded collectively. At the close, the Shanghai Composite rose 0.65%, Shenzhen Component up 2.04%, and ChiNext up 3.04%. Over 4,500 stocks gained, with a trading volume of about 2.4 trillion yuan, about 250 billion less than the previous day. From an index perspective, this was a vigorous broad rally, especially with the ChiNext’s big jump, seemingly heralding the return of tech stocks.

However, for ultra-short-term traders focusing on limit-up relay strategies, today’s actual feeling was significantly at odds with the index. The number of stocks hitting the daily limit was 56, but only 6 stocks achieved three consecutive limit-ups, and of the 11 stocks that hit the limit yesterday, only 2 succeeded in upgrading, with an upgrade rate of just 18.18%. This clearly shows that the current market’s main driving force is not emotion-driven. You know why I haven’t been hitting the first limit-up lately? Ever since the LED wave suddenly stopped, I stopped chasing the first limit-up—no cost performance! I prefer Yasheng, which is better than just chasing the first limit-up; at least it’s high and easier to pick.
A few days ago, I predicted Yasheng would be a new dragon. Check my posts—how many people made such an early call? Including Youneng, Meili Yun, Jinzhen Da. Following my rhythm, the positions have earned big gains—at least a dozen points! Sigh, ten years ago, if you bought the right stocks, it was all about the boards. My value skyrocketed! Too bad, born at the wrong time, 555555555555555! Now, consecutive limit-ups are too hard to do, the tolerance is too low! Luckily, I understand the strong trend mode, combine it with trading, and plan some medium-to-long-term positions. Slow is fast; just avoid retracements!

The typical emotional divide is reflected in several core stocks: yesterday’s oil and gas stocks benefiting from geopolitical conflicts faced extreme sell-offs—Zhunyou Co., Intercontinental Oil & Gas hit the daily limit down; while yesterday’s high-flying limit-up stocks like Shun Na Co. tried to hit 5 consecutive limit-ups but repeatedly failed during the day, showing huge disagreement among funds at the high levels. This “strong index, cold sentiment” structure indicates a major style shift—funds are abandoning purely emotion-driven safe-haven stocks and embracing tech trend stocks with industry logic support.

Today’s market drama was the “intraday switch between new and old main lines.” Early in the session, influenced by last Friday’s geopolitical tensions, but within half an hour, the fund flow revealed the real direction.

1. Safe-haven sectors (oil & gas, coal): Funds decisively retreat
   Affected by Middle East tensions, oil & gas stocks experienced a severe “cash-out” trend today. Yesterday’s big gainers like Zhunyou Co., Shandong Molong, Intercontinental Oil & Gas opened lower and were quickly hit with daily limit downs, with no significant struggle throughout the day. This reaffirms an important principle of ultra-short-term trading: sectors driven by sudden events without long-term logic, once the news eases or better alternatives appear, are inevitably abandoned by funds. For ultra-short traders, today’s oil & gas sector was a “kill everyone” zone—stay away from flying knives.

2. Computing hardware (CPO, PCB, optical fiber): The king returns
   The absolute star today was tech stocks, especially in the computing hardware sector. CPO concept stocks led the market, Changguang Huaxin hit the daily limit and set a new high, Tianfu Communication rose over 10%, Dongshan Precision hit the daily limit. Additionally, PCB stocks like Xunjiexing and Guanghe Technology also surged to the limit.

Driving logic: Expectations for Nvidia GTC conference and industry price hikes. The upcoming Nvidia GTC on March 16 will showcase breakthroughs in CPO switches, liquid cooling, and other computing infrastructure tech, injecting confidence into the sector. Deeper logic involves industry prosperity transmission—fiber optic prices surged (G.652.D spot prices increased by 150% since New Year), directly boosting Longfei Fiber and FiberHome Communications to hit the limit. This shows the market is no longer just speculating on concepts but trading real industry growth and performance.

