3.1 Pre-market Strategy: Strategic Resources - Open Long Positions on Jinzhengda, Reverse T on Huasheng Tiancheng

1. Strategy Review [Taogu Ba]

Today’s operations:

1. Huasheng Tiancheng Anti-T: In the morning, Huawei Ascend performed strongly across the board. I initially thought it would be a sector rally, but overall it was quite weak. Sold off and exited with a small position at the end of the session according to discipline.
2. Jinzengda Breakout: The ongoing trend since 20240224 shows Jinzengda as the only active stock in the phosphates chemical sector that continues to break out.

2. Follow-up Direction
Energy cycle is on its fourth day. Market sentiment has entered the upper band area, and it’s expected to turn downward around Wednesday.

Seven-break stocks:
Yuneng Holdings: The hero that opened the space for consecutive breakouts. A gentle trend after a pause is the most ideal. If, due to an expected suspension warning, the stock drops sharply to hit the limit down, turning the hero into a bear, it could cause the entire energy cycle to collapse.

Four-break stocks (Key nodes: Zhanyue Technology break, sentiment bottoming with positive candle, first day after Spring Festival):
Jinzengda: Holding position, no comment.

Three-break stocks:
Gannan Energy: Under the premise of Yuneng Holdings’ gentle pause, power sector’s rebound is more suitable at lower levels rather than mid-range.
Zhangyuan Tungsten: The strongest sector on Friday was metals, boosted by Imei war news, with expected large orders.
Hongxing Shares: An unbearable burden for ordinary investors.

Two-break stocks (Yuneng Holdings breakthrough node):
All targets in the two-break list depend on Yuneng Holdings not hitting the limit down.
Taijia Shares: Pioneer in Huawei Ascend line, unfortunately, despite a good environment on Friday, Tuo Wei and Huasheng didn’t lift the sector. Watch for volume divergence and poor performance.
Changyuan Donggu: A potential active stock in the gas turbine sector, also needs to pass divergence tests.
Beijing Kerui, Huayin Electric Power, Shama Electric Power: As long as Yuneng Holdings gently pauses, there will be rebound opportunities in the power sector, mainly competing with first-tier stocks like Nanjing Power and Jinkai New Energy. The sector outlook is highly divergent, so patience is needed to wait for volume to identify low-level active stocks.

Summary: Let’s look at the pre-market strategy.
(The follow-up direction is a preliminary idea; final execution depends on pre-market strategies.)

The stock market is like a martial arts world; you need to find stocks with a strong position in the market and operate accordingly. Focus on market status and popularity recognition. For energy source players, gaining market recognition and popularity of妖股 (monster stocks) that can generate profits is already enough.

Sharing generously is a virtue. I hope to broaden horizons and elevate thinking, and grow wisdom and style together with everyone. On the road to wealth, common prosperity is the way.
Pre-market strategy: Remember to subscribe to Yi Yi Notes! I will update strategies in the Taogu Ba comment section before the market opens.
$Jinzengda(sz002470)$ $Huasheng Tiancheng(sh600410)$

Disclaimer: The logic in this article is for personal review and stock market diary only, not any securities consultation or recommendation. The stocks involved are not recommendations. The views are for reference only and not to be used as a basis for buying or selling. Trade at your own risk. The market carries risks; invest cautiously.