Bloodbath Technology, a Crazy Cycle Surge! The Market Plays "Ice and Fire" Again

** Short-term Core Concept: Unity of knowledge and action, operate within your own model understanding, focus more on personal growth internally, control drawdowns with position sizing, slow is fast. ** [Taogu Ba]
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Today’s Operations:**

Wednesday:

Holding: Yunnan Energy Holdings

1. Yasheng Group feels it can’t hit the limit-up, so it sold off; China Aerospace Development and China Satellite didn’t actively rise in the morning, moving around 0 axis; Intercontinental Oil & Gas moved slightly green in the morning;

2. Bought Yunnan Energy Holdings at the close;

Summary for today: The market continues to rotate rapidly like a windmill, returning to the overall market sentiment of collective grouping.

Market Analysis Today:

Today’s market showed a typical “index up, individual stocks down” divergence. The indices looked red-hot, but accounts might be green or red. The three major indices all closed higher, with the ChiNext leading at +1.31%, Shenzhen Composite +0.78%, Shanghai Composite +0.25%. However, over 3,200 stocks declined, only about 2,000 rose, indicating very concentrated profit opportunities.

Trading volume expanded to over 2.5 trillion yuan, an increase of about 110 billion from yesterday. This shows huge market divergence, with funds actively rotating positions.

The core feature of today’s market is “style switching.” Yesterday’s tech growth stocks (AI computing power, CPO) were hot, but today they all cooled off, while yesterday’s abandoned cyclicals (chemical, new energy) made a comeback. Funds are like weather vanes, shifting directions with the wind.

Today’s main themes are very clear, only three:

Strongest main theme (event + cost-driven): Chemical industry (coal chemical, salt chemical). This sector fully exploded today, with many stocks hitting the daily limit. Two core drivers: first, sharp fluctuations in international oil prices, which, despite pulling back from highs, remain relatively high, providing cost advantages for coal and chemical routes; second, product price hikes, such as titanium dioxide and other chemicals issuing price increase notices recently. This is a typical “price hike logic” hype.

Second-tier main theme (policy + demand-driven): New energy (batteries, photovoltaics, energy storage). Power equipment, batteries, and photovoltaic sectors led gains. The logic is based on the expectation that “developing new energy storage” will be included in government work reports, and industry demand is warming up (e.g., lithium battery production data is good). Funds are seeking sectors with policy backing and performance certainty.

Major adjustment theme (profit-taking + risk appetite change): AI computing power, semiconductors, military industry. Yesterday’s leaders (CPO, semiconductors) today led declines. Mainly short-term profit-taking, plus the release of a security risk warning by China’s Internet Emergency Center on OpenClaw (open-source AI agent), which cooled hot topics. The military sector also adjusted due to expectations of easing geopolitical tensions.

Key points of short-term sentiment and capital game:

Volume-driven divergence, funds grouping: trading volume increased but individual stocks mostly fell, indicating funds are not attacking broadly but flowing out of tech stocks and concentrating into chemical and new energy sectors. This is a typical “building the east wall to repair the west wall” rotation.

Northbound funds slightly inflow: today net inflow of 2.26 billion yuan, mainly increasing positions in new energy and consumer sectors, reducing holdings in tech stocks. Foreign capital is also restructuring.

Market sentiment cautious: although indices rose, more stocks declined than rose, and the number of limit-ups (79) isn’t high. Market sentiment isn’t as optimistic as the indices suggest; risk aversion and wait-and-see emotions are strong.

Next week’s news outlook:

US inflation data (big event tonight): At 20:30 Beijing time, the US February CPI data will be released. This is the top event for global markets this week, directly affecting Fed rate cut expectations and global liquidity. If data exceeds expectations, growth stocks may be suppressed again; if in line or below expectations, the market may get a breather.

Middle East situation: Although Trump signaled easing, US-Iran military confrontation continues, and the Strait of Hormuz remains a focus. This directly impacts oil prices and global inflation expectations, influencing chemical and oil & gas sectors.

