Weekly Review: The Hardcore Trading Logic Under High-Frequency Rotation

Hello everyone, fans! Happy weekend. Today’s weekly review! [Taogu Ba]
March marks the start of conference season. Normally, the market remains stable, but on Tuesday and Wednesday, there was a sharp decline. Thursday and Friday saw continuous rebounds, with Friday experiencing a broad rally—over four thousand stocks rising, but trading volume shrank compared to Thursday. Honestly, it’s unclear which direction is the main focus; no clear main line emerges. Aside from the power grid stocks rising strongly for three days in a row, everything else is rotating. But this actually has a benefit: when the market rises without a clear main line, the negative feedback during declines isn’t as obvious. For example, there’s a big divergence in oil and gas, but no significant limit-downs have occurred. Currently, the market can be described as mostly driven by quant funds actively chasing gains and cutting losses, with retail investors also chasing and retreating. Institutions and hot money lack enthusiasm for chasing rallies.
On Thursday, optical electronics surged due to a small news event about optical interconnects—OMG, optical communications, optical modules, optical interconnects—headache-inducing. Micro LED optical interconnects, so many stocks hit the daily limit early in the session, over twenty stocks. I posted that this was purely a quant behavior—don’t chase the relay, as Friday won’t offer good premiums. Compared to last year’s brain freezes and the pre-holiday Seekdance2, this is far better. Front-runners have some premium, but the middle and back ranks are just underwater. Chasing in the relay phase is no longer reliable. Browsing Taogu Ba posts, I still see many retail investors holding stocks in the sky, with dozens or even twenty big declines in a day. But I believe most of them are unaffected.
On Friday, only one optical interconnect stock hit the limit-up, which I directly bought at the opening auction. In this rotation market, without good chart patterns, one dead end after another. As for front-runners, besides those who pre-arranged on Thursday, I doubt anyone was lurking, since most short-term traders on Taogu Ba are just chasing or relaying.
Thursday was about optical electronics; Friday shifted to computing power, which is integrated into new infrastructure projects—fundamentally driven by fundamentals. In fact, the end of computing power is electricity. What’s the point of collaboration? That’s been the tone since the beginning of the year: Power 2.0 (smart grids and power exports). This is policy-driven. Many, including myself, have participated in Hanlan Co.’s second and third waves. I still believe Power 2.0 is this year’s main theme. Additionally, energy and chemical cycles will be the main themes this year. Under the big energy cycle, yellow hair and others are increasing their energy exposure to ride the trend.
Back to Friday, Hanlan, the core stock of the third wave of power grid sentiment, opened higher with increased volume, and computing power stocks faced divergence. My understanding is that the core of the computing power collaboration trend is China Western Electric. Focusing on China Western Electric is enough—buy on dips during pullbacks, sell on rallies for T+ profits, which is better than chasing and selling. As divergence appeared, the theme of computing power expanded into branches like power automation, diesel generators, gas turbines, and photovoltaic power. I personally also entered a photovoltaic stock midway. After consolidation, Yunnan Energy Holdings, a computing power stock, hit a new high on Friday, with a second consecutive limit-up. Zhuolang Intelligent hit three limits in a row—I bought it directly at the auction. Meiliyun also hit two limits, and Huagong Technology showed a strong trend. Due to theme rotation, those sticking to the computing power sector have gained some rewards.
Talking about another sector—oil and gas—I personally gained over 30 points on Shui Fa Gas. I bought on the first limit-up midway, traded four times, and sold on the fifth high. A fan asked if I had news; I replied I’m not a prophet. I predicted the Middle East war based on charts and volume-price analysis. The main force had already anticipated the Middle East situation—they used funds to shape the chart. I just tracked the main funds’ movements and entered at the right time. I saw some big V posts claiming Intercontinental Gas is the core, and Zhunyou Shares is core, with Shui Fa Gas following. But now, looking back, do Intercontinental Gas and Zhunyou Shares have bigger gains than Shui Fa Gas? How many could have followed at the first limit-up? Even if they did, what were the profits? That’s why I emphasized before: chart patterns are crucial—they are drawn by the main force with real money. Without their real actions, how can a stock’s chart look good? Many stocks hit the limit-up one day and are gone the next, often without even a premium!
Next, I want to share my understanding of being ahead or behind in the market. There’s no true foresight—only a deep understanding of chart patterns and volume-price relationships. When you understand these thoroughly, you can get in early. Being behind means chasing after themes after they emerge, often buying at the top and getting caught. Big themes can still make money, but small themes often lead to being caught off guard!
So, what is “hardcore logic”? It’s not just themes; at the most fundamental level, it’s volume, price, and the chart patterns they form. Themes are just timing opportunities after the chart patterns emerge—timing! If the chart pattern isn’t well-formed, any sudden theme has no support and will inevitably be short-lived!
Trading’s most basic principle is: don’t buy when the trend is still inconsistent, and buy when the divergence turns into consistency with an upward angle!

