[Red Envelope] (3.11) Big tech and electricity sectors diverge, chemical industry strengthens, computing power flows back at the end of trading. Is the market topping out?

Don’t be anxious, don’t get carried away, don’t be arrogant [Taogu Ba]
Friends, you need to understand that what seems to be the simplest job—buying and selling in seconds—is actually one of the most difficult professions in the world. It goes against human nature, is lonely, and requires strong cognition and the ability to execute without human biases.
Don’t be anxious, friends. No stable trader has ever gone through endless devastating losses without experiencing despair.
Don’t be anxious, friends. Your growth begins when you truly respect this market. Respect its brutality and bloodiness. Every mistake costs you money instantly, and the market, as a “teacher,” never warns you when you err.
Don’t be anxious, friends. Whether you want to get rich quickly or just want to recover your losses and never touch the stock market again—forget these illusions. These fantasies only amplify your unease. Your ability to recover and grow wealthy is precisely because you respect the market and abandon illusions.
Don’t get carried away, friends. When you experience consecutive losses and desperately want to recover, seeing a stock point catch fire and thinking it will rise, going all-in following it—this shows you’re carried away. It will only lead to more losses.
Don’t get carried away, friends. When your cognition is insufficient, and after a deep water loss you cut it, then see the stock rise again without understanding why, and you chase high with full position—this shows you’re carried away. It might continue to fall back, causing intra-day reversals and losses on both sides.
Don’t be arrogant, friends. When the market is good, buying anything makes you profit, short-term returns soar, and you feel like a stock god—thinking you’re better than everyone else. When you feel stock trading is easy, it means you’ve become arrogant. Stay calm, recognize that profits are given by the market, and understand that there are no forever upward trends. Watch for turning points downward, and don’t give back your gains.
Don’t be arrogant, friends. Remember, in the stock market, many can double their money in a month, but few can do so in a year. As long as you don’t leave the table, the money you earn by luck will be returned to the market through your strength.
Don’t be arrogant, friends.
Know that profits come from market strength, and losses come from our overconfidence.
Victory comes first, then seeks battle—
In a war, generals who always win have usually calculated carefully before fighting, knowing with high probability they will win this battle before they even start.
Defeated soldiers fight first, then seek victory—
Generals who always lose start the fight first, and only during the battle do they try to find ways to win, which often leads to failure.
This market is never short of opportunities; what’s lacking is patience, calmness, and self-awareness. Seek inward, and you can anchor your direction amid fluctuations. Wait for the wind, follow the trend, and compound interest will create miracles.
The core of trading is never about frequent transactions. Keep your inner peace, avoid being easily influenced by market volatility, follow your plan, plan your trades—use high win rates combined with favorable odds to size your positions, and perfect your trading system.
Slow down, move steadily forward—that’s the real speed; after all, flowing water doesn’t compete to be first, but to keep flowing endlessly.
I suggest to every friend reading this: follow me for a week. The gains within a week won’t disappoint you.
If you don’t understand market styles, rotation styles, or how to break through market rotations, read this post: If you don’t understand short-term chip structures and their impact on trading, read this post: The live broadcast you’ve been waiting for, explaining buy divergence turning into convergence, sell convergence turning into divergence, and what expectations, over-expected, and expectation gaps are. It’s recorded and packed with valuable insights.
This segment of the replay explains chip dynamics, chip games, capital intentions, and node consensus.
Read these two live sessions and two articles carefully, repeatedly watching them 3 to 5 times—you’ll find it helps you avoid many detours.

First like, then watch—consistent profits over the years~! Like while watching, keep your thoughts clear~! Thanks~!
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1. Overall Market Trend
Here’s my pre-market prediction for today:

Before the open, I indicated sectors like electric power or chemical industry as potential directions.

Yesterday, US stocks surged then pulled back, but some stocks like Nvidia factions remained relatively strong, with liquid-cooled Vite creating new highs. This morning, A-shares opened with normal tech pre-market expectations, neither exceeding nor falling short, so it’s okay.
For power, ShunNa shares preemptively accumulated a good position with high volume, showing a weak-to-strong shift—a sign of potential strength. However, China Western Electric had issues; its volume was insufficient—only about 40 million in trading volume on an 8.8 billion stock, despite closing red, indicating many funds are watching, and if the situation turns unfavorable, it could fall back.

Regarding ShunNa, yesterday’s opening was problematic; market sentiment was improving, but its opening was a sign of主动示弱 (voluntary weakness). Some funds still see it as a main rising stock. Its strong support yesterday allowed it to attempt a weak-to-strong recovery today. During this process, early in the morning, China Western Electric was pushed down, dragging ShunNa down as well. TBEA also opened red and immediately dropped, taking ShunNa with it. Yesterday, many bought on the board or took 1-2 hands, feeling the lead stock had an extra life. That’s roughly the situation. I didn’t go yesterday, but I added today, which increased my pressure~!~!
Remember, a weak-to-strong shift isn’t just about individual stocks; it must consider sector support, market sentiment turning upward, and whether rival sectors are weakening.
Many teachers talk about successful weak-to-strong strategies without considering the environment—they either don’t understand or don’t teach it. There are many failures, so be cautious.

