[Red Envelope] Can Henan Energy unlock new heights, and will computing power become the main trend?

Market Review: [Taogu Ba]
After the holiday, the index fluctuated over these four days, but the difficulty was relatively high. The quant fan kept turning daily. On Tuesday and Wednesday, chemical sectors led the way; Thursday focused on computing power; Friday on non-ferrous metals. This week had three main repair points: emotional recovery on Tuesday, Wednesday, and Friday; divergence on Thursday. However, none of the themes showed strong sustainability. The low-buying on divergence turned out to be the solution this week. Combining practical review, here are the relatively optimal strategies for each day.

Tuesday: Emotional recovery, focus on Julli Slings.
On the last day before the holiday, market sentiment was divergent. After the holiday, the market was again divergent but likely to shift toward recovery. So, on this day, look for risk-reward opportunities. Julli Slings, with its one-word chips gap, adjusted to two or three floors, then there are bloodied chips—similar to earlier cases like Goldwind Technology—can follow bidding to do a short-term trade with high volume. This day also saw the first explosion in the chemical sector, which was a relatively good solution. Finding the first board or the position board in the sector tests quick in-market execution.

Wednesday: Continued emotional recovery, take profits on Julli Slings.
Although sentiment continued to recover, the chemical sector’s strength was limited to fighting for the top. The next day after the sector’s first explosion, a routine of switching from one to two turnover boards was common, but many stocks were eliminated or knocked out.

Thursday: Divergence in sentiment, hold cash.
After two days of continuous recovery, sentiment diverged as expected. However, the computing power sector exploded that day. The sector’s first explosion also presented opportunities, but from a priority perspective, individual stocks follow the sector, the sector follows sentiment, and sentiment follows the environment. When sentiment diverges, the first explosion in computing power can be abandoned.

Friday: Emotional recovery, focus on Huasheng Tiancheng and Chengxing Shares.
After Thursday’s divergence, on Friday, Yunnan Energy Development performed strongly, driving sentiment recovery. The computing power sector showed divergence but with limited intensity. Leading stocks like Huasheng Tiancheng and Chengxing Shares offered buying points. Among the computing power stocks, Yunnan Energy had the highest peak, Huasheng had the best capacity and popularity. After the chemical sector’s explosion on Tuesday and Wednesday, divergence on Thursday, and continued divergence on Friday, there was a low-buying opportunity. Therefore, Chengxing Shares, the top stock on chemical Friday, provided a good value buy point, fitting within the pattern. The strongest theme that day was non-ferrous metals; sector recovery was a buy point, but most stocks within were trend-based institutions, and many times, the trend depends on external influences.

Reviewing this week, the main difficulty was that during each emotional recovery, the market always chose new themes at low levels rather than strengthening the sustainability of existing themes. So, only low buying was suitable. Among them, the continuity of computing power was slightly better. After Yunnan Energy broke through, the sector’s resilience increased significantly. Other sectors were just rotating in a whack-a-mole manner.

Next Week’s Outlook:
Index Environment: Since peaking in January, the market has been oscillating for a month and remains in a volatile environment, experiencing three cycles of fluctuation. Watch whether the index exceeds expectations and breaks through 4190 to enter a main upward phase. If so, the market will form a main line, and with an improved environment, the profit-making effect will be strong. Long-term, the market still follows the slow bull persistence of the Long Team.

Market Profit Structure: The space breakthrough of Yunnan Energy, with consecutive gains, will improve the tolerance for mistakes. Recently, no extreme trends in breakaway stocks like Hanlan, Farsight, or Roman, which have turned trend-based. If Yunnan Energy doesn’t show extreme losses, subsequent breakaways should generate good profits. Also, sector rotation is ongoing, with some funds seeking alternative paths—looking for previously popular stocks for oversold rebounds, such as Lio, Aerospace Development, Pingtan, and Dawei. These oversold rebounds often involve continuous divergence followed by a doji low point for entry. Lastly, the classic approach remains: participate in the first explosion, avoid buying the next day if expectations aren’t met, and look for continued divergence to buy on dips.

