3.20: A Brief Discussion on Short-Term Trading Methodology in the New Quantitative Era

I’ve heard that people who like and follow tend to have good luck. If you want lasting wealth, start by following me. Welcome to the Divine Listening Space! [Taogu Ba]
Over the weekend, I’ve been contemplating the current market. To summarize with eight characters: “The army has no fixed formation; water has no constant shape.” Since the beginning of the year, the repeated swings in themes have caused most people to suffer. Even many in the citrus circle have fallen silent and are lying low. This is not a typical bear market structure because, in fact, a bear market is easier to focus on. Simply leading the emotional rhythm with a marker can keep you ahead of the market. If we define it as a bear within a bull market, it makes perfect sense. The definition is only to distinguish from the long-term low-volume bear markets of the past (the index’s 3000-point defense battle). The new generation of investors is experiencing their first bear market with over two trillion yuan, which is normal to lose money; making money is not something to be proud of—everyone should analyze and learn from it.
Looking back, the role of quantitative methods in aiding price rises and falls has evolved to a new stage, manifested in scenes of harvest everywhere. However, the quantitative sell-off programs are definitely triggered by recognizing consistent bearish signals. Do institutions and retail investors not have their own “quantitative” thinking? Clearly, more or less, everyone is becoming quantitative. But any attempt to outthink the program with human brains is futile. The correct approach is to follow or stabilize and follow.
The significance of indices: In a weak market environment, the emotional leading markers may be suppressed, but this does not hinder individual stocks from making profits. The buy point is when there is an unexpected surge; if you adopt a low-position rotation strategy, you must have the awareness of arbitrage. Achieving profits beyond expectations is always correct. These two approaches do not require high demands on the index, as long as there is no systemic risk, they can be largely ignored.
Regarding cycle definitions: Many past high and low cycle nodes are being countered by quantification. When cycles accelerate, a theme can complete a round of movement in no more than three days, not to mention many one-day trades. Therefore, identifying the core of capital energy becomes the best strategy. On the day it appears, there will be the best rotation stocks. Every time a new energy carrier emerges, it is an opportunity. How much profit is up to the market, but the win rate is guaranteed.
Theme extension: All discussions about themes on forums are subjective, including myself—there are right and wrong, and blind trust is not advisable. Even if a theme lasts a day or two longer, looking at the laggards or those who drop out usually results in greater losses. Those who have experienced this understand, so it’s better to observe the chip structure of leading stocks, follow the inertia of funds, and I will analyze the next one separately.
The current solution fundamentally involves understanding the inertia of funds. First, there is a positive effect: strong stocks that hit the limit-up or one-word board are the best, especially those that drive the theme that day. Excluding the industrial chain, they typically take at least two days to unload, which contains ultra-short opportunities. Another is new main forces entering, absorbing quantification and old institutional profit-taking, creating volume pillars, which suggests a weak-to-strong rotation expectation. This also contains ultra-short opportunities.
Secondly, the inverse use of fund inertia: when a stock shows a buy signal on the same day but is disturbed by external factors like status, sentiment, or randomness, leading to a break or a rebound, it can have an inertia rebound. Recently observed stocks like YuHuan CNC, ZhaoXin Shares, Energy-saving Wind Power, and JingTou Development all share this market consensus. The “rebound code” 3215 has emerged as a new tool to cope with the current market, and it will frequently appear in individual trading.
As short-term traders, viewing from a super-short perspective, trend swings may not apply. Returning to the idea that “the army has no fixed formation; water has no constant shape,” all techniques and methods are only auxiliary tools. Theme logic is just the carrier of capital’s bullishness. Over-research can lead to subjective bias. I have auxiliary tools for continuous boards, relay boards, and rebound cores, but not all qualifying stocks should be traded. Stocks without premium expectations are also part of trading wear and tear. Currently, the most stable compound interest-like trading is to follow the inertia of funds.
Friday’s theme sectors had no highlights, so I’ll skip them.
Brief review of consecutive boards:
From the perspective of capital and sentiment, identify opportunities and risks statically, and focus on preparing well before each trade.
Five consecutive boards:
HuaDian LiaNeng
Theme significance is minimal; it’s purely a chip game. It took over the relay baton from SanFangXiang’s five-board breakout. If all stocks with strong boards benefit, it will also lead the return of electric computing. The premise is that the stocks resistant to decline on Friday are the ones to watch; otherwise, expect high-low switching.
ShenHuaFa A
Part of the industrial chain, recently WangLi Security, either before or simultaneously with theme stocks, has hit the limit.
Three consecutive boards:
DaShengDa: Volume ladder, photovoltaic sector driving, so the capital logic is not finished; observe.
ShaoNeng Shares: Electric synergy, assisting LiaNeng, the one-word foundation buy point has passed; take profits based on DaShengDa’s order block.
Two consecutive boards:
GuoNeng YuanXian
Natural gas, Friday’s risk-avoidance expectation, no relay value.
DongFang XinNeng
Photovoltaic energy storage, lack of initiative, strength and position are suppressed, early move.
HuaDian Energy
Main rise with a second wave depends on LiaNeng feedback; no room for abnormal movement.
Focus on thinking:
JinKai XinNeng: Confirmed the rebound pattern after Friday’s break, strongly focus on Thursday; Friday’s repeated break and rebound suggest to unfollow near the limit-up. The proactive role was replaced by HuaDian Energy; even if it hits the limit, premium is doubtful—better to unfollow and take profits.
SenTe Shares: Thursday’s low point was based on DaShengDa’s photovoltaic attribute, betting on intraday profit/loss ratio. Unexpectedly, on Friday noon, the photovoltaic sector fermented due to Musk’s procurement news. Early high suggests unfollowing.
HuaDian LiaNeng: Recognized the buy side at the end of Thursday’s bidding, with expected volume reduction. Low points and upper boards are both fine; the only reason not to act is because it’s hard to understand—nothing else.
XinYiSheng: Focus at the end of morning bidding. RS-Kanda and MingPu GuangCi both added orders, showing the attitude of CPO bidding. Why not look at MingPu’s position? Because if funds truly want to act prepared, MingPu would have added first. The fact that RS-Kanda responded first indicates structural risk. Better to choose XinYiSheng, which is more stable.
The divine listening trading approach differs from most teachers’ views, following only objective logic. Long-term followers understand clearly. Today’s post is sincere and genuine. Those who understand, please comment so I know there are like-minded friends!
Next week’s market outlook is optimistic. The previous loss effects in March have stabilized. Once a trend reversal forms, it will be a good phase. There’s no reason to be bearish. Wishing all friends profit in the coming week. Those eager to learn, improve your comprehension! Have a great weekend!

As usual—specific ideas before the market opens tomorrow
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