3. OpenClaw (AI “shrimp farming”) concept: Divergence with life
   As a recent emerging theme, OpenClaw stocks showed sharp divergence today. Meili Yun opened with a limit-up but then failed and turned green, showing a trap effect, while Ningbo Construction continued to push with large orders to hit three consecutive limit-ups. This indicates the theme is entering a consolidation phase—only the core leaders can survive, and follow-up stocks carry high risk.

The limit-up gap phenomenon was especially prominent today. Analyzing the few remaining limit-up stocks helps clarify where ultra-short funds are focusing.

· 5-limit: Wangli Security
· Logic: Smart locks/security, but the market tends to treat it as a standalone concept or sentiment stock.
· Today’s performance: full-day limit-up, no participation. This pattern is usually a feast for holders but not friendly to outside funds. It mainly opens market space but has limited influence on lagging stocks. Tomorrow faces a 6-limit pressure; watch for volume and turnover for support.
· 5-limit: Shun Na Co. (recovered after failure)
· Logic: Power equipment + computing power (AI and power synergy). Market sees it as “AI ends with power,” plus export of power grids.
· Today’s performance: experienced intense disagreement and failed to hold, but in the afternoon, with market warming, it recovered to the limit. As a core stock, its rebound stabilized morale but also exposed huge selling pressure above. Tomorrow needs a weak-to-strong gap-up to continue; otherwise, it risks falling back.
· 3-limit: Ningbo Construction
· Logic: OpenClaw concept + data center cabinet leasing.
· Today’s performance: one-word limit-up, with strong buy orders. It’s the highest recognized new theme leader, and its strength determines whether OpenClaw can have a second wave. Due to continuous shrinking volume, a break would require handling explosive turnover.
· Limit-up gap and first-limit-up insights
· Missing middle layer: With only Wangli Security, Shun Na Co., and some ST stocks above 3-limit-ups, the success rate of going from 2 to 3 is very low. This indicates that the loss effect of mid-cap stocks still exists, and funds prefer to do low-position first-limit-ups or 1-to-2, or just group with the top stocks. The risk of relay in the middle segment is high.
· First-limit-up direction: Today’s many first-limit-up stocks mainly focused on computing hardware (CPO/PCB), such as Xunjiexing, Ruiskangda, Changguang Huaxin. This provides the main direction for tomorrow’s 1-to-2 upgrades. If any of these first-limit-up stocks successfully upgrade to 2, it confirms the sustainability of the computing hardware sector.

In an environment where the upgrade rate is below 20%, the safest approach is “avoid high and buy low.” The oil & gas stock plunge today is a clear warning—any high-level stocks driven by emotion or follow-the-leader themes should be sold early.

· On divergence and continuation: Today’s surge in computing hardware (CPO/PCB) will inevitably lead to tomorrow’s divergence. Focus on the premium of front-line stocks (like Changguang Huaxin, Xunjiexing) and the laggards. If, during divergence, core stocks (like Tianfu Communication, Zhongji Xuchuang) hold steady without falling, it’s an opportunity to buy in.

· Opportunity points: Watch today’s first-limit-up computing hardware stocks (CPO/PCB) for who can first turn over and hit the limit in tomorrow’s 1-to-2 competition. This could be the next emotional driver.
Risk warning: Beware of further declines in cyclical stocks like oil & gas, non-ferrous metals. For stocks that failed to hold the limit-up (like Meili Yun), if they don’t rebound tomorrow, cut losses decisively—don’t hold on.

Today’s rebound was more like a “correction” led by institutions, pulling the market’s main line back from chaotic geopolitical battles to a clear tech industry trend. For ultra-short-term traders, tomorrow’s focus is not chasing highs but weakening the strong, focusing on core computing hardware stocks, and finding certainty amid divergence.
A few days ago, I also warned that oil & gas stocks should be avoided—no participation. It seems Molong started to exit at the close, basically selling at the top—another successful top escape. From the first entry to the top exit, those who played well earned 40%, which should be easy. Market intuition is trained—watch the market closely, pay attention to domestic and international situations, rehearse mentally—if it were you, how would you harvest the other side? Put yourself in their shoes, anticipate their guesses, and you’ll be harvesting!