Calculate the main trend of the power grid coordination high-low cut, and on March 11th, break the board to catch the trend leader!

Good evening, everyone. Congratulations to those who bought the low positions in CPO-related major stocks yesterday; today, they all gained profits, especially in institutions like “Longfei Fiber, Hengtong Optoelectronics, Honghe Technology, Dongcai Technology, Firefly Communications,” and others. I’ve emphasized many times the魅力 of swing trading on dips—buying on pullbacks near support levels combined with the 20-day moving average, especially when the decline exceeds 20%, is the ideal entry point. The trend of rebound and extension from breakaway gaps enhances the value of this strategy further. [Taogu Ba]

I’ve repeatedly warned that retail investors should avoid getting caught in the oil and shipping sectors. Last Thursday, we removed oil stocks from our watchlist!

This post specializes in catching stocks with breakaway gaps and rebounds, focusing on core themes and predicting mainline logic, adept at locking in market core directions early. In practice, I skillfully use strong tactics like high-volume bearish and bullish signals at limit-ups, breakaway gaps, and rebounds, to precisely capture early-stage opportunities. I have a systematic framework for analyzing the volume-price relationship during breakaway gaps and rebounds, which allows me to identify key cycle points—such as initiation, shakeouts, pullbacks, and acceleration—by analyzing volume, chips, and patterns, enabling proactive positioning and trend-following. I focus on modeling and systematic thinking to strengthen my grasp on leading stocks, aiming to capture main upward waves, and use practical systems to help grasp trend markets.

1. On March 10, under the acceleration of rotation and quantitative trading, market participants showed fear of high prices and high-low switching.

On March 10, A-shares exhibited index oscillation and upward movement, rapid sector rotation, and significant risk aversion at high levels. Market sentiment was recovering, but the characteristic of stock market volume was still dominated by stock-picking within existing holdings. Funds avoided high-priced targets and shifted focus to low-priced rebound plays and niche segments. Sector rotation saw cyclical sectors retreat across the board, with technology growth sectors becoming the main flow of funds. Computing power industry chains led the rally, with large gains in hardware sectors like CPO, optical modules, and PCBs. Fast-growing stocks like Juxingxing hit the 20% limit-up, while core stocks such as Tanfeng Communication, Guangxun Technology, and Dongshan Precision either hit the limit-up or surged strongly, concentrating profit opportunities.

The synergy between computing power and electronics remained active due to policy support, but high-priced targets like Zhennao Co. experienced sharp shocks and high turnover, reflecting strong profit-taking willingness. Simultaneously, several low-priced stocks hit the first limit-up, forming a clear high-low switching pattern within the computing power sector. Essentially, existing funds are reducing risk appetite within the main themes by switching between high and low levels, maintaining sector heat while avoiding high-level pullbacks.

The market is in a stage of repair with pre-existing divergence. After a broad recovery, funds are no longer blindly chasing high prices but are instead focusing on low-priced stocks with safety margins. Limit-up streaks are limited, and the rate of hitting the limit-up is rising. The continuation of themes depends on sector rotation and low-priced rebounds, not on sustained acceleration of high-priced targets, consistent with the market’s “rotation without chasing highs, seeking lows amid divergence” rule.

2. On March 11, the market is expected to continue oscillating and diverging, with mainline high-low switching!

The index is likely to oscillate and diverge, making sustained broad gains unlikely. The Shanghai Composite Index will fluctuate around 4120-4150 points. With decreasing volume, the risk of short-term pullbacks increases. After a recovery phase, market sentiment enters a divergence validation period. High-priced stocks face increased pressure, and profit-taking shifts from broad gains to structural opportunities. Only core segments like computing power and low-priced rebound stocks maintain premiums. Rapid elimination of less promising themes will accelerate fund rotation, especially among different computing power sub-sectors!

1. Computing Power & Electronics: Zhennao Co. is the sector’s key indicator. If it cannot shift from weak to strong, high-level momentum will fade, and funds will focus on low-priced first-limit stocks and rebound targets like power supply and grid equipment, avoiding high-volatility stocks. Sector heat will shift toward lower levels. Leading trend stocks like “Yunnan Energy Control,” “Hang Electric,” and “Han Cable” may still trend upward after consolidation, so observe their shakeouts and trends carefully. Other low-priced stocks like “Beijing Kerei” hit the limit-up today, along with many other recognizable stocks, reflecting divergence and short-term profit-taking. Daily discovery of first-limit stocks indicates clear high-low switching within the sector.

