Certainty of Trading

[Stock Talk]

2026-02-27 Friday

1. Market Outlook: Observe the Big Picture, Set the Tone
   Today’s indices fluctuate; Shanghai Composite outperforms Shenzhen and ChiNext. Shenzhen yesterday strong, today weak with a water-down adjustment all day; Shanghai yesterday weak, today strong with a gap up and steady rise. Funds mainly target non-ferrous metals, computing power, and electric power sectors. The market’s standout is the scarce resource concept in non-ferrous metals. Short-term sentiment improves, making continuous board stocks profitable in the past two days. Institutional-led trends mainly follow a pattern of alternating yin and yang, so focus on the right direction and avoid mode mismatches.
   Total turnover in Shanghai and Shenzhen: 2.48 trillion yuan, down 50.4 billion from the previous trading day.
   Net capital inflow: Small metals, electric power, IT services, industrial metals, and communication services sectors.
   Net capital outflow: Semiconductors, communication equipment, consumer electronics, components, and power grid equipment sectors.
   Market gainers vs. losers: 3,164 vs. 1,884. Influenced by news, funds attack resource-based non-ferrous metals and computing power, electric power sectors.
   Number of stocks hitting daily limit vs. hitting limit down: 75 vs. 0. Short-term board sentiment recovers, with high-standard stocks reaching 7 boards. The sectors of computing power and communications show a trend worth watching.

2. Sector Trends: Seek Mainstream Hotspots, Identify Rotation Themes
   From the perspective of percentage gains:
   12 primary industries in Shenwan’s first-level sectors see net inflows from major funds. Computer and non-ferrous metals sectors each see inflows exceeding 5 billion yuan; agriculture, forestry, animal husbandry, and fishery sectors see inflows over 1 billion yuan.
   Electronics and communications sectors see net outflows over 11 billion yuan each; electric equipment and machinery sectors see outflows over 3 billion yuan each.
   Funds mainly focus on Huawei’s computing power and scarce non-ferrous metals. Among Huawei concept stocks, Topway Information and Kunlun Wanwei see net inflows over 1.3 billion yuan each; Ruanhe Software and Soft Power are also popular. In the software industry, Yuyin Shares, Huasheng Tiancheng, and Jindai Modern lead in net inflows.
   Precious metals sector: Hunan Gold hits the daily limit with net inflow of 873 million yuan. In non-ferrous metals, Tongling Nonferrous, Xianglu Tungsten, China Rare Earth, Glinmetal, and Oriental Zirconium each see inflows over 400 million yuan.
   Sectors and stocks with net outflows:
   In computing hardware, Runze Technology and Huatian Electronics see net outflows over 800 million yuan each; Zhongji Xuchuang, Xin Yisheng, and Shenghong Technology are the top three with net outflows of 4.003 billion, 3.778 billion, and 1.421 billion yuan respectively.

Key sectors to watch:
CPO Optical Communications: Sector adjusts; Fosheng opened low and hit the limit down but was pulled back; Hengtong, Tongding, Huagong, Longfian, Tianfuhave support from funds; FiberHome hit the limit, Huanxu surged at the close.
Robotics: Continued divergence; Baida, Tianpu, Fenglong, Wuzhou, Moulding Technology, Sanhua Intelligent Control show ongoing divergence with doji or small negative lines.
Electric Power: Early session saw funds attacking Gannan Electric Power, Huanian Electric Power, Hang Electric, with Shenma Electric Power, Nanjing Grid Energy, GCL New Energy, and Mindo Electric Power hitting the limit, with some closing at the limit.

3. Sentiment Pulse: Sense Short-term Heat and Long-term Trends
   Today, 75 stocks hit the daily limit, with 10 stocks on the continuous board, including 5 with three or more consecutive boards. Yesterday had 9 continuous board stocks, with a 55.55% upgrade rate.
   Market theme rotation remains healthy; sectors that experienced correction yesterday, such as the pro-cyclical sectors, are making a strong comeback today, with over 25 related stocks hitting the limit.
   The AI-related sectors that were strong yesterday also maintain strength, especially domestically developed computing power and leasing segments.
   Looking at continuous board stocks, YuNeng Holdings, with its strong early surge to 7 consecutive boards, continues to lead the upward momentum, boosting overall sentiment recovery.
   Sector-wise, driven by YuNeng Holdings’ performance, domestic computing power and leasing sectors continue to perform well. TaiJia Shares advanced to a one-word bid and achieved 2 boards; Topway Information and Hang Steel also hit the limit early, aiding the rally; Huasheng Tiancheng rose over 6%.
   Pro-cyclical sectors made a strong comeback today; Zhangyuan Tungsten opened with a small volume limit-up and achieved 3 consecutive boards, leading a large inflow into non-ferrous metals; Jiang Tung Equipment reached 7 days with 5 boards.
   Chemical sector’s Jinjing Da closed at the upper limit, achieving 4 boards.

