Power surge, but Henan Energy's stock price plunges—what signal does this send?

Today’s Index: [Taoguba]

1. Shanghai Composite Index: 3931.84 points, +1.30%; opening at 3892.27, high of 3933.06, low of 3891.82; volume-driven moderate rebound, closing above the 5-day moving average, temporarily stabilizing above 3900.
2. Shenzhen Component Index: 13801.00 points, +1.95%; stronger elasticity, leading the main board.
3. ChiNext Index: 3316.78 points, +2.01%; driven by technology growth, with the largest recovery.
   Yesterday, I pointed out that ChiNext lacked a strong recovery, but today it started to pick up.

Today’s Trading Volume:
Total market turnover: 2.19 trillion yuan (up 96.7 billion from yesterday).
Details: Morning volume approached 1.8 trillion yuan, but in the afternoon it shrank to 967 billion yuan. This indicates afternoon funds are shrinking, which is a hidden risk for tomorrow.

Summary:
Geopolitical tensions easing, market sentiment warming, driven by communication, electricity, and computing power sectors. However, recovery volume is still insufficient! Funds are testing waters. If the market gradually moves higher with small daily volume increases, it’s safer. But once large volume surges occur, caution is needed.

Morning comparison:

Reward, read, understand the morning report, and you will eventually transform!
First, thanks to fellow investors for likes, rewards, and comments—178 in total. Your support is my motivation to keep updating. Let’s stay active and support each other, thank you!

It took until 9 AM to reach 100 likes. If you liked earlier, I could have posted the morning update at 8:30 AM, giving everyone more time to think and digest.
Today’s focus is volume. Since yesterday’s rebound was with shrinking volume, if today doesn’t see increased volume, a pullback after a rise is inevitable. Fortunately, with news of negotiations, the surrounding markets opened high, and we also followed with a gap up. The morning volume stayed high, reaching 1.8 trillion yuan at one point, helping maintain the upward trend. No significant pullbacks occurred, consistent with expectations! With volume and market support, we can make some moves. Without volume, just watch quietly.

First direction today:
Still focus on electric power, which is the second strongest today.
There are two scenarios, all depending on the attitude of Huadian LiaoNeng.
First scenario: I predict electricity sector will diverge today, so Huadian and LiaoNeng will moderate their limits, with internal divergence favoring the stronger stocks. This would be a market with moderate volume. But the market followed the second scenario.
Second scenario: Huadian and LiaoNeng break through, becoming rare breakout leaders, and the green energy stocks that were diverging today continue to strengthen.
After Huadian and LiaoNeng shrank volume and surged, the electricity sector exploded. Initially, fiber optics was the strongest, but then electricity stocks overtook, showing unexpected strength today. If there was no divergence today, how do you think tomorrow will go?
That’s the first message: today’s two possible states of electricity.
As for trading strategies, it’s clear: dips below are buying points, especially for Huadian Energy, which is core to the trend. LiaoNeng is also a core for consecutive limit-ups. They complement each other. Buying low during dips can yield over ten points, much better than chasing breakouts of LiaoNeng.
Yuneng Holdings opened slightly lower as expected, forming a double bottom. In the afternoon, the market volume shrank, and there was a sharp drop at the close, during which Fujian military industry stocks rose. What do you think they’re playing? As mentioned earlier, electricity stocks should have diverged today, but they continued to strengthen, indicating that funds in Yuneng, the core of electric power, sensed potential divergence tomorrow and preemptively moved. The market might also have new narratives, which caused a sudden sell-off. Yuneng’s support was strong, including Meili Yun, while Huadian remained steady, reassuring electric power stocks today.

Second direction:
Optical communication sector, which was the strongest today.
I reviewed the sector and explained it clearly: optical communication attracted funds first, including storage stocks. Today was expected to rotate with electricity stocks.
Core stocks like Longfei Fiber continued to hit the daily limit, Hengtong Optoelectronics nearly hit the limit, both offering low-entry opportunities.
The sector once exploded, then intertwined with electricity stocks, ultimately becoming the strongest today.
If you bought in yesterday, today’s gains are even more comfortable—no chasing high.

Third direction:
Storage sector was not very strong today, mainly because Yaxiang Integration surged unexpectedly, which is closely related to electricity’s surprise strength. When electricity stocks outperform expectations, funds in storage stocks become cautious. Funds see electricity strong and shift to target it. Market volume is scarce; follow-the-leader funds are fickle.
Baiwei Storage’s opening was below expectations, but Yaxiang Integration performed well and moved smoothly.
Yesterday, I bought Langke Technology on a dip; today, it surged and took profit with about 8 points. It was relatively easy, without the anxiety of chasing breakouts.
Yesterdays’ storage stocks, like rotation quantification, reflect how we think about market moves.

