March 24, 2026. Weak rally reversal, focus on the core!

Yesterday, I didn’t update a review article because the market was very simple and there wasn’t much to say. If I had to say a few words, it would be that sentiment led the index to stop falling first. After all, besides Huadian LiaoNeng’s top board promotion to the sixth board, there was also Reisconda, which exploded on Friday and then reversed with a T-shaped rebound, confirming that yesterday’s sentiment was not an issue. The sharp decline in the index yesterday afternoon had nothing to do with us. [Taogu Ba]

Let’s look at today’s market.

The largest order overnight was from Haitian Co., Ltd., in photovoltaic energy storage, but after 9:20, all orders were canceled. The largest order then became Zhongli Group, which accelerated to a one-word limit yesterday. Although Zhongli Group’s order was slightly smaller than yesterday’s, it’s not a big problem and still within expectations. A new order from Xineng Taishan appeared, ranking second in size at 9:20, in the electric power sector. At first glance, it seems to be supporting Dongfang Xinneng tomorrow, but honestly, yesterday’s order book for Dongfang Xinneng made me feel that the main force was continuously selling. My personal expectation for this stock today is not optimistic, and in hindsight, it indeed performed weakly.

Yesterday, Tietian stabilized sentiment, and today Reisconda opened lower at 9:25, also slightly red at Huadian LiaoNeng. Both fell short of expectations, especially Huadian LiaoNeng, which opened even lower than Dongfang Xinneng—really hard to watch. Conversely, Dashengda, which had a big drop yesterday, instead played a weak-to-strong reversal…

After the opening, Liaoning Energy quickly hit the board, making a statement. Yesterday, it also helped Huadian LiaoNeng to quickly hit the limit at the open, and today was the same. After Huadian LiaoNeng opened with large orders guiding the stock price, it held up until Liaoning Energy hit the board, then started a second wave of rise during the intraday. At this point, Shaoneng Co. also reversed and hit the limit again to continue supporting Huadian LiaoNeng. Soon after, Huadian LiaoNeng hit the limit again.

Here’s an analysis of Shaoneng Co. From the trend, the main force has the strength to push it higher, but yesterday’s lack of movement indicates they deliberately gave way to Huadian LiaoNeng. Honestly, if Shaoneng Co. hadn’t established strength on Friday, Huadian LiaoNeng might not have been able to advance. Plus, during Friday’s session, photovoltaic concepts fermented, and the volume spilled over into energy storage. Shaoneng Co. has photovoltaic concepts, so theoretically, Monday should have been a one-word limit or a big gap-up to help Huadian LiaoNeng. If it moved this way, it could also support Huadian LiaoNeng. But how it will develop later is uncertain; there might be competition for recognition. So, the main force simply chose to show weakness, opening lower during the collection, completely ceding recognition and strength to Huadian LiaoNeng. Then, following the sector’s strength in the early session, it again reversed and hit the limit to support Huadian LiaoNeng, making the subsequent division of roles clear and avoiding internal competition.

Back to the market.

After the morning’s attack on Jiadian, influenced by the index’s gap-up and subsequent decline, many Jiadian stocks also broke their limits, and the overall market’s break rate was quite high. Shaoneng Co. and Huadian LiaoNeng both broke their limits sequentially, but Huadian LiaoNeng was the first to recover, showing its strength as a leader. Shaoneng Co. only recovered after 1020, when the index began to stabilize, and Jinkai Xinneng also sharply reversed and hit the limit, leading to a rebound in Jiadian stocks.

The tech sector’s strength in the morning was average because this sector relies heavily on volume and the index. Today, with reduced volume and a weak morning index, it was normal that it couldn’t rise.

In the afternoon, the index jumped again at the open, then surged like a gunshot, continuing to rise until the close. Many tech stocks only started to perform in the afternoon.

Today, everyone should have reaped good returns. Besides the lucky single-choice wins, a T+0 energy chemical ETF I shared in the comments yesterday allowed many brothers to lock in big gains early this morning. Since T+0 oil was suspended until 10:30, it provided a second arbitrage opportunity, and today also offered a chance to profit from underwater positions, unlike yesterday when it immediately surged by seven points after opening. I also warned brothers to prepare before 10:30.

Finally, about the future market.

I personally think that the afternoon rally isn’t a good sign. It looks strong on the surface, but in reality, the market is still rotating with low volume. Only Jiadian has relative persistence. So, rhythmically, yesterday’s late session was a buying point (B point), and today’s late session was a selling point (S point), especially for some tech stocks. I believe the index may hit new lows in the near future, and this should be seen as a short-term rebound, not a change in the medium-term trend. The medium-term trend is still downward. So, hold on to some chaotic stocks or sectors highly correlated with the index, but be cautious—don’t wait until the index hits new lows to start complaining.

We should continue to focus on sentiment. Yesterday, sentiment stabilized before the index did, and today, sentiment strengthened amid divergence. Huadian LiaoNeng’s promotion to the seventh board indicates two possible scenarios: one is sector follow-through, which might break the limit and then trend, similar to Yunnan Energy Holding; the other is no sector follow-through, where the sector collapses with the index hitting new lows, possibly leading to independent grouping, like the second wave of Huaxian in 2024. (Don’t tell me Huaxian had Kesen back then; that was during Huaxian’s first wave. The second wave was when the index kept hitting new lows, and in a market with poor liquidity, it formed independent groups—the only single-choice question in the market.) Anyway, I think Huadian LiaoNeng will be fine going forward; it just depends on how the market evolves.

As usual today, a premium post + 20 brothers’ tips! Yesterday’s article didn’t meet expectations due to poor market conditions, but now that the market has improved, I hope brothers can show more appreciation for my efforts! Thanks, everyone!

Yesterday’s tips list: @XiaolongAaa @Self-Learning Stock Trading @Stock Selling Tea @Xinran6 @EvanHowe @Dream Begins 1992

Yesterday’s oil tips list: @Don’t Know Watch @Xinran6 @Next Door Old Wang 2020

Thanks again for everyone’s support. Your support is my motivation to keep updating!