3.1 Dragon Capture Chronicles 1: This stock has become the overall leader in the two markets after the Spring Festival (in hand). The main trend is reemerging. If you want to learn leading strategies, it's worth a look.

$Yunnan Energy Holdings (sz001896)$ Breaks Through Recent 5-Board Limit, Becoming the Leading Stock in Both Markets. Token Computing Power Going Global Could Become a New Mainline! [Taogu Ba]

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I believe that in the Year of the Horse, for those wanting to learn leading trading strategies, this opens a door to short-term advancement!

1. Introduction:
This article aims to achieve three points:
First, present facts clearly—messages, data, and charts are all publicly available and verifiable;
Second, use simple reasoning and clear logic—whether you’re an experienced or new investor, you can understand at a glance;
Third, combine knowledge and action—share short-term techniques, execute seriously, then review and improve your skills continuously.

2. Background of the Market’s Highest Limit Before and After the Spring Festival:

1. Last year’s Q4 saw two major super themes (Straits Cross-strait and Commercial Aerospace), making leading stocks feast daily, still lingering in memory.

2. In January this year, under strict regulatory policies, market sentiment retreated sharply, remaining in a chaotic state (except for sharp rises and falls in gold and non-ferrous metals). The 5-Board Limit in both markets became the ceiling.

3. Analysis of limit heights, leader switching, and hot spot rotation:
   (1) Before the Spring Festival (February 13, last trading day before the holiday):

   • Highest limit: 5 consecutive boards
   • Leading stocks:
     • iReader Technology (603533): AI + Digital Reading
     • Other high-flyers:
       • Metersbonwe (605033): 4 boards (chemical price rise)
       • Yunnan Energy Holdings (001896): 3 boards (computing power + electricity)
       • Jinshi Technology (002951): 3 boards
   • Hot spots: AI applications, digital reading, chemical price hikes
   • Market sentiment: bottoming out before the holiday → weak recovery, limited limit heights, cautious funds

   (2) After the holiday (February 24–27):

   • Highest consecutive limit: 7 boards (highest before and after the holiday)
   • Yunnan Energy Holdings (001896): computing power leasing + green electricity + Henan state-owned assets
   • Other high-flyers:
     • Jinzhen (002470): 4 boards (chemical)
     • Gannan Energy (000899), Zhangyuan Tungsten (002378), Hongxing Shares (001209): 3 boards each
   • Sentiment: startup phase, limit team recovering, new mainline taking shape

3. Practical Trading Record of the First Week After the Spring Festival — Yunnan Energy Holdings:

(1) First trading day after the holiday: Expect to catch the leader at iReader Technology:

1. Here’s a screenshot of the message I sent to followers at 8:49 AM that day:

2. But iReader Technology’s pre-market auction didn’t meet expectations (rising to limit then dropping to a -4% open), and after opening, it headed straight to the limit-down, so I abandoned the plan and switched to buying Yaxing Anchor Chain. Below is a real-time pre-market analysis screenshot shared with followers:

(2) Second trading day after the holiday: Switch to Yunnan Energy Holdings as the main target:

1. On the second day:
   In the morning, there was a major divergence, but in the afternoon, it still strongly hit the limit, reaching 5 boards like iReader Technology before the holiday; however, Yunnan Energy Holdings had a huge volume spike, catching my attention as a key leader for the next day.
2. On the third day after the holiday:
   Pre-market auction showed a shift from weakness to strength (from limit-down to opening with a red candle), and after observing for 1 minute, it continued to rally quickly—divergence turned into consensus. Using my early trading techniques (three software tools analyzing order book big data and minute indicators), I judged it would hit the limit that day. I bought decisively, and within 3 minutes of opening, it hit the limit again, achieving 6 consecutive boards, breaking the recent 5-board ceiling in both markets.
3. Fourth day after the holiday:
   Pre-market auction showed strong momentum (slightly retreating from the limit to a 5% high open), and it hit the limit again within a minute, but soon broke the limit. Using my early trading techniques again, I found it still met the criteria for a limit-up day, so I added positions. Ten minutes after opening, it hit the limit again, reaching 7 boards, becoming the top in both markets and the overall leader! That day also sparked a wave of token computing power going global, with many stocks hitting the limit, potentially forming a new mainline!
4. Below is a chart of my two-day practical operations buying Yunnan Energy Holdings:

4. What is the Market Sentiment Cycle?
1. Definition:
The market sentiment cycle is the collective psychological oscillation of all participants—retail investors, hot money, institutions—based on greed and fear, alternating between “profit effect” and “loss effect.”
It’s not mystical but observable, measurable, and replicable behavioral law. As long as A-shares remain T+1, with daily limits and retail dominance, the sentiment cycle will repeat endlessly.
The market sentiment cycle (Market Sentiment Cycle) is a crucial technical analysis methodology in short-term trading. Its core is not candlestick patterns or indicators but recognizing and leveraging the collective psychological state of market participants. Many top hot money traders (like “Stock Market Family” and “Chen Xiaoqiun”) see it as the “underlying operating system” for ultra-short trading. It involves identifying the cyclical patterns of market psychology and capital behavior to judge market phases and craft trading strategies, focusing on the switch between profit and loss effects.

