Relay Fault, Computing Power Explosion, Where Will the Shrinking Market Go

First, the conclusion:
The index has bottomed out and rebounded, with emotions polarized. The technology sector is leading the charge, but high-flying stocks are experiencing a sharp decline.

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In-depth: Market Sentiment Review
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Tuesday, March 18

1. Core Data and Sentiment Diagnosis
1.1 Overall Market Performance
Today, the market looks like an old tree in spring, with all indices in the red. The Shanghai Composite rose slightly by 13.08 points, closing at 4,062.98 points. Although the gain was modest, it held steady. Trading volume across the two markets shrank to 2,046.1 billion yuan, marking six consecutive days of declining volume, indicating a stockholder’s game with existing holdings, as new funds remain on the sidelines.

However, individual stocks are warming up. 3,433 stocks rose, 57 stocks hit daily limit-ups excluding ST stocks, and only 4 stocks hit limit-downs, showing strong profit-making effects. Sentiment is polarized, with only 7 stocks hitting the daily limit for consecutive days.

2. Deep Analysis of the Continuous Limit-up Stocks
Today’s ladder resembles an “inverted pyramid,” with a broad base and a dwindling peak.
5-day limit-up stocks: 1, Sanfangxiang, a chemical sector standout, broke through with blood, standing out from the crowd.
3-day limit-up stocks: 2, ShenhuafA and Huadian Liaoning Power, both successfully advanced from two to three days, still holding some hope.
2-day limit-up stocks: 4, including Yabo Co., Shunhao Co., etc., face tough progress, walking on thin ice.

Only Sanfangxiang stands tall among the ladder, with a high-level relay broken, as market fears of high prices prevail. Funds prefer to hunt for rebound opportunities within first and second limit-up stocks rather than risking bloodshed on high-priced stocks.

3. Hot Sector and Core Stock Comments
3.1 Technology Sector (AI hardware, computing power, storage, liquid cooling)
This is the soul of today’s market and the destination for funds. Stimulated by NVIDIA GTC conference and Alibaba Cloud price hikes, AI hardware stocks surged with a wave of limit-ups, totaling 10 stocks hitting the daily limit.

The sectors of computing power, storage, and liquid cooling each saw 6 stocks hitting the limit, except for Langke Technology, which continued its streak, while others experienced first-limit explosions. The rally is driven by news, with industry logic (price hikes and shortages) solid as a rock, drawing all eyes.

3.2 Smart Grid
Zhongnan Culture hit 6 limit-ups in 8 days; Huadian Liaoning Power hit 3 limit-ups in 3 days, following closely. This sector moves independently.

3.3 Commercial Aerospace
Jiugang Hongxing hit 4 days of 3 limit-ups; Shunhao Co. hit 2 days of 2 limit-ups, showing signs of repeated activity.

4. Overall Market Sentiment Analysis
Today’s market is in a triple overlap state of “index recovery, sector explosion, high-level retreat.”

Opportunities lie in the strong, explosive logic of the technology sector (AI computing power, storage), with deep institutional investment, making it the most certain main line at present. The primary battleground is in discovering first-limit stocks and low-level rebound stocks (second limit-up), with relatively lower risk.

Risks include the “loss-making effect” already evident in high-level relays, and the poor success rate of consecutive limit-ups, indicating market fears of high-flying stocks. Although Sanfangxiang is strong, it may become a “lone wolf.” Without follow-up support, it’s hard to sustain.

In terms of capital behavior, main funds are reducing volume to buy, targeting core main lines precisely, following a “focused track, concentrated firepower” approach rather than widespread expansion.

5. Future Market Direction and Focus Areas
The overall outlook remains bullish on the technology sector, especially in AI computing power, storage chips, and liquid-cooled servers, supported by industry logic, suggesting this is not a one-day rally.

If Sanfangxiang shows sharp divergence tomorrow, it could cause a secondary blow to market sentiment.

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【Important Notice】: The above is only a sharing of ideas and does not constitute investment advice. The market carries risks; invest cautiously!