3.18 Review: Power stocks showed delayed gains on the main trend, followed by tech stocks dancing higher.

Don’t look for logic outside the market; only look for signals within the market! [Taogu Ba]
Focus on window signals, extreme node trading!
Always see strength, choose strength, act strong!

Every day before the market opens, these three soul-searching questions must be etched in your mind:

1. Is there a main theme right now?
2. Is today a key node?
3. Is there a buying point today?

If you can’t figure out these three questions, you’re not qualified to open your trading software. No more nonsense, let’s get straight to the main course.

Ask yourself honestly: at the close today, is your account red or green? If it’s green, don’t blame the market; blame yourself for not understanding the current game.

The current market looks like a high-level poker game. Low volume indicates fewer aggressive players, but those remaining are veterans with assets and calm minds. Don’t be fooled by the daily “quantitative noise” jumping around; the real main theme is like an old tree with deep roots—firmly anchored.

1. Index Determines Style: Shrinking volume is a true mirror—who is truly naked swimming is obvious

Today’s index movement was quite dramatic. The market opened with a slight rally, then plunged into deep water, even breaking below the key psychological level—4033 points. At that moment, I believe many people’s confidence shattered. But markets love this heartbeat game. In the afternoon, driven by computing power and commercial aerospace, it was forcibly pulled back, ending with a small positive line.

A very critical signal here: volume.

The total turnover of the two markets barely stayed above 2 trillion, specifically around 2.05 trillion, shrinking about 170 billion compared to yesterday. Continuous shrinking volume isn’t a good sign, but it’s not purely bad either. What does shrinking volume mean? It indicates that at this level, the panic selling has dried up, and chasing high has also become timid.

Let’s interpret this market language: During the day, the index briefly broke below 4033, which is a clear sign of a breakdown. According to quant fund behavior, a breakdown should trigger a panic sell. But what happened? It recovered in the afternoon. This suggests that the purely algorithmic, emotionless quant funds are weakening their selling behavior at this level. Meanwhile, institutions relying on billion-dollar subsidies to push trend stocks are also losing follow-up funds, weakening their style.

When quant funds retreat and institutions hesitate, who temporarily takes over the market’s pricing power? The answer: the most敏锐的游资 (sharpest hot money) and the strongest relay funds. Today’s market tells us that under this shrinking volume box, don’t be pessimistic; instead, consider the “relay style” positively. Stocks with logic and popularity are more likely to form clusters and develop independent recognition in a low-volume environment. Those following the crowd may drift downward in the shrinking volume, but true leaders will be carefully supported by funds as if holding fragile porcelain. This is the so-called “ground volume reveals ground price,” not referring to the index but to the resilience of the main theme.

2. Theme Determines Direction: Power is not a one-day wonder; it’s a “hidden line bright card” running through the month

If someone still asks you whether there is a main theme in the market, you can directly show them the K-line chart of the power sector on your trading software.

The current main theme, and the only one, is power. This is not a sudden surge caused by a day or two of news; it’s a coordinated, rhythmic campaign.

Starting from February 26, when Huayin Power hit its first limit-up, this sector has quietly developed for 14 days. Why do most people fail to profit? Because they suffer from “hyperactivity disorder”—if they don’t watch other sectors for a day, they panic. Power stocks are following a classic textbook cycle nested main upward wave, now clearly divided into four stages, each led by a strong player:

1. First stage: Huayin Power. It’s the first to emerge, acting as the ignition. During this phase, the market doubted power, thinking it was a rebound from oversold. Its task was to produce the first positive line and stabilize the K-line pattern.

2. Second stage: Shunna Shares. Note, this is the truly quality stock. On the day Huayin Power hit the limit, was the market panicking? Certainly. But Shunna Shares launched its first limit-up that day, followed by two more small-volume one-word limit-ups, creating a four-limit high, breaking the sector’s space. It didn’t kill the trend afterward but shifted into trend mode, providing a foundation for the entire sector.

3. Third stage: Huaneng Energy. Its launch point was also precise—on the day Shunna Shares hit the limit. Seamless connection, again hitting four limit-ups, still trending. Its significance is to tell the market: power is not a one-wave surge but has tiers.

