Huadian Liaoning Energy makes a late surge; can the power sector recover tomorrow?

Follow Dayi, guiding you to unlock top-tier analysis in Taoxian. Every trade breakdown, emotional turning point, and market simulation has been thoroughly tested through real trading experience, helping you accurately grasp short-term market pulses! If you appreciate this dedication, please give a like first so Dayi can see your support. Welcome to like + tip + support in one go! Collect 7 bonus coupons to upgrade the article to a premium post, unlocking more exclusive trading insights and core market secrets. Let’s profit together on the short-term battlefield! [Taogu Bar]

1. Operation Review

1. Yesterday, we warned about the risk of divergence at high levels in the power sector. Today, there were no buy points at high levels. The market showed healthy divergence today, with funds continuing to focus on low-level补涨 (rebound). By close, Huadian LiaoNeng rose 30 days to 191%, nearly hitting the 4-point move threshold, triggering a move. Huadian Energy also gained 177% over 30 days, only 8 points away from a move. Divergence at high levels often brings mid-to-high position game risks, making today’s game much harder than the past two days. Therefore, many stocks that didn’t hit new highs are mainly sold first. Power sector speculation is emotion-driven, reflected in Huadian Holdings, Huadian LiaoNeng, and Huadian Energy all showing single-wave surges without a true central leadership in the sector. So, stock selection should still consider sentiment; stocks with multiple waves tend to have lower speculative expectations.

2. In the late session, continued holding power sector stocks for a rebound. To know how to respond tomorrow, keep reading below.

2. Market Review

Today, 916 stocks rose, 4,493 fell, with a total turnover of 1.94 trillion yuan, about 250 billion less than yesterday. The index opened with low volume and a slight decline. After opening, tech stocks declined further, power sector stocks opened low and moved higher with volatility, then retreated to close green. Lithium batteries initially strengthened but only for about half an hour. Oil and gas stabilized, banks supported the market, while insurance and photovoltaics led declines.

The market hit 39 daily limit-ups (vs. 84 yesterday), with a 68% limit-up rate (vs. 86%), 29 first-limit-ups (61%), and 6 second-limit-ups. There were 8 daily limit-downs (vs. 1 yesterday).

In sectors, power rose 10 stocks to limit-up, lithium batteries 6, computing power 4, commercial aerospace 4, chemicals 3, and pharmaceuticals 2.

Bid price one-word limit-up:
Xinneng Taishan’s buy orders increased (yesterday 726 million).

3. Market Analysis
Index saw a volume-contracted decline today, mainly driven by insurance and tech, which are currently mainly defensive tools. It’s clear the market is in a weak phase. Today’s decline lacked sufficient support, with a bearish candle engulfing yesterday’s bullish candle. Further decline is expected tomorrow. If early in the morning the index tries to recover sharply, it’s better to sell first; if it continues to dip, consider intra-day rebound plays. Why not look for continuous big drops? This afternoon, the market weakened further, but funds did not give up on buying, instead bottom-fishing in the commercial aerospace sector, which showed stronger buying than defensive oil, gas, and chemical sectors. This indicates a stronger buying willingness here. Therefore, the decline may have support; if early dips occur, consider low-position buying, but beware of early spikes.

Power Sector today experienced divergence, which was predictable. Huadian LiaoNeng closed with a 191% gain over 30 days, Huadian Energy 177%. High-level stocks (Huadian LiaoNeng, Huadian Energy, Yueneng Holdings) have little room for single-wave moves. Tomorrow is Friday, which adds some uncertainty. How to think about it?

