March 24 Pre-Market Core Strategy

1 Market Cycle and Reversal Judgment [Taogu Ba]

1.1 Current Adjustment Situation
(1) The correction cycle since the market opened at 4197.23 points is still ongoing. Most rebounds are repairs during a decline, with a high probability of making new lows after rebounds.
(2) The total decline in this round is about 400 points. Short-term risks have been somewhat alleviated, and a phase bottom is likely to occur this week.
(3) The daily 3-4 week adjustment cycle predicted on March 3 is nearing its end. Caution is advised when the market rebounds and pushes higher.

1.2 Key Timing for Market Reversal
(1) March 24 (Tuesday) is the market reversal day.
(2) Rebounds in external markets have a positive influence on the next day’s market trend.

2 Key Parameters and Trend Forecast for Today’s Market

2.1 Core Levels and Volume Requirements
(1) Resistance level: 3899 points, needs to be broken with volume, with a red opening before 10 am and volume exceeding 100 billion early in the session.
(2) Support level: 3756 points, a valid break below reduces the probability of a positive close, and may lead to divergence and retests.
(3) Volume standard: For a repair rally, trading volume should exceed 100 billion; shrinking volume during a rebound may lead to a quick rise and fall, so observe Wednesday’s volume recovery.

2.2 Response Logic for Different Trends
(1) If the market closes down on March 24: focus on opportunities for quick positions after sharp declines.
(2) If the market closes up on March 24: wait for a better timing around Wednesday or Thursday.
(3) Shrinking volume and breaking support: market likely to weaken with divergence, funds tend to cluster in high-recognition stocks.

3 Core Principles for Market Operations

3.1 Overall Trading Approach
(1) Cycle positioning: currently in a sharp decline and bottoming phase, a complex and repetitive process, mainly using arbitrage strategies.
(2) Positioning and rhythm: participate in intraday rebounds, implement quick in and out strategies, avoid holding onto positions for too long.
(3) Stock selection logic: focus on high-recognition stocks during shrinking volume markets, de-emphasize sector effects; when volume supports, consider sector and miscellaneous targets.

3.2 Different Trader Strategies
(1) Swing traders
① Focus on low-buy opportunities after sharp declines on March 24, with more attention to downward trend lines.
② Wait until clear signs of market strengthening and full risk release before increasing positions.
(2) Short-term traders
① Watch for stocks hitting limit-up against the trend after sharp declines, prioritize early session surges.
② Prefer stocks with unexpected first-limit hits resonating with the index’s recovery, focusing on high popularity and recognition.

3.3 Market Characteristics
(1) Trading volume below 25 trillion indicates a “fan” market, using contrarian trading strategies.
(2) For adjusting sectors, look for opportunities in the next day’s unexpected first-limit rebounds; avoid sectors that surge and then follow through the next day.
(3) When the market hasn’t fallen through support, sector rebounds are often sell signals. The market mainly revolves around individual stocks, with weak sector continuity.

4 Key Sector and Target Observation Criteria

4.1 Conditions for Return of Computing Power Sector
(1) Shunhao Shares (computing + aerospace): complete a 1-in-2 upgrade within 20 minutes.
(2) Shaoneng Shares, Meili Yun: rebound and hit limit-up within 10 minutes, with 1-5 minutes being optimal.
(3) Jinkai New Energy, GCL New Energy: one of the two, rebound and hit limit-up within 10 minutes, with 1-5 minutes being optimal.
(4) China Energy Construction: red volume before 10 am with oscillation, no additional decline allowed.

4.2 Power Sector Observation Points
(1) Core continuous limit-up stocks:
① Huaneng Liaoning Power: weak to strong with shrinking volume within 10 minutes, upgraded to 7 boards, referencing Yunnan Energy Holdings’ 5-in-6 pattern, no additional decline.
② Dongfang New Energy, Liaoning Energy, Lianxin New Energy: monitor simultaneously, as additional declines may drag down core stocks.
(2) Alternative directions:
① When the continuous limit-up weakens, focus on N-shaped rebound limit-ups.
② Low-position opportunities mainly in first-limit stocks, with low upgrade rates and poor risk-reward ratios.
(3) Central stocks: China Energy Construction oscillates in red before 10 am, providing a market support role.