Review of the 31st

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Good evening, everyone. Today we’re going to review and break down the market action from March 31.
Overall, it’s still a “eat noodles” type of market. Although trading volume picked up by several hundred billion, retail investors basically didn’t move—they’re all holding tough and waiting for a rebound. In the end, the market got weaker and weaker into the close, and the money flow clearly showed signs of fatigue.

Next, let’s sort through the themes one by one.

First, let’s talk about today’s hottest rail transit equipment.
This sector mainly took off because a favorable news item came out yesterday. Today, it directly became the leading theme.
For example, CRRC High-Speed, and China Railway Engineering, both already moved unusually yesterday and continued to lead with strength today;
Citing Heavy Industry wasn’t getting much buy support yesterday, but today it also charged up.

Tomorrow, this sector is likely to be a “to make money” type of market, but if you want to participate, the key is only to focus on CRRC High-Speed.
The rest are basically followers. Tomorrow they’ll try to hit the second daily limit, while CRRC High-Speed is aiming for the third daily limit.
Here’s something to pay attention to: If tomorrow it doesn’t open at the one-price limit—if instead it continues to expand volume—then you need to be careful, because it could be “distributing on rising volume.” After all, the sector’s overall capacity is small, and there are only a few of these stocks, so the risk is relatively higher.

Next are innovative drugs and biopharmaceuticals.
Today, Yage Pharmaceutical and Jinzhou Pharmaceutical were competing, and in the end Jinzhou Pharmaceutical advanced to the 3rd daily limit. But overall, the sector didn’t have any followers to step up—mainly the mood-driven effect was relatively weak.
That said, I still have a positive view on innovative drugs. It just came out of the bottom and filled the gap at the bottom. The room for imagination ahead is still fairly large.

Now let’s look at the power sector.
Today, power overall can be considered to have stabilized and started to repair. The leaders are taking the lead, but the money’s attack intent isn’t strong, showing a polarization: the new picks are pushing upward, while the older names are still catching up with the selloff.

If you want to participate, the logic is quite clear:
Either wait for the core leader to pull back to a lower level and then take over,
or trade newly started names that haven’t really risen much yet.
Tomorrow, you’ll need to see whether market sentiment gives it momentum. Today, sentiment dragged it down pretty noticeably.

Then there’s commercial aerospace.
It’s still the core leader from the previous wave leading the way, but there’s no backup support from followers.
Several of the leaders are already close to the previous high, and the positioning is rather awkward—so the risk is relatively high.
If you’re firmly convinced there are more favorable catalysts ahead, you could gamble with a small position. But overall, the environment is pretty dangerous—so caution should be the main approach.

Now let’s talk about the Fujian theme.
Today, it was the old leader Pingtan Development taking the lead, but the other stocks that have overlaps with football and healthcare can’t keep up at all. There’s no supporting lineup, so it’s hard for this theme to go far.
This sector is more about excitement triggered by sudden news rather than having any real major favorable developments, so I’m not very optimistic about its sustainability.

Also, there’s the recently hot theme of “locomotive winning the championship.”
Today it has a lot of attention, but the opportunities mainly lie in two-wheelers and auto parts.
Without a core leader, I wouldn’t recommend jumping in casually. This kind of theme rotation moves very fast—if you have the first move you can enter and exit quickly; if you don’t, chasing higher is easy.

Today, the fiber optic concept overall corrected. Only a few individual names tried to push higher, but the sell pressure above was too heavy, and they couldn’t break through.
The fiber optic price-increase logic is quite solid. Going forward, you can wait for pullbacks to buy the dip, or wait for another breakout and then follow in.

In addition, today the aluminum and oil moves in the broader market were pretty good. There’s also conflict again in the Middle East, so industrial metals and aluminum may come for another round. But this is something you can only set up in advance—if you wait until after it rises, it will be too late to chase.

Tomorrow, I’m focusing on three directions:

1. Rail transit, high-speed rail: It’s been quiet for a long time. This time there’s news-driven favorable news, and the continuity is relatively more reliable;

2. Healthcare/Pharma: The bottom has just started to come up. The gap has been filled, and the upside still remains;

3. Power: Today it was supposed to stabilize, but it got dragged down by sentiment. Still, the leaders are repairing, and there are also followers moving along.

I suggest everyone try to find opportunities within these three themes as much as possible. The risk in other themes is higher.
If you want to set up a position for a “fishing” play, then focus mainly on aluminum and industrial metals