[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 will share the entire rhythm and logic of this transition with everyone for mutual progress. Friends who want to learn can pay more attention. [Taogu Ba]

1. Breakthrough Logic of Continuous Limit-ups

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

This trade may seem risky at first glance, but it’s actually quite safe. Because previously, around five consecutive limit-ups often led to a stall the next day, creating a habitual thinking pattern—whether this stock will also stall the next day or if it will lack premium after hitting the limit-up. The core logic here is the combination of “breaking through” and “against human nature.”

On Wednesday this week, Yunnan Energy Holdings experienced a volume-driven five-limit-up. I was considering entering near the end of the day, but I waited to see if it could weaken and then turn strong the next day. That evening, I also focused on the stock’s uniqueness—whether it would have strong support the next day. The next morning, it opened with a limit-down during the bidding phase, but by the close, it showed a volume-driven high open, indicating a weak-to-strong shift. This was a typical “breakthrough” move, and most people wouldn’t dare to buy it because they feared a follow-up decline. However, 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 also an opportunity for a divergence in the opening band. I decisively used the “breakthrough” six-limit-up plus “against human nature” approach to focus on it.

The next day, as expected, it opened with high volume, quickly hit the limit-up, and continued to rise. Using a cautious approach, I reduced some positions appropriately. Overall, paying attention to this “against human nature” breakthrough was quite effective.

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, but it 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 point of the Tuesday’s bearish candle, which is the focus. On Wednesday, the stock showed a small bullish reversal, and on Thursday, it formed a breakout through Tuesday’s unexpected bearish candle, which is the confirmation point. We paid close attention around this level. Afterward, it quickly hit the limit-up again and rose sharply 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, served as the mid-term confirmation.

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

The logic for taking profits and taking off on Friday is that, although the opening was below expectations, the stock still had enough popularity. You can leverage this inertia to wait for a rise and then exit.

3. Sector Decoupling and Reversal Logic

This Tuesday, I low-bought and focused on Fengyu Zhu; the next day, it rose 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 daily limit before the holiday, and after opening with a volume-driven high open, it exemplified the sector decoupling approach—low buying against the trend. The stock also previously showed a reversal initiation pattern. Combining this with my three-day trading principle, the next-day reversal plus sector decoupling still indicates a low-buying opportunity. Sure enough, it advanced again in the afternoon with a reverse trend and hit the limit-up. After the close, it gained strong popularity.

The next day, although it opened lower, it didn’t break support, so it still followed the inertia of popularity, with a big upward turn during the session, gradually taking profits. Looking back, profits were taken at a relatively high point.

The logic behind these three stocks is their uniqueness—only with uniqueness can there be next-day premium. This is one of the core aspects of short-term rhythm control. Only when focusing on uniqueness can there be high popularity on the same day, and behind high popularity, there’s usually an inertial lift. If this inertial lift isn’t overly unexpected, it can be easily captured by taking profits. If the popularity and high recognition lead to a successful breakout, it can form a pattern.

On Wednesday, there was also a focus on Aerospace Development, which combined historical stock behavior and leading stocks—after hitting the board, they typically have a premium the next day. This is a form of historical leader arbitrage.

This Friday, I added a new focus on the tech application material—rare metals—another form of uniqueness. I won’t discuss the logic now; I’ll share it with everyone next week.

The rhythm isn’t difficult; what’s hard is how to grasp the uniqueness, popularity, breakthroughs, decoupling, and against human nature. I’ve shared these practical logics before. Every trading decision I make is based on a system and well-founded. 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 offers opportunities for a pullback during the upward trend. Also, keep paying attention to sector decoupling opportunities.

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