March 11 Review + Thursday Pre-Market Plan

Let’s talk about the market: [Taogu Ba]

I really doubt whether quantitative trading is trying to train us to become M. Every day, the strongest stocks are always the worst performers the day before.

For example, in the evening, everyone predicts that the market will weaken the next day, but when it really starts to decline, it shows resilience.

Currently, the market situation is secondary; the key is whether you believe in the prospects of the individual stocks and continue to hold T+ positions within them.

When a large bullish candle appears, it’s usually followed by a big bearish move. Rotation also lags behind, especially now that the market is pulling up mainly authentic targets with some randomness. Small-cap stocks with little volatility are basically stagnant. Most importantly, quantitative strategies are no longer just about capturing big swings; they are now focusing on fundamentals.

Last year’s aerospace hype was characterized by divergence-driven strength without a clear leader or core. Many high-quality large-cap stocks kept moving in sync with divergence, leading to sector rallies that either got crushed in the afternoon or lacked premium the next day.

Recently, the second-tier sectors like optics and power are similar.

In the past, everyone had an anchor stock, and they would gauge the strength of the sector’s acceleration to decide whether to follow or buy low at the bottom. Now, there are no anchors. The core of the day is to bet that this sector will definitely strengthen before buying. If it moves up, the previous core stock turns red again the next day, then switches back. Essentially, you need to bet on the sector’s strength before it happens.

In this market, I think once an event or trend has settled, it will definitely move in the opposite direction.

For example, good news might lead to a decline, and bad news might cause an opening dip followed by a rise. Quantitative strategies now prefer to profit from repeated fluctuations or by making expectations. When the market seems to be heading downward, it then pulls up expectations of a potential turnaround, and vice versa.

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Tomorrow’s strategy:

Continue to observe trading volume.

1. If computing power stocks adjust tomorrow, consider low buying opportunities in UCloud to anticipate a Friday rebound. Watch for a low entry in Lingwei Technology after its sharp decline.

2. If volume increases, focus on financial sectors like Tonghuashun and First Venture.

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$1 Disclaimer: All content involved in this article reflects personal opinions and does not constitute any advice. For reference only!

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