Theme Rhythm:
Computing Power: Sector recovered on Thursday, diverged on Friday. From application to now, resilience is increasing, and the height is beginning to open up. Whether the index cooperates with a breakout will determine if computing power can form a main line. Similar to previous commercial aerospace, it fermented at the index lows and, as the index improves, will lead to a second wave of main rise. Expect static recovery on Monday with high Yunnan Energy, Huasheng, and Tuowei as core. Watch for external negative news; Yunnan Energy is strong and may explode in volume, affecting the sector.

Chemical: Sector exploded on Tuesday and Wednesday, diverged on Thursday, and continued weak recovery on Friday morning after divergence. Only if Monday’s continuation exceeds expectations can it sustain. If divergence occurs on Monday, the sector will exit the ultra-short view. Currently, core stocks include Jinjingda.

Non-ferrous Metals: First explosion on Wednesday, following chemical sector, and on Friday, it gave way to chemical. Core stocks are Yunnan Zinc Industry and Zhangyuan Tungsten. This theme tends to be trend-based and not suitable for relay trading. The Friday recovery is a buy point; Monday’s expectation is divergence, and non-ferrous metals are easily affected by external news.

Sentiment Rhythm: Market sentiment on Friday has recovered. Ideally, Monday should be divergence and expectation, but black swan events like US-Iran tensions could cause panic, creating opportunities. Looking back at the April 2025 black swan, sentiment was similar: on 4.03, sentiment recovered; on 4.07, panic in bidding. But short-term losses were minimal, with stocks like Kaimei hitting the limit. Such events only have short-term market impact; long-term, they don’t change the slow bull persistence of the Long Team. If Monday’s bidding panic quickly digests divergence, there will be low-buying opportunities on Monday and Tuesday.

Core Stock Understanding:
Intercontinental Oil & Gas: External news triggers, mainly following expectations, fighting for the top.
Huasheng Tiancheng: Failed to strengthen with sentiment recovery on Friday, resulting in high volume. Core content in the computing power sector; if the sector recovers smoothly, it still has buying points, anchored to Yunnan Energy’s space.
Hunan Gold: Influenced by external factors, following the non-ferrous metals sector’s strength, with trend expectations.
Yunnan Energy Holdings: Currently at a high point; after Silver Non-ferrous, the market finally has a breaker. If the height continues to open, the market may shift into a main upward environment. Its attributes in computing power and electricity will strengthen broadly. Stronger on Friday, with expectations of continued strength on Monday. Otherwise, it may cause volume spikes. Once identified, the best approach is a small gap-up at open, then a decline to absorb and rotate to realize profits. Otherwise, acceleration could be detrimental to both the follow-up and expectations. Previously, Silver Non-ferrous opened strong and left divergence with high volume, then corrected the next day.
Lio Shares: Follows the strength of the computing power sector, with trend expectations. Currently less recognized than Huasheng in capacity.
Zhangyuan Tungsten: Weak-to-strong intra-day, surpassing Yunnan Zinc Industry, driving sector fermentation. Expect stronger on Monday; otherwise, volume spikes may occur.
Baosteel: Core in non-ferrous capacity, following sector recovery, with trend expectations.
Great Wall Military Industry: Influenced externally; unless military industry ferments broadly, it has a chance as a previously recognized stock. Otherwise, it’s not in the ultra-short view.
China Tungsten High-tech: Follows non-ferrous metals sector fermentation, with trend expectations.
Tuowei Information: First explosion in computing power on Friday; attempts to extend sector recovery but failed. Trend expectations; recognition not as strong as Huasheng. Future positioning in Huasheng again.
Southern Power Grid: Followed the morning guidance from Tianying, fermenting with power sector.
Huayin Electric Power: Followed power sector fermentation, aiding Yunnan Energy to strengthen further.
Jinjingda: Pre-market price release showed divergence, using sentiment recovery for turnover and upgrade. But sector weakness caused multiple breakouts; afternoon chemical sector rebounded, and Yunnan Energy’s breakthrough increased tolerance. Monday has only one path: weak to strong; otherwise, it may weaken, affecting Yunnan Energy.

Here is a new practical analysis post, based on eight years of experience and insights! Wishing brothers can gain something from it! Lastly, I hope everyone walking in the market can support with a like, tip, or encouragement. Early to become silver or gold fans—your enthusiasm and growth are my motivation for updates! Wishing everyone a prosperous week ahead! Evening update on daily ideas.

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