3.30 Here comes the valuable content!

$Hua Dian Liao Neng (sh600396)$ Brief Note: March is about to end, and the main direction of speculation in March is transitioning. From the conflict concept at the beginning of the month, to the collaborative computing in the middle of the month, and then to the energy storage and lithium mining at the end of the month, these are all directions predicted in advance in the article. Friends who have been following this article for a long time should have made a profit. Standing at the end of March, the article boldly predicted the direction for April in the previous few times. The speculation in April is likely to be related to performance, as the U.S.-Iran war has been ongoing, and it is difficult to end. Therefore, whether it is institutions or medium-term funds, many will retreat to observe and avoid uncertainty, which means the market will inevitably shrink in volume. A decrease in volume means it is hard to see a major trend like the one in March for collaborative computing. Thus, in April, three directions can be focused on: First, chemicals and lithium mining that benefit from price increases due to supply disruptions caused by the U.S.-Iran conflict. These varieties will have performance support in the first quarter and even in the first half of the year. Many chemical plants destroyed by the U.S.-Iran war cannot resume production in the short term. Last Friday, these directions performed well, and we will wait for a pullback to observe; Second, cloud computing, IDC, and computing power that benefit from a thousand-fold increase in Token usage. Regardless of how the U.S.-Iran situation develops, it does not affect AI development, which has gradually entered our lives to some extent, so demand will definitely continue to grow; Third, energy storage business benefiting from collaborative computing, with batteries as the core. This has been mentioned multiple times; just look at the trend of Ningde to know where the big direction is. Next, let’s analyze the index points and emotional cycles:

1. Index Cycle Reflection:

The index is currently in a range fluctuation, with the upper limit around 3937 points, and a rebound starting around 3852 points. From the rebound range, it is less than a 100-point fluctuation, but the transaction volume has once again shrunk, mainly due to institutions and medium-term funds avoiding the uncertainty of external situations. In a market where the transaction volume continues to shrink, it is hard for the index to rise. Here, we expect the index to continue maintaining range fluctuations in the future, and do not rule out the possibility of challenging new lows. The above is a reflection on the index cycle;

2. Emotional Cycle Deduction:

First, True Dragon Analysis: The leaders of March have basically ended; just observe here. From the golden bull at the beginning of the month to Hua Dian at the end of the month, in the future, funds will likely be in a situation of pulling up and withdrawing. For quant trading, the best strategy here is for Hua Dian Liao Neng to consolidate at a high level while selecting a few low-end power stocks every day for rotation and rise, to gradually complete the selling of the entire sector. Be cautious of risks;

Second, Opportunity Analysis: In April, due to the uncertainty of the situation, especially since Trump’s visit to China is temporarily scheduled for mid-May, it means that the U.S.-Iran war might continue in April, and further deterioration cannot be ruled out. Therefore, the level of fund observation in April will be greater. After entering April, one should either choose core stocks to band together or continuously track directions with performance that align with the big trend. For the banded stocks, after a wave of washout at the end of March, it is highly likely that they will emerge at the beginning of April. Personally, I judge that they should have both the concept of war conflict and the performance stocks with price increase expectations. As for other directions, it has been mentioned in the previous brief note, and I won’t elaborate further. Overall, pay attention to the rhythm by the end of the month, control your positions well, and do not be overly aggressive.

Special Reminder: The above information is for reference only and does not constitute investment advice; there are no stock recommendations! Investing involves risks, and one should be cautious when entering the market!