April 1st Market In-Depth Review and Core Strategy for April 2nd

1. Overall Market Environment and Market Sentiment[TaoGuba]

(1) Market Index Structure
After the index opened higher on April 1 and held at a high level for choppy consolidation, total trading value across both exchanges was set at 2.01 trillion yuan. Compared with the previous trading day, it saw a slight increase of 20 billion yuan. Triggered by the ceasefire-news stimulus, the index gapped up. From both the technical setup and the dual perspective of the capital cycle, the index maintained weekly center-range consolidation between 3815 and 4034 points. Trading volume rose and fell in an orderly rhythm around the 2-trillion-yuan core threshold. The entire month of April maintained the view of consolidation.

(2) Price Action Review
Pharmaceuticals and AI computing power became the two main themes that capital piled into: the pharmaceutical sector was driven by impressive overseas BD data and positive earnings guidance, with Tianjin Pharmaceuticals reaching a four-game winning streak, and Wisdom Medical hitting the 20cm daily limit up, establishing a premium for high industry optimism; AI computing power benefited from the mapping effect from U.S. stocks and data catalysts tied to Zhipu AI’s API, with weights such as Zhaoyi Innovation leading the rise by weight. In contrast, thematic stocks like power and rail transit—lacking fundamental support—were abandoned by capital: Guangxi Energy and Xintai Shandong both hit limit-down, revealing the fading of pure sentiment-driven speculation. The board displayed the classic characteristics of a game of limited supply: capital withdrew from weak high-level stocks and made precise switches to directions with strong earnings certainty, such as pharmaceuticals and technology. Sector rotation accelerated, and the certainty of themes was comparatively weaker.

(3) Trading Effect (Making Money)

1. Broad market decline: In the whole market, the up/down ratio was 887:4495, and iFinD Tonghuashun’s A-share index was -1.67%.
2. Short-term profit effect was average: The super-short-term performance was better. Yesterday’s limit-up stocks today were +0.13%; yesterday’s gainers today were +0.95%. Today, despite a big rally in the broader market, the short-term profit effect was actually worse than yesterday’s when the broader market fell—strangely so. The cycle’s short-term money-losing effect remained severe. Stocks with a 30-day gain over 100% were today -5.66%, and after three consecutive days at icy lows, the pullback strength was not weaker than the previous wave of commercial aerospace pullback.
3. Trend/sector-track profit effect was better: Since April 8, 2025, stocks up over 300% had today +2.84%.

(4) Segmentation of the Sentiment Cycle

1. Chaos phase: 2026.01.21—2026.03.03
2. Power incubation phase: 2026.03.04—2026.03.13
3. Power surge phase: 2026.03.16—2026.03.25
4. Power consolidation phase: 2026.03.26—2026.03.27
5. Power pullback phase: 2026.03.30—present

(5) Short-term Sentiment

1. Today’s limit up/down: Today there were 56 limit-up stocks, 6 limit-down stocks, and the highest board was 4 boards. There were 5 stocks with consecutive boards (0 one-character-board continuous streaks). The limit-up data was pretty run-of-the-mill.
2. Promotion on consecutive boards: 1 stock reached the 4th board, with a promotion rate of 100%. 1 stock reached the 3rd board, with a promotion rate of 10%. 6 stocks reached the 2nd board, with a promotion rate of 12%. 45 stocks reached the 1st board.
3. Board-breaking tiering: Total board-breaking rate was 41%: 4th board -0%, 3rd board -67%, 2nd board -43%, 1st board -40%. The board-breaking rate was extremely high. If you fire off at a board, you’re likely to get trapped. Today’s board-firing was very miserable.

2. Sector Atmosphere and Popular Stocks

(1) Pharmaceuticals
With the broader market rising, pharmaceuticals remained strong in the morning—this pretty much dictates that today was a day of disconnection. In panic, capital sought certainty, and the pharmaceutical sector became a short-term safe haven thanks to earnings and event catalysts.

1. Tianjin Pharmaceuticals (4 boards): Opened with a one-character board as expected, directly cementing the strong position of pharmaceuticals today. If you’re already in, just enjoy tomorrow’s premium; if you haven’t bought, you can look at it as a sentiment gauge. If there really is a full pullback trend tomorrow, then the expectation of “4 to 5” will still be there. If it’s not a full pullback but just rotation, then the difficulty of “4 to 5” tomorrow is still not small. Just think—stocks like Jianjian Shares, a team-and-popularity favorite, also failed at “4 to 5,” reflecting how bad the short-term atmosphere in today’s market is.
2. Kailaiying (2 boards): Trading volume aligned very well. Tomorrow, just lock on Tianjin Pharmaceuticals and follow its momentum closely.
3. RunDu Co., Ltd., Angli Kang, Wisdom Medical, Haixin Shares, Hainai Bio, Yibai Pharmaceutical, Peking University Health, Guangsheng Tang, Aidi Pharmaceutical, Linuo Pharmaceutical Package (1 board): Angli Kang and Hainai Bio still look pretty good in terms of pattern. For a “1 to 2” play, the only option is to enter at a low price in the first hour with about a 10% position, and once the board is confirmed, add another 10% position using a limit-order board queue. If the leader Tianjin Pharmaceuticals directly gets hung up (fails), then don’t touch anything in the mid-to-low range either—the risk-reward will be very low.

