[Red Envelope] 3.12 Pre-market: Huasheng Tiancheng, Tuowei Information, GCL System Integration, Jinkai New Energy continue to focus on token computing power

The power lies in change—understanding the trend, seeking the trend, leveraging the trend, riding the trend. [Taogu Ba]

Today, the index continued to rebound, but the market kept rotating, with energy storage chemicals, coal, oil, and other sectors performing well. Yesterday’s big gains saw some adjustments today, with divergence in the correction from a few days ago, and rebounds today, such as the afternoon surge in petrochemicals. It’s quite obvious that these are mainly quantitative behaviors, with the market continuing to rotate. Today, we also saw the re-entry of Jinkai and GCL, and the rise of Huasheng and Tuowei during trading can also be noted.

Core principles:
Slow is fast, steady is profitable.
Compound interest is not a miracle; it’s the result of discipline.

Holdings: Tuowei Information, Huasheng Tiancheng, Aerospace Development, Jinkai New Energy, GCL Energy Science and Technology

The market rotation style is becoming more obvious. Currently, quantitative strategies dominate the market. The main issue now is that there is breadth but no height. When consensus is reached, it gets hit by quant algorithms; continuous declines are easily recovered by quant strategies. For example, within the compute infrastructure sector, there are sub-sector rotations, with today’s focus on one sub-sector and tomorrow’s on another, all under the broader context of compute infrastructure. Today’s sectors include smart grids, electricity, and computing power. Even within the small-cap stocks, some are performing well, such as AI security and Jiuan Medical hitting the daily limit, though not very obvious. This indicates that the market cannot push to new highs but is broadening in scope.

Continuing the discussion:
Huasheng Tiancheng:
Yesterday, I said it could only be strong today, not weak. After the open, it surged directly, rising over 7 points during the session. The morning strength was good, but in the afternoon, the rise in oil-related stocks pressed it down. Most of the funds are mainly trading T+0, and the trend remains above the 5-day moving average. As long as it doesn’t break below the 5-day line, there’s no need to be bearish. Currently, individual stocks are not accelerating; they are just maintaining above the 5-day line. After a continuous rise, it can continue to strengthen, but a correction is also possible, especially since it’s four consecutive positive days—that’s why I reduced my position today.

GCL Energy Science and Technology, Jinkai New Energy:
Yesterday, I mentioned these two might sell off, and that was indeed the case. After dipping below the 5-day line today, they rebounded strongly. My buy points for these two were clearly explained. Regarding the 5-day line, during the trading session, neither GCL nor Jinkai hit the 5-day line when they were falling; but after the close, looking back, they are roughly similar. The key point is that indicators are lagging. Essentially, after the price deviates too much from the 5-day line and technical correction occurs, the stocks still show strength, with minimal divergence and strong capital support, reflecting a strong bullish intent.

Of course, today’s strength doesn’t guarantee continued strength tomorrow. Nothing is 100%, it’s all about probabilities. Under a quantitative environment, it’s about observing market sentiment.

Recently, many stocks have sold off, such as Huagong Tech, which showed some acceleration today—this is the charm of the 5-day main upward trend. Playing the game of enjoying a wave of main rise with enough space makes sense. My personal reason for selling off is the current market environment; without good emotional soil, I don’t dare to hold large positions. For individuals, such profit-taking is normal. It’s a bit regrettable but acceptable. GCL Integration was also sold off; in trading careers, there are countless stocks that get sold off, but as long as your judgment is good and your stock selection is on point, it’s easier to profit from trending stocks, increasing your win rate and tolerance for mistakes.

A cautious personality, shaped by weak market conditions, is also a form of discipline in selling. Selling and stop-loss are common in trading. Some people only want to make money and avoid losses; such individuals find it hard to grow. It’s impossible to buy at the lowest and sell at the highest perfectly. Ideal trading can never be 100% in reality. Many things should be viewed with a calm mind; staying calm helps long-term survival in the market.

Themes:

Smart Grid:
Shenma Power, Hang Electric, Han Cable, Sanbian Technology
Big Players: China State Construction Engineering, China Power Construction, China Western Electric

Compute Power Collaboration:
Shunna Shares, Jinkai New Energy, GCL Energy Science and Technology, Yunnan Energy Holding, Southern Grid Digital

Huawei Ascend Computing Power (March 19-20):
Huasheng Tiancheng, Tuowei Information

Lobster Stocks:
Tuowei Information, Ningbo Construction, Guoan Shares, Jiuan Medical
UCloud, Hongjing Technology

Optical Modules:
Luxshare Precision, Dongshan Precision, Hengtong Optoelectronics

Storage Chips:
Buwei Storage, Jiangbolong, Demingli

Tungsten Metals:
Zhangyuan Tungsten, Xianglu Tungsten, Xiamen Tungsten

Gas Turbines:
Dongfang Electric, Yiliu Shares, Jereh Petroleum

Optical Fiber:
Longfei Optical Fiber

Commercial Aerospace:
Aerospace Development, Jinfeng Technology

Institutional Trends:
Dongshan Precision, Huagong Tech, Luxshare Precision

Overall:
Still the same view as yesterday: the market continues to rotate, with many subdivided sectors supported by performance, including compute infrastructure and commercial aerospace as major industry trends. For sectors with strong outlooks, focus on panic dips for low buy-in, and high sell-offs after peaks. The market remains dominated by quantitative strategies, with various rotations. I continue to favor compute infrastructure and token compute power going overseas. But today I add a note: in the short term, there may be adjustments or continued strength. It may seem like common sense, but it’s a reminder—stocks that have risen continuously should be approached with caution, avoid chasing highs! Wait for divergences and dips before buying again.

Recent market judgments are valid: on Monday, I predicted the index would rebound, and it did for two days. The recent performance is good; after a continuous rise, controlling the rhythm is better—spreading across three directions.

Holdings:
Huasheng Tiancheng, Tuowei Information, GCL Energy Science and Technology, Jinkai New Energy, Aerospace Development
Position: 11112

Steady compound interest trading rules:

1. Only take opportunities you are confident in; avoid chasing ununderstood gains.
   Prefer to stay in cash, avoid emotional trading; prefer small profits, avoid big risks.
2. Control drawdowns; they matter more than chasing big profits.
   A big loss destroys ten small gains; protect your principal for compound growth.
3. Reject ultra-short-term emotional chasing of rises and falls.
   Don’t follow the herd, don’t impulsively trade, don’t obsess over the screen; trade according to rules, not heartbeat.
4. Position size should match your win rate.
   Small positions for small opportunities, larger positions for big ones; never over-leverage on a single trade.
5. Strictly execute stop-loss and take-profit.
   Cut losses early, let profits run; don’t fantasize, don’t hold onto losing trades, don’t gamble on luck.
6. Only profit from trending moves, not from emotions.
   Follow the trend, don’t chase news or hype.
7. Ask yourself daily: am I disciplined?
   Don’t ask how much I made today, ask if I traded impulsively; discipline brings profits.

In trading, there is only one path: steady compound growth, strict risk control, never chasing highs.
No heartbeat trading, no gambling on emotions—only profit from understandable, holdable, peaceful trades.

If you agree with this steady, long-term compound approach and reject reckless trading, please like, tip, and support!
Your support is my greatest motivation to keep guiding everyone steadily forward and growing stronger!