[Red Envelope] Perfect rhythm captures computing power, Yunnan Energy's 7th consecutive surge opens the limit-up height

Don’t worry, in short-term trading, sometimes taking it slow can be faster. [Taogu Ba]

2026-2-27 Review

I. Market Overview

Affected by the sharp decline of US tech stocks last night, A-share tech stocks opened significantly lower in the morning, and the index also opened down overall. However, with Hong Kong stocks stabilizing first, the market held up well after the initial drop, rebounding slightly and maintaining a healthy oscillation. Aside from tech pressure, other sectors performed relatively well. In terms of short-term sentiment, today’s movement aligned with expectations, showing healthy divergence. Yunnan Energy Holdings hit the 7th limit-up, opening the short-term continuous limit-up streak, and the short-term relay maintained a good tolerance. In terms of sectors, resource and computing power sectors performed strongly. Commercial aerospace continued with a “I don’t lead the rhythm, but as long as someone does, I follow a bit” attitude. Previously declining AI video-related stocks also showed stabilization and recovery today. Overall, the market exhibited healthy oscillation, with trading volume slightly shrinking but remaining around 2.4 to 2.5 billion. There are still many short-term opportunities locally, but the market style is rotating phase-wise, and thematic explosive power remains weak.

The total daily turnover across two markets was 24.806 billion, down 3.27 billion from the previous trading day. 3,164 stocks rose, 1,884 fell. The market opened low and moved higher, with healthy rotation.

II. Major Indexes

The indexes continued to fluctuate within our designated support and resistance zones, showing a reasonable trend. Given yesterday’s external decline, this performance is quite good. As the 5-day moving average rises, the Shenzhen Component Index’s support level also moves up, leaving little room before reaching previous highs and resistance. Next week, the market may choose a direction within this small range. If it can break through and establish a new high, the outlook is bullish; if it falls below the 5-day moving average, it will continue oscillating within zone ①. Overall, as long as there are no major negative news, the indexes still maintain a relatively high safety margin. The trading volume environment also supports local rallies. For short-term trading, focusing on themes and sentiment is key. All three major indexes fell below the 5-day line, but there is no significant risk at this stage.

III. Sentiment

Our yesterday’s assessment of short-term sentiment was that the overall rhythm was fine, but today’s tiered stocks needed to switch hands, showing mostly healthy divergence. Today’s sentiment followed the script perfectly. In the morning’s divergence, Yunnan Energy Holdings hit the 7th limit-up, opening the limit-up streak, and Farsight, which hit the limit-down earlier, rebounded. Roman Shares, which broke the limit yesterday, also reached new highs today. Overall, short-term tolerance is very good. After healthy divergence, expectations remain positive. Tomorrow should also be manageable, with only weak divergence possibly causing slight setbacks. The overall short-term environment is good, and relay players can loosen up appropriately. The main strategic considerations are twofold: First, the top-tier Yunnan Energy Holdings is in a phase of continuous acceleration, with a holding feast rhythm, and no comfortable entry point currently. Funds will likely speculate on the next core stock after Yunnan Energy Holdings breaks the limit. When Yunnan Energy Holdings hits the limit, the second-tier stocks will have some speculative potential, especially those at lower levels with higher cost-effectiveness. The second approach is that since the limit-up height has opened, low-position stocks may catch up under the differential effect, potentially reaching three or four limit-ups, creating profit margins for 1→2 and 2→3 trades. The low-tier stocks’ speculative value greatly increases. As for 20cm (a specific stock or sector), it involves intraday momentum following leading stocks, with the most cost-effective strategy being mid-term.

IV. Sector Analysis

1. Computing Power Leasing

The logic behind computing power has been explained before, but recent new friends may need a repeat. Old followers might find it repetitive—please bear with me. The logic stems from the surge in demand for AI application computing power. AI’s demand for computing power has always existed long-term, with several surges in the past. Recently, with AI video generation and agents expanding massively, token consumption is 10 to 100 times higher than text output, causing a sudden demand spike and temporary shortages. Examples include Qianwen’s downtime and Seedance 2.0’s video generation queues. These shortages are hard to resolve quickly, so the expectation persists. The real beneficiaries are the computing power providers. Application-side catalysts depend on news and sentiment; when a certain application or partner gains attention, it boosts the sector. Regardless of application outbreaks, computing power benefits. This explains why, after this wave, the sector has shown resilience independent of AI applications. Some confuse leasing with manufacturing computing hardware; they are different parts of the industry chain. Leasing is like renting computers in an internet cafe, while manufacturing involves CPUs, chips, and memory. Their cycles are different.

