[Red Envelope] The external situation is dire and turbulent. How should short-term traders time their moves? Yunnan Energy Holding breaks through resistance, electricity stocks surge, and the trend for next week is still being analyzed!

March 1, 2026 Review and Weekly Market Outlook [Taogu Ba]

Everyone has a desire for wealth, but few understand the true principles of wealth accumulation.
Wealth is not a prey to be blindly chased, but a natural result following market laws and self-cultivation. The ancients divided all worldly affairs into “Tao” and “Art.”
The pursuit of wealth is the same: Tao is the foundation—the essence and laws of wealth; Art is the path—the methods and practices to acquire wealth. Only by understanding Tao first, then refining Art, using Tao to guide Art, can the road to wealth be steady and long-lasting, rather than fleeting.

Although the first week of the new year saw intense tug-of-war between different themes, for short-term traders, whether you follow sentiment or trend, there are good profit opportunities. Personally, it’s advisable to actively participate in sentiment-driven strategies. Let’s review some operational details from this week.

This week’s operations:
In the review post at the start of the year, I clearly outlined the script for the first week’s market performance, and provided detailed analysis based on current tiers. Focus was on whether sentiment could break through, and on theme-based plans aligned with current tiers. The analysis was until this Friday. Yunnan Energy Holdings advanced to 7 boards, and the power sector saw explosive moves, providing a forward-looking perspective on market trends. This also helped individuals grasp key market carriers, such as Yunnan Energy Holdings. I believe diligent readers of the review have gained quite a lot this week!

Tuesday:
Chemical sector was the strongest in the morning, with the Iran-U.S. conflict intensifying. Iran, as the largest methanol exporter, made core logic very clear—Golden Bull Co. was a key stock, so it was chosen for breakout trading. Flexibility was shown by selecting Sanhuan Group for MLCC at lower levels.

Wednesday:
Since the high was not broken through, Monday’s stock, Zhangyue, was pressed down, continuing to decline as expected. Yunnan Energy Holdings saw high volume turnover, so I decisively increased positions for breakout. Low-position fermentation in MLCC capacity, with core leader Huaxing High-Tech surging on high volume. Red profit on Sanhuan Group. Chengxing’s straight-up move indicated a shift to strength, leaving weaker stocks behind. Golden Bull Chemical was taken off at profit. Chengxing’s straight move was a sign to leave the weaker stocks, and Golden Bull Chemical was booked for profit.

Thursday:
Yunnan Energy Holdings successfully broke through, continuing the pattern. Fenghua High-Tech, in the niche capacity segment, still has expectations and continues to hold the pattern.

Friday:
Yunnan Energy Holdings was hit with a limit-down, leading to consideration of switching to new directions next week. Before the Two Sessions, the sector’s outlook remains optimistic, not necessarily negative. Unfollow Fenghua High-Tech. Breakout into a new sector, layout for two fermentation directions. Still waiting for market response. Book profits and exit. The comment area also shared insights. Mid-March focus is on the Two Sessions, with core stocks on the main board and ChiNext awaiting further developments.

Operational key points:
Using Friday’s operations, I want to share a crucial insight. Last week, just before the market opened, the review post discussed Zhangyue, which since January 30th, had not seen any stock break through five to six boards. Zhangyue, as a pre-holiday clear signal, was directly pressed down to limit. At this point, the sector moved to Yunnan Energy Holdings, with similar logic tested by high volume. Under the expectation of a clear signal, funds reversed, and the outlook continued downward. This was a test of volume explosion. If Yunnan Energy Holdings cannot withstand the divergence, then the expectation shifts downward, looking at Hanlan Co. Why play like this? It involves market speculative sentiment. Currently, in the spring market context, and with no active breakthroughs for over ten trading days, extreme reactions occur—first day of trading on Tuesday, funds favored war themes and old-cycle recovery, including chemicals. This is very unfavorable for the market start. The next day’s trend remained similar.
The safest strategy now is to participate in stocks with active breakouts to gain sentiment premium. Naturally, only Yunnan Energy Holdings fits this criterion. In the last cycle, Pingtan Development broke out actively, driven by sentiment in Hefei China. This cycle, Yunnan Energy Holdings broke out, and as long as there’s no A-sharp decline, similar stocks like Hefei China may appear. So, early March requires actively seeking sentiment carriers. The past three days saw institutional trend surges, and before the holiday, commercial aerospace was cleared out, indicating speculative sentiment needs release. Everyone should pay close attention.

