[Red Envelope] Pre-market thoughts for April 7: Fans, pay attention to these 8 trends. Wishing everyone successful investing!

Follow and stay on track—no getting lost. This blogger is excellent and also works really hard! They study the stock market every day for more than 10 hours, and over more than 10 years of effort, they’ve managed to achieve something in the stock market. They’re now planning to use 10 years to help followers overcome the goblins and monsters in the stock market and gain the true scripture. Keep liking, tipping, and cheering—one-stop all the way! Good luck in 2026, always!
All stock-market followers, please pay attention to these 8 types of price action: 4 types you must not sell, 4 types you must not buy in (absorb). Please be sure to remember it.

1. The 4 types you must not sell:
   1、When a stock is in an uptrend with moving averages aligned in a bullish order, the stock price will keep going up and oscillating higher, continuously setting new highs. During this stage, you must not sell.
   2、Stocks that are currently the hottest in the market cannot be sold. Because hot stocks are pouring in huge amounts of money—whether from institutions or retail investors. For example, like recently the healthcare and Hongmeng theme—when the sector’s rise has sustained momentum, it basically won’t end within one or two days.
   3、A stock that has been stuck in a long period of low-volume sideways trading and is suddenly showing a big spike with heavy volume, and you see large buy orders—at this moment, you must not sell. You should hold firmly—that is the signal of the main force moving in.
   4、Stocks that have been trading sideways in the long-term low area: every time they break downwards, they quickly rebound and get back above—like there’s a price support holding it up. In fact, this is the “washing” the big players are doing before they lift the price. At this time, you also must not sell; you should continue waiting for the direction the market will take next.
2. The 4 types you must not buy in (absorb):
   1、A stock that’s been ordinary and has drifted lower for a long time with little attention, but due to hot-spot speculation it suddenly spikes upward fast. This price action basically has no logic. If you miss it, you can’t go chasing to buy in afterward. Because once this kind of move reaches the high end, if stock-market money leaves, it basically marks the top.
   2、Do not buy stocks that have bad news. For example, the kinds we commonly see: major shareholder reductions, unlocks/relief of lockups, pledges, and issues that arise in company management. They may not always fall, but the stocks with sharp selloffs are often driven by these internal and external factors.
   3、When the stock price is in a downtrend, don’t buy in—especially when multiple moving averages are sloping downward and the 60-day moving average is far above. Once the downtrend has formed, don’t fight the trend.
   4、If there’s good news, but the stock price has already risen by a wave, you can’t buy in. For example, when you trade expectations for performance, restructuring and M&A, business expansion, and so on. The boost from the good news has already been reflected in the stock price during the earlier rise. By the time the news comes out, it’s basically when the earlier “main force” is distributing (selling out). Most of those who go in are just bag-holders.
   In daily stock trading, we’ll basically run into one or two of these 4 types you must not buy and the 4 types you must not sell. Especially the ones in downtrends. Learn them, remember them in your heart. Without saying anything else, at least you can avoid ending up deeply stuck with losses.
   There are also many practical “insider nuggets” I’ve summarized from more than 10 years of investment experience. I’ll keep整理ing and summarizing them for everyone. Hope the sea of stocks and true fans walk with me all the way!

Individual stock analysis:
Hefeng China (合富中国): A leader in the pharmaceutical commerce sector, one of the top stocks across the Taiwan Strait. On Friday, the market sentiment was extremely bleak; it went against the trend to hit the daily limit, but ultimately failed to seal the limit-up. As for Pingtan Development, Strait Innovation, and Hefeng China—I started to grasp this way of thinking as early as the week before last, and I only chose to unfollow on Thursday last week. This line of thinking this time was also correct in understanding it. Even though Hefeng China’s “insight into the theme” came a bit earlier than it should have, its current bottom-up trend hasn’t changed. In addition, the pharmaceutical commerce sector is still in an upward trend. This week I’ll consider a new layout, so the “Three Swordsmen of the Strait” are temporarily watching from the sidelines.