Friday’s total limit-ups: 75 stocks, with 20 in the power sector, 10 in computing power, and 15 in chemicals.
Side note: about chemicals—about a month ago, I posted that chemicals would be a future main line. Several big V’s said it was just riding the trend; now they’re calling it a main line. Interesting.
Total consecutive limits: 8 stocks
Three consecutive limits: four stocks

1. Wangli Security, a small-cap stock, hyped as invincible—node stock. Haha, is this meant to lure uninformed investors?
   Side note: the so-called nodes are not controlled by the “three brothers.” I’ve said before, nodes are coordinated internally by institutions. The “three brothers” don’t have that invincibility!
2. Shun Na Shares: the core of this round’s power grid limits, avoid chasing in a straight line; instead, focus on opening gaps and then turning into consistency through divergence.
   Side note: it’s not under State Grid but under Southern Power Grid. It’s part of the 155 plan, with a 4 trillion welfare, but benefits are limited to power exports, not domestic. Its main business is dry-type transformers, which are more expensive than three-transformer types, with Western Electric and Baobian as competitors. It almost doesn’t export to the US, but exports to Europe are decent, related to its joint ventures—once in 2003 with France’s Alstom. It used to be Asia’s largest dry-type transformer maker.
3. Hanlan Shares: core of the power grid trend with three limits, nearing its all-time high. Be cautious when relaying; those with early positions should take profits when volume surges. The State Grid’s 4 trillion plan mainly involves transmission and transformation cables.
   Side note: Don’t just chase cables because of the theme. There are many types—transmission, submarine, space satellite, communication cables, etc. When the theme arrives, pay close attention to which segment the main business belongs to. Don’t chase other cable stocks while focusing on transmission and transformation cables.
4. Zhuolang Intelligent: glass fiber electronic fabrics, domestic substitution in computing power, smart economy.

Two consecutive limits: four stocks
Taihhao Technology: data center power automation, not riding the power grid trend but a branch of power. After all, computing power cannot connect directly to hardware without voltage reduction and power distribution via automation equipment.
Aoshi Kang: data center, computing hardware, high-density PCB.
Meiliyun: cloud infrastructure, computing power leasing, once a major player in “East Data West Computation,” Ningxia computing center.
Huashu Holding: optical interconnects, the only stock to advance on Thursday among 22 optical interconnects.

First limit-up stocks:
Chemicals: 15 stocks, including 6 chemical raw materials. Even the satellite chemical stock hit the limit and set a new high. Chemical raw materials are a main line candidate—pay close attention to the power grid-related price increase concepts and stocks with beautiful charts and patterns.

Personal holdings:
One three-limit-up stock, opened at the first gap, bought at the auction.
One two-limit-up stock, optical interconnects, bought at the auction.
Three first-limit stocks, two bought midway, one short-term.