10 to 200K Second Doubling Challenge Day1

Today’s Review: [Taogu Ba]
Good evening, everyone!
Last Friday after the market closed, I warned to be cautious of the further spread of the market’s retreat trend this Monday. However, this morning, after the opening of the collective bidding, the market did not show the expected panic—there were no limit-down stocks, and with Yunnan Energy Holdings showing signs of anti-nuclear sentiment, I initially thought today might bring a decent recovery.
But because the estimated trading volume in the morning did not significantly increase and the market continued to decline during the session, today’s market exhibited a “strange” mix of characteristics.

Ideally, if the market accelerates downward, the money-losing effect of high-priced stocks will be fully released, prompting funds to shift to low-priced themes, thus effectively cutting through old and new cycles. Today, some funds attempted to position in low-priced stocks. China National Oil & Gas Pipeline Network Corporation (CNPC) became a core target with a 3.154 billion yuan one-word board order, driven by the news that the Strait of Hormuz crude oil settlement might adopt the RMB. Although this expectation is quite attractive and actively guided by funds, some funds diverted to chemical and marine economy sectors during the session, causing related stocks that opened high not to continue strengthening. However, the linkage of this concept still showed some upward movement, indicating that the market’s expectation of RMB cross-border payments has not fully dissipated. Tomorrow’s key will be whether CNPC can turn over and strengthen; if it breaks through, it may drive the sector’s rally. Conversely, if it performs weakly or drops sharply, this concept can be temporarily avoided, with focus on its subsequent trend.

Today’s market operation remains very challenging. The power sector showed signs of recovery in the morning. Yunnan Energy Holdings showed anti-nuclear moves during the bidding phase, but as the sector leader, it did not display proactive rallying after opening, which caused previously lagging stocks to weaken together. Even China Power Construction, which was stimulated by external positive news last Friday, was not immune. In the late session, Huadian Energy and other stocks received early fund positioning, while in the morning, the chemical industry and marine economy sectors showed relatively active performance. The recovery strength of the power sector tomorrow will depend on the opening response of these two stocks: if Shun Na shares fail to accelerate as expected, we need to observe their ability to absorb the divergence; Huadian Energy, as a late-session buy-in target, if it cannot accelerate tomorrow, may face profit-taking pressure. If the sector as a whole shows weak recovery, it’s better to temporarily abandon power sector trades and only monitor those still above the 5-day moving average with a trend-based approach.

The chemical sector today attempted to absorb the funds from the divergence in power stocks but failed to form a sustained upward trend (I think this was due to the poor performance of Lu Hua Technology’s limit-up attempt). Jin Niu shares had a poor performance all day and failed to close at the limit. Similar to the power sector, the chemical sector currently lacks a clear main theme, so future focus should be on the performance of active stocks within the sector. Currently, there are no new themes emerging in the market; funds still tend to flow back to old hotspots amid divergence. Short-term market rotation will mainly depend on external news catalysts—if there is news support, rotation speeds up; during news vacuum periods, rotation slows down until new catalysts appear.

In the afternoon, the AI hardware sector (mainly storage chips) surged, driven by the NVidia GTC conference held in California from March 16-19. This rally can be seen as a pre-emptive reaction to news, with the sustainability still to be confirmed by feedback during the conference. Within the sector, Langke Technology can be considered a leading stock to watch, while Zhaoyi Innovation has capacity advantages. Tomorrow, it’s important to monitor the performance of external tech stocks, combined with the bidding and opening responses of these two stocks. The trend of the external market will be a key factor in the overall movement.

Additionally, the deep-sea economy concept, which was popularized last year, showed some activity today under the name of marine economy. It is still in a testing phase at low levels, with unclear sustainability. Dongfang Marine, as a core stock, will be judged by its overnight order volume and opening performance. If it performs poorly, it’s likely just a one-day rally, and there’s no need to over-focus.

Overall, low-priced themes currently lack clear main lines, and the recovery prospects of high-priced themes (represented by power) still need validation. If tomorrow’s market cannot form focused hotspots, the overall profit-making effect this week may remain sluggish, with sector rotation accelerating and operation becoming more difficult. Be mentally prepared in advance, and focus on opportunities in trend-based, crowding active stocks.

Trend analysis of various sub-fields (only notable recent stocks, feel free to add):

• Energy Storage: CATL, Guosheng Technology, Vico Technology
• Automobiles: BYD
• Computing Power: Hongjing Technology
• AI Applications: 263, Tiandi Online, Annie Shares
• Chips: Baiwei Storage, Demingli, Zhaoyi Innovation, Jiangbolong, Taiji Industry, Jinsun, Langke Technology, Taijing Technology
• PCB: Huedian, Dongshan Precision, Benchuang Intelligent, Dongwei Technology, Jinan Guoji, Sanfu New Science, Zhongying Technology
• Analog Chips: Guoke Micro, Saiwei Microelectric
• Clean Rooms: Yaxiang Integration
• Chemical Industry: Sanfangxiang, Chitianhua, Jinniu Chemical, Baofeng Energy, Jilin Chemical Fiber, Zhongfu Shenying, Ruifeng High Material, Hongbai New Material, Liuguo Chemical
• Power & Electrical Collaboration: Shun Na Shares, Jinkai New Energy, GCL Energy, Huadian Energy, Dixin Communications, Huashengchang
• Wind Power: Taineng Heavy Industry
• Real Estate: Jingtou Development
• Robotics: Yutong Technology, Yibin Technology, Shengshi Technology
• Optical Fiber: Farsight

Tomorrow’s Expectation:
In the afternoon, funds already attempted recovery early, but the themes’ profit effects were dispersed, lacking synergy. If there are no surprises, tomorrow’s market will mainly rotate, with no sustained opportunities. Only if trading volume exceeds 300 billion yuan and remains at that level can the current deadlock be broken. In the short term, low-priced themes have not yet shown clear opportunities; the focus remains on trend-based rebounds in high-priced themes. This kind of market tests patience, and specific directions will need to be confirmed by tomorrow’s closing data.

Today’s operations:
Jinniu Chemical: Buy. I emphasized this stock last night. Although it did not open high today, opening flat was already a positive surprise, so I went in with half a position. But it didn’t close the limit, and tomorrow is expected to open lower. Still, this stock has relatively high recognition, and there’s a chance it could be snapped up during bidding. The plan is to hold it around the 5-day moving average, with a lower stop-loss point.

Chitianhua: Buy. Also based on the pre-bid logic, despite a poor limit-up attempt, it managed to close above the limit. We’ll see how it performs tomorrow. I will update on any actions.

Today’s real trading: