3.18 Pre-Market Strategy: Seeking a Way Out - Opening Position in Huadian Liaoning Energy

The movement of the Dao is like the flow of water, the weak are its use.
— Laozi, Tao Te Ching
The movement of the Dao does not proceed in a straight line but cycles back and forth (like the changing of seasons, day and night). At the same time, when things reach their extreme (“extreme”), they will transform into their opposites (such as “things that are strong will grow old,” “a full moon will wane”). This is the universal law of “extremes turning into their opposites.”

1. Strategy Review

1. Electric Power One Entry Two:
   ◆ Strategy 1: Huadian Liaoning Energy surged with high volume at open, hitting the limit quickly.
   ◆ Strategy 2: Huadian Liaoning Energy showed divergence with volume during the session and was the first to hit the limit in Electric Power One Entry Two.
   ◆ Strategy 3: Dongfang New Energy formed an unexpectedly small-volume limit-up.
   ◆ Adaptation: Observe other situations during the session.
   —
   Retrospect: Electric Power One Entry Two fits the second scenario; Huadian Liaoning Energy hitting the limit aligns with the strategy focus.

Today’s actions:

1. Dongfang New Energy profit-taking: It’s clear that quantitative control was involved. Future movements may resemble a 1+1 pattern or similar to the trend chart of Fuling Electric Power, both possible. For short-term traders, exiting is part of the game; there’s no need to cling to positions.
2. Huadian Liaoning Energy hitting the limit: Follow Strategy 1.

2. Next Direction
After NVIDIA GTC conference ended, tech stocks were heavily sold off, even hitting limit down. Only then did we realize that institutional targets are also subject to expectations and their fulfillment.
Currently, the market feels quite suppressed, and traders’ despair is faintly perceptible, which is typical when the emotional curve hits the lower bound. However, I am more optimistic that the market can turn upward here, forming an ascending channel, and slowly develop new profit opportunities amid everyone’s confusion and doubt.

We are indeed at a critical transition phase. It’s evident that multiple funds are attempting to break through along different paths, each echoing historical patterns:

1. The continuous “long legs” of Shun Na Co., similar to the attempts by Baobian Electric after September 11, 2024, aiming to bring the state-owned enterprise reform theme out of the small cycle retreat of Hainan Haiyao, progressing toward larger reform cycles represented by Daqo, Datang Telecom, and Hainengda.
2. Huadian Liaoning Energy’s pattern resembles Jinfu Technology’s attempt after November 24, 2024, where it appeared as a one-word rally during the second limit-down of the main leader, aiming to drive the main leader out of a double-top pattern.
3. The chemical price increase logic represented by Sanfangxiang, Jinjingda, and Jinniu Chemical is trying to cross multiple emotional cycles, similar to the previous Zhongyida pattern.
4. As a midline reversal stock, Huadian Liaoning Energy, if paired with the first limit-up the next day, attempts to replicate the thematic fermentation model like Nord Shares-Xiangtan Electrochemical.
5. Additionally, the segments like Shunhao Co., GCL System Integration, and Yabo Co., representing commercial aerospace (such as space computing), are trying to regain market attention.

No two leaves are exactly the same. Even if new rising cycles show many traces similar to historic bull stocks, it is destined to be a unique process, not a complete replication of the past.

Four-Board:
Sanfangxiang: Chemical sector defying the trend with high premium expectations.
Farsun: Capital operation.

Three-Board:
Jingtou Development, Xihua Technology, Chitianhua, Yaxiang Integration: No clear entry points from a collective force perspective.

Two-Board (Zhongnan Culture break point):
Midline reversal stocks need to withstand divergence and confusion at the lower boundary; if they do, they often reach higher levels.
Huadian Liaoning Energy: Hold position, no comment.
Shun Na Co.: The ideal scenario is to replicate Baobian Electric’s pattern, as “seeking above, gaining within,” having high expectations is always good.
Shenhua Fa A, Zhuolang Intelligent, Guosheng Technology: No clear entry points from a collective force perspective.

Summary: Just look at the pre-market strategy.
(The relay direction is a preliminary idea; final implementation depends on pre-market strategies.)

The stock market is like a martial arts world; you need to find stocks with a certain status and operate with stocks that hold a certain status. In this process, focus only on market position and popularity recognition. For energy source players, gaining profit from the market position and popularity of energy source stocks is already sufficient.

Generous sharing is a virtue. I hope to broaden your horizons and elevate your thinking, and to grow wisdom and style together. Wealth is best shared for mutual prosperity.
Pre-market strategy: Remember to subscribe to Yiyi’s notes! I will update strategies in the Taogu Bar comment section before the market opens.
$Huadian Liaoning Energy (sh600396)$ $Shun Na Co. (sz000533)$

Disclaimer: The logic in this article is for personal review and stock market diary purposes only. It does not constitute any securities advice or recommendation. The stocks involved are not stock recommendations. The views are for reference only and not to be used as a basis for buying or selling. Any trading based on this is at your own risk. The market carries risks; invest cautiously.