3.18 Midday Update: Computing Power Integration, Fourth Wave, Strong Computing Power, Weak Electricity

[Stock Forum]

Market

1.8w volume, don’t talk about a rebound, just praying for a bottom now.

Lately, there’s been a slight inflow at noon, only about 1.9w billion.

Always laughing at others, Korea’s recent war has the biggest impact; they heavily rely on imported oil and natural gas.

We import oil and gas through multiple channels, and we can pass through the Strait of Hormuz.

And the market is like this??? Haha.

Profit Effect

Weak divergence

38 limit-ups, not many

2 limit-downs, all minor stocks, not important

Yesterday’s high for consecutive boards, today’s expected normal is differentiation

But it’s diverging, and the bidding was below expectations

Quantitative-driven emotional trend is also poor here

Institution-led trend is as expected, but with low volume and not strong

Themes

Computing power rebounds strongest

But the structure is quite chaotic, with dual directions

Overseas computing power rebound + domestic computing power’s fourth wave + domestic semiconductors

Overall still dominated by domestic strength

Electricity and Power

Using leading stocks like Yunnan Energy Control to anchor the rhythm

Currently, it’s a rebound after a decline, a repair phase

Four days now, yesterday saw a bottom, today’s first day of a rebound after a decline

On the day of the limit-down, the first yin to catch up with the first yang is Xihua Shares

Yesterday’s secondary new stocks led the rally, today’s bidding below expectations

The previous day’s catch-up was Farsight, focusing on energy storage

Threatened with suspension, so it’s out

The next day’s catch-up was Huadian Liaoning, a strong one-character boost

So, crossing-type catch-up, less than 5 boards high, weak

Still strong at low levels, not at high levels

Even if Huadian caught the decline-repair window for electric power, it caught the trend-following window through countertrend catch-up

Yabo Shares with 2 boards is a divergence exhaustion point, better at the first board window

Several days of decline and repair gave two one-character boards in electric power: Guangdong Electric Power A and Shao Neng Shares

So, the fourth wave of electric power synergy’s catch-up begins

The problem is, high levels are not showing any stance, still strong at low levels, no rhythm at high levels

Has leading stock Yunnan Energy Control rebounded actively?

No, it’s still pushed by the sector

Yesterday’s strong countertrend crossing and anti-fall stocks like Shun Na Shares and Farsight did they actively strengthen?

No, especially Shun Na Shares today, feeling like they were wrong in buying and selling, crazy intraday movements

Then they pulled up stocks like Jinkai New Energy, Meili Yun, and Tongli Tianqi—those weak yesterday but turned strong today, the ones strong yesterday got caught in the relay.

So, the feeling is very bad.

Today’s electric power synergy is mainly computing power + electricity, with a bias towards computing power, but it’s a low-level catch-up strength.

Mid-to-high level catch-up is weak, trend sentiment lacks rhythm, chaotic rotation.

Overseas computing power from Nvidia系

Normally today should continue divergence and decline.

But institutions are hyping and misjudging, causing a strong push today.

But it’s pushing CPO, like Yi Zhongtian and other top stocks.

CPO’s big bearish candle broke below the 20-day moving average.

What’s the point of pushing CPO today?

Can it rebound? So what?

In such a low-volume market, it’s just a troublemaker.

Today’s momentum is strong, but what about yesterday? You guys caused the market to collapse.

On the PCB side, yesterday’s resilient Shanghai Electric led the rally, noteworthy.

But it couldn’t withstand Dongshan Precision’s continued decline, which offset the gains.

Domestic semiconductors and storage

Yesterday’s resilient stocks all gave positive feedback today.

At the same time, today continues to follow a positive rhythm.

Divergence during declines leads to resilience, and during repairs leads the rally.

This is a positive rhythm.

Divergence during declines and repair leading to dips is the wrong rhythm, like Farsight.

Core stocks like Baiwei Storage fully resonate with the sector rhythm, actively leading the rally.

Positioning stocks like Langke didn’t continue to defy the trend strongly, indicating funds are cautious.