Another point: this market is sometimes ambiguous; when clarity is lacking, don’t open positions casually. There’s a probability of going up or down. When unclear, wait until clarity emerges.

At around 9:38, when ShunNa was pushed back to zero, China Energy Construction surged, separating itself. As a 150 billion market cap stock, its breakout was very strong, holding firm all day. Here’s a thinking question for later:

While China Energy Construction was hitting the limit-up, GCL System Integration followed with a rally. You’ll notice a strange phenomenon: many power stocks that rose together a few days ago—some hit the limit-up, others dropped—reflecting their different attributes. Mainly, those related to domestic power construction and the “electricity synergy” concept surged, while those with overseas SST solid-state transformer concepts, like China Western Electric, ShunNa, Iger, TBEA, Sifang, and Jinpai Technology, were all falling. These are all from the previous SST transformer hype in late 2025. After the power sector separated, domestic power kept rising, while export-oriented grid equipment and related stocks declined. The time-share charts clearly show these differences.

Meanwhile, keep an eye on energy storage movements: CATL surged 20% for three days straight, and Sungrow’s PV inverters and energy storage stations jumped 10%. Some small stocks with both grid and energy storage attributes need attention.

As the market rises, Shenzhen’s volume slightly increases, but overall, volume is still below recent highs (~1356), approaching previous highs. During the day, I warned against impulsive buying at this level due to sell pressure and poor risk-reward. Subsequently, some profit-taking occurred.

During market sell-offs, whether it’s Huawei Ascend, AIGC, AI agents, compute leasing, or small metals, most are tech-related and see varying degrees of decline. Defensive stocks like domestic power and phosphorus chemicals are more resilient. I need to mention phosphorus chemicals: on Feb 25-26, some stocks like LiuGuo Chemical, Jinzhengda, Chengxing, Yunnan Germanium, had secondary or tertiary boards, driven by pre-war price increases. The US-Iran conflict interrupted their rhythm, causing a correction in chemical and oil prices. Post-correction, they are expected to continue upward—this logic and opportunity were discussed earlier in the morning.

In the morning, some machine tool stocks like Huadong CNC hit the first limit-up, but YuHuan CNC opened slightly below expectations—should have been a straight limit-up, but it opened high and was immediately sold down. Yesterday’s liquid cooling stocks, like Feilong, had a strong start today but couldn’t sustain the limit-up, then fell back and stabilized.

Overall, the market’s continuous limit-ups are somewhat fragmented and uncomfortable. Wangli security stocks opened strongly this morning, as mentioned earlier.
3-in-4 stocks like Ningbo Construction, which had a one-word limit-up, and Zhongnan Culture, a restructuring stock, are active. The main sectors are related to electric synergy and power.

As the largest order block in recent days, Ningbo Construction opened with high volume—over 400 million during pre-market—then was hit hard after the rally. It retreated, consolidated, then attempted another rally with some attention from Huasheng Tiancheng and Tuowei. Ningbo Construction, as a current power computing stock, also indicates the overall market’s limit-up height. Tomorrow’s weak-to-strong shift is crucial; it might signal a wave of domestic power synergy, export of power transformers, and domestic computing centers. If foreign power is separated out tomorrow, focus could shift.

The only uncertain point is whether the power synergy sector will go up. The main view is that the current market is difficult to push higher—whether it consolidates sideways or pulls back. If it pulls back, this could develop into a contrarian theme, which might be awkward. Domestic pure power stocks today moved counter to the trend.

However, domestic computing operation stocks like Dayu Technology, Haoliang Data, Dongyangguang, Capital Online, Wangsu, and Runze Technology all declined today, which should be observed tomorrow. If the market remains sideways, it’s manageable.
Morning, Meili Cloud also opened red, then pulled back, with the zero axis holding well—no signs of further decline. Qunxing Toys, after a quick arbitrage surge yesterday, opened high today but then dropped near zero.

In the morning, the big tech CPO stocks, like chip manufacturers, had a catalyst: top-tier global companies have covered first-tier CPO capacity, leaving second-tier CPOs to meet remaining demand.
Huagong Tech, which announced full capacity by late 2026, showed a strong upward trend. Yesterday, Guangxun Tech also indicated potential to catch up with Huagong. Both stocks performed strongly intra-day.
In the big tech sector, watch whether indices consolidate sideways, go up, or down. If the overall market declines, big tech will likely follow.
High-flying stocks like Lingwei Tech, which broke out yesterday, opened strongly today but then quickly fell back into consolidation. It acquired a company related to M9 materials, linked to tech.

