[Red Envelope] How to Keep Up with Market Changes and Seize the Trend Smoothly Share Brilliant Ideas and Insights

Human Nature on the Path to Consistent Profits [Taogu Ba]
Most retail investors constantly switch between stocks in their watchlist every day,
Chasing the peak to sell at the top, the bottom to buy the dip,
Everyone should not pursue perfect entry points, as this increases your gambling tendency,
And in the market, the worst thing is gambling instinct,
This will cause you to miss many entry and exit opportunities,
Resulting in profit retracement, increased costs, and emotional imbalance.

There are many news items over the weekend, with important market-impacting information such as:

1. The People’s Bank of China, CSRC, and other five departments respond to China’s economic hot topics;
   PBOC Governor Pan Gongsheng said that in 2026, the central bank will implement a moderately relaxed monetary policy, flexibly and efficiently using tools like reserve ratio cuts and interest rate cuts, leveraging both incremental and stock policies, and integrating monetary and fiscal policies to create a favorable monetary and financial environment for a good start to the “14th Five-Year Plan.”

2. China’s central bank has increased gold holdings for the 16th consecutive month;
   Data shows that at the end of February, gold reserves were 74.22 million ounces, an increase of 30,000 ounces from the previous month’s 74.19 million ounces, marking the 16th month of continuous gold accumulation.

3. CSRC releases “Several Regulations on Short-term Trading Supervision”;

On the afternoon of March 6, at the Fourth Session of the 14th National People’s Congress, during the economic press conference, CSRC Chairman Wu Qing stated that recent reforms to the ChiNext Board will highlight its functional positioning, expand system inclusiveness and coverage, and establish a more precise and inclusive listing standard to support the development of new industries, new business models, and new technology enterprises. It will also support high-quality innovative and entrepreneurial companies in new consumption and modern service industries to list on the ChiNext.
To implement the short-term trading supervision system stipulated in the Securities Law and facilitate long-term capital market entry, the CSRC issued “Several Regulations on Short-term Trading Supervision,” effective from April 7, 2026. The regulations, based on a systematic review of domestic and international legislation, judicial, and regulatory practices, respond to market concerns and further clarify supervision arrangements for major shareholders and senior management’s short-term trading.

4. Iran’s president states unconditional no-surrender, apologizes to neighboring countries;
   On March 7, local time, Iran’s President Ebrahim Raisi delivered a speech calling for national unity to defend Iran and stated that Iran cannot surrender unconditionally. He apologized to neighboring countries and said that the temporary leadership committee approved on the 6th that Iran will no longer attack or launch missiles at neighboring countries unless they first attack Iran.

5. International news: global oil prices rise over 12%; U.S. February non-farm employment unexpectedly shows “negative growth.”
   On March 6, the three major U.S. stock indices closed lower across the board. The Dow Jones Industrial Average fell 453.19 points to 47,501.55, down 0.95%, with a weekly decline of 3.01%; the S&P 500 dropped 90.69 points to 6,740.02, down 1.33%, weekly down 2.02%; the Nasdaq Composite declined 361.31 points to 22,387.68, down 1.59%, weekly down 1.24%.

6. AI “Lobster Farming” becomes popular! Several A-share companies respond to related business links; officials previously warned of safety risks.
   Recently, the open-source AI agent OpenClaw has gained popularity. Since its icon features a lobster, netizens call training OpenClaw “lobster farming.” Public information shows that OpenClaw (formerly Clawdbot, Moltbot) is an open-source AI agent that integrates multi-channel communication capabilities with large language models to build customized AI assistants with persistent memory and proactive execution, deployable locally.

The most market-impacting development is the escalation of Middle East conflicts, which is currently intensifying rather than easing. After international oil prices rose, expectations for a recovery in the oil and gas sector on Monday are strong. Additionally, the US-Iran situation is likely to remain deadlocked in the short term, with no substantial impact from missile exchanges unless ground troops or regional proxies are involved, which could escalate the conflict. The most critical factor is the Strait of Hormuz blockade; if the situation remains deadlocked, the blockade by the US and Europe is likely to continue. Moreover, Iran’s top leader has been selected, but the specific person has not been announced, adding uncertainty to the conflict’s duration. Even without a leader, Iran remains resilient; with a leader, full-scale resistance is likely to begin. Overall, the oil and gas sector is expected to remain active with news fluctuations. Active does not mean a main rally! Do not chase the highs! Focus only on core stocks in key sectors! Expect rotation in oil, gas, chemicals, and fertilizers, with a principle of buy low, sell high. When news eases, buy low after a two-day decline; when tensions escalate, sell high after a two-day rise. Keep a close eye on international crude oil trends, as they reflect international capital attitudes toward Iran. As long as crude oil remains in an upward trend, there are opportunities; watch the big bearish candle in gold as a potential end signal.

