3.13 Review: Computing Power Resonance Index Major Retreats, Yueneng Huasheng Double Limit Down - Which Stock Was Wrongly Killed?

If you hold power grid and computing power stocks at Friday’s close, Black Friday may reappear. Sentiment, themes, and indices resonate and retreat together. Yunnan Energy, Shun Na both hit the floor. The power grid sector experiences its first divergence during the retreat. Recognizable stocks like Hanlan and Jinkai struggle all day in deep water. After the power construction sector’s rebound, it withstands index plunges and sector divergence, closing strongly for the day. Will Monday become the new core of the sector?

Meanwhile, with Huasheng, the core of computing power, hitting the limit down, Meili Cloud opens with a gap down and continues to fall. Only Ningbo remains attempting to rebound in the afternoon. Has the computing power line completely ended?

Yunnan Energy/Shun Na
Today, with these two core stocks hitting the limit down, the power grid theme is truly entering a retreat cycle. When Yunnan Energy, Shun Na, and Hang Electric all show signs of topping out simultaneously, it signals the end is near. Especially approaching Friday, regardless of your position in the power sector, you need to watch Yunnan Energy’s direction.
Today, Yunnan Energy has only two options: either stay green all day with oscillations and surge at the close to anticipate a Monday move, or collapse in the afternoon with a gap down, dragging the sector into retreat. The market today chose the latter. For Monday, if the sector is to recover, the key is whether Yunnan Energy can be sustained over the weekend by JG. If it is, the power grid will likely continue divergence next week. If it remains stable and shows no abnormal movement over the weekend, then Yunnan Energy leading a rebound on Monday is part of the plan.
Shun Na today is clearly weaker than other recognizable stocks in the sector. Its forced surge yesterday consumed the momentum for Monday’s rally. Today, it is the fastest to identify as a potential bottom. If the sector recovers on Monday, Shun Na can be viewed as the sector’s lower limit. The expectation is that it will continue to follow Yunnan Energy.

Huaneng/Green Development
Huaneng and Green Development are both expected to accelerate. Green Development opened with a gradual one-word increase in bidding, while Huaneng surged with high volume at the open—these are signals not to chase! This trap has appeared twice this week. Currently, the market is in a chaotic phase where strong themes are not supported. After the divergence in power grid turned into consensus on Tuesday, Shun Na’s weak surge with high volume on Tuesday was unexpected. But it was quickly reversed. What’s the difference between Green Development on Friday and Shun Na on Tuesday?
During the session, after Green Development failed to break through twice, Huaneng was supported by funds. Meanwhile, Green Development, lacking coal chemical attributes, was expected to be re-accumulated and upgraded by funds. Today, Huaneng resembles last July’s power rally, where the top was not led by Longteng Huan Yin but by the unexpectedly strong Huaguang. Currently, the power sector is capped at four boards. If Huaneng can successfully upgrade on Monday, it could become the new core to lead a recovery in the power sector.

Hanlan/Jinkai/Nengke
These three are the core recognizable stocks of the power grid this week, serving as sentiment carriers. Although they all follow a five-day trend upward, their resilience during sector divergence varies. Currently, Nengke > Jinkai > Hanlan in resilience. When the sector recovers, Nengke will likely be the first choice for funds. However, where the market’s quantitative signals are fulfilled, the earliest recovery might actually be Hanglian, which suffered the worst decline today.
Additionally, Hangdian, as the initiator of the five-day upward trend, has already broken down, and strong trend stock Huagong also broke down with a follow-up decline. Next week, watch for negative feedback from this structure spreading to the rear stocks. Both Yunnan Energy, Shun Na, Hangdian, and Huagong, which have already broken down, showed signs of topping out the day before. Will Nengke, which was strongly supported today, also face a curse on Monday?

Electric Power Construction/Electric Power
As the main and secondary leaders of the sector, these twin stocks with similar names and attributes—ranging from nonferrous metals like Beixi and Zhongxi, to aerospace satellites and satellite communications—are often manipulated with a pattern: first push one main rally, then another to catch up, repeatedly stepping on the left foot to go higher until the trend ends. Currently, Electric Power Construction still has room compared to Electric Power, and the expectation is that Nengjian will consolidate with small steps while waiting for Electric Power Construction to catch up.

Huasheng/Ningbo
Huasheng’s break and limit-down today likely mark the end of the short-term power computing line. Early in the session, Meili Cloud opened lower and continued falling, indicating large funds have given up on the computing power line. Although the theme of power and computing was promoted for a week, the actual strength has been in power, not computing. As an auxiliary to power, computing power was used for expectation differences. When the main power stocks diverged, computing power, as a subordinate, retreated first. Ningbo showed some resistance in the afternoon. If technology sectors rebound on Monday, watch whether Ningbo can lead the computing power rally. If Ningbo also falls, then there’s no need to watch further.

In summary, the decline of the indices on Friday indicates no major rally in tech sectors. Even if the index recovers on Monday, without high volume, it’s likely to be a false move. As long as the indices remain weak, focus should be on the power sector. With Yunnan Energy’s limit-down on Friday, a new small cycle will open on Monday. Be prepared for a recovery day on Monday. In today’s market dominated by quant signals, if the first and second boards are missed, the next opportunity to buy will be when the market opens again.

That concludes today’s review and outlook. Market review is not easy; your likes and follows motivate me to continue. If you have questions after reading, feel free to discuss in the comments. See you next Monday!