3.25 Review: Liaoning Energy 8 Boards Dragon Transformation Into Demon - Why Did Henan Energy Plummet in the Afternoon?

Liao Energy can reduce volume to advance to the 8th board, evolving from a leader into a big妖 (supernatural creature). The height and width of the electricity sector are once again expanding. Why is the sector so strong, yet in the afternoon, Yunnan Energy suddenly experienced a big plunge? The computing power pioneer, Aorui D, shifted from weak to strong in bidding, opening a single line and driving computing power higher, while Meiliyun’s top board was smashed and hit hard. In the afternoon, Pingtan, Great Wall, and other early leaders all moved abnormally and hit the limit. Is this 老龙 (old dragon) sending off Liao Energy’s 8-board妖, or are funds taking early positions to share the funds coming out of Liao Energy?
Liao Energy
First, let’s talk about the leader, Liao Energy. After advancing to the seventh board yesterday, Liao Energy’s collective resonance index of electric computing rebounded. Today, it is expected to accelerate and challenge the 8-board dominance. For a stock like Liao Energy that is transforming into a妖, it doesn’t matter where it opens today; as long as there is strong support from funds at the open, it’s not a big problem.
Today, it again accelerated with reduced volume to reach the 8th board, pushing short-term sentiment higher. The entire electric power cycle has reached this stage. If we compare it to the previous aerospace cycle, the current power sector seems to be entering an overbought emotional phase. After two consecutive days of strength, tomorrow will inevitably face divergence—whether a major divergence or a minor one depends on whether Liao Energy can gently break the board tomorrow. Of course, it’s also possible that Liao Energy will unexpectedly advance to the 9th board, leading the power sector into a split in the first half and a unified script in the second half.
Yunnan Energy / Hangdian
Next, looking at the veteran leaders, Yunnan Energy and Hangdian. Hangdian benefited from the surge in the offshore communication CPO last night, which helped it break through previous resistance and rise early with the fiber optic sector. Tomorrow, it needs to be closely watched for the possibility of a one-to-two breakout. Yunnan Energy’s performance today was very unexpected. In the morning, Liao Energy’s volume reduction to the 8th board showed the market was unafraid of J管 (J pipe), continuing the sector’s strength. Meanwhile, Hangdian had already risen early, but Yunnan Energy was still sluggish. If it remains weak, it’s a weak signal; if it strengthens, it’s a good sign. The market’s abandonment of Yunnan Energy and the subsequent plunge in the afternoon seem to be pre-written scripts. However, early divergence in the sector is also a good thing. In a market dominated by quantitative strategies, many believe Yunnan Energy might rebound tomorrow.
Electric Power Median
Looking at the lower-level连板 (consecutive limit-up) stocks, since Liao Energy’s unexpected advance to the 8th board, the falsehood of the second board’s node today is confirmed. The first limit-up of the second board has been pushed back to today’s first limit-up. However, today’s second board still shows resonance and a rebound on the first day, with a high level—yesterday, Yi Yi said the second board is a battleground today, and there are 19 stocks on the second board, reaching a recent high, indirectly indicating that the连班 (consecutive limit-up) ecosystem is improving. Currently, the market risk appetite is still focused on 连板 rather than trend.
Today, many recognizable stocks on the second board advanced, including the energy-saving king, which dropped the明牌 (clear card) of Jin Kai, forming a parallelogram and symmetric structure. Future observations should focus on whether energy-saving stocks can replace Jin Kai. Most of the second and third boards in the power sector are driven by arbitrage with Liao Energy’s strength. Once a major divergence occurs with Liao Energy, except for one or two stocks that can break through, the rest will likely scatter.
In the late trading, Zhongli’s rebound indicates some funds are trying to bet on Liao Energy’s断板 (break of the board). Zhongli, as the second-highest, currently has only 4 limit-ups, leaving room for arbitrage at the top. Rebound in the late session is a preemptive move. If Liao Energy breaks the board tomorrow, Zhongli’s shift from weak to strong could be a good sign.
Aorui D / Meiliyun
In the previous video, we focused on the strength of computing power, which was reflected today by Aorui D’s weak-to-strong opening in bidding. This indicates that computing power is not a big problem today. The best stock to arbitrage early on was Meiliyun, but its stock behavior is truly unpredictable. Despite a good early opportunity, some dirty tricks hit the stock. For Meiliyun, the chart shows continuous K-line patterns; whether it hits the limit-up or not is less important. However, it’s worth noting that Meiliyun’s gains are approaching the first round of gains. If it continues with a continuous K-line pattern, a correction zone may appear in the second half of the week. Everyone should be cautious about this.
In summary, the market sentiment has been at a peak for two days. Yi Yi advises everyone not to get too carried away. The recent sharp decline in the market has created a lot of trapped positions that won’t be recovered quickly. Both bulls and bears will fight fiercely here, and the theme has already started to accelerate into a疯牛 (crazy bull). Tomorrow, amid power sector divergence, many funds are already taking defensive positions in themes like Pingtan, Jin Niu, and Great Wall, which are all power sector opponents. Based on quantitative strategies that focus on expected differences, do you think tomorrow’s power sector will be an opportunity or a risk?
That’s it for today’s review and outlook. Reviewing the market is not easy; liking and following are my motivation to keep analyzing. If you have questions after reading, feel free to discuss in the comments. See you tomorrow!