4. Fourth stage: Huadian Liaoning. This is where we are now. Its first limit-up was on the day Huaneng Energy hit the limit, with a one-word limit-up. Yesterday (March 17), it recovered from divergence, and today (March 18), after bidding for shares, it accelerated to hit the limit again, achieving three consecutive limit-ups.

This is not random fluctuation; it’s clearly orchestrated with precise timing. Every time the old leader hits a limit, a new leader starts; every emotional divergence is immediately repaired the next day. This rotation among “Huadian series” and “Shun series” fully demonstrates the sector’s vitality.

This is what a main theme looks like: not a daily collective surge, but successive leaders stepping up—one after another, always someone leading the charge. Funds still lingering in AI, low-altitude economy, or non-ferrous metals will eventually wake up and come back to lift the power sector.

3. Timing Nodes: Yesterday and today are the “hitting zone” within the pattern

Many losses come from “timing mismatch.” During the main upward phase, hesitation; during the retreat, heavy moves. Professional traders only place orders at key nodes.

What are these key nodes?

Not your impulsive decisions after watching the evening news, but the resonance and cutting points of emotions, index, old cycles, and new cycles.

Looking back, what was yesterday (March 16)? It was the day Huadian Energy hit the limit and broke the board. According to logic, a four-limit high break is a major negative for the sector. But on that day, Huadian Liaoning directly hit a one-word limit-up. This is a typical “weakness mistaken for strength.” Yesterday was an excellent testing point and a confirmation of the transition between old and new cycles.

And today (March 18)? It’s a confirmation point. The bidding phase of Huadian Liaoning today, along with the quick limit-up of Yue Electric Power A and Shao Energy Shares after opening, has moved the position from yesterday’s test into a safe zone, signaling an opportunity to add positions. Yesterday was a “test,” today is a “confirmation.” For top players, these two days are standard “hitting zones.” If you didn’t understand yesterday, and you don’t get on today, you’re really not suitable for this market.

4. Strength in individual stocks: The bidding market already shows the answer on the face

What kind of K-line do you analyze? That’s the past. True short-term players focus on the ten minutes from 9:20 to 9:30. That’s the real declaration time, where all schemes are exposed.

Let’s look at today’s early trading data:

1. One-word limit-up sets the direction: After the morning’s closing of the bidding, four stocks hit one-word limit-ups, with power sector dominating. Yue Electric Power A and Huadian Liaoning hit one-word limit-ups (with nearly 90 million in orders). It’s like a battlefield—pioneers planting the flag, others just follow and charge.

2. “Huadian” effect: Yesterday, Huadian Liaoning hit a one-word limit-up after opening, then closed the gap—this is “divergence turning into consensus.” Today, despite yesterday’s weak opening (referring to intra-day opening), it still managed to hit a one-word limit-up, exceeding expectations. Especially in a not-so-hot overall environment, this contrarian surge is pure chasing.

3. Following response: Jiawei New Energy opened with a 20-cent quick limit-up (intraday explosion), Shao Energy Shares quickly hit the limit. What is this? It’s a complete echelon. Leaders hit high, mid-tier stocks add capacity, followers create atmosphere. A healthy sector must have this “one call, one response” momentum.

So, where are today’s buy points? For most, there may be no comfortable low-entry point now because core stocks are accelerating. But if you hold positions, today’s pattern is a “lying win.” If you’re out of the market, you need to be brave enough to queue up or wait for tomorrow’s divergence opportunities.

5. Tomorrow’s forecast (March 19): Fight and retreat, beware of the 4-limit curse

Those who enjoyed big gains today, don’t rush to pop champagne. Tomorrow’s strategy should be a bit more cautious because there’s an important emotional resistance: the 4-limit curse.

Reviewing the three previous stages, whether Shunna Shares or Huaneng Energy, they all stopped at four limits. This indicates that under current regulatory and market consensus, four limits are a key hurdle for turnover. Huadian Liaoning will face this test tomorrow.

