Inhumane, what a painful closing day. -3.31 Review

Investors all thought today was the last day of March, so the broad market should close in the red. But to our surprise, the broad market’s three major indexes were hammered in the opposite direction, dumping across the board. It’s been tough for the past two days, and today it still got hit again—it really makes people feel awful. In fact, in the early session there was a very unreliable person talking nonstop nonsense: Trump said he’s willing to end the war even if the Strait of Hormuz remains closed. Not only did this shake A-share funds’ confidence, but even Asia-Pacific stock markets don’t believe it either. Everyone is the same—rise then fall. It’s just that the afternoon sell-off from us was a bit harsher. There’s no doubt the overall market is again down across more than 4,000 stocks. And investors are losing again for the day. Today the SZSE Component Index and the ChiNext Index also fell below the 6-month line, and the SSE Index is also being pressured below the 5-day line—so there’s a possibility of another attempt to test the bottom. However, today can prove one thing: the stock market’s ups and downs really have nothing to do with crude oil. After all, today the crude oil market is also under pressure. [Taoguba]

Today’s short-term limit-up streak market is still pretty mediocre. But this short-term market really may improve, because last night the market was still very worried whether Huadian Liaoning Energy would get two consecutive limit-downs, causing severe negative feedback. Today’s feedback is: not only no “nuke the floor,” but instead it even provided a good opportunity to surge. This tells market hot money one thing: now even if you make a mistake, you don’t have to worry about taking provisions, and there’s also very likely an added premium for exiting after the surge. In such a good short-term market ecosystem, what worries do you and I still have? Also, the village’s stance is clear—now they’re loosening things, letting the market do its own trading and speculation. So all major funds in the market should cherish this good time.

Today, the sector market is still mainly about rotation. The strongest direction hyped by the market last night was commercial aerospace and fiber-optic concepts. But the market doesn’t really recognize these two sectors. In those two sectors, only the core stocks continue to perform, and the other followers didn’t keep up. However, today there’s one sector move that’s beyond expectations: the high-speed rail and Fujian sectors. They may look like they have little relevance, but both sectors are moving—so it can be summarized as the “wanwan” concept. I’m still not sure what the funds’ intentions are. In terms of news, after March 25, the Taiwan Affairs Office talked about, following peaceful reunification, helping build the Huanhai Ring Island high-speed railway and the Jing-Tai high-speed rail. This is huge, with a lot of room for imagination—but it took five days before the market started trading it. There’s also another piece of news: on April 7–12, the Kuomintang legislator Zheng Liliwen leads a delegation to visit the mainland. Perhaps market funds are pre-buying the expectation of peaceful reunification. This is a major event. Tomorrow, we need to observe whether market funds continue to push up the high-speed rail and Fujian directions.

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Today’s market snapshot:
The three major indexes surged early, then fell back, and in the afternoon they went sideways to lower. The SSE Composite Index was down 0.80% to 3891.86. The SZSE Component Index fell 1.81% to 13478.06 points. The ChiNext Index dropped 2.70% to 3184.95 points. Total turnover on both exchanges was 200.58 billion yuan, up 78.3 billion yuan from the previous trading day. In terms of themes today, relatively active sectors included annual report growth, commercial aerospace, and rail transit, among others.

1. There were 60 actual stocks hitting the daily limit up, and 19 actually hitting the daily limit down, with a board-closure rate of 68%.
2. There were 1011 stocks that advanced and 4376 stocks that declined.

Market recap: The whole market saw widespread declines in individual stocks, and the loss-making effect was obvious. My futures account is still aggressively trading, but today the short-selling power in the domestic futures market is a bit too large. The reason is still influenced by Trump’s nonstop nonsense. While the overseas U.S. WTI crude and Brent crude also dropped, the impact strength is noticeably smaller than in the domestic market. These futures markets are a global resonance—if the event can’t end in the short term, then the futures trend can’t end either. I’m still bullish on the futures market. My short-term account did not open any new positions today, because it’s the last day of March. And I’m also worried about negative feedback. Judging from today’s short-term market reaction, the short-term market doesn’t look extremely irrational or extreme. So tomorrow, if there’s a suitable setup, I’ll consider making a move.

The thinking plan will be posted in the thread comments tomorrow morning.

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High-momentum leaders by sentiment area (5):

Xinneng Taishan - fiber-optic concept, 6 days, 5 consecutive limit-ups,

Shenjian Co., Ltd. - commercial aerospace, 4 consecutive limit-ups,

Jin Yao Pharmaceutical - innovative drugs, 3 consecutive limit-ups,

Dongnan - ultra-high-voltage power, 4 days, 3 consecutive limit-ups,

Wanbangde - innovative drugs, 4 days, 3 consecutive limit-ups,

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Advancing into the second board area (8):
(1) Shu Hua Sports - Fujian + sports industry, 3 days, 2 consecutive limit-ups,
(2) Minfa Aluminum - Fujian + aluminum, 2 consecutive limit-ups,
(3) Pingtan Development - Fujian + forestry, 2 consecutive limit-ups,
(4) Shenzhou High-Speed Railway - high-speed rail + robotics, 2 consecutive limit-ups,
(5) Bangjie Co., Ltd. - pre-reorganization, 2 consecutive limit-ups,
(6) Anhui Construction Engineering - annual report growth + water conservancy, 2 consecutive limit-ups,
(7) Hongchang Technology - indirect investment in Zhang Xue locomotive + ChiNext, 2 consecutive limit-ups
(8) Tiandi Online - AI marketing, 3 days, 2 consecutive limit-ups,

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Thanks to @QiaoBan XiaoXimi @lightwo brothers for your rewards and support $1
Thanks to everyone for the likes and comments—thanks for your support all the way
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Statement: My views are only my personal thinking and records, and do not constitute any investment advice. Keep a good mindset—may the stock market bring a long rainbow.