[Red Envelope] 3.26 Main trend at a high level with divergence, don't panic during the first major sector adjustment!

[Taogu Ba]

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Yesterday’s strategy reminded us of the divergence in Huadian Liaoning, which was validated at the end of the day. Actively breaking the board doesn’t mean the market is over; if there’s a rebound tomorrow, there’s still a last chance for light positions to gamble.

Market sentiment: Tidal retreat (indices collectively down, over 4,400 stocks falling, streaks broken) — risk aversion rises in a stock-based game!

Core strategy: Abandon high and focus on low positions for defense, look for rebound opportunities around low-priced power stocks, avoid chasing high-priced computing power/photovoltaics, and steer clear of miscellaneous stocks in the back rows.

1. Today’s Market Highlights: Core Leaders

Today’s market focus is on the overall leader Huadian Liaoning (600396) with volume divergence and the positioning of new computing power leaders.

• Overall leader performance: Huadian Liaoning (600396) opened high with massive turnover, repeatedly breaking the board during the day, finally closing at 6.47%. After yesterday’s volume contraction, today’s divergence was expected;
• Positioning and support: During the divergence of power sector leaders, funds did not exit but continued to flow back into recognizable stocks within the sector. Huadian Energy’s late rebound and Dongfang New Energy’s limit-down rebound indicate the sector hasn’t fully ended;
• Summary: Active breaking of the board doesn’t mean the market is over. If there’s a strong rebound tomorrow, there’s still a last chance for light positions to gamble.

2. Hot Sectors and Continuous Boards

3. Strongest Main Line
   Power/Green Energy (High-level divergence, low-level rebound)

• Logic: The synergy of power sector logic remains, but after the overall leader breaks the board, the sector enters elimination. High-flying stocks retreat after surging; only newer stocks at low levels are making up for losses.
• Active stocks: Hunan Development (3 consecutive boards), Xineng Taishan (3 boards), Zhongmin Energy (2 boards), Huadian Energy (N+2)
• Falling behind: Shao Neng Shares, Guangdong Power A, etc., with break boards; mid-cap stocks show loss effects.

2. Secondary Main Line
   Lithium Battery Industry Chain (Low valuation recovery + fund rebound)

• Logic: The sector is in a low zone. After funds exit high-level tracks, they choose low-level lithium stocks for defensive rebounds, with the entire industry chain showing resilience.
• Leader: Rongjie Shares (3 consecutive boards, core lithium stock)
• Following: Shengxin Lithium, Tianqi Lithium, Zangge Mining, etc., with countertrend gains; electrolyte/separator branches also move synchronously.

3. Continuous Board Ladder (Sentiment Thermometer)

• 8-board break: Huadian Liaoning (power, market leader)
• 3-board: Hunan Development, Xineng Taishan (power), Rongjie Shares (lithium), Minohua (pharmaceutical)
• 2-board: Zhongmin Energy, Huadian Energy, Mingpu Optoelectronics, Bohai Chemical, Zaisheng Technology, China Iron & Steel

3. Today’s Operations and Tomorrow’s Outlook

Today’s simulated operations: details in the comments!

• Sell to take profits: partial profit-taking on Huadian Liaoning remaining positions; profit-taking on lagging Liaoning Energy.
• Switch to buy: buy Huainan Development on the breakout $Hunan Development(sz000722)$ (Logic: When Huadian Liaoning diverges, it actively strengthens, becoming a new sentiment core).
• Tomorrow’s strategy:
  1. Focus on main line: observe whether Huadian Liaoning quickly rebounds at open;
  2. Watch for high levels: who can become the new continuous board height, Xineng Taishan or Hunan Development;
  3. Position management: if Hunan Development opens slightly higher, hold as much as possible; watch comments for whether to add;
  4. Recognize stocks like Liaoning Energy for potential opportunities if they give a core buy signal.

4. Core Risks (Must Read)

On the day the overall leader breaks the board, mid-cap stocks show the greatest loss effects. Be sure to avoid the risk of further decline in mid-cap power stocks following the trend.

Conclusion: The main line switching window is testing reaction. Remove the weak, keep the strong, decisively switch, and continue to focus on the new main line core.

Control your positions, avoid chasing high in the back row, and set strict stop-loss levels for individual stocks.

【Disclaimer】 This article is a personal review record and does not constitute investment advice. The stock market has risks; trade cautiously and avoid blindly following the trend.

Follow the trend, only do the leaders!

@fsdfsdffsdf Thanks for your support and tips,
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