3.11 Core Strategy for Tomorrow's Market

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The essence of short-term trading is “leveraging trends to make quick money”—using hot topics, capital synergy, and trend inertia.

You must adhere to three iron rules:

Only trade strong stocks, avoid weak ones;

Go long online, observe offline, cut losses when 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 stocks?

2. How to identify and operate on “core” stocks?

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 ongoing catalysts.
Pay attention to sectors with ≥3 stocks hitting the daily limit, and complete tiers (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 steadily rising along the 5-day/10-day moving averages within the sector.

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

Buy only the first place: If conditions permit, buy only the top stock in the sector. If you dare not buy the leader, it’s better not to 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 limit-up, or massive volume at a high level indicating stagnation).
Cut losses immediately if the stock breaks support: For stocks with consecutive limit-ups, if they fail to hit the limit-up the next day (break support), exit immediately without illusions.

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

Proactive blocking: Only keep core targets in your watchlist; do not look at stocks on the last pages of the gain list.
Reject temptation: When miscellaneous stocks suddenly surge, ask yourself: “Is it the leader? If not, why is it rising?” (The usual answer: to unload shares).
Position constraints: Even if trying a tiny position to test miscellaneous stocks, strictly limit single-stock position to no more than 2% of total capital to prevent large losses.
Review and reflect: If losses are caused by miscellaneous stocks, record it in your trading log, reinforcing the “miscellaneous = loss” muscle memory.

Core philosophy

In short-term markets, capital and attention are scarce resources, always gathering where it’s most dazzling. “Core” stocks enjoy liquidity and sentiment premiums, while “miscellaneous” stocks bear liquidity discounts and selling pressure fears. Your task isn’t to find undervalued stocks but to dance with the market’s strongest funds and leave first before the music changes.

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

Just a few stock choices each day, memorizing buy points isn’t hard, or you can copy them during trading and buy when the strategy signals. If there’s a buy point, buy; if not, stay out. It’s much more efficient than many of you busying around trying to do everything.

Thanks to @Labi Little Gold @Iceberg Sequel for the support yesterday. Unfortunately, the post didn’t reach 7 support coupons to be featured on the forum’s hot list. If the article helps everyone, please support it so it can rank higher. Thanks!

Today’s holdings: No positions

Yesterday’s strategy:

1. UCloud today opened high, not meeting criteria, SKIP

2. Tuowei Information opened below, not meeting criteria, SKIP

3. YunSai ZhiLian needs to open high and rise steadily with volume, but opened with acceleration and hit the limit directly, not meeting criteria, SKIP

4. ShunNa Shares had four consecutive volume-reduction limit-ups. Today was supposed to be a turnover day, but funds directly added to the one-word limit-up, continuing volume reduction. With the market still retreating, a drop was expected. Plus, the sector had clear divergence, so no buy point was found. When it failed to re-encase later, I sold.

5. Meili Yun clearly said to wait for ShunNa Shares divergence for a buy point. When ShunNa hit the limit-up at open, it was unclear if it was a position or an assist. No certainty, no buy point, SKIP

Tomorrow’s strategy:

Market analysis for March 10

Today, under the dual effects of easing geopolitical risks and internal industry policy catalysts, the market experienced a style switch. Funds rapidly withdrew from risk-averse sectors like oil, gas, and shipping, and flowed back into tech growth sectors centered on CPO/optical communications, PCB, and computing power leasing. The ChiNext Index surged 3.04%, leading the market, with over 4,500 stocks rising across the board.

However, the short-term rally in consecutive limit-ups and index performance are severely diverging, still at a low point. Key data reveal the essence:

Consecutive limit-up height: Wangli Security upgraded to 5 limit-ups, becoming the market space dragon.

Limit-up tiers: Only Ningbo Construction has 3 limit-ups; 4 stocks with 2 limit-ups (Zhongnan Culture, Yuhuan CNC, Lekai Film, Qunxing Toys); 46 stocks with first limit-up.

Sentiment core data: Total upgrade rate only 14.29%, total fail rate 28.57%. Among 11 stocks with consecutive limit-ups yesterday, only 2 upgraded, both hitting the limit-up, with little participation opportunity.

Sentiment cycle positioning: The index and sectors show warming profit effects, but short-term relay ecology is poor, existing in a split state of “index recovery period” and “limit-up sentiment freezing.” Funds prefer trend-capital stocks and first limit-up stocks, cautious about relay plays.

① Market funds are highly concentrated, forming a clear main line and tiered structure:

Strongest main line: CPO/optical modules, PCB (computing hardware)

Drivers: US AOI company received over $200 million in 1.6T optical module mass production orders, marking high-speed optical interconnection entering large-scale commercial use; PCB leader Shenghong Technology’s performance is expected to increase; Nvidia GTC conference approaching.

