March 9th, consolidating and preparing for a breakout, with a strong sector rotation rhythm to catch the leading stocks!

Good evening, everyone, [Taogu Ba]

This post specializes in identifying rebound breakouts and catching strong stocks, focusing on core themes and trend logic prediction, with the ability to lock in market directions early. In practice, I skillfully apply powerful strategies such as high-volume阴、阳、涨停断板反包, accurately capturing early-stage stock opportunities. I have developed a systematic framework for analyzing volume-price relationships during breakouts and rebounds, enabling clear identification of key cycle points like initiation, shakeouts, pullbacks, and accelerations from dimensions such as volume, chips, and patterns, allowing for proactive layout and trend following. I am committed to using a patterned, systematic approach to strong stocks, focusing on capturing main upward waves, and leveraging practical systems to grasp trend markets.

1. Market Overview on March 9: The overall index remains stable with a strong structure, trend-leading stocks dominate the market. March 9 is a critical window for the implementation of policies from the Two Sessions, combined with economic data releases, resulting in a market characterized by index consolidation, reinforced main themes, and limited consecutive board heights. The Shanghai Composite Index’s core trading range is 4080-4150 points. After a slight dip at the open, it retreated to support at 4100 points, then rebounded with weightings’ support. In the afternoon, moderate volume expansion tested resistance at 4138 points, but overall volume remained low, maintaining narrow fluctuations, closing with small positive or doji candles.

The current market features high suppression and trend dominance, with consecutive boards compressed to within three. Funds have shifted away from aggressive consecutive board battles toward a trend pattern of breakouts and shakeouts, exemplified by Hanlan Co., Ltd. and Shunna Co., Ltd., which continue to strengthen as core trend leaders and become main fund holdings. After the Two Sessions, themes shifted from broad rally expectations to segment-specific fulfillment. AI full chain, computing-electrical synergy, and cyclical resources have become the confirmed main lines in March, with faster rotation and low-entry trend rebounds and breakouts being the optimal operational modes.

Analysis of the core main lines from the Two Sessions: Dual main line rotation, with intersecting core themes of computing-electrical synergy

1. AI Full Industry Chain: Computing power - Hardware - Applications resonate across the board

The Two Sessions explicitly promote deepening AI+, pushing for large-scale commercial applications, accelerating the construction of massive intelligent computing clusters. AI is shifting from hype to performance realization, with funds moving in an orderly manner along infrastructure, hardware carriers, and application scenarios. Key directions and targets include AI computing power network construction and intelligent computing centers, benefiting from policies supporting computing-electrical synergy. Upstream optical modules and servers remain strong, focusing on core targets like computing chips and optical communication leaders, with clear trends of volume and price rising. AI hardware terminals are upgrading to smarter solutions, with exploding demand for server accessories and computing devices, providing significant room for low-priced hardware stocks to catch up, becoming core trend directions. Accelerated deployment of AI applications in industrial, financial, and media scenarios, supported by policies fostering new business models, with commercially capable targets emerging as independent trends, avoiding pure hype stocks.

2. Computing-Electrical Synergy + Cyclical Resources (Future Energy): Exclusive policy main line, integrating cycle and growth

Computing-electrical synergy was first incorporated into government work reports, linking AI computing power with new power systems, becoming an exclusive core theme of the Two Sessions. Coupled with cyclical resources (energy, chemicals, non-ferrous metals) expecting economic recovery, forming a “computing power electricity + energy supply” closed loop. Driven by both policies and fundamentals, this has sustained advantages over ordinary themes.

Core intersection of computing-electrical synergy: covering smart grids, ultra-high voltage, energy storage, virtual power plants, solving energy consumption and dispatching pain points for computing power, providing energy support for AI computing. “Future energy” benefits from photovoltaic and grid equipment supporting new power system construction, with computing-electrical synergy promoting green power directly connecting to computing centers, industry prosperity continuing upward, with trend stocks steadily climbing along moving averages.

Cyclical chemicals/resources: The rise in Middle Eastern oil and gas prices will eventually impact chemical systems. Expectations of economic recovery combined with cost improvements lead to valuation recovery in chemicals and non-ferrous metals, strengthening in tandem with energy themes, serving as a supplementary direction for trend rotation. Sub-sectors related to chemical price increases continue to perform.

2. Market conditions are heavily suppressed, with a trend of breakouts and shakeouts, establishing a fixed gameplay pattern. This may be a key emotional operation method to focus on in the future.

3. The market is currently highly compressed, with difficulty in sustaining consecutive boards. After a breakout, shakeouts and rebounds along moving averages have become mainstream, exemplified by Hanlan Co. and Shunna Co., with high consistency in logic and pattern.
   Hanlan Co.: Leader in computing-electrical synergy and ultra-high voltage trends, resonating with funds and institutions, benefiting from core policies, with catalysts like ultra-high voltage orders. During shakeouts, short-term floating chips are cleaned, and after rebound, strong fund locking continues, with better trend persistence than pure consecutive board stocks. Yesterday, I analyzed its three-wave trend pattern in detail, so I won’t repeat the technical standards here.
   Shunna Co.: Core sentiment in smart grid, a benchmark for breakouts and rebounds, with a pattern of rapid acceleration after consecutive boards, shakeouts without breaking the 10-day moving average, then quick rebound to limit-up after volume contraction, forming a “consecutive board - shakeout - rebound acceleration” standard pattern, leading sector sentiment and driving rotation in the power grid equipment sector.