Market Trend Analysis
Western markets continued to decline on Friday, while our market showed a pattern of first suppressing then rebounding this week, with a weekly decrease of 1%. The ChiNext and Shenzhen Composite indices fell about 2.5%, and formed a directional line, which can be seen as a bottoming rebound or a consolidation in a downtrend. The main influence is external turmoil; analyzing Korea’s stock market, which performed best this year, it’s hard for any country’s stock market to be unaffected by external events, and we are no exception.
However, due to active cooling in January, this level can be considered an early adjustment, with the index having some hedge against weightings, so its significance is limited. More importantly, hot sectors have already corrected over 20%, providing short-term support. Technically, the oversold zone is helpful for support, so as long as trading volume does not fall below 20 trillion yuan for consecutive days, the market is likely to oscillate downward seeking support. Due to the uncertainty of Iran’s situation, the trend is difficult to reverse in the short term.
Monday and Tuesday’s consecutive 30 trillion yuan trading volumes indicate a short-term top signal, with new trapped positions forming. Besides electric power stocks reaching new highs, sectors like petrochemicals and oil & gas show high-position trapped positions. To recover, either major positive news or easing of conflicts is needed; otherwise, funds will gradually seek support step by step. The 4,000-point level is the ultimate support; if broken, the spring market may be over. Since 4,000 points was the previous top pressure, it now acts as support. Breaking below requires finding the previous resistance at 3,800–3,850 points, which corresponds to about 10% of the index’s fluctuation, and at the stock level, at least 20% decline. Avoiding this is best.
Of course, if there is no ground conflict between the US and Iran, it’s unlikely to reach that level, as seen in the Russia-Ukraine conflict, where the entire world declined, and A-shares have never been absent from the decline!
Overall, the view is cautious but not bearish; local sector opportunities still exist. Capital is profit-driven, so sectors like electronic computing and the recently fermented lobster theme are promising. The market is not for broad-based gains; the principle of “10 stocks rise, 7 fall, 2 flat, 1 profit” remains dominant. Timing is key—buy low, sell high. Last week’s well-timed actions proved effective. Here’s a brief analysis of the approach.

This Week’s Strategy Is Good
Monday: Yuntianhua exited via bidding, Hongjing Technology took profits at high levels, and in the afternoon, bought low in Shiyun.
Friday: In the late session, the Iran-US conflict line saw Yuntianhua’s high-volume breakout, institutional stocks surged with big gains, likely to continue upward, consistent with conflict escalation and price rise logic. Over the weekend, the conflict indeed escalated. Ideally, leading stocks would break through strongly and open high, but the opening did not show large orders guiding the move; instead, buying only appeared after 20 minutes, indicating a lack of strong upward momentum, suggesting regulatory pressure on conflict-related speculation. As a result, the stock was taken off the list. Looking back, the opening price was the highest this week, confirming the strategy. When expectations are not met, decisiveness is key—no hope, just action.
Is the chemical sector finished? I believe not, because once a trend forms, the 20-day moving average is the key signal for whether speculation ends. Currently, there’s no retest of the 20-day line, so the trend remains. As long as the conflict persists, the chemical sector will continue to be a buying point on dips, with weekly signals of one positive and one negative, pushing forward.

Second, Hongjing Technology’s high point remains at recent highs. The idea is: last Friday, the overall computing power sector strengthened against the trend, with Capital Online breaking new highs but lacking large orders, forming a double top at 38.38. It then retreated in the afternoon. Starting at 2 pm, Hongjing Technology actively strengthened, trying to attract capital back to computing power, but its influence was limited, serving only as a pioneer. Meanwhile, the oil sector began to ferment, but failed to ignite, retreating. However, late in the session, funds re-entered, aiming for a weak-to-strong transition on Monday, with the conflict escalating over the weekend, putting pressure on tech stocks. The computing power sector’s recovery is unlikely in the short term, but short-term funds still want to continue the rebound. The opening of Capital Online was a low open and high close, indicating continued interest, but after a red surge, it did not continue to volume up. Hongjing’s sharp pulse after opening and subsequent retreat suggest the take-off point has appeared. If it can lead Capital Online or other recognizable stocks like Huasheng, then it’s a buy signal. Technicals support this, and both trades today aligned with the pattern, boosting confidence for the week.

