3.5 The overall market adjustment has not yet ended

StrawberryIce · 2026-03-05T22:31:49+00:00

The major indices opened higher today, then fluctuated and pulled back, and are expected to continue adjusting, potentially testing the 4055.41 point level in the short term. Oil and gas stocks showed mixed performance, while power grid equipment and LED concept stocks performed relatively well. Short-term trading should be cautious, and it is recommended to pay attention to the switching between high and low positions. Currently, the holdings are in a no-position state.

StrawberryIce

2026-03-05 22:31:49

Abstract generation in progress

Market Overview [Taogu Ba]
Today, the market continued yesterday’s rebound with an open gap up, then surged during the session, but ultimately fell back in the late trading hours, consistent with the previous assessment that the market would adjust at least down to 4029.8, possibly even breaking below 4079.77.
The subsequent trend forecast is as shown in the chart, indicating a small wave 5 decline before starting a larger wave 5 rally.

Of course, if the low point of 4055.41 from yesterday is not broken, then this is a wave 552 pattern rather than wave 54C.

Profit-Making Style
Trend Style: 35, favoring stocks that have recently experienced consecutive limit-ups. (Unique Index: 0 means profit-taking is concentrated in stocks with recent consecutive limit-ups; 100 means profit-taking is concentrated in pure trend stocks.)

Hot Topics
The market trading volume reached about 2.41 trillion yuan, supporting 2 to 3 sectors for speculation.

This morning, oil and gas stocks continued yesterday’s divergence, with only Shandong Molong hitting the limit-up. In the afternoon, there was some profit-taking, with flagship stock Tongyuan Petroleum turning red, and Intercontinental Oil & Gas once hitting the limit-up. Due to negative external news, many stocks fell back after hitting the limit-up. If the market declines further and doesn’t strengthen, it indicates these two days have been heavily harvested by quant funds, and a correction period is needed.
As the market opened higher and oil & gas stocks weakened in bidding, power grid equipment remained strong. In the morning, Shun Nao Co., Ltd. hit the limit-up, Hanlan Co., Ltd. quickly hit the limit-up, and Tongguang Cable followed with a limit-up. Additionally, 14 stocks reached new highs, indicating a relay of new and old themes. Even if the market diverges tomorrow, sector rotation will likely be the main theme.
Influenced by news, today LED, as a new branch of computing power, surged. Although it lagged behind power grid equipment by a day, it may compete with power grid equipment for the next major trend leader position.

Short-term Relay
Due to the market rebound, the new themes driven by quant funds and negative news, all high-flying stocks closed with gaps down after yesterday’s lows.
Fortunately, the next phase is only a 2-3 wave, with limited upside, so it’s still possible to attempt high-low rotation despite the quant impact.

Current Position: No holdings.

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