Hongchang Technology (宏昌科技): A leader concept stock in the white goods/appliances sector, Zhang Xue concept stock. Indirect investment in Zhang Xue locomotives and humanoid robots, as well as the reducer (gear reducer) segment. Actually, ever since the Zhang Xue locomotive incident started to ferment, I’ve been paying attention to the related themes. The locomotive performance of the machine that won the world championship is strong and not expensive. In the future, it will receive broad attention from people in China and even overseas locomotive enthusiasts, and the heat will keep going. I didn’t catch the first wave of the initial major surge, but if the trend starts again, it may get widely noticed by the market. Of course, Zhang Xue locomotives’ next step is also to achieve a brand listing.
Wise Medical (睿智医药): Healthcare services sector, CRO concept/theme. When it hit a daily limit last week during April Fools’ Day, I had already noticed it. But that day I was still adding to Hefeng China (合富中国), Pingtan Development (平潭发展), and Strait Innovation (海峡创新), so I missed that limit-up. However, the pullback in the pharmaceutical sector—I think it was actually a good opportunity. This week it might be more to my taste. From last week’s price action, you can also see that the main force has very strong abilities to control and stabilize the stock price.
Tongyu Communications (通宇通讯), China Pharmaceutical Holdings (重药控股): Tongyu Communications is in the communications equipment sector—this includes the 6G concept theme. Last Friday it quickly achieved a daily limit-up. China Pharmaceutical Holdings is also a pharmaceutical commerce stock, and it also quickly hit a daily limit-up last Friday. These two stocks are both in my watchlist for selecting stocks. Sometimes the hardest thing is not investing—watching it hit a daily limit right in front of you. Let’s see whether this week there will be an opportunity for it to keep moving higher, and only then decide whether to consider related themes.
Zhongnan Culture (中南文化), Ningbo Construction (宁波建工): Zhongnan Green Power is a leader stock, and it’s also in the M&A restructuring concept. On Friday, at the open it dropped as much as seven percentage points. I was really tempted watching it fall so fast, but I ultimately didn’t take action. Generally, leader stocks won’t just be a single wave of action. Although Zhongnan Culture’s first wave was a one-word limit-up (一字板), that’s a taboo. The best leader stocks are usually those with a “relay” (接力) daily-limit style. After watching whether the rebound has height and whether there’s clear recognizability, you’ll see. Ningbo Construction, a “crayfish-raising” (养龙虾) leader stock concept, didn’t get much attention after it bounced for a couple of weeks. But once it fell, my interest became stronger, because in terms of the theme, after the gap is filled, it’s still worth it. In the future, I’ll consider paying attention to it.
Replay of last Friday (4.3)
Sentiment positioning: Extreme “ice point”—structural divergence
Index: Shanghai Composite -1.00% 3880.1, Shenzhen Component -0.99%, ChiNext
0.73%
Advancers/Decliners: ≈500:470
(1:9), over 89% of stocks declined
Trading value: 1.66 trillion (vs. the prior day 16.6k; volume within the year, higher/deeper)
Limit-up/Limit-down: 36/24; only 4 stocks had consecutive limit-ups, promotion rate 14.3%
Northbound: Trading paused before Qingming holiday
Cycle: Late ice point—weak repair attempt