1. Low-level补涨 (rebound) (1-2, 0-1)
2. Mid-level reversal
3. After high-level adverse feedback, the sector weakens together
4. Mild correction at high levels

These scenarios can occur simultaneously, but any of them making a full recovery is difficult.
If scenario 4 occurs, then 1 and 2 are more comfortable, but 1-2 are likely buy points for coordinated funds, making it easy to get caught in a one-word limit-up. 0-1 is the safest approach but more random. If mid-level stocks show losses, low-level补涨 becomes less feasible, leading to crowding and high-level space constraints, possibly resulting in negative feedback. Confirm whether tomorrow’s correction is mild; all signals should align. Scenarios 1, 2, and 4 are preferable.
If scenario 3 occurs, then 1 and 2 are harder to execute; focus on observing and managing risk. In this case, low-level补涨 may be delayed, and today’s consecutive limit-ups could turn into arbitrage opportunities. If you took early positions today, consider exiting early if there’s a spike in the morning. A correction after divergence is more reasonable.

Commercial Aerospace saw some funds bottom-fishing in the afternoon. Despite being oversold, active participation can be considered, as there are opportunities for rotation later.

4. Current Profitable Stocks Summary
1. Power and New Energy
Huadian LiaoNeng: Expect adjustment.
Huadian Energy: Expect a dip then rebound.
Yueneng Holdings: Expect consolidation.

Zhongli Group: Expect a dip, possible rebound.
Shaoneng Shares: Expect a dip then rebound.
Liaoning Energy: Expect a dip.
Zhejiang New Energy: Expect a dip then rebound.
Energy-saving Wind Power: Expect a dip then rebound.
Guangdong Power A: Expect a dip then rebound.

Hunan Development: Expect promotion.
Xinneng Taishan: Expect a one-word limit-up.
Zhongmin Energy: Expect a one-word limit-up.

Aoruid: Expect a dip.
Meili Yun: Expect consolidation.

2. Commercial Aerospace
Zai Sheng Technology: Expect a halt.
Zhongchao Holdings: Expect a halt.
Shenjian Shares: Expect a halt.

5. Summary
Tomorrow, the index is expected to continue opening low. If it spikes early, beware of a retreat; if it dips, look for rebound opportunities. Power stocks may fluctuate short-term but still show relative strength. If high-level divergence worsens (especially since Friday, increasing uncertainty), it’s safer to hold back tomorrow, especially for safer stocks, and consider 0-1. Market volume has fallen below 2 trillion yuan, confirming a stock-replacement market. Regardless of actions, sustainability will decrease, and rotation will increase. Better to miss opportunities than make mistakes. Wishing everyone continued profits tomorrow.

Xiao Shu’s Dayi Trading Philosophy:

1. Follow the trend, ride the momentum!
2. Pre-judge and follow decisively!
3. Seek the strongest, only do the strongest!
4. Actively admit mistakes, cut losses timely!
5. Reject comparison, aim for stable profits!

Short-term trading is like walking a tightrope—glamorous on the surface but full of danger. It amplifies market fluctuations, easily trapping investors in chasing highs and selling lows, blinded by greed and panic. Discipline in short-term trading must be remembered:

• Strict stop-loss: set maximum loss limits per trade, and exit decisively once hit—no luck-based holding;
• Follow the trend: only trade clear trends, avoid contrarian bets or guessing market tops/bottoms;
• Control position size: allocate funds reasonably based on market conditions and risk tolerance, avoid heavy or full positions;
• Avoid frequent trading: don’t be tempted by short-term volatility, wait patiently for the best opportunities;
• Stay calm and rational: keep emotions in check, whether in profit or loss, follow your trading plan.

Remember, short-term market movements are uncertain, but for prepared traders, they are opportunities, not gambling. Steady operation and flexible adaptation are my keys to success and the foundation for future progress.

May your stocks rise like the morning sun, hitting new highs every day; investing be like sailing with the current, steadily earning profits; holdings be potential stocks, value rising step by step; trading be like a masterstroke, precise buy and sell. Wishing the market a long rainbow, wealth flowing in, profits continuous, and harvest abundant! If you find this helpful, please support with likes, tips, and comments—let’s create a positive community atmosphere. The environment of Taoxian is up to us! Likes, tips, and good intentions are not just for flattering the author but for everyone to help select and elevate quality content, making the community better. More premium posts mean higher standards, increasing the chance to see good stocks. We sow, we harvest!