3.12 Review: Trade War Phantom Disturbs Market, Snake-Like Movements Become Mainstream Under Severe Pressure

Index adjustment arrives as scheduled, with trade war clouds overlapping technical pullbacks. The market is seeking balance between panic and stabilization. Strong players in smart grids continue to strengthen, chemical sector rotation shows differentiation, and optical communications briefly surged before retreating. Behind Yunnan Energy Holdings’ persistent oscillation remains a chaotic struggle under high suppression. [Taogu Ba]

Following the Trend
The index has entered a correction phase as expected. After 10:30, the three major indices almost slid without resistance, mainly due to the combined adjustment expectations and the re-emergence of trade war fears, causing some panic in the market. However, there was a rally toward the close. The total daily volume was 2,442.1 billion yuan, with a slight decrease of 66.5 billion, maintaining stability. From a broader perspective, this adjustment is still viewed as a pullback rather than a change in the oscillation structure.

In terms of sectors, power and chemical industries showed performance, but internal structures shifted.
In smart grids, the rebound continued today, with increased strength compared to yesterday. The sector saw 11 limit-ups, totaling 41.092 billion yuan in gains. Jinkai New Energy hit 5 limit-ups in 10 days, Hanlan Co. achieved 4 in 7 days, with two 3-limit-up stocks and three 2-limit-up stocks, plus five first-time limit-ups. Positively, Yunnan Energy Holdings’ continued strength provided positive feedback, and major stocks like China Energy Construction broke out with two consecutive limit-ups. GCL New Energy and Shun Sodium also showed recovery. Currently, this sector offers relatively good profit opportunities. In the afternoon, wind power stocks gained influence on news, with 7 limit-ups totaling 6.324 billion yuan, all first-time limit-ups, providing some support, but the main focus remains on smart grids.

The chemical sector surged yesterday, with futures continuing to rise overnight. Today, differentiation persisted, with 14 stocks hitting limit-up, totaling 13.324 billion yuan. Jinniu Chemical achieved 2 limit-ups, others opened at first limit-up. Mainly led by coal chemicals, which accounted for five limit-ups and played a significant role. Performance, price hikes, and conflicts acted as catalysts, with sector rotation remaining the main theme.

Optical communications entered a correction, initially extending in the morning. Guangxun briefly hit limit-up, but with Huagong’s plunge, the sector overall retreated. Huagong rebounded in the afternoon, but the trend remains corrective, and individual stocks may fluctuate repeatedly.
External influences seem to be waning, while sectors with intrinsic logical operation are strengthening. The key is whether they can further breakout.

Market Sentiment Fluctuations
The market continues to digest, with widespread declines today—over 3,600 stocks down. The high still remains at 4 limit-ups, but despite weak sentiment, the V-shaped rebound in indices shows some absorption strength. Therefore, the likelihood of a deep retreat remains limited.
In terms of speculation, some profit-making effect persists amid chaos. Pure momentum trading is becoming more difficult, with more cautious positioning. Yunnan Energy Holdings’ slow oscillation and small-step rise help consolidate market sentiment. Grouped stocks remain relatively stable safe havens. Huagong’s plunge was harsh but also created opportunities for rebound.

Tomorrow’s Outlook
We still need to wait for a breakthrough. The power grid theme has played out for a while; although it’s mainstream now, it still feels somewhat lacking in pure mainline themes. It may either continue to break through or fade away in the final glory, being overtaken by new emerging directions.
Until new themes appear, it’s best to respect the market reality, continue navigating chaos, and focus on a few hot sectors with a rotation rhythm.
Currently, the main concern is the obvious high suppression. Pure limit-up stocks face clear restrictions, and trend breakthroughs seem passive. Many stocks are cautious, avoiding abnormal moves. Yunnan Energy Holdings is the most representative. If it can successfully bypass restrictions and continue upward, it could significantly boost the market. Conversely, if regulatory restrictions extend beyond tomorrow, a major rally may remain distant, and the market can only continue to develop cautiously, waiting for a breakthrough point.

Trading Tips
Today was fairly average. Yesterday’s Huasheng Tiancheng underperformed expectations; I sold all at the open when the market was in the red.
Pre-market, I identified Shun Sodium and GCL New Energy for potential trades. Shun Sodium was bought on dips, GCL was added later.
For Yunnan Energy Holdings, I took partial profits during the rise; when it pulled back, I didn’t re-enter, and I continued holding the remaining shares.

Post-market holdings: Yunnan Energy Holdings, GCL New Energy, Shun Sodium.

Data Summary

☑ Statement: The above is only a personal review note. Any opinions or individual stocks mentioned are for illustration only and do not constitute investment advice. Please trade independently and be cautious—investment involves risks!
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