Summary:
Today, expect continued recovery. Increase positions gradually—up to 6 layers—since I am quite optimistic about these two days’ market. We are aligned with the market, adding cautiously.
Today’s main focus is on “1 into 2” stocks. It’s the day with the most “1 into 2” upgrades recently—19 stocks advanced to the second tier, a rare phenomenon. This shows the power of timing nodes.
I believe a stock in the second tier will lead a rebound; keep an eye on the strength of the second tier stocks.

Morning report covered attack strategies, individual stocks, position management, and trading advice. Data isn’t great, so it’s only for those with fate.

Position management plan for the morning: I strictly follow the plan.
Beijing Kerey: Clearly needs to break previous highs with volume; profit-taking at 6 points—no hesitation.
Shaoneng Shares: Today’s limit-down, took 14 points; some regret during the session, but closing was correct. Yuneng’s afternoon plunge signaled a warning for electricity stocks. This stock only hit 2 limit-ups; electricity stocks have 3, 4, 8 limit-ups, so selling wasn’t a big issue—recognition was not enough.
Langke Technology: Bought on a dip yesterday, sold at 6 points today, took 8 points profit—relaxed, no panic of chasing breakouts.
Yuneng Technology: Bought on a dip yesterday, surged today, took profit at 3 points, about 9 points total—good left-side trading.

New positions today:
Yaxiang Integration: Right-side trading, aiming to identify core storage stocks, entered at 6 points, but it broke down, now at -1.5. This stock has a controller; no panic if caught. Daily volume is low, turnover is low, chips are concentrated.
Bocheng Shares: Also in storage, holding two storage stocks, sold one, currently holding 3.
Ruisikangda: Left-side trading, bought at around -2 points, then -5, pulled back at the end, holding 2.
Tianji Technology: First wave of surge, chased mid-way, driven by news, higher risk, not fully released, holding 9.
Great Wall Military Industry: Yuneng plunged, military stocks and Fujian stocks rose. Pingtan and Great Wall made some moves; since it’s only 2 limit-ups, holding 2. This position can be skipped; funds might be targeting the electricity divergence tomorrow, with Fujian stocks hitting multiple limit-ups. Keep a light position and observe. Electricity didn’t collapse because of Yuneng’s dip; Yuneng didn’t hit the floor, so support was good.

Today’s sectors:

Strongest: Smart Grid
The 8321 structure emerged.
Tomorrow’s focus: Huadian LiaoNeng’s strong advance today led the sector, establishing its position as a leader. The sector’s breakout leader is now active, signaling an independent trend.
Additional: Liaoning Energy’s rebound, as reviewed yesterday, contributed to Huadian LiaoNeng’s surge today.
Today’s climax—watch for sector differentiation tomorrow, favoring the strong and leaving the weak. Pay attention to Fujian stocks!

Optical communication sector also performed well, with Changfei Tongding hitting 2 limit-ups. This sector will continue to rotate and strengthen.
Tomorrow’s focus: Changfei needs to break previous high, which is a resistance level. If it consolidates strongly or surges, breaking the high, the sector will continue to strengthen.
Tongding Huitong also faces resistance at the previous high. That’s why I targeted Ruisikangda today—it’s a trend stock, not a limit-up. See if tomorrow, during Changfei and Tongding’s rest, Ruisikangda can step up and support the sector’s strength.

Token concept:
A new term, but essentially the same as token—meaning computing power.
Aoruite yesterday blocked Meili Yun, today accelerated, providing sector strength. Keep an eye on it; once anchored, it’s good. The first limit-up indicates a rotation into strength.
Diguang Technology is worth noting; its trend is very strong, already accelerating.

Summary:
The market continues to recover with moderate gains; volume is slightly lacking. For trading, 5 to 6 layers of positions are recommended—be flexible. Stock trading isn’t a one-day game; it’s a long-term process. Don’t chase quick profits—enjoy steady gains!
A reminder: left-side trading has low certainty; right-side trading carries higher risk. Use your judgment. I personally favor high risk! Not recommended to follow blindly.

Brothers seeking progress—swap sesame for watermelon!! 100 points or support! Long-term persistence is needed. If you want answers, I need data. Mutual support—thank you!!!

Writing isn’t easy—brothers, please like, reward, comment, support, and encourage. I have no theories, only practical experience.

Together in the stock market, sailing far and wide.
Respect the market, follow the market.
Focus on main lines, watch core stocks.
Don’t rejoice at gains, don’t mourn at losses.
In a sea of 3,000 waters, strive for a sip.
Plan your trades, unify knowledge and action.
Always remember: stability and profit.