Tuesday: After opening, sold off Capital Online, bought low in Shiyun, hedging the market.
Today’s sharp decline was unexpected, but yesterday’s low buy in Shiyun showed a small gap-up followed by a sharp drop, a sign of weakness. When the market opened green, it was sold. I also shared that market weakness might bring risks. The intra-day limit-down was a close call, but avoided a bigger loss. Monday’s strength did not match market weakness, and since today is Lantern Festival, a recurring pattern is: holidays tend to cool down the market. Since last year’s September 3rd anti-fascist rally and big drop, then pre-National Day decline, and the Spring Festival drop, this Lantern Festival is no exception. Next could be Qingming or other holidays—better to be conservative then. But strong sectors and leaders’ pullbacks are still good entry points. Buying the intraday low in Capital Online on Friday was a technical move, with double bottom support, focusing on dips. Small profits were made intraday, avoiding the Tuesday’s 4800 drop and Iran missile risks.

A small note: Recently, stocks with big bullish candles tend to correct about three days, which is a good entry point for low buying. Many stocks have subsequently reached new highs. Sharing this pattern again helps early learners, and even those in the public area can benefit. Better late than never.

The recent rhythm is: chasing highs blindly is risky; after confirmation of a big rally, a pullback is a good low entry. This improves fault tolerance and holding mentality, reducing the risk of being shaken out by market manipulations. This is the trend-driven rhythm of institutions. The reason why Brother Zhou’s rhythm has been smooth lately is because he adjusted strategies timely, actively responding to market changes. Keep learning, stay flexible. The stock market is ever-changing; each phase has its rhythm. Sticking to one pattern only leads to more losses. Short-term sentiment has clearly shifted. What we need is to adapt to the market because the market is always right.

Wednesday: Morning high point pullback, sold off Capital Online, focus on Dongfang Electric,
This week’s rhythm is here: buy low in profitable stocks like Capital Online despite a -3% gap-down, stay calm. The market opened high, then quickly surged, but the pattern from Monday is familiar. After a second surge, the intra-day high was reached, then sold off, so I sold. The high was a good exit point, and the day was a recovery node. Now, look for stronger sectors; China Xidian opened high and moved strongly, signaling sector strength. The previous day’s big decline in Dongfang Electric was followed by a quick recovery, confirming the shift from weak to strong, so I bought in. The intra-day hit the limit but retreated; in the afternoon, it again surged to hit the daily limit, closing around 9%, showing strength. The evening review mentioned that integrated electric power might become the main theme in March.

Thursday: Pattern of Dongfang Electric’s first limit-up, focus on phased gains in Jianan Intelligent, and late-day attention to Capital Online.
Dongfang Electric opened high and surged, no need to act, just wait for the next limit-up. It was the first electric power stock to hit the limit-up today, even earlier than China Xidian, laying the foundation for the next day’s premium. The Wednesday pattern of gas turbines was validated: Zhenhua Shares hit the board, Jereh surged strongly, and new concept Jianan Intelligent, combined with smart grid, was low at dips, with high volume, a typical bottom-fishing move.

Friday: Morning high point sold off Dongfang Electric, comfortably; chased Zongshen Power mid-way, another limit-up; low buy in Jianan Intelligent at the bottom, reducing costs, still optimistic about electric power and smart grid sectors, with Capital Online still in the pattern.
Jianan Intelligent opened low and dropped, but near the 5-day moving average, increased attention. The new concept was already quantified, but the market still has good expectations for smart economy, combined with the grid. Large funds bottom-fished near the 5-day line, quickly pushed prices higher, and at high levels, took profits, completing a big T pattern, skipping the cost line. This confirms that after a big bullish candle, pullbacks are good entry points. Don’t panic—stay calm, sell high, buy low. Dongfang Electric only opened below 2%, even worse than China Xidian, indicating the main force wanted to shake at high levels. The previous day’s low volume suggests the main players intended to oscillate at high. The opening surge to around 8% was a good exit point. The reason for selling off is explained in my main post: don’t aim for perfect operations, just follow the pattern, reduce greed. Nearly two boards in three days is enough. In such a market, after selling off, I noticed Zongshen Power, a long-term low-altitude economy leader, moved up strongly, hit the limit, then retreated to the moving average, and I quickly focused on it. Why? Because I saw that Iran’s drone engines are supplied by Zongshen—this is a small story, but funds don’t verify results; the more vague, the more speculation. If it’s about low-altitude economy, the leader should be Wanfeng Ao Wei, which is clearly related to drone engines—this is a key theme of the conflict supply chain: military supplies, material support, post-war reconstruction. Trust early, and the feedback is decent. The weekend’s hype is promising, with expectations for a surge next week.

