3.11 Review: The oscillation and chaos remain the main theme, with defensive consolidation and waiting quietly for a breakthrough

Oscillating, still oscillating! The market continues to recover but cannot hide the chaos in themes. Chemical and energy storage sectors take turns leading, while the power grid and optical communications remain locked in a fierce battle without a clear winner. The daily limit ecosystem is collapsing, leaving only collective stocks as safe havens for funds. Currently, it’s not about who makes more money, but who escapes faster. Continue to be patient and wait for that decisive breakout signal! [Taogu Ba]

Following the Trend
The index has entered a consolidation phase as expected, opening slightly higher. Although there was some pullback during the day, it still closed slightly higher. Comparing the average stock price index with the Shanghai 50 Index, it’s clear that in the afternoon, the average stock price mostly declined unilaterally, while the Shanghai 50, representing larger weights, was driven higher in the opposite direction to maintain stability. The total daily volume was 2,508.4 billion yuan, an increase of 110.5 billion. After returning to the original consolidation range, the index is likely to continue mainly sideways, with no signs of a trend shift or major catalysts to trigger a change.

The chaos in themes remains unchanged. Yesterday’s leading sector, computing power, has shifted into correction, with chemical and energy storage sectors rotating.
In the morning, energy storage sectors rotated, but only 7 stocks hit the daily limit, with a total of 9.723 billion yuan in limit-up gains—all first-time limit-ups, notably Guosheng with a limit-up.
In the afternoon, chemical sectors took over the rotation, with 13 stocks hitting the limit-up, totaling 17.962 billion yuan, also all first-time limit-ups. NiuNiu Chemical, with 8 limit-ups in 18 days, has some recognition.
The power grid sector attempted to rebound today but failed to succeed, with only 6 stocks hitting the limit-up, totaling 11.361 billion yuan. Three of these are second-tier limit-ups, and three are first-tier. China Western Electric, with a large capacity, weakened actively, while China Energy Construction, at a low level, took over. Sentiment-wise, Henan Energy maintained strong oscillation, with continued adjustments in the supplementary stocks like Tongna.
The optical communication sector, which surged yesterday, experienced normal differentiation but performed relatively well. Five stocks hit the limit-up, with 3.885 billion yuan in limit-up gains. Leading stocks Guangxun, Changfei, and Huagong all rose sharply and closed strong, maintaining sector strength.
The weaker sector today is commercial aerospace, with major declines in previous leaders like Aerospace Power and Aerospace Technology, and many aerospace concept stocks declined throughout the day.
Overall, the market remains in a relatively chaotic state of competition. Quantitative strategies are still guiding, but their influence has diminished. The market is waiting for the main theme to win the battle.

Market Sentiment Fluctuations
After a recovery, market sentiment entered a digestion and adjustment phase. The day shifted from widespread gains to widespread declines, but the adjustment was modest. With clear resistance at high levels and no major breakthroughs in themes, the market mainly rotated.
Speculative sentiment is also under pressure. Today, Wangli Security’s performance once again impacted the rally. It opened strongly but then plunged sharply, with nearly 15 points of decline. If this continues tomorrow, the damage could be significant, and the weak streak of limit-up stocks persists.
Amid the chaos and theme rotations, only a few collective stocks remain repeatedly active, which is rare under the intense harvesting by quantitative strategies.

Tomorrow’s Outlook
Based on the above analysis, the main focus remains on defense, centered around core collective stocks. Be patient and wait for suitable opportunities, observing more proactive opportunities within the day.
The trend of the power grid and optical communication sectors remains intact. Both hit new highs today but are still competing, with no clear winner. Coupled with the diversion and tug-of-war from other sectors, the choice is either a collective rally with explosive growth confirming the main trend or a breakout from key stocks leading the theme higher. Otherwise, the market will continue to rotate.
Other sectors face greater difficulty and fewer opportunities. The fermentation like last weekend’s crayfish is just a fleeting moment, especially compared to the weaker small themes in the current market.
Keep waiting for a breakout to appear, whether in themes or individual stocks. Previously, it’s better to watch more and act less.

Trading Tips
Today, I made some adjustments. I cleared positions in Tuowei Information, ShunNa Shares, and China Western Electric. Took profits on Tuowei and ShunNa, exited China Western Electric at a loss after a small loss, accounting for transaction fees.
Yuneng Holdings opened with a small T, sold a little above the opening price, then re-entered at the same level and continued holding.
Opened a new position in Huasheng Tiancheng, bought after the open, experienced a rise and fall during the day, but still holding some unrealized gains.

Post-market holdings: Yuneng Holdings, Huasheng Tiancheng.

Data Summary

☑ Disclaimer: The above is only my personal review notes. Any opinions or stocks mentioned are for illustration purposes only and do not constitute investment advice. Please do not blindly follow. Trading involves risks; invest cautiously!
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