3.26 Tomorrow's Core Market Strategy

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The essence of short-term trading is “leveraging trends to make quick money”—using hot topics, capital synergy, and trend inertia.

You must adhere to three iron rules:

Only trade strong stocks, avoid weak ones;
Trade long online, observe offline, exit if breaking support, buy and sell quickly;
Focus on core stocks, stay away from miscellaneous ones.

1. What is the core, and what are the miscellaneous stocks?

2. How to identify and operate on the “core”?

Step 1: Identify the strongest sector of the day

30 minutes after opening, check the “Sector Gain List” on Tonghuashun or Eastmoney.
Exclude one-day speculative themes, choose sectors with policies, events, and logical catalysts.
Pay attention to sectors with ≥3 stocks hitting the daily limit, and complete tiers (first limit, second limit).

Step 2: Find the core within the strongest sector

Space Dragon: The stock with the highest consecutive limit (e.g., 5 days).
Popularity Dragon: The stock with the largest trading volume and discussion, not necessarily the highest consecutive limits.
Trend Dragon: The solid stocks in the sector that steadily rise along the 5/10-day moving averages.

Step 3: Execute the ultimate discipline of “focusing on the core”

Buy only the first place: If conditions permit, only buy the top stock in the sector. If you dare not buy the leader, do not trade in this sector.

Buy on divergence, sell on consensus:

Buy point: When the core leader first shows healthy divergence (e.g., rapid rebound after sharp decline at open, quick recovery after breaking support).
Sell point: When the core leader accelerates and consensus turns bullish (e.g., first large volume after a continuous straight-up limit, or a massive volume at a high level showing stagnation).
Cut loss immediately if the stock breaks support: For stocks with consecutive limits, if they fail to hit the limit the same day (break support), exit the next day without hope.

3. How to thoroughly “stay away from miscellaneous stocks”?

Proactively block: Only keep core targets in your watchlist, ignore stocks on the gain list beyond the first few pages.
Reject temptation: When miscellaneous stocks suddenly surge, ask yourself: “Is this the leader? If not, why is it rising?” (Usually: to unload shares).
Position constraint: Even if trying a tiny position to test miscellaneous stocks, strictly limit single-stock position to no more than 2% of total capital, to prevent large losses.
Review and reflect: If losses come from miscellaneous stocks, record it in your trading log, reinforcing the “miscellaneous = loss” muscle memory.

Core philosophy

In short-term markets, capital and attention are scarce resources, always gathering where the brightest stars are. “Core” stocks enjoy liquidity and sentiment premiums, while “miscellaneous” stocks bear liquidity discounts and selling pressure fears. Your task is not to find undervalued stocks but to dance with the market’s strongest funds and leave first before the music changes.

Remember: In short-term trading, every pity or luck on miscellaneous stocks is a betrayal of your capital. The biggest profits come from the core, and the biggest losses often stem from refusing to cut losses on miscellaneous stocks.

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There are only a few stock choices each day; memorizing buy points isn’t hard. Otherwise, you can copy them during trading, buy when strategy signals appear, or stay out when it doesn’t—more efficient than most people busying themselves with random trades daily.

Current holdings: Huadian Liaoning (no movement), Liaoning Energy

Yesterday’s strategy:

1. Huadian Liaoning shrank volume and accelerated to hit the limit, with insufficient turnover for a safe buy point. No signs of weakness either, so it’s a celebration for holders.

2. Liaoning Energy broke the limit and recovered, confirming its position as a power sector rebound stock, fully meeting the buy criteria, expected to accelerate tomorrow.

Tomorrow’s strategy:

Market analysis for March 25

1. Sentiment cycle positioning

Today, on the basis of yesterday’s weak recovery, the market surged with increased volume, confirming a sentiment turning point. The Shanghai Composite closed at 3931.84 points, up 1.30%; Shenzhen Component up 1.95%; ChiNext up 2.01%. Total market turnover was 2.18 trillion yuan, 100 billion more than yesterday. Over 4,800 stocks rose, 105 stocks hit the daily limit, and the number of limit-down stocks sharply decreased to 4, with a board-breaking rate of about 21%.

Core sentiment indicators confirm the market has entered the “early stage of a main rally after the tide recedes”:

Profit-taking effect: The ratio of rising to falling stocks exceeds 9:1, over 100 stocks hit the limit, and the consecutive limit-up rate is 66.67% (4 out of 6 stocks from the previous day upgraded to higher limits).

Clear capital attack: Major funds heavily flow into sectors like power, AI computing power/CPO, and semiconductors, with power sector net inflow exceeding 15 billion yuan, becoming the absolute main line.