2. Core:
The sentiment cycle is a resonance of human nature (greed/fear/herd mentality) and capital behavior, driving the logic:

• Positive feedback: profit effect → capital inflow → sentiment heats up → price rises → stronger profit effect;
• Negative feedback: loss effect → capital outflow → sentiment cools → price drops → stronger loss effect;
  It’s not fully synchronized with indices or fundamentals but focuses more on short-term themes and limit ecosystems.

5. The Five Main Stages (Most Commonly Used):
1. Ice Point (Despair) · Key Features:

• Limit heights are suppressed (≤2–3 boards), high-flyer stocks underperform, “nuclear button” frequent;
• Very few limit-ups, more limit-downs than limit-ups, over 50% breakage rate;
• No main theme, rapid sector rotation like a “fan,” mostly one-day plays;
• Trading strategy: hold cash or very low positions, wait for sentiment recovery signals.

2. Startup (Trial & Chaos) · Key Features:

• Loss effects weaken, leaders with breakout potential (≥5 boards);
• New themes’ first boards appear in batches, breakage rate drops, “long legs” form as anti-nuclear signals;
• Funds start testing, profit effects begin to show;
• Limit team recovers, new mainline taking shape;
• Trading strategy: 10–20% positions for trial, focus on weak-to-strong transition and recognizable leaders.

3. Fermentation (Main Rise) · Key Features:

• Clear mainline, leaders (≥5 boards) accelerate, sector teams complete (leaders / front runners / middle troops / late risers);
• Limit-up count ≥30, breakage rate <25%, volume gradually enlarges;
• Divergence turns into consensus, market tolerance increases;
• Trading strategy: heavy positions in leaders (30–50%), mainly hold, avoid quick exits, focus on core leaders and front runners.

4.高潮 (Peak / Frenzy) · Key Features:

• Leaders accelerate with reduced volume, sectors explode, limit-up wave, “blind profit”;
• Limit heights reach cycle peaks, follow-on stocks hit limits in batch but lack sustainability;
• Volume surges, sentiment extremely euphoric;
• Later, leaders slow down, volume explodes, laggards start falling behind;
• Funds fluctuate between mainline and new themes;
• Trading strategy: focus on strong stocks, reduce positions gradually, lock in profits, beware of lagging stocks and avoid chasing highs.

5. Downtrend (Divergence / Panic) · Key Features:

• Leaders break limits or form first shadows, high-priced stocks see A-shares drop, more limit-downs;
• Breakage rate soars, limit heights rapidly compress, loss effects spread;
• Mid-cap stocks hit the limit down, low success rate in upgrades;
• Trading strategy: hold cash or light positions, avoid high-flyers, controlling your trades is the key to making money!

6. Quantitative Indicators for Market Sentiment Cycle (Practical Tools):

• Limit board height: number of consecutive limit-ups of leading stocks;
• Number of limit-ups/down-downs: ratio of limit-ups to limit-downs, breakage rate;
• Profit effect indicators: yesterday’s limit-up index, limit-up upgrade rate, leader premiums;
• Volume and capital flow: main sector trading volume, northbound funds / hot money flow;
• Sentiment index: Tonghuashun, Eastmoney hot stock rankings, short-term sentiment thermometer, etc.

7. Practical Tips:
1. Cycle Levels:

• Long-term: bull/bear (years);
• Medium-term: main sector themes (months);
• Short-term: sector speculation (days–weeks);
• Avoid using short-term logic for long-term decisions.

2. Stage Transition Signals:

• Ice Point → Startup: new themes + breakout potential + breakage rate decline;
• Fermentation → Peak: leader volume reduction + acceleration, main leader reaches ~70% of potential;
• Peak → Downtrend: leader shadows without recovery, high-level batch limit-downs.

3. Positioning and Risk Control:

• Ice Point: short or minimal;
• Startup: light;
• Fermentation: heavy;
• Peak: reduce;
• Downtrend: empty or defensive;
• Strict stop-loss, do not add against the trend!

8. Ultimate Significance:
1. Understanding the market sentiment cycle is half of short-term trading!

2. It teaches you:

• When to boldly attack (main rise);
• When to decisively retreat (peak → downtrend);
• When to fully rest (chaos/downtrend).

3. The market’s essence is not prediction but response.

4. The sentiment cycle isn’t about guessing tops or bottoms but about positioning yourself with high probability, riding the trend, and accumulating small wins into big wins.

5. Remember:
Plant seeds when others are fearful, harvest when others are euphoric.
This is the greatest dividend the sentiment cycle offers you.