We have been ahead of the curve, from early positioning on dips, to stabilization, to strength. The sector has seen two days of volume-driven rise, with market liquidity favoring it. The sector index hit new highs, and the outlook remains for oscillating upward. The best entry points were yesterday and this morning. After today’s surge, we warned against chasing high during intraday. Many stocks pulled back after early gains, indicating the strength of continuous breakout expectations is limited. Monday may see more divergence—strong stocks stay strong, weaker ones fall behind. A healthy, positive divergence will soon emerge, providing new opportunities. No rush—wait for a healthy divergence. The core stock is Huasheng Tiancheng, whose strength or weakness strongly indicates sector direction. It’s a key reference point. From intraday performance, Huawei-related stocks are important for the sector’s strength. Today’s good performance was partly due to AI stabilization, but once AI’s recovery expectations are fulfilled, that effect will diminish. Huawei’s computing power logic is independent and solid. Overall, the sector will remain somewhat speculative tomorrow, but with increased difficulty, requiring better stock selection.

2. Resources (Nonferrous metals, Steel, Chemicals)

Nonferrous metals were the strongest sector in the morning. After computing power rose, nonferrous metals retreated. Some resource stocks that rose passively early on, like industrial metals and petrochemicals, also pulled back more. This reflects internal differentiation within sectors driven by geopolitical expectations. Such differentiation will weaken as the macro environment stabilizes, reducing sustained momentum. Resource stocks are heavily influenced by news, external factors, and futures, making them less predictable by internal logic. Participation involves either waiting for stabilization and rebound or quick entry during intraday strength. Chasing high is risky. Given current short-term conditions, chasing after big gains is passive; focus on clearer themes instead.

3. AI Applications

Today marked the first real recovery after a sharp decline in AI applications. We mentioned this in yesterday’s review—it’s a typical rebound after oversold conditions, not a second wave. The space for further recovery is limited. Once the recovery expectations are fulfilled, switch to other recent hot sectors. Don’t stay too long.

4. Commercial Aerospace

Recent days have seen some activity, though no single day led the trend. Regardless of other sectors’ leadership, aerospace remains in the second or third echelon intraday. Some old leading stocks have also shown rotation and activity. The sector hasn’t entered a sustained explosive phase but maintains good left-side positioning. Opportunities on the right side are limited, waiting for a large volume breakout. Healthy divergence will continue to create left-side opportunities.

5. Tech Chain (Optical, Storage, etc.)

NVIDIA’s earnings beat expectations, which was seen as a positive signal. Last night’s sharp decline dragged down US tech stocks today, affecting A-shares. We warned yesterday not to chase high in tech stocks—they are better bought on dips. Yesterday’s rise was driven mainly by external factors; today’s decline followed the same pattern. The industry logic remains intact: optical and storage are still the strongest tech segments this year. After healthy corrections, stabilization points will keep offering left-side trading opportunities. High and low buying should be balanced; avoid chasing highs and selling lows. Currently, leading stocks like Longfei Fiber are in consolidation after doubling, with reduced short-term momentum. The market is entering a phase to identify low-level rebound stocks, so consider high-low trading and watch for new volume surges at low levels.

6. Glass and Fiberglass

We started positioning in fiberglass before the main rally. The three giants gained 30-50%, and at the peak, we warned about high-level stagnation and advised reducing positions. Today, high-level stocks began to underperform, reminding us not to rush to bottom-fish. The sector needs to wait until the three giants finish their correction and stabilize before re-evaluating.

Overall, in the context of US stocks’ decline, today’s market opened low and maintained healthy oscillation, still quite resilient. The market’s safety margin remains high, but explosive power is weak. This review is preliminary; if there are updates over the weekend, I will add them in the pinned comment based on news and external performance.

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