2. Policy support for “raising lobsters” (various regional policies) is fueling the surge in computing hardware (CPO, optical modules, PCB). Funds are spreading into CPO, optical modules, low-priced equipment, and PCB rebound targets. High-low switching remains the core rhythm. The overall sector will not retreat but will see increased differentiation, with recognizable stocks and first-limit stocks maintaining sustainability. Previously mentioned stocks like Longfei Fiber, Hengtong Optoelectronics, and Firefly Communications are major institutional stocks with steady trend-following behavior.

3. Rotation directions: computing power → semiconductor equipment → AI applications. Cyclical sectors remain weak (oil and chemical sectors are not promising unless supported by strong funds). Other sectors show no clear signs of returning, with funds only switching within the tech mainline, avoiding large-scale cross-sector outflows.

4. As long as volume remains above 2 trillion yuan, the market tends to stay strong; dropping below 1.9 trillion yuan increases the risk of pullbacks. The strength of Zhennao Co. and the performance of top-tier CPO stocks determine the continuity of the hardware mainline. The premium of low-priced first-limit stocks and the profit-taking of high-priced stocks directly influence short-term trading rhythm and position management.

5. Sector core recognition, institutional stock trend analysis, and operational strategies:

Understanding the main trend and executing swing trades accordingly!

Core institutional stocks in the computing power industry (like Longfei Fiber, Hengtong Optoelectronics, Tanfeng Communication, Guangxun Technology, Dongshan Precision) rely on three main logic pillars: explosive AI demand, CPO technological iteration, and industry performance certainty. They are in a medium-term upward trend, mainly held in swing fashion. Short-term oscillations do not alter the overall upward trend. Under high risk aversion, these stocks tend to oscillate and rebound from moving averages rather than accelerate continuously, aligning with institutional risk-averse strategies.

These stocks use 5-day and 10-day moving averages as trend anchors. If the stock price oscillates around and rises along these averages, hold firmly, avoiding being affected by short-term fluctuations, and enjoy trend gains. When the stock pulls back to the 5-day moving average with declining volume, it’s an optimal low-entry point. If sector divergence intensifies and a stock experiences large daily swings but does not break below the 10-day moving average with abnormal volume, it remains within the trend and can be accumulated on dips.

Most core institutional stocks are supported by the 20-day moving average, cost basis, and a 20% decline threshold for low buying!

Under quantitative methods, avoid chasing every rise and fall daily!

March 11 Market Themes: OPC Lobster Concept Extends Computing Power!

“Computing Power & Electronics” remains the core, with raising lobsters driving continuous computing power growth, sector rotation (CPO, liquid cooling, optical modules, PCB), and price cycles (chemical).

1st stage: Guoan Co., Haio Co., Green Power

2nd stage: Zhongnan Culture

3rd stage: Ningbo Construction

Currently, stocks with continuous limit-ups lack sustainability and height, so most individual investors focus on low-break and rebound strategies within the trend.

Tomorrow’s core logic remains oscillation and sector high-low switching, with computing hardware and computing-electronics synergy still central. Under high risk aversion, rebound targets at low levels have higher premiums than high-level acceleration stocks. Institutional trend stocks mainly focus on pullbacks and swing holding. Operation should strictly control positions, avoid chasing high, and focus on low-level first-limit stocks and institutional pullback opportunities. The core approach is divergence-based low buying and trend-following, aligning with sector rotation to grasp structural opportunities.

The above is today’s review and tomorrow’s outlook, based on personal understanding. No stock recommendations are provided. The stock market involves risks; please invest cautiously!

Retail beginners should pay attention to the basics:

Retail trading logic:

“Dragon Head” and “Limit-up with Double Volume Bearish” signals:

Limit-up with double volume bearish:

Previous high resistance levels:

Short-term volume-price intraday charts:

Upgraded version of breakaway gap rebounds:

Details of breakaway gap rebound tactics:

Details of large-volume bearish rebounds:

In-depth analysis of breakaway gap rebounds: