March 11, 2026, Wednesday Review: Four hours, polarization, quantification becomes the biggest winner!

The market is currently still dominated by institutional funds, so let’s follow this line of thought and analyze step by step! [Taoguba]

1: Yesterday’s market was led by AI hardware, with optical communications at the forefront. Although US stocks fell back in the evening, optical communication stocks still rose, including Longfei Fiber, which closed up 24%. On the closing day, Hong Kong stocks Changfei Fiber also gained 24 points! During the opening auction, this translated to a gap up for us. Yesterday, stocks like Fenghuo Communication and Zhongtian Technology also opened well during the auction. The downside was that these stocks surged too quickly in the morning—Longfei Fiber hit the board within 15 minutes, followed by Fenghuo Communication, Zhongtian Technology, and Hengtong Optoelectronics all pushing higher. So, how to handle the remaining 225 minutes of trading? The auction exceeding expectations was because of the rapid rise, which definitely calls for a pullback. The intraday volatility is that the pullback might overshoot—for example, Fenghuo Communication’s auction was decent, and during the day it surged to 8 points but closed green, which indicates some issues. Logically, stocks with such strong pullbacks shouldn’t open lower tomorrow; otherwise, high surges will be followed by quick exits! The reason for the rapid pullback is also related to energy storage stocks being drained—battery stocks led by CATL and inverter components led by Sunshine Power. How will funds switch in the next two days? If optical communication flows back, then no problem. If not, energy storage can’t pull back too much on Friday, indicating a shift in funds—logic based on performance differentials!

Currently, the hype is around NVIDIA’s GTC conference expectations.
Optical communication: Longfei Fiber, Tianfu Communication, Zhongtian Technology, Hengtong Optoelectronics, Firefly Communication, Tongding Interconnection
Optical chips: Yuanjie Technology, Robotech, Changguang Huaxin, Taichen Optoelectronics, Shijia Photonics, etc.
Electronics: Philip Hua, Honghe Technology, Zhongcai Technology, Dongcai Technology
Copper foil: Defu Technology, Longyang Electronics, Tongguan Copper Foil
PCB drilling: Dingtai High-tech, Zhongwu High-tech
Equipment: Dazhu CNC, Delong Laser

2: Going overseas with power: During the intraday inverter surge, I was thinking this relates to funds—possible, but yesterday’s inverter stocks were heavily washed in deep water, mainly large tech stocks. If the index rises, it will be led by big tech. But today, the focus shifted directly to new energy. From a new energy perspective, this is hard to adapt because the logic doesn’t match. I thought about it in the afternoon and realized the starting point was wrong; it should be viewed from the perspective of going overseas, which makes sense. Energy storage stocks are mainly involved in grid equipment (UHV, transformers), switching from transmission and transformation to storage. Whether it will lead to discharge later is unclear; for now, follow this rhythm. If upstream wind and photovoltaic stocks rally, that’s also possible—funds are the biggest. So, from this angle, I see that Yiwei Lithium Energy and Penghui Energy are at a disadvantage. Lithium mines are also passively driven. If passive stocks want to strengthen and develop independent trends, that’s possible—passive doesn’t mean a death sentence!
Old power grid equipment: China Power, Dongfang Electric, China Western Electric, TBEA, Baowei Electric
Sentiment trend: Shunnao Co., Hanlan Co.
Many say Shunnao shifted from weak to strong during the auction, but I don’t think so. Especially in yesterday’s review, I mentioned that today’s auction would have many traps. The high opening and immediate surge could be fake signals. Many also thought it was a weak-to-strong shift in intraday trading. Note that the surge at that moment involved trapped positions; otherwise, the auction wouldn’t have 270 million yuan. We need to watch for a while—either a volume breakout on the board or a pullback followed by a re-attack. Either you don’t believe, or you believe early. To believe early, you need to see clear signals. Tomorrow, those who believe early should expect some gains!

Resilience: Southern Power Grid Digital, Tongguang Cable, Shuangjie Electric

GCL Energy Tech: Many thought it broke through Shunnao’s volume, but I commented in the forum that GCL Energy Tech was riding the energy storage wave. Today’s tech stocks are divided, and tomorrow’s energy storage stocks will also face divergence. Recently, stocks that were passively pushed up aren’t doing well; funds are front-loading. At 14:13, GCL Energy Tech tried to re-attack but failed; overall volume and turnover weren’t high. Future rotations will revolve around the 5-day moving average.

