3.29 A Small Test of Skill

The biggest news over the weekend is that the Golden Retriever is preparing for ground warfare, oil prices are still soaring, and technology will remain under pressure. Microsoft has already dropped 40%, and the seven major stocks in the U.S. market are all in a breakdown trend. The recent drop in the Nasdaq is not enough; it has only come down a little over 10 points from its peak, and a 20% drop has not yet been reached.

The market is still focused on computing power, optical communication, and new energy.

After the New Year, the sentiment has mainly been about consecutive gains. It should be within the long cycle of YN Holdings. China Huadian Liao Energy and China Huadian Energy have strengthened their consecutive gains; on Friday, two stocks, Rongjie Co. and Meinuo Technology, both achieved four consecutive gains, which in turn drove the new energy and innovative medicine sectors. Stocks like Rongjie Co., due to the reversal logic of new energy, might trend after breaking the consecutive gains. The two Huadian stocks are facing a 200% abnormal movement, and this old monster, YN, has stood out again; the market is relatively clear about benchmarking against the wave trend of Pingtan Development, but I think it may also be linked to aerospace development. The overarching theme remains the consecutive gains of the stocks, which may not necessarily be tied to the power sector. I also took action on Friday to open positions, as profits are quite thick, and I might consider making trades next week.

Electricity has been a focus for a month, and in April, it may not necessarily be the mainstream direction, but the sentiment of consecutive gains will continue, and external uncertainties will intensify sentiment-driven speculation.

The logic of new energy that I previously analyzed has, after the war era, become the strongest sector in the recent half-month trend. Due to insufficient volume and too many institutions involved, the rise isn’t smooth, and it’s more about a strategy of advancing and retreating, with the second quarter likely replacing technology in a major upward wave. Previously, I selected the photovoltaic inverter line, while the market chose the CATL line. VC Huasheng Lithium Battery, Haike Xinyuan, electrolyte Tinci Materials, positive electrode Hunan Yuneng, negative electrode Putailai, 6F Shida Shenghua, lithium mine Rongjie, and Zhongda, etc. These industry leaders should all show good trends. Once the Q1 reports come out, VC, electrolytes, and 6F are expected to experience the fastest performance reversals. Avoid chasing highs. New energy has previously been said to be counter-index, but on Friday afternoon, it seemed to follow the index a bit; let’s see if it can resonate with the broader market later.

Optical communication mainly focuses on the next-generation CPO; recently, OCS’s Tengde Optics, Tengjing, Dekeli, and Guangku all reached new highs. Then, optical chips from Huagong, Dongshan Precision, Yuanjie, Changhua, Shijia Photonics, and Liante Technology. Fiber optic prices are rising alongside equipment stocks. Hardware should mainly be looked at in the first quarter to see if there are any performance surprises.

Innovative medicine has been quiet for half a year, but Meinuo Technology and Wanbangde have activated it, while on Friday, quant strategies pulled last year’s top-performing pharmaceutical stocks from the first half; investors should remember not to chase highs.

In April, the intensity of the war will increase, but the market’s sensitivity should decrease. It’s best to play with small positions. Just in case, if the Americans can’t hold on and a few big bearish candles come.