3.11 Review: Shunna's Reversal Failure, Yunnan Energy's Late Surge, Why Did Huasheng Dive in the Afternoon?

Huasheng opened lower but quickly gained strength, showing a strong stance in the early trading session. In the afternoon, it weakened and retreated—who was dragging it down? Ningbo, as a leading force in computing power, successfully advanced to the fourth board, breaking the previous suppression of four consecutive boards. Will it continue to advance tomorrow and lead the computing power sector to extend its recovery and strength? Meanwhile, Shunna surged with high volume and opened strongly, making a comeback. Unexpectedly, it was sold off by funds at the open. Fortunately, Yunnan Energy maintained a steady red throughout the day, stabilizing the sector’s funds. The late surge by Yunnan Energy hints at what major changes might occur in the market tomorrow.

Bid Review
After today’s bidding ended, five one-word quotes appeared. Among them, Ruisi opened with 1.5 billion, meeting expectations following yesterday’s explosive growth in the communications sector. However, aside from Ruisi, no other stocks in the communications sector hit the limit-up, indicating that the quantitative funds were not very interested in yesterday’s sector explosion, reflecting intra-day divergence expectations in communications.

Zhongnan, as a restructuring target, continued to see a 1.2 billion order block ignored; meanwhile, San Ge’s Wangli hit the limit-up with six consecutive boards. It’s likely that today marks the start of a “cleanup operation,” supporting the first board with Huadong and Fengfan. Although one represents industrial mother machines and the other ultra-high voltage, both generally indicate high-low node switching. From the morning market information, it’s impossible to know which theme funds will choose at open; the only certainty is that today’s nodes will switch high and low. Short-term traders should focus on the first and second boards for the entire day.

[Taogu Ba]
Core Commentary:
Shunna
Shunna opened with a high-volume surge of over 3%, showing strong sincerity at the start. The order book was mostly small orders hitting large orders at the open. After a brief rise, it started to fall back as funds cashed out. The failed comeback today indicates that the core node of the continuous boards has already switched low. With Yunnan Energy holding a clear position on the power grid, and new core stocks at low levels taking emotional nodes, Shunna’s position is now quite awkward. The late-day rally was driven by Yunnan Energy’s late surge, which was a passive lift. Tomorrow, it’s expected to open lower and follow Yunnan Energy to rise and then fall back during the session.

Yunnan Energy
Yunnan Energy’s late-day unusual activity to grab shares reveals the intentions of major players. As a leading power sector stock at the start of the year, Yunnan Energy has been continuously raising prices to test regulatory limits. Smaller stocks below it are still trying to catch up. After the recent abnormal movement on Friday, many funds entered late in the session to secure early positions. Based on previous patterns, Yunnan Energy is likely to break new highs tomorrow (with a small chance of hitting the limit-up), compressing its abnormal movement space within 5%.

Hangdian
Hangdian followed the fiber optics sector, rising sharply and then falling back, reaching a new high of 22.22. The appearance of a double top in the daily K-line suggests that if Hangdian breaks 22.22 tomorrow, it will be a positive sign. If it fails to break and drops below the 5-day moving average, then a double top pattern should be watched for.

Ningbo
As a high-level stock in the computing power sector, Ningbo’s promotion to the fourth board today broke the previous suppression, which is positive for the theme. However, the stock itself has been weak all day, with large volume and poor performance. Its premium tomorrow is uncertain. A strong opening with a red day would be a surprise. The opening trend indicates whether the computing power sector will diverge or recover tomorrow. If it opens with a sharp decline, watch out for potential sector-wide impact.

Huasheng
I’ve been analyzing Huasheng for a week. The strategy has been to buy low and sell high. Huasheng’s main force is currently dominated by quantitative funds, so don’t chase after a rise or cut during a fall. Instead, do the opposite. Yesterday, I mentioned that if the computing power sector recovers today, Huasheng must speak up. Looking back, the situation isn’t too different from my analysis. Huasheng’s trend is now established. If you bought at high today, don’t worry too much. Huasheng hasn’t reached the point of trend acceleration yet. When Huasheng starts hitting limit-ups and accelerating, that’s when the computing power chips may begin to distribute.

In summary, the current major themes are the synergy of electric power computing and the lobster concept, showing signs of a large cycle. The reason why trading has been difficult recently is that no truly large leader has broken through a new high. To advance the theme, a leader must reach new heights, attract attention, and disperse the theme attributes and emotional cycle effects. But without participation from key stocks like Yunnan Energy, Shunna, and Huasheng, the market cannot form a high. If they fail to lead the market higher or are sold off, it becomes a frustrating arbitrage game.

That concludes today’s review and outlook. Reviewing is not easy; your likes and follows motivate me to continue. If you have questions after reading, feel free to discuss in the comments. See you tomorrow!