Jinkai New Energy: Yesterday, it opened high all day and then declined. The auction pulled back from the bottom, which is normal because the auction volume isn’t as large as imagined. Funds bought back at the 5-day line. Recently, whether it’s Hanlan Co., Shunnao Co., or others, the negative feedback from high or low positions in power stocks isn’t significant. But at this position, Jinkai should do some consolidation.

Power sector: Hang Electric and Yunnan Energy Control are alternating. Currently, the power sector is sideways at high levels with continuous low-level catch-up. Today, GanNeng Co. surged unexpectedly; I didn’t expect it and didn’t act. I don’t fully agree with this pattern. Power stocks are starting to ferment upstream—thermal, wind, hydro, nuclear. Keep an eye on thermal power, as it usually starts the rally! The index showed a volume-driven bottoming rebound, but Hang Electric retreated in the afternoon, and Yunnan Energy Control pushed at the close, leaving a divergence in Hang Electric, with GanNeng’s first board still holding. As long as GanNeng doesn’t have issues tomorrow, it’s fine! The sector’s first boards keep changing. Instead of chasing and selling, it’s better to wait patiently!

Some individual power stocks’ late trading structures aren’t very good, with signs of false signals—like Yunnan Energy Control, ShaoNeng Co., Huayin Power, etc. Be aware that only some stocks show this; others had no action. The high-level sector is stagnating, while low-level catch-up continues. The next step is to see a core decline to test the sector, like a drop in Hang Electric and Yunnan Energy Control, to shake out excess.

3: The lobster sector yesterday was mostly bearish, but UCloud Link opened flat, and CloudSail Intelligence opened down 2.8 points, indicating issues. It shows a lot of follow-the-leader traits. The opening surge to near zero was a quick exit. The concern is that others are strong, and funds recognize that but don’t acknowledge you! Network security remains volatile—rising then falling. Guoan Shares managed to close at the top, but it’s unclear what they’re holding onto. There are positive AI application news during the day, with funds selectively shifting. It looks like quant trading. Today, Ningbo Construction recovered, and Meili Cloud didn’t give much negative feedback. Tomorrow, expect fund inflows, and the strength of inflows will determine whether to stay or leave!
Data centers aside from Huanhuan Xinwang, Runze Tech looks weak—opposite to AI hardware. It’s like wearing a single pair of pants; you need to consider when to wear them. The recent surge in AI hardware and energy storage has impacted it most. Computing power stocks have been hot lately, especially Huawei’s Ascend chips, which are active frequently. This is just for reference and not investment advice!

NVIDIA ecosystem: Hongbo Co., Litong Electronics, ZhiChuang Data, Zhiwei Intelligence
Huawei Ascend: Tuowei Info, Sugon, Digital China, Changshan Beiming, Huasheng Tiancheng
IDC + computing power leasing: Runze Tech, Zhongbei Telecom, DataPort, Kehua Data, Halo New Network, Wangsu Tech, etc.
Edge computing inference: Wangsu Tech, Capital Online, UCloud Link, SWKJ
Cross-industry transformation: CloudSail, Aofei Data, Meili Cloud, Hongjing Tech, Hengrui Co., Lianhua Health, etc.
Post-market, computing power also received some positive news support. In the short term, this will boost the sector! The early movers gained, with intraday limit-ups. If tomorrow’s expectations aren’t met, the latecomers will be hit again!

