First Topic One, First Market One, Trading System (2026.2.6)

StrawberryIce · 2026-02-06T13:05:17+00:00

The market is currently in a chaotic period with low sentiment and it is not a good time to buy. It is recommended to stay in cash. Focus on core assets such as Kailong High-Tech, strictly adhere to stock selection and trading discipline to avoid risks and seize opportunities.

StrawberryIce

2026-02-06 13:05:17

Abstract generation in progress

Sentiment Cycle [Taogu Ba]
(1) Cycle: Chaos phase Day 4.
(2) Sentiment: Very poor profit-taking effect, significant loss effect.
Leading Funds
(1) Quantitative (GJD).
(2) Institutions (GJD).
(3) Foreign Capital.
Timing
Currently in the chaos phase, the sentiment bottom has not yet appeared, the buying opportunity is not mature, and it is not suitable to take action for now.
Stock Selection
4.1 First Topic One
(1) Kailong High-Tech (Robotics).
(2) Hangzhou Jie Bai (Consumer Goods).
(3) Han Jian Heshan (Asset Restructuring).
4.2 First Market One
Kailong High-Tech.
4.3 Hot Sectors and Core Targets
(1) Robotics: Kailong High-Tech.
(2) Commercial Aerospace: Shenjian Co.
(3) Consumer: Hangzhou Jie Bai.
(4) AI Applications: Hengdian Film & TV.
(5) Chemicals: Baichuan Co.
(6) Optical Communications: Hangdian Co.
(7) Smart Grid: Sanbian Technology.
(8) Space Photovoltaics: GCL System Integration.
Buying Stocks
Today’s cash position.
Holdings
None.
Selling
None.
Tomorrow’s Plan
8.1 Core Principles
(1) Keep the main line vague, do not insist on the leader; respect the cycle, respond flexibly.
(2) Set the direction first, then choose to open positions; control risks first, then seek returns.
(3) Lay low during rotations, strictly control trial and error; avoid greed for false heat, and prevent huge losses.
8.2 Review of Today’s Stock Pool
(1) Hangzhou Jie Bai: Single-price bidding limit-up, missed the chance to hit the back-end limit during trading, no planned buy point.
(2) Tiantong Co.: Bidding met expectations, the initial drop was less than expected, no suitable buy point appeared.
8.3 Tomorrow’s Stock Pool and Operation Strategies
(1) Kailong High-Tech: Expect continued single limit-up; if the limit-up breaks, can buy back; if there is bidding divergence, can intervene at the bidding stage; if the stock pulls up during trading, follow the trend to buy.
(2) Hangzhou Jie Bai: Expect large bidding divergence; if the stock drops sharply in the early session, can buy low when it stabilizes around -5%, do not chase the rise or hit the limit-up.
(3) Han Jian Heshan: Expect large bidding divergence; if the stock drops sharply in the early session, can buy low when it stabilizes around -5%, do not chase the rise or hit the limit-up.
9 Mode Summary
9.1 Static Stock Selection
Yesterday’s pre-market stock selection had core issues, violating the “focus on core” principle, choosing Tiantong Co. instead of the core sector Hangdian Co., which needs urgent correction; daily pre-market stock selection should first confirm whether the target is a core sector, non-core targets are prohibited from entering the stock pool; Hangzhou Jie Bai’s inclusion in the stock pool meets the requirements and is affirmed.
9.2 Timing Operations
Today’s bidding sentiment and index both declined sharply, the market only has a small structured trend, combined with the judgment that the chaos phase has not yet reached the bottom, choosing to hold cash is reasonable, effectively avoiding the risk of large losses during trading.
9.3 In-Session Stock Picking
In-session stock picking is a necessary supplement and correction to static stock selection. Today’s violation of the “look at expectations during trading” principle caused missed high-quality trading opportunities. Specific situations:
(1) Hangzhou Jie Bai: Single-price bidding, no expected buy point, reasonable to give up on intervention.
(2) Tiantong Co.: Bidding met expectations, the initial drop was less than expected, no suitable buy point.
(3) Hangdian Co.: Bidding exceeded expectations, the initial rise was in line, with a clear buy point, but hesitation caused missed entry.
9.4 Stock Buying Issues
Buying stocks is the implementation of the trading plan. Today’s violation of the “weak to strong” principle caused missing the opportunity to buy Hangdian Co. early, resulting in missed profit; the plan was to buy when the stock drops to deep water and funds are willing to buy back, but since the corresponding buy point did not appear, the decision to abstain is normal and not to be overthought.
9.5 Holding Stocks Issues
Holding stocks is an integral part of the trading model. holding must adhere to the “early strong and firm” principle. By “early strong and firm,” it means closing the limit-up before 10:00, with smooth intraday movement and large volume orders; after 10:00, no limit-breaking, and strong closing orders at the end of the day. The core logic of holding stocks is to gain high premiums the next day; if this principle is violated, there is no logical basis for holding stocks.
9.6 Selling Stocks Issues
Selling stocks must follow the “sell strong and switch to weak” principle. Be prepared to sell in the following situations:
(1) Bidding increase less than yesterday or below market expectations.
(2) Opening drop exceeds 3 points, not in line with expectations.
(3) The first wave of surge is less than 3 points.
(4) The first wave hits the limit-up but fails to close the limit or nearly hits the limit.
(5) The second wave of surge does not surpass the first wave high.
(6) Rebound during trading falls below the moving average, unable to re-establish within 10 minutes.
(7) Limit-up break and fall back more than 7 points, unable to recover within 10 minutes.
(8) Limit-up break and fall back more than 4 points, unable to recover within 3 minutes.
(9) Weak tail end.
9.7 Correction Issues
Selling prematurely is a normal trading phenomenon. The core difficulty in correction is overcoming psychological acceptance issues, which requires deliberate training. Correction operations should follow the “divergence to consensus” principle: if disciplined to take profit when the stock hits a limit-down exceeding 7 points, and later divergence turns into consensus due to index, sentiment, or sector factors, then decisive correction and buy-back are needed. Most people find this difficult, as it is essentially a psychological barrier that must be overcome.
10 Painful Lessons
(1) During recession, clear all main line positions immediately, stay away from the leaders!!!
(2) Maintain at least 3 days of cash during recession!!!
(3) Chaos phase is characterized by fan rotation, with themes like semiconductors (chips), robotics, chemicals, precious metals, consumer goods, smart grids, and commercial aerospace rotating over 2 themes daily.
(4) The chaos market shows “two good days, one bad day, with a pattern of advancing two steps and retreating one,” which is normal fluctuation.
(5) Firmly abandon all distractions, focus solely on stock trading.

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