(2) Power
Power can be judged as the pullback period of the first-stage rally. High-level stocks and mid-tier stocks sold off hard, but there are still three tickers hitting limit up, which shows they haven’t been eliminated completely. If you don’t break, you don’t build. Keep killing a bit more tomorrow; on Friday, it feels like you can bet on dip-buying (low absorption) for a trade.

1. Tongda Shares, Xinzhonggang (2 boards): The stock character is right there—don’t expect too much. If tomorrow sees a normal premium, just retreat. Xinzhonggang’s rotten board absorbed money. Tomorrow, if the divergence can turn into consensus, there could still be an expectation for “2 to 3.” Whether it will work or not can be quickly identified within the first 10 minutes after the open.
2. Xihua Technology (1 board): Where is the recent prior-high pressure? It’s not too good to get involved.

(3) Computing Power
Computing power keeps making pulses, but it can never form a sustained trend at the main-line level. The core issue is that the high-level share structure is bloated, and capital is mostly driven by an arbitrage mindset, lacking real locker-and-hold alliance strength—basically just playing “whack-a-mole.” Don’t look at this sector until the high-level tickers that reached three boards have already run their course first.

1. Mingpu Optoelectronics, Oryde, Shandong Glass Fiber, Zhongjing Electronics, Meili Cloud, WanZhe Shares, Roman Shares, Huaqin Technology, Jiali Tu, Tenglong Shares, Hengrun Shares, Zhili Fang, Risecanda, Yongding Shares (1 board): Oryde has an edge in its “body/structure.” And if you combine it with a trend-following approach, it’s relatively stable. Mingpu Optoelectronics, Shandong Glass Fiber, and Zhongjing Electronics are also decent candidate picks for a “1 to 2” pre-selection. Stocks with a stock-character like Meili Cloud—any normal person would get messed up by the trading. Patterns like WanZhe Shares, Roman Shares, Hengrun Shares, Tenglong Shares, and Risecanda—if you believe they aren’t the kind short-term traders will pay attention to. Huaqin Technology and Jiali Tu are relatively weak. Zhili Fang acts as the best arbitrage partner by referencing the rise in U.S. stocks—proven time and time again. Yongding Shares is moving with the trend.

(4) AI Applications
AI applications haven’t rotated in yet. The last rotation you still remember was the wave involving Lei Ou Shares and Blue Mark. This rotation is indeed a bit long. At that stage, making money was already hard—now it’s even harder. When you look at rotation timing, if you want popularity, you should wait until someone first breaks out with a 3-board-or-higher winner. For now, it’s still an observation period and it’s not suitable to get involved too early.

1. Jiu’an Medical, Decai Shares, Perfect World, Giant Network (1 board): Jiu’an Medical can catch attention both in the medical sector and the AI medical theme, but this stock is not easy to grasp—it has a more complicated stock character. Don’t look at the other three; once they break out, then talk about it. At the moment, there is a lack of sector-level support from the board effects.

3. Tomorrow’s Trading Plan

(1) Review of April 1 Operations
Account B: To control the overall position size ratio, I cleared out Jianjian Shares. I initiated new positions in earnings-growth stocks and chip concept stocks, for a total position of 50%. I messed around all day and didn’t make any money.

(2) April 2 Core Trading Plan
Take a look at the various board-picking (limit-up buy) data from April 1. I’m a bit afraid to make a move tomorrow, so I’ll mainly observe first. If I absolutely can’t stand it, then I’ll just do some low absorption for fun. Board-picking throughout March was extremely difficult. I didn’t expect April 1 (April Fool’s Day) to make board-picking even harder for board pickers. It feels like maybe we need to explore a new playbook.
If everyone finds it hard, then it’s not “really hard.” It’s not worth avoiding difficulties; if something is difficult, it’s only difficult and doesn’t mean it can’t be done. Keep working hard to find a path to break through.

(The content of this article is only personal opinions and does not constitute any investment advice. There are risks in the stock market; enter the market cautiously.)