Cycle judgment: After experiencing panic at the bottom, two consecutive days of volume-driven rebound, with today’s volume breaking key levels, clear main line, and complete tiers, officially mark the start of the main rally phase. The core driver is the clear national strategy of “computing power and power synergy” and the explosive demand for AI computing power (daily token calls surpass 140 trillion), providing a clear and large capacity offensive direction. Currently in the “initiation stage of a new cycle’s main wave,” profit effects are concentrated on the main line, but beware of divergence after the peak.

2. Tiered consecutive limit-up stocks and core main line analysis

Consecutive limit-up tiers (expanded to 8 boards, power main line complete):

Today, 23 stocks hit the limit, with a 66.67% upgrade rate (excluding ST stocks).

8-board (market leader):

Huadian Liaoning (600396): Green power + computing power synergy + central enterprise. Absolute space leader, ignoring yesterday’s risk warning announcement, today shrank volume and accelerated to hit the limit, fully opening the market height and establishing the new cycle leader position.

4-board:

Zhongli Group (002309): Photovoltaic equipment + perovskite + space photovoltaics. As the only 3-board yesterday, continued to upgrade today, consolidating its position in the photovoltaic branch, though sector support is weak.

3-board:

Liaoning Energy (600758): Coal + power + state-owned enterprise. Power sector rebound stock, accelerated to T-shape limit today.
Zhejiang New Energy (600032): Green power + hydrogen energy + Zhejiang state assets. Power sector follow-up with 3 boards.

2-board (16 stocks, key ones include):

Power/compute synergy: Guangdong Power A (000539), ShaoNeng Shares (000601), Xinneng Taishan (000720), Hunan Development (000722), Ningbo Energy (600982), Energy-saving Wind Power (601016).
AI computing power/CPO: Tongding Interconnection (002491), Zhen Shi Tong (002771).
Others: Rongjie Shares (002192), Great Wall Military Industry (601606), Changfei Optical Fiber (601869), etc.

High-position trend core:

Huadian Energy (600726): 7 limit-ups in 12 days. Central military in power sector, strong trend.
ShaoNeng Shares (000601): 5 limit-ups in 6 days. Power elasticity trend leader.
Guangdong Power A (000539): 4 limit-ups in 6 days. Power sector mid-tier.

Core observation: The market’s consecutive limit-up height was opened by Huadian Liaoning (8 boards), with tiers fully revolving around the power (compute synergy) main line. Nearly half of the 2-board stocks are power-related, with clear capital attack paths. Zhongli Group, with 4 boards, stands somewhat isolated.

Market main line analysis:

Strongest main line: Power (compute synergy)

Driving factors: The head of the National Data Bureau explicitly states “ensuring that new compute power facilities at hub nodes use over 80% green electricity,” with Shenzhen introducing a zero-carbon data center plan, with clear policy support.

Performance: Sector explodes with limit-up潮, 14 stocks hit the limit. Huadian Liaoning (8 boards) opens space, Liaoning Energy, Zhejiang New Energy (3 boards) follow, Guangdong Power A, ShaoNeng Shares (2 boards) strengthen, and many stocks hit their first limit. The tiered structure is complete, with deep capital involvement, solid logic, and is currently the only sector with sustained and plate effect.

Secondary main line: AI computing power / CPO / optical communication

Driving factors: The National Data Bureau discloses daily token calls surpass 140 trillion, a thousand-fold increase in two years; optical modules upgrade to 1.6T expectations.

Performance: Mingpu Optoelectronics, Tongding Interconnection (2 boards), Changfei Optical Fiber (2 boards) hit the limit, with the sector strengthening and linking with the power main line.

Rotational sub-lines:

Military industry: Great Wall Military Industry 2 boards, Hunan Tianyan 2 boards.
Meta/compute leasing: 236, Aoruite (Aoruide) hit the limit.

Tide retreat sectors: Yesterday’s countertrend sectors like oil & gas, coal continue to adjust, becoming the few declining sectors. Photovoltaic and lithium battery sectors show internal divergence.

Conclusion: The market’s main line is highly concentrated in “power (compute synergy)” and forms an industry logical loop with “AI computing power.” Funds are withdrawing from the old cycle and focusing on attacking the new cycle’s dual main lines.

3. Key observation anchor sectors

Tomorrow is critical to test the “early stage of the main rally” quality. Focus on three major anchors:

Anchor 1: The strength of the overall leader and power main line

Target observation: Huadian Liaoning (space dragon), Liaoning Energy (rebound leader), Guangdong Power A (trend mid-tier).

Logic: Today’s sector climax will inevitably lead to differentiation tomorrow. The degree of differentiation determines whether the market accelerates or turns over.

