[Red Envelope] This week's short-term trading rhythm seamlessly switches, how to grasp the rhythm logic and the next step

This year’s market after the Spring Festival is different from previous years. In past years, the trend was usually clearer; this year, it’s relatively more chaotic. However, the overall rhythm switch is still manageable. Today, I want to share the entire rhythm and logic of this transition with everyone so we can improve together. Friends who want to learn, please pay close attention. [Taogu Ba]

1. Logic of Breakthroughs in Continuous Limit-ups

This Thursday, focus on Yunnan Energy Holdings; on Friday, some positions were locked in.

This trade may seem risky at first glance, but it’s actually quite safe. Previously, around five consecutive limit-ups often led to a stall the next day, mainly with suppressed declines. This creates a habitual thinking pattern: will this stock also be suppressed the next day, or after hitting the limit-up today, will there be no premium the next day? The core logic here is “breaking through” combined with “counter-human nature.”

On Wednesday this week, Yunnan Energy Holdings experienced a volume surge at the five-limit level. I was considering entering late in the session, but I waited to see if it could weaken and then strengthen the next day. That evening, I also focused on the stock’s uniqueness: whether it would show strong support the next day. The next morning, it opened with a limit-down during the bidding phase, but by the close, it reversed and opened with a volume surge, indicating a shift from weakness to strength. This was a typical weak-to-strong move, and it was also a move most people dared not buy because they feared a follow-up decline. After opening, the stock quickly supported and moved upward, meeting the focus criteria. This created a divergence at the open, which was a key point. Later, there was an opportunity for a divergence in the stock’s opening. I decisively used the “breaking through” six-limit level plus the “counter-human nature” logic to focus on it.

The next day, as expected, it opened with a volume surge, quickly hit the limit-up, and continued to rise. Using a cautious approach, I also reduced some positions appropriately. Overall, focusing on this stock’s counter-human nature breakthrough was quite successful.

2. Logic of Rebound and Breakthrough After Bottoming Out

This Thursday, I suddenly focused on Huasheng Tiancheng; on Friday, I gradually took profits.

This trade isn’t complicated. On Tuesday, the stock experienced a large single order at the opening during the bidding, but it ultimately opened with a moderate gap and closed with a bearish candle. The key point afterward is when the stock stops falling and breaks through the high of the unexpected bearish candle from Tuesday. On Wednesday, the stock showed a small bullish reversal, and on Thursday, it formed a breakout through Tuesday’s bearish candle, which was the focus. We paid attention around this level. After that, it quickly hit the limit-up the same day and surged significantly the next day.

If Wednesday had formed a direct reversal pattern, that would be the focus. But since it didn’t, the breakout on Thursday, combined with Wednesday’s bottoming candle, confirmed the move.

It’s important to note that this stock has an upward structure, not a consolidation pattern. If it were a consolidation, a half-way breakout on Thursday wouldn’t be reliable because false breakouts often occur in consolidations.

The logic for taking profits and taking off on Friday is that if the opening isn’t as expected but the stock has enough popularity, you can leverage the inertia of the popularity to wait for a rally to take profits.

3. Sector Separation and Reversal Logic

This Tuesday, I low-bought and focused on Fengyu Zhu; the next day, it surged and I gradually took profits.

After the holiday, AI applications opened sharply and were quickly realized, causing many to avoid this sector. However, one stock, Fengyu Zhu, defied the trend and rose against the market. It hit the limit-up on the last day before the holiday, and after opening with a volume surge, it continued to rise. Using the sector separation method, this stock was low-bought against the trend. It also had a previous reversal initiation pattern. Combining this with my three-day trading principle—reversal the next day combined with sector separation—remains a low-buy approach. Sure enough, in the afternoon, it again surged against the trend and hit the limit-up. After the close, the popularity peaked.

The next day, it opened lower but didn’t break the support level, so I used the inertia of popularity again, and during the session, it started to turn upward and gradually took profits. Looking back, the profits were taken at a relatively high point.

The logic behind these three stocks is that they all involve uniqueness. Only with uniqueness can there be a premium the next day. This is one of the core aspects of short-term rhythm control. Also, after focusing on uniqueness, high popularity often leads to an inertial rally. If the inertial rally isn’t overly exaggerated, you can easily take profits leveraging the popularity. If the popularity, combined with high recognition, leads to a smooth upgrade, it can form a pattern.

On Wednesday, there was also a focus on Aerospace Development, which combined historical stock traits and leadership, meaning it usually has a premium the next day after hitting the limit-up. This is a form of historical leader arbitrage.

This Friday, I newly focused on the tech application material—rare metals—which also involves uniqueness. I won’t discuss the logic now; I will share it with everyone next week.

The rhythm isn’t difficult; what’s hard is how to grasp uniqueness, popularity, breakthroughs, separation, and counter-human nature. I have shared all these practical logics, and each of my trades is based on a systematic approach. I hope today’s sharing can bring everyone a new breakthrough.

Next week’s rhythm control:

Currently, sectors that remain strong, combined with weekend news, are expected to continue upward. Therefore, the Monday divergence still presents opportunities for a pullback during the upward trend. Also, sector separation can be repeatedly watched.

In the first week after the holiday, in a relatively challenging market, we maintained a good rhythm. I believe the second week will be even better. Wishing all new and old friends continued success next week!