Review of this week’s market hype:
Many can feel a sense of market powerlessness. For spring market, most short-term traders hold high expectations, but there’s a stark contrast with last year’s DeepSeek rally. The market’s enthusiasm has not been fully ignited. This includes lack of a main theme, early recovery of old sectors, rising risk aversion, etc., leading to large funds avoiding market dominance, mainly at the retail level. This indirectly sustained institutional momentum until Friday, when Nvidia’s adjustment prompted related industry chains to follow suit.

Over the weekend, external tensions continue to escalate. Conflicts, once started, tend not to end quickly. Related hot topics keep emerging. I personally prefer not to dwell on risk-avoidance themes, but it’s important to note that under various variables, the only constant is capital feedback. As the Two Sessions approach, abandoning internal ZC guidance and participating in war themes is unrealistic. Every conflict background can produce bullish stocks with expectations gaps, but blindly following market signals often ends in disappointment. The best approach is to stay calm and act passively.

Analysis of consecutive limit-up tiers:
7 boards: Yunnan Energy Holdings (computing power + power) currently anchors sentiment in power and computing sectors. On Friday, strong bidding pushed power to fill the tier, with computing returning. Short-term high breakouts indicate speculative sentiment. Focus on whether sentiment carriers continue to evolve.

4 boards: Jinjingda (chemical) led the hot list over the weekend due to Iran-U.S. conflict. Expect some return of chemical sector.

3 boards: Ganeng Co. (power) is a core leader in the new cycle of power. Zhanyuan Tungsten (metal tungsten) is a strong niche in small metals, combined with AI hardware, leading the trend. Hongxing Co. (industrial chain).

2 boards: Taijia Co. (AIDC power), Beijing Kere (power), Changyuan Donggu (power), Huayin Power (power), Shenma Power (power). All related to power, with the strongest direction on Friday, expecting turnover-based breakout on Monday.

First board: Small metals + DeepSeek + power.
From current tiers, the high breakouts are mainly in power, a relatively new niche. Funds are dispersing between computing power and power. Small metals took the lead on Friday, with successful weekend conflict anticipation. The current situation is quite successful; if Yunnan Energy Holdings continues to break through or gaps, the core stocks in this tier will keep rising, and speculative sentiment will strengthen.

Sector analysis:
1. Computing power + power
Main catalysts are the overseas deployment of token computing power. News includes:
(1) China’s large model overseas call volume first surpassing the US—milestone indicating domestic AI tech gaining global recognition.
(2) Before the holiday, the State-owned Assets Supervision and Administration Commission held a special meeting on “AI+” initiatives, explicitly proposing a “computing power + power” coordinated development strategy; marking a new high at the national level for integration of computing and power.
The logic is that China’s domestically developed large AI models are widely used overseas, supported by strong infrastructure—GPU servers, cloud resources, model R&D, and API platforms.
In short, it’s about digital exports of computing + power, aligned with national strategic development.
This sector is the most complete in the current market tiers and one of the main directions for next week’s play. Last Friday’s first board showed that the sector’s low positions did not fully explode, mostly showing abnormal moves. The chip structure remains healthy, as most domestic power companies have been consolidating in 2025. The collective abnormal move at the end of Friday indicates potential for further growth.
The key is whether the sector can produce a core top with a one-word board or continuous upgrades, which is a prerequisite for sector strengthening. Yunnan Energy Holdings’ breakthrough supports market and sector sentiment. For those not involved, Yunnan Energy Holdings is more about valuation anchoring. Observe the first gap support, and focus on whether it can hold high levels. Avoid violent declines; if a sharp drop occurs, sector expectations will diminish.
The main focus for next week is whether the sector can achieve a second or third-tier breakout, whether a core top appears, or whether continuous upward movement occurs. If Yunnan Energy Holdings continues to break through or gaps, core stocks will keep rising, and speculative sentiment will intensify.

Sector analysis:
2. AI hardware
Mainly driven by Nvidia-related industry chains, especially upcoming new products at GTC in March—last year Rubin, this year LPU Feynman. Short-term strength in optical fiber, electronic fabrics, etc. MLCC price increases are also a fermentation factor.
If market style shifts after the holiday, the focus will be on trend sectors. The previous rally around 4000 points was driven by tech, especially commercial aerospace. Currently, the index is near a small plateau, but external tensions will likely keep the index under pressure next week. This is short-term; long-term impact is limited.
Next, if a theme is to lead the index higher, the market’s carriers need to return to trend-based movements. From next week, institutional trend stocks should be a focus.