Performance: Sector up over 7%, with more than 18 stocks hitting the limit-up. Stocks like RiseSunda, Guanghe Technology, Jinan Guoji, Xunjie Xing (20cm), Zhongying Technology (20cm) hit the limit-up. Trend central stocks Tianfu Communication up over 10%, Zhongji Xuchuang, Xin Yisheng follow.

Sector evaluation: Industry logic is solid, capital involvement deep, but today has peaked; tomorrow may see differentiation.

New policy main line: Computing power - power grid synergy (Compute-Power Grid Collaboration)

Drivers: “Compute-Power Grid Collaboration” was included in the government work report for the first time, becoming a core narrative of “new infrastructure.”

Performance: Concept upgraded from pure computing power or power grid to integrated concept. Limit-up stocks include Green Power (first limit), Kehua Data (first limit), China Electric Xinlong (first limit). Yesterday, the high-level stock ShunNa Shares broke the limit, but many stocks in the sector hit the first limit, indicating funds are exploring new branches.

Sector evaluation: Policy support is strong enough to be a potential new cycle main line; watch for sustainability.

Rotation sub-line: Commercial aerospace, robotics, innovative medicine

Commercial aerospace/robotics: Active due to policy catalysts, but sector strength is less than the computing power main line.

Innovative medicine: Listed as a “new pillar industry” for the first time, Xinli Tai hit the limit-up.

Sector evaluation: Intermittent performance, serving as a rotation alternative during main line divergence.

Leading declining sectors: Oil & gas, coal

Reason: International oil prices plummeted, geopolitical conflict expectations eased. Intercontinental Oil & Gas, Quanyou Shares hit the limit-down.

Strategy: Strictly avoid; the logic is broken in the short term.

② Core buy/sell strategies (March 11)

Principle: Sentiment and index diverge; operate with “focus on trend, light on relay limit-ups,” prioritize low buy-in of main trend stocks, and require high recognition for relay plays.

1. Market leader observation: Wangli Security (605268)

Status and position: The only 5-limit-up stock in the market, but its attributes (security door locks + data elements) are weakly related to the strongest main line (CPO), more an independent high sentiment stock. Continuous one-word volume reduction, serious chip break.

Tomorrow’s strategy:

Holders: As a benchmark for space height, observe unless an extreme core trigger appears. If it weakens quickly after open with no support, take profits decisively.
Cash holders: Do not participate; avoid the “third brother” stocks. The risk of relay after continuous volume reduction is much greater than the reward; just observe sentiment.

2. Main line core play (two directions)

Direction 1: CPO/PCB trend central stocks (safe choice)

Targets: Tianfu Communication (300394), Zhongji Xuchuang (300308)

Logic: Sector backbone, battlefield for big funds, trend determines success or failure.

Buy/sell points:

Buy: When the sector is overall high before open, look for intraday low points. For example, slight gap-up or flat opening followed by a pullback to the intraday moving average for support.
Sell/Stop-loss: If core stocks like RiseSunda or Xunjie Xing show batch core triggers, or if the central stocks fall below the 5-day moving average with volume, stop loss.

Direction 2: “Compute-Power Grid Collaboration” first limit-up upgrade (aggressive trial)

Targets: Green Power (000537), China Electric Xinlong (002298)

Logic: Emerging main line, needs “one in, two out” confirmation of strength. Both are “Compute-Power Grid Collaboration + state-owned enterprise” attributes, aligning with fund preferences.

Buy/sell points:

Buy (only): After turnover, strong upward limit-up. Must meet: ① high open (3%-7%) indicating strength; ② sufficient turnover (more than half of yesterday’s turnover); ③ actively attack and hit the limit-up before 10:30 to enter.

Taboo: No low buy-in, no chasing high. If conditions are not met, skip.

3. Relay limit-up game: Ningbo Construction (601789)

Status: 3-limit-up, computing power leasing + state-owned assets, most related to main line among relay stocks.

Strategy: Today hit the limit-up with a one-word board, tomorrow must open with a gap to test the market.

Buy: If it opens with a gap and shows strong intraday support (volume supports decline, quickly pulls back to the moving average), consider hitting the limit-up on a rebound.
Sell: If it drops sharply at open with no support, or sector weakens, abandon.

Mutual effort: Your support is my motivation to keep writing and updating. Hope everyone can learn more through mutual exchange in the days ahead!

Thanks to the 16 friends @Zhang Shisan1688 @Tian Ti Erjiushijiu @Iceberg Sequel @Labi Little Gold @Shishan Jade @Step by Step to Q @RocLeo @Little Mouse 142 @Once Northwest Wolf @Lao She Tea House No.8 @Crazy Fish @First Earn 100K @Second-hand Taoist @Deep Water Waves @Idle People @Griffith for their support and tips, and to @Labi Little Gold @Iceberg Sequel for their encouragement.

Disclaimer: The stocks and opinions involved do not constitute investment advice. They are personal review records, and any operation based on them is at your own risk. (Stock market involves risks; invest cautiously.)