March 27th. Next week, focus on whether the market shows signs of gradual high-low chopping or electric chopping lithium batteries.

Good afternoon, friends!! [淘股吧]

The idea discussed in yesterday’s article is about the power sector’s rebound leader.

Several friends in the comments section supplemented the omission of Guangxi Energy from yesterday.

In the early trading, Guangxi Energy was directly capped as a limit-up from the initial board yesterday.

So, other power stocks with a 1-to-2 expectation become less relevant.

Guangxi Energy is the clear rebound leader for the next wave.

According to the funds returning to the power sector in advance this afternoon (so on Monday, it still has a limit-up expectation).

As for how far it will go later, we still need to observe the later trends of YN Energy and Huadian in the sector.

For now, YN Energy and Huadian look good; YN Energy is out of the regulatory period today.

It can continue to strengthen next week, possibly even reaching a new high.

Then, Huadian’s 8+N trend should also continue.

Whether the power sector is over depends on the feedback from YN Energy and Huadian next week.

Future trends will still require continuous news catalysts (otherwise, there are actually not many expectations left).

It’s a clear thematic play, and once a low-position theme takes over (the profit effect in the power sector will decline sharply).

To say that the tide is directly receding and ending is definitely not the case, but as other themes (like lithium batteries) can absorb liquidity from the power sector,

there is a signal within power: no rebound at low positions, only a few distinguishable stocks in a group.

If such a situation arises (the power sector is just at the tail end of its run).

And lithium batteries might see a repeated cycle of divergence and liquidity return, reflecting on the power sector’s previous disagreements.

(The above are just some of my thoughts; specifics still rely on the market performance.)

The market issue remains shrinking volume (opening low and rising high, but the market volume is low throughout the day).

Intra-day, after Rongjie shares in the lithium battery sector surged and then pulled back in the morning, I added a position as it continued to show divergence.

Based on today’s strength in lithium batteries (Rongjie shares are expected to be limit-up on Monday).

The thought process for the lithium battery sector was discussed yesterday.

Lithium batteries and power are like a seesaw.

The key is the distinguishability in the front row: Rongjie shares.

Lithium batteries are currently following yesterday’s initiation, today continuing to strengthen, and next Monday showing divergence (as long as there isn’t strong divergence intra-day on Monday).

Then next Tuesday or Monday afternoon, funds will likely preemptively take positions in batteries.

The thought process is: power will rebound and recover on Monday, while lithium batteries will show consensus before divergence.

Then power is expected to show divergence on Tuesday, and those trading lithium batteries will consider this thought process and take positions in advance.

As for whether it aligns with my expectations, I will observe the trends and expectations of the two sectors during intra-day trading on Monday.

If they are similar, those without lithium battery positions can take positions in advance on Monday afternoon.

The focus for next week is whether funds in the power sector will gradually flow into lithium batteries.

Power:

During the morning auction, Huadian and Liao Energy hit the floor (this aligns with expectations).

After all, there was a sell-off at the end of yesterday’s trading, and the funds that went in yesterday were likely worried about panic (inevitably leading to overnight limit-down orders).

In contrast, those of us who entered earlier were actually hoping for the floor (to grab some chips for trading).

Unfortunately, it was bought up too high, and at the opening, I had to reduce my position (after all, the funds inside need to control volatility).

The market fluctuated throughout the day without breaking the opening low (clearly controlling volatility).

At the end of the day, I bought back the portion I reduced in the morning to prepare for the power rebound expectation next Monday.

Chemicals:

In this sector, I recommend everyone observe the upstream of lithium batteries (such as lithium iron phosphate or electrolytes).

Pharmaceuticals:

In the morning, there was no clear rebound in the power direction.

Funds were clearly defensive, and Meinuohua in the sector opened up new heights within the sector.

This prompted a lot of capital to engage in arbitrage.

Most likely a one-day play.

Computing power:

Still not good; although Aorede rebounded after the auction and showed divergence before wrapping back, the intra-day driving force was quite average.

Currently, it is challenging for the computing power sector to attract collective recognition from funds.

The sector’s interconnectivity is relatively weak.

In computing power, we are just watching whether it can repeatedly break out; the trend and popularity are still there.

Next Monday:

This weekend, there will probably be some self-media hype about lithium batteries.

If it gets too hyped, don’t rush into the market on Monday; it was originally a divergence expectation.

There’s a high-low switch flavor between power and lithium batteries.

Whether lithium batteries will gradually replace power later can only be seen step by step.

I’m just a short-term trader; I can only focus on today and think about tomorrow. Overthinking is just pure daydreaming.

Today’s operations:

Trading: Huadian and Liao Energy.

New position: Rongjie shares.