Today, short-term sentiment remains relatively active, with nearly 100 stocks hitting the limit up, while fewer than 10 stocks fell more than 7%. YuNeng Holdings further extended to 7 boards, also boosting leasing-related sectors. YunTian LiFe hit the 20-cent limit, and Capital Online staged a rebound, reaching new stage highs intraday. However, stocks like Huasheng Tiancheng, Chengdi Xiangjiang, and YunSai Zhilian experienced midday pullbacks, indicating ongoing fund divergence.
Additionally, cyclicals regained strength, with Zhangyuan Tungsten, Jiang Tung Equipment, and Jinjing Da each hitting 7 days with 5 boards; Xianglu Tungsten, Xiamen Tungsten, and China Rare Earth also hit the limit and continued to set new highs. The current market focus remains on price-increasing themes, so in the absence of clear negative feedback, opportunities for catch-up in the rotation of price-increasing themes still exist.

Focus stocks:
YuNeng Holdings (7 boards, advanced on intrinsic computing power),
Jinjing Da (chemical sector, 4 boards at the close),
Zhangyuan Tungsten (non-ferrous metals, 7 days with 5 boards, 3 consecutive boards),
Gannan Shares (electric power, 3 boards),
Hongxing Shares (home concept, 3 boards).

Theme development:
News: According to OpenRouter, the world’s largest AI model API aggregation platform, from the 9th to 15th, China’s model call volume reached 41.2 trillion tokens, surpassing the US’s 29.4 trillion tokens for the first time. Chinese models dominate the top five globally.
Industry insiders also revealed that US aerospace and semiconductor suppliers are facing severe rare earth shortages, mainly involving yttrium and scandium.

4. Stock Deep Dive: Focus on Strengths, Understand Linkages
   Power grid cables: Yesterday, Hang Electric had a chance to lead but was pulled back at the close; today, with sector support, it continues to rise from the water and hits the limit.
   High-standard continuous boards: After reaching a high point, YuNeng’s previous surge supports Gannan Shares’ rebound, with the sector’s energy companies like Nanjing Grid Energy, Huanian Electric Power, Shenma Electric Power, and Mindo Electric Power hitting the limit.

Leading the Market:
Continuous Board Focus: Reorganization concepts combined with computing power—YuNeng Holdings’ 7-board surge indicates strong short-term sentiment, favorable for fund continuation.
Board Height: YuNeng’s 7 boards and Jinjing Da’s 4 boards at the close show the height of the trend.
3 Boards: Zhangyuan Tungsten’s proactive strength and upgrade; Gannan Shares’ rebound as a supplement; Hongxing Shares’ pullback from the limit makes consecutive boards less predictable.
Within 2 Boards: Mainly electric power, including TaiJia, Beijing Ke Rui, Changyuan Donggu, Huanian Electric Power, Shenma Electric Power, FiberHome, driven by fiber optic price increases and Huawei’s computing power.
First Board Sectors:
Computing Power: Topway Information, Gaoxin Development, Hang Steel, Litong Electronics, Taijing Technology, Hang Electric.
Mineral Resources: Xianglu Tungsten, Oriental Zirconium, China Tin, Xiamen Tungsten, Guinian Platinum, Tin Industry.

Trend Directions:
Artificial Intelligence: Dingguo Chuang
PCB: Guojia Fucai, Minbao Optoelectronics, Tongguan Copper Foil
Power Grid Cables: Longfibre, Hang Electric, Tefa Information
Unusual Movements: Resources, non-ferrous mining, computing power, electric power sectors.

5. Self-Reflection: Review Trading, Analyze Inner Mind
   Holdings: Lotus, Hualin, Zhangyue; Sold: Shen Technology
   In operation, sold Shen Technology during the midday rebound at high levels; other holdings remain unchanged awaiting further rebounds.
   Stocks to watch:
   AI computing power: Dawi Technology shows signs of stabilization with a low-level doji; Shunwang and Lotus are adjusting with rebounds.

6. Tomorrow’s Outlook: Develop Plans, Form Judgments, Prepare to Follow and Adapt
   Power grid equipment: Hang Electric’s continued rise after deep water pullback, with sector support from Nanjing Grid Energy, is a good opportunity. Early session, Gannan Shares opened high and hit the limit, driving the sector.
   Weekend review: Check sector directions and expectations for the Two Sessions.