Summary: The rhythm is good overall. Chasing highs blindly is risky; confirming a big rally and then pulling back for low entry improves fault tolerance and reduces the risk of shakeouts. This is the trend of institutional momentum. The reason Brother Zhou’s rhythm remains smooth is because he adjusts strategies timely, actively responds to market changes, and keeps learning. The stock market is constantly changing; each phase has its rhythm. Sticking to one pattern only leads to more losses. Short-term sentiment has shifted clearly. What we should do is adapt to the market because the market is always right.

Thursday: Morning high point pullback, sold off Capital Online, focus on Dongfang Electric,
This week’s rhythm is here: buy low in profitable stocks like Capital Online despite a -3% gap-down, stay calm. The market opened high, then quickly surged, but the pattern from Monday is familiar. After a second surge, the intra-day high was reached, then sold off, so I sold. The high was a good exit point, and the day was a recovery node. Now, look for stronger sectors; China Xidian opened high and moved strongly, signaling sector strength. The previous day’s big decline in Dongfang Electric was followed by a quick recovery, confirming the shift from weak to strong, so I bought in. The intra-day hit the limit but retreated; in the afternoon, it again surged to hit the daily limit, closing around 9%, showing strength. The evening review mentioned that integrated electric power might become the main theme in March.

Thursday: Pattern of Dongfang Electric’s first limit-up, focus on phased gains in Jianan Intelligent, and late-day attention to Capital Online.
Dongfang Electric opened high and surged, no need to act, just wait for the next limit-up. It was the first electric power stock to hit the limit-up today, even earlier than China Xidian, laying the foundation for the next day’s premium. The Wednesday pattern of gas turbines was validated: Zhenhua Shares hit the board, Jereh surged strongly, and new concept Jianan Intelligent, combined with smart grid, was low at dips, with high volume, a typical bottom-fishing move.

Friday: Morning high point sold off Dongfang Electric, comfortably; chased Zongshen Power mid-way, another limit-up; low buy in Jianan Intelligent at the bottom, reducing costs, still optimistic about electric power and smart grid sectors, with Capital Online still in the pattern.
Jianan Intelligent opened low and dropped, but near the 5-day moving average, increased attention. The new concept was already quantified, but the market still has good expectations for smart economy, combined with the grid. Large funds bottom-fished near the 5-day line, quickly pushed prices higher, and at high levels, took profits, completing a big T pattern, skipping the cost line. This confirms that after a big bullish candle, pullbacks are good entry points. Don’t panic—stay calm, sell high, buy low. Dongfang Electric only opened below 2%, even worse than China Xidian, indicating the main force wanted to shake at high levels. The previous day’s low volume suggests the main players intended to oscillate at high. The opening surge to around 8% was a good exit point. The reason for selling off is explained in my main post: don’t aim for perfect operations, just follow the pattern, reduce greed. Nearly two boards in three days is enough. In such a market, after selling off, I noticed Zongshen Power, a long-term low-altitude economy leader, moved up strongly, hit the limit, then retreated to the moving average, and I quickly focused on it. Why? Because I saw that Iran’s drone engines are supplied by Zongshen—this is a small story, but funds don’t verify results; the more vague, the more speculation. If it’s about low-altitude economy, the leader should be Wanfeng Ao Wei, which is clearly related to drone engines—this is a key theme of the conflict supply chain: military supplies, material support, post-war reconstruction. Trust early, and the feedback is decent. The weekend’s hype is promising, with expectations for a surge next week.

Summary: The rhythm is good overall. Chasing highs blindly is risky; confirming a big rally and then pulling back for low entry improves fault tolerance and reduces the risk of shakeouts. This is the trend of institutional momentum. The reason Brother Zhou’s rhythm remains smooth is because he adjusts strategies timely, actively responds to market changes, and keeps learning. The stock market is constantly changing; each phase has its rhythm. Sticking to one pattern only leads to more losses. Short-term sentiment has shifted clearly. What we should do is to adapt to the market because the market is always right.