Currently, short-term funds are concentrated on core computing-electrical synergy stocks, with strong support after breakouts, short shakeout cycles, and powerful rebounds, suitable for short-term trend continuation, complementing Hanlan Co. with “emotion + trend,” affecting other related sectors like liquid cooling for computing, optical modules, and PCBs, which are also worth attention.

2. Sector rotation rules and leading stocks in core sectors:

Within dual main line rotation, AI computing power and computing-electrical synergy alternate daily, with cyclical resources serving as low-level rebound directions, attracting funds during corrections. When core stocks break out, lower-tier stocks in the same sector also catch up; during core rebounds, the entire sector explodes, avoiding high-risk chasing of single stocks. Remember that most related stocks in AI computing power have already broken below the 30-day moving average, and I previously mentioned that opportunities may only arise after around March 20.

1. AI Smart Grid: (Sentiment leaders: Shunna Co., Hanlan Co., Yunnan Energy Holdings)

Frontline stocks: Shunna Co., Hanlan Co., Yunnan Energy Holdings,

Recognition: Huayin Electric Power, Fuling Electric Power, JinKai New Energy,

Core trend stocks: Hang Electric Co.

2. AI Computing Power:

Huawei-related: Huasheng Tiancheng, Tuowei Information, Chuanrun Co.

3. AI Hardware & Semiconductors / PCBs:

Institutional trend stocks: Changfei Fiber, Hengtong Optoelectronics, Honghe Technology, Liande Co.—mostly low at the 20-day moving average.

Optical modules: Tongding Interconnection, Keli Technology

4. Chemical-related (many good stocks here, all trending, some similar to the model of Shunna Co. and Hanlan Co.)

Sector leaders: Jinniu Chemical

Recognition: Liugui Chemical, Luzhou Tianhua, Chitianhua, Shandong Haihua,

Trend stocks: Cangzhou Dahuaxing, Baofeng Energy, Jinnui Mining

Summary of core operation methods for trend stocks, suitable for current market conditions

Considering the market’s high restrictions and trend dominance, focus on four core strategies: breakouts and rebounds, low-entry on moving averages, riding divergences, and consensus profit-taking. Develop an operation system aligned with dual main lines to avoid the risks of chasing consecutive boards and to capture trend dividends. The primary focus is on breakout and rebound stocks, with precise timing.

1. Selection criteria: Core main line stocks (AI computing power, computing-electrical synergy), 2-3 consecutive boards, after breakout, volume contraction, no break below the 10-day moving average within 3 days, volume drops below 40% of peak, chips stable with no large escape.
2. Entry timing: 3-5 days after correction, when a doji or small positive candle appears at the bottom, and volume breaks through the first-day high in the afternoon; if the stock opens low and stabilizes along the moving average, with strong intraday support, can be lightly accumulated, aiming for a rebound the next day.
3. Risk control: Stop loss if breaking below the 10-day moving average unconditionally; if rebound fails, reduce half position on a long upper shadow; avoid stubborn holding. Core stocks have a rebound success rate above 70%, prioritize sector leaders, and avoid chasing latecomers.
4. Trend low-entry method: Hold stocks along the moving averages, with trend compound gains. When the 5/10/20-day moving averages are in a bullish alignment, and the price does not fall below the 20-day, with a healthy weekly upward channel, supported by sustained performance or policies, and no sudden negative news.
5. Low-entry on pullbacks to the 5/10-day moving averages: optimal for computing-electrical synergy and AI hardware stocks, with a correction period of 1-2 days, and volume contraction as the best entry point. Avoid chasing high at peaks; wait for pullback opportunities.
6. Use the 5-day moving average for holding stocks; if it breaks, reduce positions; the 20-day moving average is the trend’s life line—if broken, fully exit. Before the main trend ends, low-entry on pullbacks and reducing positions during rises to achieve banded compound gains.
7. Divergence and consensus rotation strategy: grasp sector rhythm, switch between high and low positions accordingly.

Specific operational expectations for March 9:

Focus on computing-electrical synergy (power grid, ultra-high voltage) and AI hardware, prioritize breakouts and low entries along moving averages, avoid high-level pure sentiment boards.

For cyclical themes (chemicals, non-ferrous metals), do not focus on oil and gas.

1st phase: GCL System Integration, Jinniu Chemical, Zhongyuan Neijiang

2nd phase: Meili Yun, Taihao Technology

3rd phase: Shunna Co.

Other stocks to watch: Shandong Haihua, Keli Technology, Fuling Electric Power, Cangzhou Dahuaxing. These are analyzed from the perspective of main force shakeouts, not guaranteed to rise tomorrow. They fit within the trend stock framework, with decent volume-price relations. Feel free to discuss.

The market on March 9 and beyond, driven by Two Sessions policies, centers on AI full chain, computing-electrical synergy, and cyclical resources. Under the limited consecutive board height, breakouts and shakeouts are mainstream strategies. Temporarily avoid aggressive chasing, focus on trend low entries and breakouts, and use moving averages for wave trading. Strict risk control is essential to steadily capture main line dividends amid volatility.

In this market, it’s not about who runs fastest, but who survives longest. Abandon the “chase every rise, cut every fall” mentality. Calmly feel the market rhythm, understand sector rotations, listen to the battle between bulls and bears behind volume and price, and build a stable, repeatable trading system. Only then can you truly navigate bull and bear markets and find your place in this ever-changing landscape.

Slow is fast; steady is progress. Let’s encourage each other.

The above is the market outlook for next week. These are my personal insights and understanding, not stock recommendations. The stock market involves risks; invest cautiously!