Hexun Investment Advisor Li Jiale: The gap will be filled from below and then from above. Electricity tomorrow still faces a test.

How should we understand Liaoning Energy’s late-session explosion? According to Hexun’s analyst Li Jiale, the electric power sector is expected to have divergences, which will not be absent but only delayed. The peaks following peaks will bring about greater divergences, all of which are within expectations. Moreover, divergences also allow themes to go further; it does not signify the end of the electric power main line. The index has continued for two days, rebounding, and today it began to move down to fill the gap around 3880, which aligns with yesterday’s live broadcast prediction that the index still needs to oscillate downwards a bit more before it can move more steadily after hitting double bottoms. Next, Lele will combine the market situation to break down today’s market logic in detail.

In the late session, energy stocks surged, but how should we understand Liaoning Energy’s late-session explosion? Why can the high-priced stock Liaoning Energy maintain a strong trend? And why hasn’t the supplementary rise seen a consecutive fourth day? First, we need to understand the logic driving Liaoning Energy today; it’s following a high-level collective logic. Due to the continuation of last day’s thematic peak, the consecutive board tier is intact. However, today the electric power sector is facing divergent expectations. As Lele has repeatedly mentioned in the live broadcast, once high-level stocks face divergent expectations, they must either focus on absolute highs or absolute lows. Mid-tier stocks face the greatest risk.

So, does the afternoon’s re-sealing that drove the electric power sector stronger indicate that tomorrow the electric power direction can recover expectations? Actually, it does not. This means that the expectations for electric power tomorrow still need to face divergences. Why is that? Firstly, Liaoning Energy’s strength did indeed spur a wave of return in the electric power sector, but many low-tier supplementary rises are showing strong divergent trends, meaning the return within the electric power theme cannot be seen as a shift from divergence to consensus. The low-tier supplementary rise has stopped at three boards, and the index has not hit new highs. If we believe today signifies a shift from divergence to consensus, then why didn’t the theme experience a 20-cent limit-up arbitrage? This also indicates that internal funds in the electric power sector have not completed their phased transfer today, compounded by Liaoning Energy’s late-session drop, with funds still fearing regulatory attitudes, while energy stocks do not face regulatory issues, which is why they surged in the late session.

For instance, the morning’s simultaneous opening of rare stones performed poorly; in fact, the actions were meant to create a trend crossover, to enhance this recognition, but the afternoon’s support was insufficient and somewhat failed. This logic suggests that funds want to maintain the thematic heat, even if the current core recognition at high levels faces negative feedback expectations. As long as funds can continue to create recognizable limit-ups within the theme to maintain the height of electric power, it won’t let the theme turn into a situation of only width without height; otherwise, subsequent themes will only weaken further. Therefore, for Liaoning’s action of moving from the eighth to the ninth today, it is actually quite exhausted. Coupled with funds fleeing in the late session, the electric power sector still has phased overdue risks tomorrow. Here, uncertainty increases, and we need to observe whether funds can support after the phase tomorrow.