[Red Envelope] 2026.3.24 Review: Large A Volume Contraction with Large Yang - Rebound or Reversal?

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 truly did not meet expectations. Normally, today should be a day for recovery after the clear signals, but surprisingly, there was little capital supporting the auction, which is very unusual. No wonder the index’s subsequent movement was so choppy, with heavy volume reduction. Today’s top bid was still China Li Group, which should have been turning over today, but it still opened with a straight line, somewhat beyond expectations, guided by the photovoltaic sector. The second was Xinneng Taishan, a newly added first-board stock, also a guide, related to power. However, the later power rebound was mostly due to strong performance from Huadian Liaoning Energy. Afterwards, there were no orders exceeding 500 million, so further analysis is unnecessary.

2. Continuous Board Tiers

Seven Boards
Huadian Liaoning Energy, power attribute. This wave’s power leader, added to the board today after yesterday’s breakout. I value its fearless attitude. The leader should challenge anomalies; fear of anomalies means it’s not a leader. Only leaders can open heights for the market.

Three Boards
China Li Group, photovoltaic plus M&A restructuring. No breakouts or turnover today, slightly beyond expectations. Photovoltaic sector fermented today; theoretically, the order book should increase tomorrow.

Two Boards
Tuori New Energy, photovoltaic plus energy storage, a second wave trend. I suggested waiting for a new high before considering.
Xuelang Environment, M&A and environmental protection. Not sure what funds are supporting it, hinting at a cooling market?
Zhejiang New Energy, power attribute, the “energy” type. This kind of late-day sneaky move, open higher tomorrow, but I want to remind everyone that power may face divergence tomorrow. On divergence days, avoid turning weak into strong, especially for non-leader weak-to-strong stocks, as many are traps.
Liaoning Energy, power attribute. Today’s other breakout, considering high-low capital switching, possibly a follow-up rally for Huadian. Follow-up rallies are quick, and it must not be weak.

3. Trend Analysis

The trend direction can now be observed, as the index shows signs of stabilizing after a decline. Currently, only two stocks—Jianeng Wind Power and China Oil Capital—are in the formula, but their movements are quite choppy, and the profit effect is far less than the current continuous boards. I have no intention to trade them now.

4. Market Summary

Today was a recovery day after the clear signals, with the market signaling talks of peace. Crude oil plummeted, US stocks rebounded, which will definitely stimulate a rebound in the big A-shares—very clear signals. But for unknown reasons, today’s opening auction had little support, with auction strength almost the same as yesterday, which felt off from the start. Later, the index surged then fell back, with volume shrinking continuously. Because of the shrinking volume, the index fluctuated wildly. In the afternoon, it rose again, but volume was severely reduced. Whether today’s big A-shares are rebounding or reversing remains to be seen.

The current theme is undoubtedly power. After many hardships, power finally resonated with the index and exploded in a climax. No one doubts that power is the main line now. But everyone should note that peaks are hard to catch; a main line doesn’t mean you can blindly follow. Trading the main line still requires rhythm. Today’s power peak exploded; to continue strong tomorrow, certain conditions must be met in the auction. I’ve provided the algorithm in the “Gongku” post fifteen. Calculate it yourself first, and I’ll share my thoughts in tomorrow’s early session.

Other sectors are not very promising. Usually, the first explosion of a theme is seen as a one-day wonder. Whether it can continue the next day depends on whether the auction conditions are met and if it forms a guide. Besides power, I think other sectors currently lack sustainability; they need to prove their persistence before funds will support them. Power is not yet at the crazy dog wave stage, and there are no sectors strong enough to impact it. So, follow the main line if you see one; other sectors can wait. Analyzing further is meaningless now.

As usual, I’ll summarize my actions today: I sold the unexpectedly weak Zhengtai Power at the open, then bought into Yunei Holdings at a low, then hit Liaoning Energy’s board, and added to Huadian Liaoning Energy on the board. Someone asked why I added to Huadian Liaoning Energy on the board—aren’t I afraid of anomalies? My answer is, if it doesn’t challenge anomalies on the board, I wouldn’t buy it. I chose to add on the board because I value its courage to challenge anomalies. This is a high-level stock selected by the market, and it’s the best time to challenge anomalies now. The market has been weakening, and regulators are most likely to loosen at this time. If not now, then when?

Yunei Holdings is an old favorite, bought low and sold high daily to play the regulatory game. But today, Yunei’s performance was weaker than the sector, possibly fearing double tops, so expectations should be lowered. When considering the breakout of Liaoning Energy, I was thinking of a follow-up rally for Huadian Liaoning. Liaoning Energy’s first board was just when Huadian Liaoning broke through the sixth board, both are “energy” stocks from the northeast, so there’s a possibility of a follow-up rally for Huadian Liaoning. Huadian Liaoning at this height, a break of the board is not surprising—though a break doesn’t mean the end. These stocks don’t end easily, but once they do, the biggest gains are past. Afterwards, they may trend or form a reversal, so high-low switching should be considered.

I share my trades in real-time daily and share my market views during trading, 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: stock selection formulas, trading systems, and answers to basic questions are all there!

[Red Envelope] Practical Post Sixteen, On Empty Positions and Trading Modes

[Red Envelope] Practical Post Fifteen, Quantitative Trading System: Quantitative Actions

[Red Envelope] Practical Post Thirteen, The Path of Seeking the Way

[Red Envelope] Practical Post Eleven, Collective Auction Trading System (Updated)

[Red Envelope] Practical Post Ten, Software Trading System, Little-Known Aspects

Practical Post Eight, Issues in Collective Auction System and Trading Process

6. Thanks List

Thanks to the following friends for your support. I truly appreciate your encouragement.
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Memorable moments of gratitude, thank you all for your strong support! @Beginner Crossing the Tribulation @My 1 Otter @Avatar and Nezha @Gu Hai Little White

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