[Red Envelope] Index Prediction Artist! Spot the right direction and follow the market!

Short-term trading is an art. It uses the ever-changing market as a canvas, sharp insight as a brush, and decisive execution as paint. True masterpieces are not born from chasing random fluctuations but are created through precise capture and resonance with the market’s core “strength”—drawing directions at emotional peaks, structuring during sector rotations, and ultimately adding the finishing touch at the moment individual stocks lead the rally. ————Compound interest artist[Taogu Ba]

Artist’s Recap:

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In previous recaps, we mentioned that when the index weakens externally but shows continuous minor repairs, it can be seen as a short-term bottom signal. We also noted that the index needs to be shaken out with another panic sell. Yesterday’s early dip was a shakeout of some panic sellers, and our accurate prediction of a rebound on Monday proved correct. The rebound was strong, and with positive external factors today, the market surged broadly. Are our index predictions reliable? Being able to accurately identify the subsequent trend helps our trading significantly. If you follow me and agree with my forecasts, feel free to like, comment, tip, and praise me!

For example, the oil sector’s pullback yesterday also hinted at external futures correction. If futures pull back, the oil and gas sector is likely to follow. Today’s pre-market saw futures sharply retreat, and many oil stocks hit the limit down at the open. Oil is currently at a low-cost game, once a brave man’s game, now a stubborn one. Be cautious and watch more than participate.

Regarding computing power, I’ve emphasized low buy-in and left-side trading. When prices rise too much, sell; when they fall sharply, dare to buy. This sector has never been about chasing highs. Looking at the actual trend, core stocks in computing power have offered many low-entry opportunities and have generally surged. Patience and good trading discipline are needed here. This approach suits those who can stick to trading rules. Today, the Shanghai Composite closed at 4123.14, a special level. On March 3rd, a big drop closed at 4122.68, so the current close has recovered that level. Previously, I mentioned the index was below short-term moving averages and under pressure. Today, it successfully reclaimed the 5-day moving average, with only the 10-day at 4129.7 overhead. Although volume was light today, we saw a tech-led rebound, supporting the index. No significant pullback occurred despite the volume decline, and individual stocks didn’t fall sharply due to the tech sector’s siphon effect. The index is in a safe zone now, with tomorrow’s resistance at 4129.7. Watch if it can break through this level. Stay optimistic but cautious—don’t let emotions drive you. Keep a good mindset.

Market Analysis Today:

From the index perspective, external markets rebounded broadly. U.S. tech stocks showed a solid bounce, and Nikkei also recovered. During weak external conditions, our market showed resilience. Today’s high open and strong advance reflect this, with the ChiNext outperforming. The Shanghai Composite closed at 4123.14. Volume-wise, trading was 2.4 trillion yuan, down 250 billion from yesterday, indicating continued stock-to-stock trading. Despite lower volume, the index didn’t fall back, which is positive. Sentiment-wise, 55 stocks hit the daily limit down, 4 stocks hit the limit up, and the overall average gain was 3.46%, improving from yesterday.

Sector-wise, tech led the gains all day, with optical modules and fiber optics performing especially well—Tianfu Communication up 10.92%, Longfei Fibe rFiber hitting the daily limit. After a series of corrections, robotics rebounded, and new energy sectors like photovoltaics and batteries saw small gains. Commercial aerospace also performed well recently. Traditional cyclicals declined sharply, while oil and gas stocks surged with many hitting the limit up. Coal mining and related sectors underperformed. Overall, market profitability is good, with clear stock differentiation.

Artist’s Sector Talk:

1. Oil/Shipping/Natural Gas
Today, news about peace talks emerged, and futures linked to crude oil also fell sharply. Early in the session, many oil stocks hit the limit down. I’ve kept mentioning oil because it’s a counter-index sector. It’s worth observing whether the index’s health aligns with oil’s movements. Some traders caught in oil positions are now seeing futures decline. If the decline continues, oil could rebound, but the risk-reward isn’t high, so mainly observe.

2. Power Sector
Yesterday, I predicted divergence in power stocks. Today, pre-market saw some order cancellations, and after 15 minutes, some stocks started to see withdrawals. Although some orders returned after 20 minutes, the overall momentum weakened. Recent strong stocks are correcting, which is healthy after four days of gains. Tomorrow, divergence may continue, but it could lead to a recovery. Currently, core stock Yunnan Energy is consolidating at high levels without major negative feedback. Watch if it shows signs of a big pullback; if so, consider exiting. Shunnan Co. had a large volume today and might open lower tomorrow—monitor its performance. China Xidian, with solid capacity, is also suitable for entry or for stocks showing stable pullbacks and active recovery.

3. Computing Power
Yesterday, the sector performed decently, but today it lacked sustained strength. After an early high, it pulled back, then rallied again late. This is driven by short-term news, which can’t support continuous strength. Also, capital seems limited—some stocks like Tuowei and Huasheng, which are quant-focused, show alternating gains and losses, indicating internal sector divergence. Stocks from Tencent and ByteDance groups also show different trends. The key is to focus on left-side trading—buy low, sell high. Avoid chasing highs blindly, as quant funds may take over. The core logic remains valid; if stocks trend, it’s easier to participate. Buy when falling, reduce when rising. Ningbo Construction continues to rise today and may open higher tomorrow if it completes a good turnover. Keep an eye on its performance.

4. Optical Modules and Fiber
Yesterday, I mentioned optical modules and fiber optics, and today they performed strongly, helping the index recover. We emphasize that stabilizing the index is easiest by boosting tech sectors like optical modules and fiber. Today’s strength persisted from open to close, even with lower volume, without a pullback. These stocks are mainly held by institutions, which is clear. The index isn’t reversing yet, so chasing high tomorrow isn’t advisable. Focus on low-position stocks, buy in batches along the moving averages, and prefer low-high switching for safety. High levels still require caution.

Every morning, I share market news and key stock picks. Follow the artist’s insights, stay on track, and avoid getting lost. The morning content is based on my market expectations! Please like the posts, tip, or support!

You’ve heard many market principles and theories, but many still don’t know how to implement them. That’s why I share my “Strength Pyramid System,” which can help you grow. It’s worth your serious attention. Those seeking zero-cost gains will only stay on the surface of trading and miss the core profit logic. My goal is to help those who follow this post avoid confusion. But markets evolve, and so will our “Strength Pyramid” system. In a constantly changing market, I will add new “dimensions” to adapt it to different cycles.