Hexun Investment Advisor Huang Linkun: The Key Breakthrough Point in This Direction

On March 20, Huang Linkun from Hexun Investment Advisory stated, don’t be fooled by today’s tech rebound. The key to next week’s market strength or weakness isn’t hardware computing power or photovoltaic lithium batteries, but whether electricity can continue to break through.

This morning, the index recovered with increased volume, seemingly indicating capital inflow. However, in the afternoon, it sharply declined, and market sentiment turned fearful again, with most funds choosing to exit. Therefore, today’s market movement isn’t a full recovery but rather a partial, tentative return of funds. In this environment, the biggest mistake is to treat sector rotation as the main trend. Although photovoltaic lithium stocks showed some movement today, I want to give everyone a reality check: this wave is just a pulse driven by news stimuli, not the main upward trend of the market. The reasons are as follows: First, the main catalyst for photovoltaic lithium is news, such as Tesla planning large-scale procurement of Chinese photovoltaic equipment, which can boost sector sentiment, especially in PV equipment, energy storage, and battery chains. Funds may rush to position during the day, but this stimulus is more event-driven and its sustainability is questionable. Second, such news mainly reflects localized order expectations rather than a comprehensive industry boom. Third, although there is some capital pushing within the sector, overall consistency is weak. For example, GanFeng’s core stocks hit the daily limit but then fell sharply, indicating that funds are willing to ignite but not to hold strongly, suggesting market attitude is more about speculating on news rather than confirming a main upward trend. Therefore, this direction should be viewed as sector rotation, not a main line to chase high. If weekend news continues to ferment, the sector may surge on Monday out of inertia, but without new catalysts, it could easily diverge or even realize gains within the day. This is a typical pulse-driven market, not a trend of sustained upward movement.

In contrast, the electricity sector truly determines market strength or weakness. Currently, the market lacks new themes; what’s needed is whether the short-term high can be reopened and market sentiment consolidated. Only the electricity sector is currently bearing this responsibility. Among them, ShaoNeng is the strongest today, with LiaNeng advancing to a 5-day streak as the top performer, and Huadian and Jingkai showing significant correlation despite some differences, indicating that funds are still oscillating within the sector rather than retreating, but rather screening for core stocks. This suggests that the electricity sector isn’t retreating but consolidating around core stocks, with some differentiation at the back and focused recognition at the front, which is a common state when a main trend reaches a critical point.

Looking at the computing hardware sector, Mingpuleisi showed large bids in early trading, attracting funds to boost optical modules. However, it sharply fell back during the session, indicating that short-term rally sentiment hasn’t formed a consensus. While leaders like XinYiXuchuang performed steadily, this appears more like institutional grouping rather than a full-scale short-term capital inflow. Therefore, the current stage of computing hardware is more about sector rotation and recovery rather than the launch of a new main trend.

(Edited by: Zhao Yanping HF094)

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