[Red Envelope] 2026.2.24 Review: The leading stock is dead, dare to ask where the short-term line is?

A simple like keeps the gains coming; keep asking questions, and profits will soar! Hello everyone, I am Longqing of Wan Gu Zhang. [Taogu Ba]
1. Morning Thoughts

As usual, I start with my morning thoughts. The worst-case scenario has indeed occurred. When I was dealing with Techfaith earlier, I already sensed something was off. The core front-line stocks showed such strong negative feedback; knowing the premium of the leading stocks later made it hard to guarantee. But I didn’t expect it to come so quickly—today, iReader directly collapsed. Fortunately, I had set expectations to respond. I pressed down on the bidding and opening prices in two quick moves. The reason I didn’t fully press down on the bidding was that it jumped too fast at the end. When I clicked the button, it was still on water, so I only pressed half of it. The other half was pressed at open. The losses on the three-layer positions aren’t significant, but with iReader’s move, short-term continuous boards are no longer watchable. The most stubborn wave of funds in the market has been suppressed. The final fortress trend strategies lack premiums, so there’s no need to look at other stocks either. The premium cannot be guaranteed anymore. Currently, only three types of stocks are still strongly bullish: small-cap stocks with high industry chain control, restructuring-benefit stocks with straight-line top formations, and stocks similar to the recent rise driven by quant-driven price lines in non-ferrous metals. These three types are very difficult to participate in, and I have no intention to do so.

Compared to short-term, I pointed out iReader on the same day I shared three trend stocks. Only Wanxiang Qianchao experienced a sharp drop due to the robot sector. The other two trend stocks performed well, with Changfei even hitting the daily limit. It’s clear—the market is pushing everyone to play trends. Short-term continuous boards are no longer playable. Before the next main theme appears, the market will definitely rotate. But as long as the indices are stable and trading volume remains, there are still profits to be made—just not on the continuous boards. Moving forward, I will focus mainly on trend-following, and temporarily pause short-term trading.

2. Auction Analysis

Haha, the auction was also speechless. After so many news releases during the holiday, there was hardly any capital supporting the bids when it actually opened. The only auction exceeding 2 billion was Runze Technology. I initially didn’t click in, thinking it was about computing power guidance, but the formula didn’t include any relevant targets. Only after checking did I realize it was a restructuring. Since the market cap of this restructuring stock is under 30 billion, the order book isn’t a guidance indicator. Excluding that, today’s auction was completely below expectations. It can be said there was no guidance, and hardly any funds supported the bids. The market looked generally up, but there wasn’t much to buy—at least in the short-term direction. The trend direction still looks okay.

3. Continuous Board Tiers

Four-Board
Meibang Shares, a “third brother” stock, with pesticide attributes that have turned into chemical sector stocks. For stocks like this, even if the third brother hits the sky, it’s of little significance. Just observe.
Yunnan Energy Control, a one-word positive news, but is this news really that big? Being able to top so many stocks with a single positive is not very influential for the sector.

Three-Board
Hanlan Co., a power attribute, with risk-avoidance sentiment pushing it higher today.
I won’t analyze the rest, as there’s little point—none are likely to reach new heights. Let’s wait for new themes.

4. Market Summary

Today, the market looked broadly up, but it was actually quite disgusting. Most of the gains weren’t driven by holiday fermentation. The robot sector, which was hottest during the holiday, opened high and then declined. As I mentioned in the live broadcast, although robots are hot, there’s nothing beyond expectations. The Hong Kong stocks already demonstrated a high-open, low-close pattern, which was predictable today. The negative feedback from the AI application sector was truly unexpected. Despite the efforts of the AI giants in Hong Kong stocks, they couldn’t save the sector. It’s just like iReader—its strong performance caused the entire sector to collapse, becoming the source of negative feedback in the market. Large tech stocks that were supposed to rebound in the auction got severely trapped. The free fall of iReader pushed the big tech stocks to their limit, with some nearly hitting the limit down. The loss effects are quite explosive.

Today, many stocks in the rising price line, especially in chemicals and oil & gas, were likely driven by quant strategies—highly news-dependent, either a quick one-day move or a wave. Tomorrow will be tough to catch. The market is now completely chaotic. I’ll play some trend-based strategies for a while and wait for new themes to emerge.

5. Best Auction Strategy

There was no optimal auction strategy today because there was no guidance—without guidance, everything else is meaningless. The formulas haven’t been updated either. For those interested in my trading system, check the previous recap posts; they are highly valuable and very detailed. I strongly recommend you take a look.

[Red Envelope] Dry Goods Post Ten, Software Trading System, Little Known

[Red Envelope] Dry Goods Post Eleven, Collective Auction Trading System (Updated)

[Red Envelope] Dry Goods Post Twelve, Trend Trading System (Updated Version)

[Red Envelope] Dry Goods Post Thirteen, The Path of Seeking

6. Daily Reflection

I will keep saying this so everyone who sees it understands my intentions!

Regarding these trading systems, I want to share a few words. These systems are my heartfelt gifts to everyone. They are not perfect treasures, nor are they flawless, but they are still worth cherishing. What are they, and why are they worth cherishing? I see them as a platform—like Taogu Ba itself—a bridge for communication. Through these systems, trusted users can test them in real trading. During this process, they will encounter many problems, which they can feedback to me. I will then find ways to solve these issues. This communication helps us get closer, and these systems can keep improving. They may not be at a high level now, but I believe with everyone’s effort, they will eventually help us ride the waves in the stock market. There’s a saying in the market: retail investors are the main force, but because of discord, they can’t break out. My ideal is to unite everyone through these systems. As long as we reach a consensus and everyone recognizes these systems, we can become a powerful force in the market. This consensus isn’t based on premium seats or hype, but on the shared effort to develop these trading systems. I believe this is the best way to build consensus. When we succeed, we will be the most beautiful scenery in the market. I created these systems, but ultimately, you will perfect them. I sincerely ask everyone: if you agree with these systems, please don’t give up easily. Get involved actively. I believe the future market will have a place for us.

In the Ming Dynasty, Hu Zongxian wrote a poem for Hai Rui and himself to clarify their resolve. Inspired by his wisdom, I also found a poem for myself to clarify my own resolve:

“Gift to Fellow Investor—System’s Heart and Will”

I dedicate my sincere sword’s edge,
Opening sources, hoping friends will meet.
Not seeking perfection to amaze the world,
But building bridges to cross the wild geese.
Practical testing reveals true knowledge,
Feedback refines like jade and mirror.
Gathering strength from scattered sands,
A shared vision shines bright and clear.
Not envying fame or hollow premiums,
But wishing unity to build a strong fortress.
Today we walk the thorny path together,
Tomorrow we look upon a thousand miles of clear sky.

7. Thanks List

Thanks to the following friends for your encouragement. Your support is my greatest motivation for updates.

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Remember, Gold Fans, thank you for your strong support! @BeginnerCrossing @My1Otter
Finally, my closing words: if you find this helpful, please give a free like and follow. Support me if you can. I will continue sharing valuable content and improving everyone’s trading systems. Your support is my biggest motivation. Wishing everyone a long and prosperous journey!