1. Consecutive limit-up ladder (severe gap/break)
   6 consecutive limit-ups (a lone ranger space leader)
   Tianjin Yaoye (津药药业) (600488): Pharma / API / export
   One-word shrink-volume acceleration. Evening announcement: clarification that there are no innovative drugs under research; valuation seriously deviated.
   2 consecutive limit-ups (only 3)
   Huaiyuan Communications (汇源通信) (000586): CPO / optical communications / optical fiber price increases (one-word)
   China Pharmaceutical Holdings (重药控股) (000950): Pharmaceutical commerce / chain pharmacies
   New Energy TaiShan (新能泰山) (000720): Optical fiber / electricity / central SOE (9 days 7 boards)
   3–5 boards: Complete gap → Mid-cap stocks had no follow-through; loss-making effect extremely strong
2. Mainline sectors (only two are fighting against the trend)
3. CPO / optical communications / computing power (strongest mainline)
   Catalyst: MIIT policy — inclusive computing power + computing power banks (doc issued 4.2)
   Core targets:
   20cm: TekoLi (德科立), Yitian Shares (易天股份) hit limit-up
   First boards: Tongyu Communications (通宇通讯), Huashengchang (华盛昌), Zhizhen Technology (直真科技), Yunsai Zhilian (云赛智联)
   Funds: Net inflow 177.8B, #1 in the whole market
4. Pharmaceuticals (high-position crowding + defense)
   Leader: Tianjin Yaoye 6 consecutive limit-ups (lone ranger)
   Catch-up: China Pharmaceutical Holdings 2 consecutive limit-ups, China Medical (中国医药) limit-up
   Differentiation: Yibai Pharmaceutical (益佰制药), Peking University Medical (北大医药) had boards break and large declines; Lianhuan Pharmaceuticals (联环药业) and 20+ stocks hit limit-down
5. Severely damaged zone (funds fleeing)
   Electric power / photovoltaics / batteries: Sector -3%~-4%, many stocks hit limit-down
   Coal / pork: -2.8%~-3.9%, whole line weak
   AI applications / semiconductors: High-level liquidation, net outflow 18.1 billion
6. Ultra-short-term signals (key)
   Ice point confirmation: Advancers/decliners 1:9, consecutive-limit gap, very low volume, pre-holiday risk aversion
   Mainline switch: Pharmaceuticals retreating; funds taking over in CPO / computing power
   High-plate risk: Tianjin Yaoye—high-level clarification; expectation for strong divergence tomorrow
   Opportunities: CPO first boards / 1 into 2; tomorrow weak-to-strong can be tried out
7. Today (4.7) strategy
   Positioning: ≤20% (ice-point trial and error)
   Direction: CPO / optical communications core (Huaiyuan Communications, TekoLi, Yitian Shares)
   Avoid: High-position pharma, electric power, mid-cap consecutive boards
   Signal: CPO bid opening strong, index stopping the decline → buy a small position and go after the leader; otherwise continue staying in cash
   Thoughts before trading on April 7:
   1、The Three Swordsmen of the Strait—Pingtan Development and Strait Innovation—have basically gone out. Hefeng China is the only one still standing out. Will it be able to keep moving higher? If the idea is to trade the Pingtan closing-authorization (封关) expectation, what months do you think are most suitable? The official implementation of the Pingtan closing-authorization should be in December.
   2、Hongchang Technology (宏昌科技), Zhang Xue concept leader. Is the行情 only able to trade one wave of the main surge? Is there a possibility to keep breaking to new highs, and which other Zhang Xue locomotive concept stocks do you like?
   3、China Pharmaceutical Holdings (重药控股), China Medical (中国医药). Last Friday it hit a limit-up against the trend, while Wise Medical (睿智医药) had a big adjustment. Is this due to a strong wash of the broader market sector, or is this wave of action already at the end? Which pharma stocks do you still think are worth watching?
   4、Is Zhongnan Culture a rebound play, or does it still need to go through a wave of the main surge? Can Ningbo Construction achieve a bottoming rebound this week?
   5、The conflict between Iran and the U.S.-led side of the Iran-U.S. conflict (美以) is confusing and hard to pin down. The market’s stock action is also being thrown around by this uncertainty. Will there still be opportunities this week in the oil and natural gas sector? Which stocks do you like more?
   Thank you for last week’s trust and support from the Buffett gold fan family. We didn’t disappoint—by correctly understanding the right way behind Hefeng China, Pingtan Development, and Strait Innovation during a downturn. Especially thanks to the newly added 5 Buffett family gold fans. They are: @友谊的回报小风筝, @特能输啊, @心有一悟, @怦然, @would远,
   Leader stocks: Zhongnan Culture, Ningbo Construction, MuGaoDi—quickly show up! Buffett gold fan group totals 112 people @观色无常, @早日回血成功, @一路前行H, @dhz8888888, @linkeqiang, @可爱的大橙子, @九分的话, @莎88888, @花姐的花姐, @深圳123, @十年磨剑de洛勒莱, @有志者事竟铖, @狼二, @牛市欢欢, @浅水有鱼, @一平马川, @Hsu呀, @堕落DE灵魂, @WQ远方258369, @majorliu, @千人口王, @刘根冻品, @987470, @恬淡自然为, @致敬南神, @鲲鹏击水, @北歌am, @拓荒孺子牛, @大魔王的小软糖, @剑客2025, @雨中FENG, @紧跟必擒妖笔记, @清风秋风, @枪子, @孤军夺帅, @leilong, @晴雪1123, @失信的承诺, @糖糖不吃糖, @逍遥江湖, @慢热Q, @王火山,@抱朴爷, @James股票大涨, @开心的落落, @风雨过后必有阳光, @红盘收官, @宁海好, @JHjinhui, @李qy, @mzhnx, @觀澜, @清风拂暖阳, @猜想想想想想想, @巴菲特的小仙女, @霸气g8, @根巴菲特必擒妖笔记发财记, @百步999, @无356, @韭菜89757, @毛毛丫, @股市败家, @咪咪O笑, @顺势而上ky, ,@美美滴妹妹, @匠心蜗牛, @一场股民, @阿珍上海, @金多多金满袋, @木已成舟12345678, @菩提岸3, @虎跳小沟沟, @以后的以后2025, @llkrkn, @小鱼要起飞, @幸运天成, @凤舞枫飞, @bolibo, @Chris201318, @红叶英, @沐之杰, @阿甘正传阿, @好运连连888l, @水晶1975, @韭菜也有梦想哒, @c火火, @桃什么桃, @守护美好, @阿白676414, @益先森, @左岸右走生活号, @wmnwbw, @勇闯天涯必登顶, @丰平浪静之, @阶前梧叶已秋声, @红魔奔月, @兰328, @baxking, @自得666, @莫莫419, @青梅爱竹马, @想不出个名字, @拜读感恩遇见, @甲乙丙丁某, @666sss, @以痴为学, @牛油果两个, @输啦输啦, @范晓君, @飞飞圆子, @顺子聚宝盆, @友谊的回报小风筝, @特能输啊, @心有一悟, @怦然, @would远, May you be able to have money fortunes by the side of Golden Cicada the same way as the golden emblem after your names—good luck constantly and a brilliant golden glow. May you reap plenty in the stock market!

