2.7 Review: Are there still red envelopes before the holiday?
As the holiday approaches, many people are wondering if there will still be red envelopes (hongbao) given out. Traditionally, red envelopes containing money are handed out during festivals and special occasions.
In this review, we will look back at the distribution of red envelopes during this period and see if they are still being given before the holiday begins.
Stay tuned for the latest updates on whether red envelopes are still available and how people are preparing for the festive season.

The two markets’ total transaction volume was 21.4 trillion yuan, continuing to shrink by 30 billion, hitting a new low for 2026. On Thursday evening, U.S. stocks plunged in after-hours trading, while our A-shares opened sharply lower but then recovered and moved higher, with some pullback at the close. Throughout the day, over ten sectors rotated, still resembling a whack-a-mole market. On Friday, Ah Chuan said that during his tenure, the Dow hit 100,000 points, prompting a sharp rise in U.S. stocks. On Monday, let’s see if our market follows suit. [Taogu Bar]

Regarding market sentiment, recent behavior has been very counterintuitive: very strong stocks the day before often see no buyers the next day, while weak stocks the previous day tend to rally significantly. We saw several limit-up days on Friday, but also several strong stocks from the previous day that didn’t carry any premium. Currently, the profit-making strategy seems to be following quantitative trading—buying the stronger stocks that get even stronger, and buying the weaker stocks that get even weaker. The market appears to have reached a consensus on this approach. Therefore, sectors that experienced large declines can be considered for early positions, and on the next day, with a big gap down, adding positions to ride the trend for T+1 gains, such as non-ferrous metals and photovoltaics on Friday, which are good examples.

In terms of themes, medicinal herbs had positive news in the morning, with a collective gap up. However, apart from the top-tier stocks like Tiyi and a turnover stock Han Sen, all others opened high but then declined, trapping investors. It’s normal for Monday to continue this divergence. In the late session, funds competed for positions in anticipation of a recovery on Tuesday. Recently, many sectors have been behaving this way.

In commercial aerospace, several major stocks surged sharply in the morning but then fell apart, and after a quick recovery, divergence re-emerged. Nonetheless, the commercial aerospace sector remains popular, and even with divergence, it holds up well. The post-market龙虎榜 shows several core stocks with rare large buy-ins. Currently, it’s unlikely to see a synchronized second wave of major upward movement; instead, individual stocks are being lifted alternately, with a slow upward trend being sufficient. Another branch, photovoltaics, experienced significant divergence on Thursday, but on Friday, funds supported it, leading to a strong rebound. The sector has positive news over the weekend, and after Friday’s recovery, cautious chasing on Monday is advised.

In non-ferrous metals, after strong divergence on Thursday, Friday’s opening saw collective rebound driven by funds, but Hunan Gold didn’t hold the gains by the close, indicating cautious capital. Over the weekend, the U.S. and Iran sat down for negotiations, which is somewhat negative sentiment. Overall, the market remains volatile, with divergence and non-convergence alternating. If Monday opens high and then declines, deep water low positions could be considered. Currently, resource stocks are tied to sentiment, and their rhythm generally aligns with the non-ferrous metals sector.

U.S. stocks surged sharply on Friday, mainly driven by technology stocks. Our A-shares’ tech sector is likely to open high, but many investors are trapped in the recent correction. To avoid high open and then decline, it’s best to realize some gains first and then look for recovery opportunities.

Regarding expectations for Monday, the biggest divergences on Friday were in AI applications and consumer sectors. These two areas may continue to show divergence on Monday, providing opportunities for low-cost entries during dips.

The above views are personal notes for reference only and do not constitute any investment advice.