Huadian Liaoning Power 8-day consecutive limit up, how will the power sector move tomorrow?

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1. Operation Review

1. Yesterday’s review and Dayi’s early warning indicated opportunities in high-low switching in electricity. Today, besides Huadian Liaoning, Huadian Energy, and Shao Energy, most stocks hitting the limit are relatively low-priced electric power stocks, with 20 stocks successfully hitting the limit at close. This demonstrates Dayi’s timely insight and value. Last night, the token economy was discussed—originally the token economy—and this morning it also showed active performance, but was ultimately constrained by electric power stocks’ strength. Still, it remains relatively safe intraday. In the afternoon, Yunnan Energy Holdings plunged, followed by JinNiu Chemical’s rally. This passive strength indicates JinNiu lacks initiative, so when it rose in the afternoon, Dayi warned of an exit opportunity. Can you grasp this knowledge point?

2. Market Review

Today, 4,874 stocks rose, 560 fell, with a total turnover of 2.19 trillion yuan, about 900 billion less than yesterday. The index opened high with increased volume in the morning, led by tech stocks, and continued upward. The electric power sector initially showed divergence but then followed the rally. Except for oil and gas, most sectors rose broadly, with telecom, computing power, and electric power performing strongly.

The market hit 84 limit-ups today (vs. 83 yesterday), with a 86% limit-up rate (vs. 79%), 61 first-limit hits (vs. 77), and 19 stocks with two-limit hits. There was 1 limit-down (same as yesterday). Despite the increase in consecutive limit-ups to 8, the overall strength remains solid.

In sectors, electric power hit 23 limit-ups, computing power 9, optical communications 12, AI hardware 5, consumer sectors 8, energy storage 4, others scattered, mainly focused on electric power, computing, and communications.

Bid price one-word board:
Xinneng Taishan’s order book slightly increased (yesterday 572 million yuan)

3. Market Analysis
Index has been bullish for two consecutive days, largely clearing the short-term gloom of continuous decline. Today’s performance exceeded expectations; tech stocks opened high and led the index, while electric power continued to hit consecutive limit-ups. Both index and sentiment show a positive attitude. From these points, capital willingness here is somewhat assured. If the index pulls back, it still indicates capital is willing to support here. In the short term, the index faces upward gap pressure. This afternoon, the index reached new highs, but sectors like fiber optics, electric power, and computing power did not continue to new highs, indicating pressure. If tomorrow opens high, trading becomes difficult; waiting for a pullback is better. A decline first makes trading more comfortable. Without external positive or negative catalysts, the index is likely to fluctuate sideways in the short term.

Electric Power sector, after weak divergence in the morning, continued to rise sharply. During recent declines, electric power has been the only sector with sustained profit effects. Today, the sector index approached new highs. High-level Huadian Liaoning may face difficulty on the 8-9th, risking divergence. Also, Yunnan Energy Holdings’ afternoon plunge hints at ongoing divergence expectations tomorrow. From start to peak, Yunnan Energy rose 181%; Huadian Liaoning’s 23-day rise has reached 165%. Even if it succeeds in advancing tomorrow, divergence pressure remains significant.

Given the clear divergence at high levels, what scenarios might occur tomorrow?

1. Huadian Liaoning opens slightly higher, quickly profits, then stabilizes with oscillation, mild break.
2. Huadian Liaoning opens lower, surges, then pulls back, mild break.
3. Huadian Liaoning opens slightly higher, quickly profits, then hits limit down, severe break.
4. Huadian Liaoning opens lower, surges, then pulls back, severe break.
5. Huadian Liaoning opens very high or with acceleration, then quickly plunges, stabilizing after divergence.
6. Huadian Liaoning opens very high or with acceleration, then plunges, then crashes after oscillation.

From these, scenarios 1, 2, and 5 are relatively benign divergence signs; 3, 4, and 6 are more likely to lead to weakening of the electric power sector. All sectors will face significant pressure, especially in scenarios 5 and 6, where opening prices suppress the sector, raising concerns about ongoing weakness at high levels. In any case, high-level stocks like Huadian Liaoning are likely to have initial sell points.

Where are the opportunities in the electric power sector afterward? Still in low-level catch-up and mid-high level consolidation with groupings. But under poor performance, error tolerance decreases; avoid chasing blindly, wait for capital to actively choose (countertrend defensive stocks).

Computing power and communications are also key focus areas. Yesterday afternoon and today, they led the index higher. If the index surges tomorrow, these sectors may not have good opportunities; beware of pullbacks. If the index opens with divergence and drops significantly, consider intraday low buying of popular defensive stocks. Both sectors depend heavily on the index, so keep a low-entry rhythm.

4. Current Profitable Stocks Summary
1. Electric Power & New Energy
Huadian Liaoning: divergence expected.
Zhongli Group: low open, surge, then fall back expected.

Yunnan Energy Holdings: oscillation expected.
Shao Energy: high open, break expected.
JinKai New Energy: correction expected.
Huadian Energy: low open, surge, then fall back expected.
Liaoning Energy: break expected.
Zhejiang New Energy: surge expected, possible pullback.

Hunan Development: high open, surge, then fall back expected; small high open has divergence.
Energy-saving Wind Power: surge, then fall back expected.
Xinneng Taishan: one-word surge expected.
Ningbo Energy: low open, surge expected.
Guangdong Power A: acceleration expected.

Aoruid: large high open expected.
Meili Yun: oscillation expected.
Chint Power: low open, surge expected.

Hang Electric: small high open, break expected.

5. Summary
Tomorrow, the index is expected to fluctuate narrowly, with sentiment divergence. Short-term electric power still has high-low switching opportunities, but difficulty increases. The chance for electric power to support popular stocks with groupings remains. Computing power and communications can wait for divergence; a clear correction in communications is preferable, while computing power performs better when electric power shows passive weakness, allowing for active repair plays. Wishing everyone continued profits tomorrow.

Xiao Shu’s Dayi Trading Philosophy:

1. Follow the trend, ride the momentum!
2. Pre-judge decisively and follow promptly!
3. Find the strongest, only do the strongest!
4. Actively admit mistakes and cut losses timely!
5. Reject comparison, aim for stable profits!

Short-term trading is like walking a tightrope—glamorous on the surface but full of risks. It amplifies market fluctuations and easily traps investors in chasing highs and selling lows, blinded by greed and panic. Discipline is crucial:

• Strict stop-loss: set maximum loss limits per trade; exit decisively when hit, no luck-based hopes.
• Follow the trend: only trade clear trends; avoid countertrend guesses at market tops or bottoms.
• Control position size: allocate funds reasonably based on market and risk capacity; avoid heavy or full positions.
• Avoid frequent trading: don’t be tempted by short-term volatility; wait patiently for the best opportunities.
• Stay calm and rational: keep a balanced mindset regardless of profit or loss, follow your trading plan.

Remember, short-term market movements are uncertain, but for prepared traders, they are opportunities, not gambling. Steady operation and flexible adaptation are my keys to short-term success and the foundation for future progress.

May your stocks rise like the morning sun, hitting new highs daily; investing flow smoothly like a gentle stream, steadily earning profits; holdings full of potential stocks, value rising step by step; trading with skill and precision, buying and selling accurately.
Long-lasting bull markets, wealth flowing in, continuous profits, abundant harvest!
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