Hexun Investment Advisor Li Cong: March trading is difficult, and the institutional side has a slightly higher tolerance for errors on sentiment-driven themes.

On March 20th, Hexun Investment Advisor Li Cong stated that the Shanghai Composite Index “shamelessly” filled the gap in the afternoon, but without volume, so there’s no need to panic. The ChiNext Index opened high, quickly shrank in volume to the top of the box in the morning. The last time on January 14th, when the high point was reached, the ChiNext’s trading volume was 1.1 trillion yuan; now it’s only over 600 billion yuan, making a breakthrough difficult. The rise and fall back is the expected pattern for the afternoon. The midday report especially warns that institutional stocks in sectors like technology, blockchain, and new energy should not be chased, as their primary weights pushed the ChiNext to the top of the box in the morning. Today’s data is even colder than yesterday, with more limit-down stocks, so active trading is still necessary. Recently, there has been a continuous rotation among themes like blockchain, storage, and new energy institutional stocks. During the day, new energy peaks, while blockchain peaks diverge with insufficient divergence time, but they can be seen as the current institutional leaders that are strongly held. When the index falls, they remain resilient. Storage has been divided into two phases, replacing decline with sideways movement, resisting the sharp drop in the index, with storage stocks rallying at the end of the day. Regarding sentiment themes, quantitative trading is not advisable. Domestic computing power faces negative news but is violently hedged, leaving only the duo of electric computing collaboration and thematic groupings like GCL-Poly, Yunnan Energy, which is reasonable. After all, when the index performs poorly, funds tend to cluster. Overall, March is challenging for trading; institutional stocks have slightly higher tolerance for sentiment themes, but only for core stocks—institutional players group around leading institutional stocks, sentiment traders group around sentiment leaders, while other non-core stocks are easily abandoned, resulting in low market tolerance.