Power stocks hit consecutive highs; if tomorrow's leading stocks like Huadian and Liaoning Energy gap down, which direction should capital flow in at different entry points?

Since entering the market in 2015, I have been honing my skills for ten years. During this time, I experienced nine losses, but I kept fighting and never gave up! After nine twists and turns, I looked back suddenly and finally reached the place where the lights are shining brightly! My ancestors are from Ezhou, hence the name Nine Phoenixes. Phoenix rebirth—focusing on: main trend, main dragon, main rise!

1. Current holdings.

2. Today’s operations.

Today I accompanied the market to rural surveys and didn’t have time to watch the charts closely. I glanced at the closing, and after the breakout of Ritu Xineng, it quickly shifted from strength to weakness. I directly closed the position at the end of the session through auction, even if it was just a small profit of less than one point, it’s still profit.

3. Review summary

Yesterday I predicted electricity sector divergence. Today, the leading stocks Huadian Liaoning Energy continued to outperform expectations, driving the sector even higher. The electricity sector remained hot, but by the end of the day, veteran leader Yunnan Energy Holdings led the divergence with a double top, which I anticipated in yesterday’s review.

After hours, the Shanghai Stock Exchange issued a warning to Huadian Liaoning Energy for key monitoring, indicating risks: restrictions on trading accounts are possible. Coupled with tomorrow being Friday and related to the Black Room risks, I foresee two scenarios: first, a break in the sector, with a retreat; second, a continued high-level attack, breaking through nine boards in one go, pushing into the night.

Therefore, for the electricity sector tomorrow, prepare for both possibilities. Cautiously follow the high-position leaders and mid-cap stocks, especially those that haven’t yet taken profits, to avoid missing out or taking a hit.

Which direction will the electricity divergence go? It’s possible that today’s photovoltaic sector, which also experienced divergence, is a related branch influenced by capital flow shifts.

Yesterday’s prediction of electricity divergence resulted in stronger performance today, while the photovoltaic sector showed divergence in the opposite direction. I saw many teachers entering photovoltaic stocks today, which I think is not advisable. Although the auction was in line with expectations, after the open, it clearly shifted from strength to weakness. Why? Because electricity stocks strengthened, and capital moved there, causing the photovoltaic sector to lose chips. Also, my plan yesterday didn’t include mid-cap stocks.

This is something brothers should pay attention to: even if the auction matches expectations, watch whether the stock moves up or down after the open. Confirming opportunities come from the market, not just the auction or opening price, as that carries higher risk.

Another possibility is entering the chemical sector for another wave. After hours, the Holms Strait announced that non-hostile countries can now navigate, indicating a warming trend. How will the market funds react tomorrow? Will they withdraw or enter? It depends on the market. If they enter, shipping and chemical sectors may benefit from capital inflow.

The third potential direction is a return of funds to the technology sector, especially AI hardware. Although AI hardware also surged today, whether it can sustain tomorrow’s support needs further observation. The veteran leaders are all rebounding, which could be a process of profit-taking and self-rescue.

The technology sector also has a new branch called the “Meta-economy,” mainly related to computing power. Let’s see if tomorrow can ferment and guide funds into this area.

Finally, observe whether the military equipment and cross-strait stocks will rebound again or if another wave is possible. Focus on the feedback from the leading core stocks.

4. Tomorrow’s plan

Forecast that electricity may diverge and retreat, so avoid high and mid-cap stocks. Use Huadian Liaoning Energy as a wind vane. Focus only on stocks at the 2-board and first-board with second-board entries.

Today’s second-tier stocks are mainly key points, as today marked a turning point from strength to weakness.

1. Electricity sector stocks Core: Hunan Development Capacity: Energy-saving wind power Crossing: Huadian Energy

2. Computing power stocks Core: Aoruite Weak to strong: Zhen Shitong

3. Optical fiber stocks Core: Tongding Forest Weight: Longfei Optical Fiber

4. Military stocks Core: Hunan Tianyan Mid-tier: Great Wall Military Industry

5. Photovoltaic rebound Leader: China International Marine Containers Anti-nuclear: Ritu Xineng

6. Chemical sector recovery Leader: Jinniu Chemical

7. First-board relay Electricity: Fuchun Environmental Protection Optical module: Mingpu Optical Magnet Optical fiber: Hang Electric Co. Strait: Pingtan Development Chips: Guofeng New Materials Aerospace: Reborn Technology

8. Position management

In main trend periods: 80% of the portfolio, 20-30% in individual stocks.

In rotation markets: 50% of the portfolio, 10-20% in individual stocks.

In chaotic periods: 30% of the portfolio, 5-10% in individual stocks.

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Keep running, brothers.

Cut losses quickly, let profits run!

Warm reminder: Personal plans, friendly exchanges! Plans change quickly; always follow the market trend. The biggest certainty in the capital market is uncertainty, so always base decisions on actual market movements. The market is the best teacher!

Disclaimer: Personal plans and trading ideas are not investment advice. The stock market involves risks; invest cautiously. Operate at your own risk.

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