3.20 Review: Power Sector Breakthrough Success, New Cycle Awaits Next Week

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Every day before the market opens, these three soul-searching questions must be etched in your mind:

1. Is there a main theme right now?
2. Is today a key node?
3. Is there a buying point today?

Friends who read yesterday’s review article should already have the answers; there’s no need to elaborate further here.

Following my yesterday’s approach:

If the Middle East conflict continues for a while, oil prices will naturally rise, but the problem is, they can’t get out. So, does this benefit our new energy sector, with electricity leading the way? Thinking from this perspective, the expectation that new energy will replace traditional energy is quite high.

Therefore, today’s electric power sector continues to strengthen. “LiaoNeng” officially stands firm at 5 consecutive limit-ups today, breaking the curse of not surpassing 4 limit-ups. The outlook remains bullish. This breakthrough is as significant as when “Shunna” broke the 3-limit-up suppression day. It tells us: the main theme is still there, and it’s getting stronger.

1. Today’s operation: Unity of knowledge and action — add positions where appropriate, confirm with the core button

Following yesterday’s logic, “LiaoNeng” is a critical battle today. If it accelerates and breaks above 5 limit-ups, today is a good time to add positions.

In the early trading session, “LiaoNeng” opened at 7.21%, a very handsome increase — indicating strength and leaving room for turnover. There was no waterfall decline after opening; instead, it steadily absorbed selling. Later, with “Huaneng” hitting the limit-up and “Dongfang” assisting, it quickly sealed the limit-up. At that moment, I knew the position tested yesterday could be expanded, and I added another batch as planned. This addition was not impulsive; it was based on yesterday’s analysis: “If ‘LiaoNeng’ accelerates beyond expectations tomorrow, add positions.” That’s the value of a pre-planned strategy.

However, the market is always full of variables. Around 9:50 AM, as the market turned red, “Shunna” plunged into deep water, and “LiaoNeng” was halted with a large volume. What to do then? According to discipline, when a stock halts with high volume, especially if it’s a follow-on stock showing negative feedback, it’s prudent to take some profits and lock in gains. So, after halting, I sold part of yesterday’s core holdings in batches, leaving today’s added positions to recover on Monday. This operation was based on the market’s strength at the open and the intraday changes. Both entries and exits were decisions made according to the market situation at the time. No issues with entering or exiting. As for the subsequent re-closure, that’s another story; our focus is on doing the right thing.

As for “Aorui,” it was very weak at open, starting at zero, even weaker than “Meili,” so I eliminated it immediately. Such follow-on arbitrage stocks, if they don’t meet expectations, must be decisively cut; hesitation leads to failure. I pressed the button without hesitation, taking a small loss to exit. This lesson reaffirms: non-mainline arbitrage should be light and quick, not holding onto stocks.

2. Index style: After breaking the level, consolidation and grouping are king

The index opened slightly lower, then plunged into deep water in the afternoon, closing at 3957 points, breaking the level. In the short term, we can’t be bullish:

1. Increasing uncertainty in Middle East conflicts, possibly fermenting during the holiday;
2. Profit-taking from previous gains will accelerate, forming downward momentum;
3. Institutional products face margin calls, passive reduction of positions will intensify selling pressure.

These risks were described in the article two days ago; no need to repeat here.

But a breakdown in the index doesn’t mean there are no opportunities. On the contrary, in a environment of shrinking volume and breaking levels, the arbitrage space for quantitative funds is compressed, and trend-following institutional stocks struggle to perform. The market’s pricing power will further shift to the most敏锐的游资 and relay funds. So, the conclusion is clear: grouping and relay trading will likely dominate the current discourse. Only the most core mainline stocks, with the strongest logic and popularity, can stand out amid chaos. Those following the trend will only suffer worse declines.

Today, only 28 stocks hit the daily limit up, 13 stocks hit the limit down, sentiment is extremely weak, marking the worst market in years. Such dismal data indicates most stocks have already fallen to their limit, and after panic selling clears out, funds will focus even more on the main theme. The weaker the index, the tighter the grouping.

3. Thematic direction: Power sector breaks through, opening new space

First, the current main theme: electricity.

From “HuaYin” to “Shunna,” then to “Huaneng,” and now to “LiaoNeng,” it’s been four stages. The first three leaders all stopped at 4 limit-ups. So many say the power sector isn’t a main theme and can’t break out. But truth is often in the hands of a few. I said yesterday: when everyone thinks it can’t break through, “LiaoNeng” might shoulder the task of opening new heights. Today, it did just that.