The 15th Five-Year Plan is clearer, prioritizing commercial aerospace. This week, Nvidia’s LPU Feynman chain led a wave. If the index continues to resonate after breaking through, it will confirm the current capital attribute—returning to tech dominance. If the index pulls back, these sectors will follow, and whether the next rally can continue or new themes emerge depends on short-term details.
Fundamentally, optical fiber remains an old crossing theme. On Friday, the market showed divergence—funds mainly bought high and sold low. Longfei Fiber, Fenghuo Telecom, Hengtong Optic, and Tongguang Cable showed different reactions. The mainboard’s emerging star is Zhongtian Technology.
The key is whether Changfei Fiber can test the 10-day moving average and then rally again. If not, expectations should be lowered. The early trend analysis has been discussed clearly before; the first session of the live “Trend Timing” covered this systematically. For those not participating in institutional stocks, watching the replay will be very helpful.
Second, electronic fabrics sector saw sharp correction on Friday. Nvidia remains in correction, so Monday may see continuation of divergence. Focus on whether international composite materials and Feilihua can support. After the market’s early decline, funds rebounded, and support at the 7-day moving average is crucial.

3. Two Sessions themes
Key dates: March 4-5, this Wednesday and Thursday.
Last Thursday, the market reacted to the ecological environment law, but on Friday, the initial enthusiasm was met with profit-taking. Still, the first boards in this sector continued to ferment, indicating ongoing sector strength. The sector is one of the early movers, and next week, with news stimuli, it remains a key focus. Last year, after the Two Sessions, the market focused on deep-sea economy, with stocks like JuLi SuoGu and ShenKai. This year, new directions are expected. The first board in ecological environment was China Tianying, which showed sector strength. Next Monday’s performance is critical. If it continues to advance, sector inflow remains. The key nodes are Zhongke Environmental Protection and Qidi Environment, but Friday’s failure to upgrade indicates a potential gap.
Why mention this sector separately? Two reasons:
First, the chip structure is at a low position, with less selling pressure, making it a new direction.
Second, the sector is large with many subdivisions—water environment, air, solid waste, bioenergy, dual carbon—all capable of supporting a rally. This is a speculative analysis; whether the market recognizes it depends on next week’s feedback. Currently, only a few stocks have shown signs of fermentation, which serve as anchors. Keep an eye on next week.

4. Other sectors
(1) Chemical sector:
Post-holiday, chemicals received unified capital support, with small stocks showing strength. By Friday, Chengxing’s limit-down caused sector hesitation, mostly retracing. Weekend tensions from Iran-U.S. conflict keep some recovery expectations alive.
Mainly affecting methanol, urea, and sulfur. Methanol, represented by Golden Bull Chemical, and urea, led by Jinjingda, are key. Friday’s weak performance suggests watching whether funds will re-enter next week. Sulfur, as an additive, is linked to Yuntianhua.
Chemical themes often follow capital imitation. Last year, Zhongyida led multiple waves. Short-term, potential stocks may mimic this. The conflict will influence Monday’s trend. The three core stocks mentioned are top priorities for observation.

(2) Metals and oil & gas conflict themes:
Most funds took early positions last Friday. The situation is volatile, with the Strait of Hormuz already blocked over the weekend, impacting oil & gas. Intercontinental Oil & Gas remains hot. Be cautious of risks in these sectors. The market also includes metal fluctuations, which will intensify, recalling the silver and gold crash last month.
In short, short-term market control depends on domestic capital, not external news. Relying solely on external conflicts is risky—like entrusting your fate to others. Holding stocks with this mindset is worrisome. As the Two Sessions approach, it’s better to focus on related themes. In the big picture, the bull market should favor sectors with good expectations. If you are inclined toward these themes, proceed cautiously.

Summary:
In last week’s review, I posed three questions. Here’s how to find answers based on market feedback:
First, how to form expectations on robotics and AI?
Market feedback on Monday showed funds fully cashing out these sectors, so no further observation is needed. The review already explained this clearly.
Second, which tiers are most valuable, and why?
Many answered correctly—2-3 boards, especially 3-board stocks like 2.13. This week, core themes like fiber optics and glass fiber, and Yunnan Energy Holdings’ 7-board rise, confirmed this.
Third, what is your most confident sector?
No definitive answer—encourage everyone to ask themselves which sector has the best outlook, or under what conditions expectations are formed. This helps in participation. For example, if early recovery of old sectors is confirmed, then those are the focus. If robotics and AI applications are confirmed, then shift to new directions. Chemical and oil & gas themes are also good options.
Next week, I leave three questions for everyone to ponder and comment:
(1) Is there an optimal solution for conflict themes? What is it?
(2) How to anchor the computing power + power sector next week?
(3) Do you prefer the already fermented environmental themes of the Two Sessions, or wait for new directions after the meetings?

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