Also, early in the day, Micro LED, a theme from last Thursday, experienced a rebound after a few days of correction—mainly an oversold bounce.
Near midday, after some decline, the market found support at key levels like the CSI 500 small-cap and CSI 1000 indices. The CSI 300 and SSE 50 continued to seek bottom.

In the afternoon, the market surged again, led by chemical stocks, domestic power, pharmaceuticals, and feed—more risk-averse sectors.
China Western Electric, after a low point around 13:30, also rebounded, indicating no reversal but rather exhaustion of short-term sellers. Many friends asked in comments whether to buy intraday; explanations were provided.

In the afternoon, during a decline, the market also revisited previous highs, like Guosheng Technology and Zhenai Meijia, hinting at potential downside risk. The core sectors—power and computing—continued upward, with Yueneng Holdings trending higher. Today’s intra-day fluctuations included some accumulation, with three days left before regulatory release. Today’s late trading saw some buying, combined with Ligong Electronics’ rally in computing. If the market drops tomorrow, it could be a good low-entry point.

Overall, intra-day, power grid stocks showed differentiation: domestic power and power synergy moved upward, energy storage quietly strengthened, chemical stocks rose in the morning and peaked in the afternoon, and tech stocks showed divergence.

Valuable insights are mainly in the review posts and in the comments, where I help fellow investors with thought processes.
Engage more—likes, comments—to become a silver supporter; tipping 25,000 points grants a golden armor, making you a Golden Momo. As followers increase, I will follow back and prioritize answering your questions, ensuring mutual interaction. Some core insights can be discussed within the community.

Everyone enters this market thinking it’s easy to make money—buy low, sell high, and profit. But after entering, they realize it’s not that simple; profits are hard, and losses are frequent. Since you’re in, you want to recover, or some with stronger skills keep learning and hope to improve life or get rich through trading. During growth, you must recognize emotional traps, as they are often the root of losses.

Don’t focus on short-term returns; don’t boast about your trading curves to impress others. Overconfidence and impulsive trading lead to losses. Don’t compare your gains over a few days with others; chasing quick growth often results in poor decisions. Short-term returns are meaningless—many double in a month, but few double in a year. If someone claims to turn 10,000 times in 97 days, ask if they can do that consistently.

Top-tier traders with nine-figure goals prioritize survival and minimizing monthly drawdowns. They rarely open positions daily, aiming for steady gains—think of the龙虎榜 (Dragon and Tiger list): which funds are opening every day? When markets are good, they aim for 30%+ monthly; when bad, they go flat. Achieving 1% monthly growth is enough, and over time, the average can reach about 20%. But you must control drawdowns—emotional swings are a major cause of losses.

It’s easy to attract attention and tips by creating anxiety or idolizing figures, because everyone wants to make money quickly. I always advise patience—slow is fast and lasting. I’ve never created anxiety before, and I won’t in the future.

I have clear self-awareness and positioning: I am a trader. Trading requires a calm mind. I hope everyone learns and gains from my sharing—support me with likes, comments, encouragement, and tips. Likes and comments help me reduce unnecessary posts, making it easier to share valuable content. A few tips, like 100 points (about 2 yuan), are tokens of recognition. The more you tip, the more I remember and appreciate your support. We move forward together.

2. Market Expectations
The index experienced significant intra-day volatility. Small-cap indices surged early then retreated, with late-day rebounds tempting more buying. The large-cap index initially dropped at open, then recovered, but overall, the divergence was severe, resulting in sideways trading.
Tomorrow, the market might test 14,536 and then fall, or it might drop directly. The most probable scenario is a pullback from the upward move. Support levels are around 14,200; there’s also a chance of today’s big swings repeating.**

3. Market Style
Still rotating—power sector not yet leading, power synergy?

4. Data Presentation
Coming soon.

5. Random Thoughts—

Questions for reflection:

1. Why did China Energy Construction surge while Western Electric and ShunNa did not follow? When did their separation begin?
2. Why did ShunNa’s weak-to-strong fail? Why choose ShunNa over Western Electric for the weak-to-strong shift?
3. Did you buy chemical stocks in the morning? What are the reasons for their strength today?
4. Are there buying opportunities in Ningbo Construction today? Why?

And I continue to advise—! For short-term trading, if you haven’t achieved stable profits for over 6 months, consider reducing your positions. It’s about willingness and understanding. I hope everyone becomes more stable and prosperous—get rich!~!~!
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Waiting for opportunities requires the ability to see them clearly. This involves long hours of watching the market, developing intuition, and building a trading system—The 10,000-hour rule. Patience is key. If you have questions, I will answer them here.
About myself: I was invited here; my future is uncertain. For very novice investors, I suggest lowering your positions; for those with over 2 years of short-term trading experience or in a bottleneck, I can help a lot.
Finally: Many things are true or false; time will reveal their authenticity and strength. Don’t pretend—your gains and losses won’t act out dramas for you.