What does 5 limit-ups mean? It’s about breaking the deadlock, redefining the height. It tells the market: power sector speculation isn’t a one-off, but a sustained cycle. Moving forward, as long as “LiaoNeng” doesn’t go A-sharp, low-level补涨 will continue endlessly.

Today’s sector remains healthy:

· The core “Shunna” and “Huaneng” are oscillating near zero, with no negative feedback;
· Yesterday’s assist “ShaoNeng” nearly hit the limit-up, “Yuedian” opened slightly lower but also received support;
· The ladder of new first-limit stocks yesterday mostly opened red today, with ample premium;
· During the session, “Huaneng” and “Dongfang” hit the limit-up again, further fueling the sector.

The only thing to watch is that “LiaoNeng” traded huge volume today, with full turnover, indicating strong disagreement at the 5-limit-up level. On Monday, it must accelerate to hit the second limit-up to lock in chips; otherwise, it risks weakening.

As for other themes like packaging, lithography machines, optical fibers that opened strong today, these are likely just oversold rebounds or defensive plays, not suitable for relay trading. Why? Because when the index is weak, tech stocks tend to boost sentiment, but sustainability is doubtful. More importantly, tomorrow is Saturday, and if larger conflicts erupt in the Middle East during the holiday, these big-tech defensive plays will be muddled and chaotic. So, ignore other themes; focus only on power.

4. Timing nodes: Detailed “LiaoNeng” five buy points

Today, I’ll carefully explain the buy points for “LiaoNeng” to help everyone understand what node trading is:

1. First limit-up (March 14): The first node, triggered on the day “Huaneng” broke the board, marking the transition between new and old cycles. It’s the hardest to grasp because it’s uncertain whether it can run out.
2. Second limit-up (March 17): The node when “Huaneng,” the core of the previous cycle, broke the board. On that day, “LiaoNeng” directly hit a straight line, a typical “weakness mistaken for strength” scenario. It’s the first confirmation point within the pattern and a classic “positioning dragon” buy point.
3. Third limit-up (March 18): A standard weak-to-strong reversal. The stock hit the limit during the auction, opened with a quick surge, and became a point of increased positions amid divergence resolution.
4. Fourth limit-up (March 19): Yesterday was a breakthrough of a key node, a “breaking the dragon gate” move. It withstood divergence despite a weak board, and closed back up, serving as a test of quality.
5. Fifth limit-up (March 20): Today’s buy point is a confirmed break of the dragon gate. When it opened high and closed at the limit-up early in the session, the 5-limit-up space was officially unlocked, and the subsequent potential is huge.

Despite some halts during the day, these were passive due to market drag; after re-closure, it remained strong. Early entries during halts are disciplined, no issues; holding till close reflects belief in the main theme. Trading isn’t about absolute right or wrong, but whether you execute your plan.

5. Intensity determines stock strength: Auction signals and intraday response

Today’s opening auction signals were very clear:

· “ShaoNeng” near limit-up, continuing yesterday’s strong assist with premium;
· “Yuedian” opened slightly lower but quickly turned red, showing strong support;
· The new first-limit stocks “Huaneng” and “Dongfang” all opened red, with a complete ladder;
· Most importantly, “LiaoNeng” opened at 7.21%, indicating strength and room for turnover, not blocking liquidity with a straight line.

After the open, “Huaneng” led the sector with the first limit-up, boosting confidence; “Dongfang” followed, and the 20cm elastic target also became active. At this point, “LiaoNeng” sealing the limit-up was a natural outcome. During the intraday halt, “Shunna” plunged into deep water but didn’t hit the limit-down and recovered by the close, indicating core sector funds maintained support.

6. Tomorrow’s forecast (March 23, Monday): Accelerate and hold, divergence and exit

Today is Friday, with two free windows after close, increasing uncertainty. But precisely because of uncertainty, Monday’s performance is more meaningful.

“LiaoNeng” traded huge volume today, so Monday has only two possible directions:

1. Accelerate to hit the second limit-up: If it opens high and moves quickly to the limit, chips will be locked, and the theme will continue to run, with more low-level补涨. The focus can remain on power.
2. Diverge and weaken: If it opens low or high and then stalls with volume, the cycle may be over. After all, breaking the 5-limit-up is a breakthrough; going higher requires stronger collective effort.

So, the strategy for Monday is simple: observe, don’t rush. If “LiaoNeng” accelerates, hold or lightly follow; if it weakens, take profits decisively and wait for the next “Huaneng” break-the-board day. Other directions are not worth watching; wait for a new cycle.

Finally, remember: trading isn’t about prediction but response. We can’t predict what will happen over the weekend, but we can make the most reasonable decisions based on Monday’s market. Power sector breakthrough success means a new cycle next week — but only if you’re on the right bus, and on the right bus.