Key signals:

Strong signals: Huadian Liaoning upgrades to 9 boards (even if weak), Liaoning Energy and Zhejiang New Energy upgrade to at least 4 boards, with new first limit support.
Weak signals: Huadian Liaoning breaks support or opens significantly lower, Liaoning Energy and others follow with large sell-offs, sector opens high but declines, multiple limit-downs appear. This indicates the first major sector divergence.

Anchor 2: Overall market volume and support

Target observation: Total market turnover, number of rising stocks, number of limit-down stocks.

Logic: Main rally needs volume support; shrinking volume indicates risk of correction.

Key signals: Turnover remains above 2.1 trillion yuan, over 4,000 stocks rising, single-digit limit-down stocks. If volume drops below 2 trillion, be alert for pullback.

Anchor 3: Whether AI computing power can form effective support

Target observation: Mingpu Optoelectronics, Tongding Interconnection, Changfei Optical Fiber.

Logic: AI computing power is downstream demand for power sector; their linkage supports a big trend.

Key signals: At least one 2-board stock in the computing power sector successfully upgrades to 3 boards, with no core support signals.

4. Tomorrow’s strategy and risk control plan

Core strategy: Focus on the main line, only trade the strongest stocks. In the early stage of the main rally, opportunities outweigh risks, but position should be concentrated on the most recognizable consecutive limit-up stocks. Avoid mid-tier, follow-up, or non-mainstream themes.

1. Core target buy/sell strategy

(1) Market leader: Huadian Liaoning (600396)

Positioning: The only space sector stock (8 boards), the overall sentiment leader of the new cycle.

Tomorrow’s sell point (if holding):
If it cannot strongly hit the limit within 30 minutes after opening or breaks support and fails to recover, sell immediately.

Tomorrow’s buy point:
Market conditions: Fewer than 5 limit-down stocks at open, no panic.
Sector conditions: Power sector has at least 3 stocks hitting the limit (non-ST), forming sector support.

Stock conditions:
Pre-market: Open more than 3% higher, with turnover >150 million yuan (showing strong support).
Intraday: Strong rise after open, no prolonged downward oscillation.
Volume and price: Sufficient turnover is essential. Given today’s low volume, tomorrow must have increased volume. The成交额 at limit hit should reach at least 80% of yesterday’s (about 660 million yuan) to avoid risks from continuous shrinking volume.

Final buy point: Only buy at the moment of strong price limit hit if all conditions are met, with small position.

(2) Power sector rebound leader: Liaoning Energy (600758)

Positioning: The strongest 3-board stock in power sector, the most direct rebound target of Huadian Liaoning, with today’s acceleration to a straight limit.

Tomorrow’s sell point (if holding): Sell if not hitting the limit. If opening orders are insufficient or quickly canceled, sell immediately.

Tomorrow’s buy point:
Preconditions: The main leader Huadian Liaoning opens without core support (>-5%), intraday remains strong.
Sector conditions: Power sector has at least 2 stocks hitting the limit (non-ST), forming sector support.

Stock conditions:
Pre-market: Open more than 7% higher or with a straight limit, with order amount >200 million yuan (market recognition).
Intraday: Rapid surge after open, with strong momentum, no support break, with volume support during the surge.
Volume and price: Limit hit成交额 must reach at least 60% of yesterday’s (about 560 million yuan), with sufficient turnover to avoid risks from shrinking volume.

Final buy point: Only buy at the moment of strong limit hit if all conditions are met. Avoid partial or low-level entries.

(3) High-level AI computing power stocks: Tongding Interconnection (002491) / Mingpu Optoelectronics (002902)

Positioning: The height of consecutive limit-ups in AI computing power / CPO sector, representing downstream demand in power sector, an assist direction.

Sell point (if holding): Must sell if not hitting the limit. If unable to hit the limit, consider it weak and exit.

Buy point:
Market conditions: Less than 10 limit-down stocks at open, no panic.
Sector conditions: AI computing power / CPO sector remains strong, with at least 2 stocks hitting the limit (e.g., Changfei Optical Fiber), forming sector support.

Stock conditions (choose the stronger):
Pre-market: Open more than 3% but less than 7%, with turnover >80 million yuan.
Intraday: Rapid rise after open, smooth trading, no support break, showing active attack.
Volume and price: Limit hit成交额 must reach at least 70% of yesterday’s, with full turnover.

Final buy point: Only buy at the moment of strong limit hit if all conditions are met. No low-level or mid-rush entries.

2. Risk control discipline

Empty position conditions (any met triggers significant reduction or full cash hold):

Huadian Liaoning hits core support (>-5%) at pre-market.
Market opens with more than 10 limit-down stocks.
Power sector opens without any limit-up support, and yesterday’s limit-up stocks open significantly lower (> -3%).

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Disclaimer: The stocks and opinions involved do not constitute investment advice. They are personal review records; trading based on them is at your own risk. (Stock market involves risks; invest cautiously.)