I will pay special attention to the gold fans. I will prioritize replying to comments. Every weekend I will definitely go to your homepage to check your learning/education status (学XI) to see whether you’ve kept up with the thinking, where your doubts are, and to clarify and help resolve those questions. I believe the gold fans will also improve the fastest. If you don’t know how to upgrade your follower badge, take a look and learn it too.

Fortunate arrival and good fortune gathered—what we gather is wealth and prosperity mixed with everyday human warmth. People come and go, what’s collected is auspicious daily smoothness and good luck. Thank you to the family members and fans who tipped and cheered last Friday. It’s precisely because you’re with us on the journey of learning the stock market that we have the top Buffett gold fan family.
Small rewards: @早日回血成功 @zhang上善若水 @慢热Q @股友家 @晶与贝 @文汇158 @嘉燕燕 @观色无常 @涅槃重生捉妖盟 @TAOJIN430

Go for it: @早日回血成功 @zhang上善若水 @慢热Q @股友家 @晶与贝 @文汇158 @嘉燕燕 @观色无常 @涅槃重生捉妖盟 @TAOJIN430

Of course, there’s also a considerable part of the family members who haven’t seen themselves cheer, tip, or learn (学XI) for a long time. Pushing against the current—if you don’t move forward, you fall back. No wonder the serious family members are improving, while some of you are being beaten up by the market. I think if you don’t learn like this, you’ll gradually be removed from this top family.
Family members and fans—after you finish reading the article, quickly tap to use a “cheer voucher” to push it. Liking, commenting—these data can make the article’s popularity higher. Also, please have each fan actively interact with the data. It will bring you closer to becoming a Buffett family gold fan who’s truly excellent.
The strategies and individual stocks mentioned above are only for Brother Bage’s personal investment records and do not constitute investment advice for you. Pay attention to investment risk. Thank you!