Domestic policies and industry events: The National Two Sessions will close tomorrow (March 12). Watch for any unexpected policy details. Additionally, the Hangzhou Global Artificial Intelligence Conference (GAIC) will be held from March 12-14, potentially providing new catalysts for the adjusted AI sector.

Trading strategies and suggestions:

Follow the rotation closely, avoid chasing highs: Currently, the market is a rapid sector rotation. Yesterday’s tech chase could get trapped; today’s chemical and new energy sectors may also face pullbacks tomorrow. For sectors that surged today, don’t chase if they continue rising tomorrow—easy to become the bagholder. Wait for a correction to observe.

Look for low-entry opportunities in tech stocks: AI computing power, semiconductors, etc., adjusted today, but the industry logic remains unchanged. If they continue to decline tomorrow, consider low buying points for core stocks. Especially if tonight’s US CPI data is not bad, tech stocks may rebound.

Control positions, watch less, act more cautiously: The market direction is unclear, and rotation is fast. Keep total positions around 50%, retain sufficient cash, and patiently wait for clearer main themes or more stable market sentiment.

Pay close attention to tonight’s US CPI: This data will determine risk appetite in the coming days. After release, observe the reaction of US stocks, especially Nasdaq, which will guide the next day’s A-share tech stock trend.

Summary:

Today’s market played a “high-low switch” act, with funds withdrawing from high-level tech stocks and flowing into low-level cyclicals. This kind of market operation is very challenging; chasing highs and selling lows can easily lead to losses. Currently, patience and position control are key. Watch the sustainability of today’s strong chemical and new energy sectors; wait for signs of stabilization in tech stocks. Before external macro data (US CPI) and internal policies (Two Sessions) clarify, the market is likely to remain in this oscillating rotation pattern. Remember, surviving is more important than making money in this kind of market.

Growth Philosophy:

My personal philosophy is “fish first, then net.” Fishing isn’t something you master in a week or a month, but catching fish gives you the capital to make mistakes. The first step in fishing is to improve your aesthetic judgment, not to do technical analysis, because you don’t have a complete model. Relying on a single indicator is more likely to be superficial than substantial. Cultivate your aesthetic, focus on core insights, and feel the high premium of prediction and deduction. As the saying goes: “Read three hundred Tang poems thoroughly, even if you can’t compose poetry, you can recite.”

In terms of learning, you should either learn correctly—making your efforts more effective—or explore on your own. The worst is being misled during the beginner phase by learning some chaotic or incorrect concepts. Many newcomers use a set of terminology without understanding where they learned it, talking a lot but mostly wrong. When you try to correct them, they stubbornly cling to their misconceptions, because they’ve been brainwashed with bad habits and their thinking is rigid. They can’t understand the worldview of stocks; everything is conspiracy theory, luck, and backtesting is useless—just blindly pick stocks, and success or failure is predestined.

So I believe in “fish first.” When people start eating the fish, they will correct their understanding of the market and admit that their previous flawed approach was wrong. If you follow for over a month, you’ll notice your aesthetic for stock selection gradually improves—this is the effect. One day, you’ll realize that your view of the market has changed; all candlestick patterns and stock movements become clear, and enlightenment is built on a solid foundation of cognition and daily practice.

Therefore, the direction of learning is very important. If you lack innate insight, you need to follow others. The great way has countless paths—you will find the one that suits you. Welcome more friends to join us in exploring the vast universe of stars and seas every week!

Enlightenment Post:

Thanks to @DanaoDaiZhu for the fuel coupon support!
Thanks to @DanaoDaiZhu @JiaBeiStock @SilentWater for the tips and support!
Wishing all friends who like and support us a long-lasting bull market in 2026!

Daily Self-Reflection Questions:

1. Which stock in your model performed the best today? Did you participate? Why or why not?

2. Which stock do you think is the best today? Is it the best within your model? If not, how should your model be improved?

Disclaimer: This article shares personal trading insights for recording investment growth. The stocks and opinions involved do not constitute investment advice. Any gains or losses are at your own risk. Please maintain independent thinking. (Stock market involves risks; invest cautiously.)