[Red Envelope] 2026.3.23 Review: A-Shares Break Through Two Levels, Where Is the Bottom?

Like and support, continuous gains; Keep asking questions, long-term benefits! Hello everyone, I am Wan Gu Zhang Qing. [Taogu Ba]

1. Price Competition Analysis

The stock market day begins with the opening auction. Today’s auction had no highlights, not even a large order over 1 billion yuan, clearly indicating panic among funds, all rushing to exit. Only Zhongli Group, which led the auction, served as a guide, focusing on photovoltaics, but my formulas don’t have a corresponding target, showing that funds are not very confident. Although photovoltaics still showed some fermentation later, the level was too weak, not worth acting on.

The second place in the auction, Dashianda, saw a significant reduction in buy orders. Those familiar with Shaoneng knew to hit the pause button early; for example, earlier, Shaoneng was very strong, but today it showed no premium at all, indicating a lack of broader perspective. Made a quick profit and left.

The third is Xuelang Environment, with buy orders exceeding 500 million and adding a single-character order, which could be a guide in theory. But upon opening, it’s clear this is a merger and restructuring deal. With this expectation, the buy orders are insufficient; there’s nothing surprising. Restructuring stocks need massive buy orders to form a guide; otherwise, whether other funds recognize it or not is uncertain.

2. Continuous Board Ladder

Six Boards
HuaDian Liaoning Power, a power attribute stock, showed weakness turning to strength in the auction. Although not yet 200 million, it surged again later, so I still bought into it. I’ve been optimistic about its breakout earlier, and today it didn’t disappoint. The only flaw is its lack of momentum; not many followers joined on the upward move, possibly because HuaDian Energy is waiting for a trigger.

Four Boards
Dashianda, merger and restructuring. Stocks that rise on a single-character foundation can be traded after opening and re-accumulating, but this one was broken down, so it’s no longer viable. Moreover, Shaoneng, which also built on a single-character foundation, didn’t show any premium after opening and re-accumulating. Is there still a reason to trade it? If it weakens tomorrow and turns strong, I might be fooled again.

Three Boards
Dongfang Xinneng, power attribute, a low-priced stock with a second wave of movement. But there are already some players above, and mid-cap stocks are awkward with no relay value.

Two Boards
Zhengtai Power, power attribute, another stock in today’s auction. Considering high-low fund switching and the possibility of Huadian’s rebound, but its ability to withstand pressure looks weak. If it doesn’t show strength in tomorrow’s auction, I won’t hold it.
Zhongli Group, merger and restructuring plus photovoltaics. Today’s auction guide fermented into two limit-ups by close, but the fermentation was minimal, and the volume lock-in was weak. It’s likely to open for re-accumulation tomorrow.

First Board
Mainly considering that today’s first board might be followed by Huadian’s rebound, so I picked a few favorites. Even if it’s not a rebound, in current conditions, going for a one-two move is relatively safe.
Liaoning Energy, coal plus power, with the “power” character and Northeast focus, could be a rebound for Huadian. Tomorrow’s auction needs to show attitude.
Li New Energy, power attribute, second wave movement. This pattern has been popular recently; everyone should pay attention. The “power” character plus electricity is promising, but today’s performance was poor. Needs correction tomorrow.

3. Trend Analysis
   Currently, the trend is downward, with no sign of profit-making effects. Given the index’s decline, expecting trend stocks to reverse is too optimistic. The trend direction should wait until the index stops falling before reassessing.

4. Market Summary
   First, from the index perspective, I suggested in the morning that after breaking the 3983 gap, the next support was the psychological level at 3900 points. But it broke shortly after opening, then the next technical support was 3815, which was also broken in the afternoon. The next support was the psychological 3800 level, which was also broken quickly. Today, I was almost too slow to find support levels before the big A broke support.

When the index hit 3800, it rebounded immediately, indicating that 3800 is a strong support level—at least today. Whether it can hold tomorrow remains to be seen. Volume today was less than 200 billion, which is quite insufficient, not resembling a bottoming out with large funds entering. From this, outside funds probably believe the big A has not bottomed yet and still has room to fall; otherwise, the volume wouldn’t stay low.

It’s unlikely that the index has fallen so much without panic selling. If that were the case, retail investors’ psychology would be too resilient. Unless you are completely out of the market, most traders would feel some panic. This morning, I bought HuaDian Liaoning Power and Zhengtai Power, which were fine in the morning. But in the afternoon, as the index plunged, Zhengtai Power was hit hard, making me a bit nervous. I consider myself experienced and mentally strong, so I doubt anyone inside is calmer than me.

From the theme perspective, power stocks remain the strongest. Today, most of the stocks still charging against the trend are power-related. If the environment were different, it would have already exploded. But now, it’s okay—no big surges, but they don’t die either, always have something to play with. My current holdings are all in this sector. This theme should last a long time; continuous rebound leaders keep emerging, and there’s no sign of ending. It’s undoubtedly the main line—stick with it.

Today, the robotics concept showed some movement, mainly due to YuShu Technology’s listing. No clear sustainability. Photovoltaic theme was guided by Zhongli in the auction, with a few limit-ups later, but no strong expectations. Other scattered themes also had some limit-ups, mostly one-day plays. To act, you need to see attitude in tomorrow’s auction and a guide to follow.

My trading today: in the morning, I bought Shaoneng Shares in the auction, then bought HuaDian Liaoning Power and Zhengtai Energy on the rebound. Later, I sold YuNeng Holdings at a high, both profitable trades. No issues there. But I missed low buying in YuNeng Holdings this morning—an oversight. My strategy was to buy low and sell high, but I got too busy today and overlooked it. Focus is crucial. Last Friday, I held two stocks, and today I opened two more. It’s a bit much to handle.

Therefore, I suggest short-term holdings not exceed three stocks. The golden time for short-term trading is the first five minutes after the auction opens. After that, there’s no need to chase other stocks. Managing positions and opening new ones in that short window is already tight. Holding more than three stocks short-term often leads to impulsive buying. Usually, I only hold one or two stocks, sometimes adjusting during high-low trades. I always discuss position management in my morning notes—pay attention.

I share my trades daily and provide real-time market insights, hoping to inspire everyone. If interested, follow me for updates.

5. Daily Must-See
   If you’re interested in my trading system or have questions, check out these six posts. The formulas, trading system, and basic answers are all there!

[Red Envelope] Dry Goods Post 16, Discussing the Suitability of Cash and Trading Modes https://www.tgb.cn/a/2ql81CLwIBn

[Red Envelope] Dry Goods Post 15, Quantitative Trading System: Quantitative Strategies https://www.tgb.cn/a/2q9pLRC7uQN

[Red Envelope] Dry Goods Post 13, The Path of Seeking the Way https://www.tgb.cn/a/2pAw5lNyIZN

[Red Envelope] Dry Goods Post 11, Collection Auction Trading System (Updated) https://www.tgb.cn/a/2pdneR1ZAWK

[Red Envelope] Dry Goods Post 10, Software Trading System, Little Known https://www.tgb.cn/a/2p1TNOTUWWS

Dry Goods Post 8, Collection Auction System and Market Issues https://www.tgb.cn/a/2oKcAK2QOMi

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