3.12 Two Major Market Trends Emerge

[Trading Bar]
Market Situation
Yesterday, various sectors rotated and surged. Focus on core stocks and low buying points during rotations; those with recognizable logic are better. For example, Micro LED stocks like Sanan Optoelectronics and Jucan Optoelectronics led today.

CPO Huagong Technology peaked short-term today, driven by a batch of funds from Tianfu Communication. The remaining major CPO chip stocks are Dongshan Precision. Did the funds shift again during the afternoon rally? After the group-led surge in second-tier optical module stocks like Seag Technology and Huilu Eco, they also corrected.

The two main market trends are becoming clearer: computing power collaboration + large chemical industry.
Computing Power Collaboration
Core stocks were selected last Friday. I didn’t manage to buy them all myself—only blindly bought Hanlan. The others I missed; it’s all talk and no action. It’s easier to talk about than to execute. My recent performance has been poor.

If the power sector is a main trend, it needs a sentiment-driven continuous rally. Hanlan shares had three waves; its position is above Shunna. That’s why I chose Hanlan on Monday. Currently, it looks similar to my chart: Yunnan Energy faces regulatory and 30-day abnormality suppression, with weakened momentum. Power stocks are mainly driven by retail funds and quant funds.

The direction for power institutions is energy storage. Green electricity replacing oil, and data centers requiring green power. Wind, solar, storage, nuclear—wind power is unstable, nuclear construction is long, photovoltaic is preferred. But PV might follow a 25-year lithium battery trend this year. PV cannot generate power at night, so energy storage is needed. PV inverters have been the most stable performance in recent years, especially with Middle East conflicts, Europe’s energy crisis, and household storage fermentation.

Large Chemical Industry
The war isn’t over; oil and gas are affected by futures. The market has returned to chemical stocks’ traditional price-increasing position. Chemical and computing power have become the two main opposing sectors.

Regarding the Middle East, I’ll add a few points: the US has targeted Iran with strategic goals, tying down the petrodollar, threatening a ceasefire between Russia and Ukraine, and working with Japan, South Korea, and India to cut off the Belt and Road, completing a three-in-one move—giving Trump leverage for his March China visit. But unexpectedly, the US military underperformed; the Middle East bases were all bombed, and the plan fell apart. Iran called, indirectly raising our international standing. This time, Middle East hegemony was lost. Trump’s March visit was pointless; no chips left. Besides selling to Japan and South Korea, what leverage remains? Oil sales are blocked, Middle Eastern rulers are struggling, and if they can’t handle the pressure, they might face loan calls. Many AI stocks in the US rely on Middle Eastern sovereign funds for funding—don’t let the system collapse.

Yesterday noon, there were rumors that Netanyahu was bombed. By the afternoon, chemical stocks surged, always a step behind; the news couldn’t keep up with quant trading. This afternoon, wind power stocks surged after it was revealed that the UK approved wind turbine component imports. A sharp rise always signals something fishy!

Core computing stocks: Yunnan Energy Control, GCL New Energy, Jinkai Shares + China National Nuclear Corporation. The last three all have green energy; Yunnan Energy is thermal power.
GCL is stronger. If Yunnan Energy’s regulatory extension isn’t granted tomorrow, it could boost market sentiment. If it drops further, chaos may ensue, and the focus might shift to energy storage.

Power sector: Hanlan Shares + Shunna Shares.
Photovoltaic Inverters: Deye, Ailuo Energy.
Chemical Industry: Jinniu Chemical, Baofeng Energy, Baichuan Shares.