Yongyou Technology at low levels shows no divergence.

Damingli dragged behind today.

Not sure if it’s because yesterday’s fund manager said their single-stock holding exceeded 25%, which is illegal, and they kept selling.

Storage stocks followed the market’s second dip to new lows and then rebounded again, becoming the sector with the largest intra-day gains.

This is related to the western testing sector, but the momentum driving commercial aerospace seems even stronger.

Finally, Dagang Shares, Jiang Bolong, and Xiangnong New Venture rebounded after inflow,

and the entire sector stood up.

Formed a rare bullish pattern of two positive days sandwiching a negative day in a bearish market background.

If it can effectively break through the big bearish candle of 03.03, then it’s worth watching higher.

Bulk Commodities

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For chemical sector indices, I don’t know why there’s still funds wandering here.

It’s very hard to make money with such indices.

Jinniu Chemical is the only recognizable sector with a clear grouping.

The three limit-ups earlier made sense and were quite logical; chemical sector was indeed strong at that time.

But in the past three days, making money on Jinniu Chemical has been purely luck, not strength.

Here, the bulk commodities are in a perfect large-cycle 5-wave structure, small-cycle 5-wave structure.

Whether there’s further extension for catch-up depends on the market and geopolitics.

If Jinniu turns bad, it’s a contradiction in rhythm.

Check if the first and second boards today show low-level catch-up in this direction.

Anchoring the A-share average index

Early session saw four waves of attack, three waves of divergence.

First wave: bidding opened, a slight rebound.

Second wave: overseas computing power + domestic computing power + electric power + storage.

Third wave: overseas computing power + domestic computing power + storage.

Fourth wave: commercial aerospace + storage + domestic computing power.

Then chemical sector started weakening wave by wave.

Last night’s advice: Surpass expectations, break below expectations, understand the essence, and focus on practical insights.
Don’t just follow expectations blindly.
Reflect on today’s market with this understanding.
Gain deeper insights.

Last night, bulls and bears collided fiercely. Watching the market today, the decline was driven by bulk commodities in the late session.

The new tech stocks are just riding the rebound of the market.

There’s no right or wrong, both sides are correct.

The market is likely to hit new lows, but also likely to rebound.

So, what expectations should we hold today?

It depends whether the market declines beyond expectations or rebounds beyond expectations.

Both scenarios are possible.

Then, within the more extreme expectation, look for sectors that outperform, and stocks that outperform.

Key Stock Comments

Damingli

Time-sharing chart shows it’s completely weaker than sector index.

But as an institutional trend stock, following emotional trading patterns, it’s easy to get caught selling at the wrong time.

It has high sector recognition.

Further separation from Changfei Optical Fiber, but its development path and the market environment back then are incomparable.

So, it’s been bumpy all the way.

Intraday, its recognition is lower than Baiwei Storage, as it’s too trend-following.

Langke Technology

Problems are not big, but it indicates funds are cautious.

Easy to turn into arbitrage understanding.

The first wave in the morning was very strong; not hitting the board in the first hour lowered its recognition.

Indicates funds are cautious and lack confidence in the market rebound.

Large-cap stocks like Zhongfu Shenying and Nabaichuan, which had abnormal movements, didn’t perform strongly today.

Langke Technology’s limit-up today, but even if it hits limit-up again tomorrow, there are issues with the momentum.

So, the sector’s rally is still weak, mainly driven by quantitative low-level momentum.

The randomness is high.

If there’s no volume in the afternoon, just a stop-loss K-line would be good.

No need to expect a big rebound.

If today forms a doji with a lower shadow, it’s still uncertain whether it’s a bottom or a continuation of decline.

Whether it declines or rises, volume is needed for better judgment.

Currently, uncertainties abound.

Quantitative rotation at low levels continues strongly, making it very difficult to identify and relay signals.

If we see the market as a decline exhaustion + rebound, then a new cycle might be on the horizon, waiting for a third decline exhaustion + rebound.

In other words, if this rebound has no volume, there’s a possibility of a third decline ahead.

We need quick entries and exits; the pattern is not yet clear.