Daily market overview:
At 9:25, Huadong CNC’s straight-up board led the industrial machinery sector, which has historically been weak, but industrial machinery is indeed similar to the previous power sector in hype. After the power sector’s hype fades, look again.
Guoan Shares hit the limit-up, corresponding to last night’s lobster safety news, but Guoan’s cybersecurity stock, SG Tech, pulled back after rising. This sector remains sentiment-driven.
Baichuan Co. opened high and then hit the limit, while Hongqiang Co., which surged last night, declined from high. This suggests that some funds are trying to consolidate positions in Baichuan Co., similar to Zhongyida, but whether the funds want to hold the vehicle of the consolidation is uncertain—once it hits the limit, the meaning of the consolidation is lost!
At 9:31, Dingsin Communications hit the limit, linked to ReesKanda, though the official line is power grid. But today’s power grid isn’t doing well. Comparing the charts of these stocks to December 2024 shows the trend. Electric Light Technology was also involved back then, so don’t be surprised if it moves again!
At 9:32, Yellow River Cyclone surged to the limit, with diamond heat dissipation. Resilience is Wolder, but these are just concepts, not fundamentals. The trend looks institutional, but the final outcome should be similar to Chunzhong Technology!
At 9:33, Ningbo Construction hit the limit, then failed, then re-closed, with no fund inflow into computing power—funds flowed into cyclicals. In the afternoon, it surged again and hit the limit. This surprised me because Meili Cloud didn’t give much negative feedback today. If tomorrow’s auction weak-to-strong, it might boost computing power inflows!
At 9:37, Shun Petroleum surged to the limit. Last night, crude oil fell, but it surged today. Caution is advised—if oil rises, it could wipe out the market. No large-scale action today, but the market closed with over 3,000 stocks down.
At 9:38, Tenglong Co. surged to the limit, focusing on liquid cooling. Earlier, Dayuan Pump, with Trend Feilong, led the sector. Old liquid cooling stocks like Yingweike are hovering around the 60-day line. Newer liquid cooling stocks emerged, with better intraday structure than optical communication, but fewer leading institutions!
At 9:42, Green Power and China Energy Construction both surged, indicating power flow back. This also misled retail investors—most might stay in Hang Electric or Jinkai, or grid equipment. But five minutes later, Chint Power started to rise, indicating energy storage. At that time, Shouhang New Energy was less than 4 points. To confirm, I’d need to wait until around 10:00 to see clear signals—only then can I realize the inverter strength from Deye Co., otherwise, Sunshine Power’s 6-point surge would have already shown the sector’s response. After 10:00, funds began to aggressively enter energy storage, with Deye, Keli, and others hitting the limit! Energy-saving wind power, related to power stations, also surged temporarily—similar to other stocks!
At 10:20, China KeChuan hit the limit. I can’t understand this—2023’s AI application rally was led by this stock. Why? Forget it, I’m skeptical too—just objectively observe!
At 10:38, Yuyin Co. surged to the limit, focusing on stablecoins, but it also hints at AI finance. The core is finance, not just concepts. Also, First Venture Capital has been watched for a long time—whether it’s for the index breakout or for stabilization! Currently leaning toward the former!
At 10:46, Xiongtai Co. surged to the limit, related to hydrogen energy, but it’s following the energy storage sentiment.
At 11:00, GanNeng Co. led Huayin Power and the power sector to rebound, especially when Sunshine Power pulled back. This shows that, at this moment, other sectors and internal stocks are bleeding out!
At 11:02, Brain-Computer Interface Yanshan Tech, Guoji Yixue, Nanjing Panda, etc., surged. Guoji Yixue hit the limit but then failed, but the news about brain-computer interface was overnight, so why didn’t it surge at open? This makes it somewhat pointless.
At noon, the only positive was that the decline in grid equipment didn’t affect power stocks—good news for sentiment!
In the afternoon, the surge logic was phosphate chemicals and carbon fibers. Yesterday’s thinking was correct—coal stocks can also bottom out and rebound. Quantitative logic doesn’t care about news or signals—where funds enter, where expectations are, that’s where the sector moves. Tomorrow, check computing power!
After 13:03, stocks like Zhongyan Chemical, Jinniu Chemical, Baofeng Energy, Yuanda Holdings, Zhongtai Chemical, Sanyou Chemical, etc., surged to the limit. When Baofeng Energy appeared, I didn’t want to look at the market because it’s unlikely retail investors are pushing it; institutions are targeting chemical stocks, not other sectors.
At 14:09, funds moved into Shenzhen Huaqiang, but it’s not high quality. Huawei HiSilicon stocks had little movement. The news was quite off—rumors about lobster benefiting second-hand computers and phones.
By close, total market turnover was 252.83 billion yuan. In the morning, volume shrank, then increased to 111.5 billion at the close. Monday saw volume decline, Tuesday rose on lower volume, today maintained volume. Overall, the index structure is fine. From short-term sector rotation, today’s second-tier stocks almost all disappeared, leaving only Zhongnan Cultural. Other second-tier power stocks mostly hit the limit, but some, like Yasheng Group, are independent and risk-averse. Huanghe Cyclone shows some volume and momentum but has poor fundamentals; still, it’s worth watching. Reeskanda and Dingsin Communications are worth watching, but better to look at Zhongjun. Guoan’s turnover isn’t high, but the sector is weak—monitor first. Any independent stock now might be the next theme’s starting point. The market has been two weeks into the new year, and it still hasn’t launched. What are we waiting for? There won’t be only one power stock! There will definitely be other themes emerging to counterbalance!

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