3.2 Post-Implementation Review Strategy

March 2 Review and Future Strategy [Taogu Ba]

1. Today, the ten-day doubling stocks, Yunnan Energy Holdings, experienced divergence. I mentioned before the market opened yesterday that significant divergence below is an opportunity. A -4 dip to buy in with 30% of the position, with CITIC Publishing and Wangsu Technology weakening. Focus on Yunnan Energy Holdings as the main idea. During market sentiment divergence, this divergence is likely to become unified. The previous move was just a preliminary step. Will the next stock that turns unified be on the main board or the STAR Market? Or will we watch and see as it develops?
2. Last Friday, among the top 30 stocks with the highest 50-day gains, Sains, CITIC Publishing, and Oulais New Materials stood out. Today, divergence appeared again. The stronger stocks, such as Tongyuan Petroleum, are very strong. Therefore, new stocks with high recognition are being suppressed by space.
3. Sector direction: Yesterday, before the market opened, I prepared to focus on sectors shifting from weak to strong, especially gold, military industry, and oil & gas. Today, oil & gas opened strongly. After several stocks hit the limit-up with one-word boards and then declined, they rebounded during the trading session, supported by funds. Core stocks include Tongyuan Petroleum, Intercontinental Oil & Gas, and 30cm Keli Shares hitting the limit-up. The gold sector was also supported by funds in the afternoon, with core stocks like Hunan Gold hitting the 20cm limit-up, and Xiaocheng Technology hitting the limit-up in the afternoon.
   On the board, Hunan Gold gained 30%.
   The chemical sector continued weak, and metals, which were strong yesterday, also shifted from strong to weak today.

Future Strategy

1. Yunnan Energy Holdings, a previously recognized stock, showed weakness. Tomorrow, observe whether it continues to shift from weak to strong or is replaced by other recognized stocks like Tongyuan Petroleum, Minbao Optoelectronics. Currently, Tongyuan Petroleum is the most active; monitor if it continues its strength tomorrow. It’s also possible that a new recognized stock will replace it, based on intraday activity as an anchor point.
2. If your holdings are passive followers, then switch from weak to strong stocks, sell weak stocks, and hold strong ones, taking advantage of market sentiment to sell.
3. Theme direction: Today, oil & gas and gold shifted from weak to strong. Missed the best opportunity to participate in core stocks. Consider exiting on arbitrage and following the funds toward core stocks, such as the oil & gas sector with Intercontinental Oil & Gas and Tongyuan Petroleum, and the gold sector with Hunan Gold and Xiaocheng Technology.
4. If funds exit from oil & gas or gold, which sector will they move into? Observe other sectors where funds are supporting a shift from weak to strong.