3.10 Review: The market correction arrived as expected, internal shifts in computing power accelerated, and optical communication took the lead in rallying.

The major indices surged significantly, repairing the deep geopolitical gaps. Amid widespread gains, internal computing power sectors such as optical communications, liquid cooling, and PCB took turns leading the rally, while the power grid and lobster stocks faced divergence. High standards fluctuated, and the presence of quantitative trading became more apparent, continuing to seek focus amid chaos. [Taogu Ba]

Following the Trend
The three major indices opened high and moved higher throughout the day, collectively rebounding and closing up. Most individual stocks also rose, though trading volume slightly declined, totaling 23.979 billion yuan today, down 2.497 billion from yesterday. Yesterday’s review indicated technical support was completed, and with geopolitical conflicts cooling overnight and external markets soaring, the market continued to rise, essentially repairing the previous geopolitical gap. The probability of a sharp decline now is very low; the key question is whether the market will continue upward or consolidate into sideways movement after the repair. Based on current volume and themes, a transition into strong oscillation seems slightly more likely.

On the thematic level, resource stocks have mostly retreated, while computing power remains the dominant force, though within it, rotation and switching are still active.
Today, optical communication led the gains, mainly driven by news related to the 2026 Fiber Optic Communication Conference. Ten stocks hit the daily limit, with a total increase of 36.053 billion yuan, all on the first limit-up. Changguang Huaxin, a sci-tech innovation stock, hit a new high, while major players Longfei Fiber and FiberHome Communications also hit the limit-up. However, the rebound structure remains, with heavyweight Huagong Technology continuing to rise to new highs, showing strong momentum.
Besides optical communication, liquid cooling and heat dissipation sectors also saw eight stocks hitting the limit-up, with a total of 5.892 billion yuan, all on the first limit. PCB stocks hit five limit-ups, totaling 3.951 billion yuan, also all on the first limit.
Meanwhile, the power grid and lobster stocks, which performed yesterday, mainly adjusted due to divergence. The power grid sector had six limit-ups totaling 6.125 billion yuan, all on the first limit, with high-standard Yunnan Energy continuing to fluctuate. Shun Na’s stock failed to re-open after hitting the limit, and Meili Cloud was halted with a large decline. Lobster stocks also had five limit-ups, totaling 9.949 billion yuan, with Ningbo Construction advancing straight to three limit-ups, Qu Xing Toys to two, and three stocks on the first limit. Tuo Wei Information experienced underwater oscillation, while UCloud continued to fluctuate sideways.
Overall, internal computing power stocks are clearly switching between high and low, with the previously rising power grid sector entering correction, and oversold optical communication and PCB stocks rebounding.
In the geopolitical oil and gas sector, under cooling news today, prices continued to fall sharply, with Molong, Intercontinental, and Zhunyou hitting the limit-down, signaling a clear A-shock. Unless new news triggers further movement, caution is advised in bottom-fishing.

Market Sentiment Fluctuations
Market sentiment shifted from yesterday’s divergence to recovery. The market turned from widespread decline to widespread gains, with over 4,300 stocks closing higher today, and fewer than 800 stocks declining. The number of limit-up stocks increased significantly, reaching five boards, though intra-day breakouts were still serious.
On the speculative side, although sentiment recovered before the indices, today’s speculative activity remained stable and did not strengthen alongside the indices. First, the number of consecutive limit-ups was still limited, with only two stocks advancing to the second board. Second, while high-standard stocks showed positive feedback, most were oscillating, especially those in regulatory pools, lacking proactive breakthroughs. The lack of sustained and proactive attack in themes and individual stocks has led to some chaos in the market.

Thoughts for Tomorrow
After today’s big rally, the overall trend has shifted from stabilization to a positive outlook, which should support thematic sectors. Currently, the main issue is the lack of consensus and focus within themes.
The power grid sector, after repeated performance, has begun to show some mainline characteristics. Today, despite rotation in optical communication, the power grid concept index continued to hit new highs. If it can reflow and strengthen further, the mainline may be further confirmed; otherwise, it might become a rotation branch within internal computing power.
Optical communication, after today’s rebound, has seen some structural repair. As a previously popular sector, it still warrants attention, though the leading stocks have shifted.
Additionally, considering the usual rhythm, it’s important to note that current themes still show features of quantitative guidance—whether it’s yesterday’s lobster stocks or today’s optical communication—so one should remain cautious about overly optimistic expectations, pay attention to rhythm, and avoid chasing latecomers.
The big upward move has not yet arrived. In this environment of chaos and rotation, stock selection should focus on concentration and grouping, minimizing the influence of quantitative factors.

Trading Insights
Today, I did not participate in the optical communication sector’s game. In the morning, during divergence, I slightly bought China Xidian at a low point underwater, with a profit of over one point at close.
For holdings, I used T+ trading on Shun Na Shares, buying at a low after a break, and sold out at the limit-up, reducing the position.
I reduced holdings in Tuo Wei Information and Yunnan Energy Control. Tuo Wei Information surged in the afternoon, and I sold most at the peak, roughly at the highest point. Yunnan Energy also sold near the flat level.

Post-market holdings: Tuo Wei Information, Shun Na Shares, Yunnan Energy Control, China Xidian.

Data Summary

☑ Note: The above is solely my personal review notes. Any opinions or stocks mentioned are for illustration only and do not constitute investment advice. Please trade independently and be cautious—investment involves risks!
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