3.18 Market Review: Emotion vs. Institution Opposition, Quantitative Amplification Exacerbates Market Divergence

Index shrank with a V-shaped rebound, leading to a frantic rally in the computing power sector. The chemical industry leader, Jinniu, hit the limit down, while energy and technology sectors staged a tense tug-of-war. Major players showed intentions to support the market, but quantitative measures intensified the tearing apart. High-flying stocks faced frequent risks. Although the market appears to be warming up, dark currents are surging beneath the surface. The market remains in a chaotic struggle to determine its direction. [Taogu Ba]

Following the Trend
After the index opened high and then fell back, it rebounded again in the afternoon with a V-shape, resulting in a recovery rally. However, the strength was moderate and did not change the downward structure on the daily chart. The total daily volume was 204.61 billion, with a shrinkage of 16.18 billion.
Yesterday saw major adjustments in the computing power stocks, and today is again a recovery driven by institutional buying, influencing the rebound of the index. Considering the volume, there may be repeated tug-of-war, mainly building a bottom.

The oversold rebound in computing power, contrasted with the chemical sector’s correction, forms today’s opposing styles, completely opposite to yesterday.
The entire computing power concept saw 22 stocks hitting the limit, with a total limit-up amount of 22.089 billion, all on the first limit. From a subdivided perspective, today’s rebound mainly includes hardware, computing leasing, and liquid cooling sectors. Hardware hit the limit 10 times, amounting to 8.33 billion; computing leasing hit the limit 6 times, amounting to 9.781 billion; liquid cooling also 6 times, with 3.978 billion.
In terms of individual stocks, most limit-ups are small-cap stocks, represented by the “Three Swordsmen” of Yizhongtian. Although some large-cap stocks surged, most remained volatile, with insufficient active buying signals.
Overnight, the overseas storage chip sector also showed transmission effects today, with 6 stocks hitting the limit, totaling 6.899 billion. Mostly small-cap stocks, with Demingli fluctuating.
In the morning, the power grid sector attempted rotation but was overshadowed by the computing power sector. Ultimately, 7 stocks hit the limit, amounting to 3.679 billion. China Power LiaoNeng hit three consecutive limit-ups, others on the first limit.
Commercial aerospace also rotated today, with 6 stocks hitting the limit, totaling 10.104 billion. Yabo, Jiugang, and Shunhao each hit the third limit-up.
Contrasting with the tech sector, the chemical sector continued to diverge, with Jinniu hitting the limit down today. Only Sanfangxiang, which was previously lagging, saw a rebound.
Overall, the market remains structurally fragile, with continued quantitative flattening. Yesterday, energy stocks showed some signs of strength, but today the tech sector rebounded immediately, and the themes remain chaotic.

Market Sentiment Fluctuations
Market sentiment has somewhat stabilized and improved, shifting from widespread decline to more advances than declines. The index also clearly stopped falling. From yesterday’s financial sector support to today’s institutional backing of tech stocks, the main forces are maintaining the market. Currently, with shrinking volume, full recovery is still beyond reach.
Speculative enthusiasm has not expanded significantly. Today, under the diversion of tech stocks, sentiment cooled slightly, reflected in the tearing between themes—some stocks surged, others declined. High-level resistance is quite evident, and the limit-down signal of Jinniu is negative. There is also rotation between tech and energy stocks.

Tomorrow’s Outlook
The energy sector failed to continue its rally, while the tech sector rebounded again. Although today’s tech sector showed signs of resonance with the index, overall it remains within the scope of an oversold rebound, not a start of a new cycle or a main upward trend. Judging that the tech sector is entering a new cycle still feels uncertain.
Meanwhile, institutional styles are still fluctuating and have not retreated further. The competition between sentiment and institutions persists, and quantitative measures of boosting or suppressing continue to increase market tearing.
Therefore, whether at the theme level or style level, the market remains in a state of ongoing struggle. Chaos persists. It’s not enough to be reassured just because tech stocks rose today. However, if the market successfully builds a bottom and a breakout occurs, clearer signals or individual stocks may emerge.

Trading Tips
Today, tech stocks did not follow the rally. The holdings in Jinniu and chemical stocks weakened actively, so I sold them at the open.
Shun Na Co. was bought at a low point underwater; with no chance to T, I added more and held on.
Yuneng Holdings remains in my portfolio.

Post-market holdings: Shun Na Co., Yuneng Holdings.

Data Summary

☑ Statement: The above is only a personal review note. Any opinions or individual stocks mentioned are for illustration purposes only and do not constitute investment advice. Please avoid blindly following. Trading involves risks; invest cautiously!
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