For tomorrow’s forecast, here are some key points:

1. Core stock expectations: Huadian Liaoning is expected to accelerate tomorrow, ideally with a shrinking volume one-word or T-shaped limit-up. If it continues to hit a one-word limit-up without opening, it indicates a short squeeze, a feast for holders. But if it shows divergence—like opening high and falling or large-volume weak boards—it may repeat past failures and fail to break the four-limit high.

2. Continuity of support: Today’s responders, Shao Energy Shares and Yue Electric Power A, must not kill the rally tomorrow. They can pull back after surging, but should give the funds that entered yesterday and today a decent exit opportunity. If the strongest support stocks are immediately killed, the leader won’t go far. The best support stocks are those that can hit multiple limits, not quick rebounds.

3. Negative feedback repair: Some stocks in the sector probably lagged or showed negative feedback (like quick pullbacks). Tomorrow, these negative sentiment stocks need to show repair actions; at least, they shouldn’t be lingering at the limit-down to drag down sentiment.

4. Strategic retreat preparation: Since the previous three times the sector topped at four limits, we should prepare plans accordingly. If Huadian Liaoning can’t hold the four-limit after reaching it, or if it does but with huge turnover, those holding positions—especially follow-up stocks—should be ready to take profits in stages. This isn’t pessimism; it’s respecting historical patterns.

As for other sectors, like the computing power and commercial aerospace that moved in the afternoon, my personal view is: don’t watch them for now. Until the main theme clearly ends, all rotation themes are just “bandits” trying to usurp the throne. If you chase, you might just be taking over someone else’s position. Patience is key—wait for the power sector to finish its run, then look for the next new cycle’s starting point. For those without an early lead, it’s a bit awkward—either go all-in on the core Huadian Liaoning with a small position or wait for the next “Huadian Energy break” day.

6. Today’s operation: Unity of knowledge and action, discipline in correction

Finally, I want to share my own trading experience—unity of knowledge and action, and the importance of correction.

Yesterday, I didn’t go into Huadian Liaoning. Why? Because it didn’t open as expected, so I didn’t watch it. By the time I reacted, it was already up, and I missed it. That was a mistake. But a bigger mistake was my mindset after missing out—causing anxiety and making a reckless single order.

Yesterday, I suddenly bought Zhuolang Intelligent, a wild move. The logic? Honestly, no solid logic—just looking for arbitrage to make up for missing the power sector. That’s a typical “off-plan operation,” which is a big taboo.

Today, everyone saw the result: Zhuolang Intelligent opened far below expectations, with a big gap down. At that moment, don’t hesitate, don’t hope for a reversal. After the opening auction, I saw the opening price and immediately sold. Small profit out.

This operation taught me: efforts outside the main theme are often futile. Even if you miss the first wave, don’t mess up the rhythm.

After closing Zhuolang Intelligent, I didn’t open new positions. Why? Because the good buy points in power stocks today are gone; what you get might be traps. Since I missed the first train, I’ll wait patiently for the next one or for a divergence (pause) in this train to get on. Continue waiting for my next opportunity.

Finally, some heartfelt words: after so many years of short-term trading, my biggest insight is: trading is not about prediction but about response. You can never predict which sector will rise tomorrow, but through review, you can understand what today’s market is saying and what the possible trends are, then prepare accordingly.

The power sector’s main line is still there—keep fighting, keep dancing. But don’t forget, the dance always ends. When the music stops, make sure you can leave intact, not stay in the dance floor paying the price.

· Market risks exist; invest cautiously. The content of this article is solely the author’s personal market review and opinions, not actual investment advice, guidance, or promises.

· Any specific stocks mentioned (like Huadian Liaoning, Yue Electric Power A, etc.) are only used for case analysis and logical deduction, not recommendations to buy or sell. Investors act at their own risk.

· Short-term trading is highly volatile, influenced by market sentiment, funds, policies, and other factors, with high uncertainty. The “4-limit curse” and other historical patterns may not repeat in the future; past successes do not guarantee future results.

· Each investor should make independent judgments and be responsible for every trade in their account. Do not blindly follow the crowd, especially after significant gains, as chasing high carries great risk.