3.25 Market Review: New Sentiment Leader Huadian Liaoning Energy, How Much Further Can It Go After 8 Consecutive Daily Limits

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3.25 Review [Taogu Ba]

Hello everyone, I am Cycle Wei Yang, trading only with strategic cycles.

Every month, the market has 10 stocks that double in value. The qualities of these doubling stocks: relentless self-improvement, virtue and integrity.

Yesterday’s view:

Recently, the market has two core focuses: one is 10 Huadian Liaoning Energy, the other is 20 Zhongfu Shenying.

Yesterday’s post-market outlook:

Yesterday, sentiment was warming up; today is the second day of a broad rebound.

The performance of the three stocks to watch yesterday:

  1. Huadian Liaoning Energy opened strongly, directly gapping up at the open, signaling “I’m about to attack, get ready.” It quickly hit the limit-up at the open, confirming the cycle is fine.

  2. Zhongfu Shenying opened lower because it exhausted some energy during yesterday’s late surge. A small dip at the open is normal. Under a healthy cycle environment, this stock, being the only core stock in the recent 20, has energy and recognition, so it follows the market sentiment to rebound and recover. Therefore, there’s no need to panic or cut losses early in the morning.

  3. Snow浪 (Snow Wave) recently hit a 20cm consecutive limit-up. Yesterday, it teamed up with Huadian and Zhongfu. Its continued rise today indicates market capital is supporting it. Since Huadian is closest to doubling in 10 days, after the auction, it quickly hit the limit-up and attracted attention. Snow浪’s 16 limit-up was too high; when prices are too high, funds tend to cash out. After cashing out, it depends on whether Snow浪 can stabilize the intraday moving averages (a good environment for stabilization). So today, Snow浪’s entry point is a high open followed by a dip to stabilize and buy low, rather than chasing at the limit-up, because buying low provides enough intraday profit margin to withstand tomorrow’s uncertainties.

Since Zhongfu Shenying moved yesterday, it won’t be traded today. Because Huadian wasn’t traded yesterday, today has a second chance to choose, or I might just buy Snow浪 low. That’s my personal plan.

Future outlook:

Electric power stocks have accelerated for two days in a row, and with the current cycle, almost all are well-known power companies, mostly local state-owned enterprises. Tomorrow, there will be significant divergence.

  1. The main factor of divergence depends on Huadian. If Huadian causes turbulence, the later stocks will need to accept the shakeout.

  2. If Huadian continues to stay stable tomorrow, mid-tier stocks might also diverge.

  3. Huadian has provided two days of entry opportunities. If you missed it, tomorrow you can either watch the show or prioritize Huadian’s strong stance, as it is the market’s sentiment carrier. Most people who want in are already in; no need to leave difficult questions for tomorrow.

Here on Taogu Ba, my style isn’t very popular anymore. I’ll post more casually in the future, trying to update daily, but I won’t write long essays anymore—they’re not very meaningful.

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