3.27: Pre-market simulation

U.S. stocks are down, with the Nasdaq falling 2%. Optical communications and storage stocks dropped significantly. [Taogu8]

A-shares are expected to open slightly lower tomorrow (affected by U.S. stocks), possibly rallying during the session and then falling back (to avoid weekend uncertainties). The pattern will form an inverted V.

In summary, this is a bullish sign for the power sector.

Projection: Three short-term attack directions for funds.

Main focus: Huadian LiaoNeng

A. Trading logic: Leading stocks rebounding after a decline.

The whole market is benchmarking against Hefei, which experienced a break in the opening, but everyone expects a rebound. As a result, the chips inside will be reluctant to sell, making it hard to find sell orders. For friends aiming to buy low, avoid placing bids at the limit-up price during the opening auction. If you rush in, it could lead to a high open with no volume, similar to Jinzhengda on March 2, which would hurt the leading stocks and the power sector.

Looking back at Hefei’s break on that day: transaction volume was 2 billion; the next day’s auction volume was 100 million; the following day, 800 million.
Ideally, the auction volume should be at least 150 million, not exceeding 3%, with a high success rate. Lock-in volume at 1.5 billion is optimal.
Hefei’s rebound after the break was driven by knowing it could rise 200%.
The market has fallen below 4,000, even 3,900—could there be relaxed regulation below 4,000? Another uncertainty is Friday.

It’s suggested that small funds can participate, observing volume and keeping buy prices within a 2% increase to experience the charm of leading stocks.

Three-board index bullish signal

B. Trading logic: Market space stocks, the highest market board.

Buy points are later. Confirmed on the board. Taishan has a relatively higher chance of survival. The highest board will always attract traders.
New energy Taishan, with three consecutive flat increases on low volume, is too fragile. It could turn into Shaoneng’s three consecutive flat increases.
Hunan Development, despite initial high volume, may not outperform Taishan. Weak-to-strong transition, blocking Taishan—this may not apply here.
It’s weaker in market cap, stock price, name, and theme.
Meno Hua, with independent logic—weight-loss drugs. Trend reversal, not a main line.
Rongjie Co., lithium mining, not a main line.

These four stocks on the 3rd board can all advance to the 4th board. Among them, Taishan is relatively favored, but its rebound lacks height—only width, not depth—which is not good for theme extension. Not recommended.

First board: Huadian LiaoNeng break in the opening

C. Trading logic: Power sector rebound, auction opening will reveal the outcome.

A quick rebound after the first move, whether for theme development, maintaining sector heat, or the consensus of a break being followed by a rebound, requires a strong second board, preferably a straight-up one.
JinKong Electric, first in intraday turnover.
Huitian Thermal Power, the third.
Other first boards…

The above are for those optimistic about these two. Huitian might have the largest order book. JinKong is best for turnover.

Skipping the second board—regardless of profit/loss ratio or cost-effectiveness, this is the highest C option.

In sectors, besides electricity which has continuity, others are just one-day wonders. Whether it’s lobsters or word tokens, they all rise for a day and then fade away. So, don’t trust newly created “words” easily.

In trading, it ultimately returns to simplicity: for electricity, choose either with electricity or with energy. The best ingredients often only need the simplest cooking. Trading is the same.

The most important thing in stock trading is to be happy every day! — Ni Gu La Si. Niu De Fa