Hexun Investment Advisor Huang Ruchen: Funds are engaging in oversold rebounds, and positioning early in pharmaceuticals is driven by risk-avoidance expectations.

April 1, Huang Ruchen, an investment advisor with Hexun, said he leans toward a lower opening today, believing that this would make the chips wash out more purely. Unfortunately, due to the influence of the overseas market, the stock opened sharply higher today. The technology sector, mirrored by the performance of US stocks, saw most areas such as storage, fiber optics, and more open high. If the price doesn’t get sold off within the first 30 minutes after the open, it may pull back later. The computing power direction is relatively more defensive against declines, but after 11:30 it also entered a pullback.

The strongest sector today is pharmaceuticals, which has shown very strong performance. Some friends may be puzzled: earlier, he said that pharmaceuticals are a defensive sector. Today the index closed up and the Shanghai Composite Index once had to close the gap at 3955.71. Why is pharma still so strong? Huang Ruchen thinks there are two possible explanations: first, pharmaceuticals may have a sustained run of positive momentum, and innovative drugs—under the influence of favorable conditions related to their main business, earnings disclosures, and Hong Kong stock developments—are all in a good news environment; second, he previously believed that the best setup today would be a lower opening, even an “ice point” open, and then restarting the repair would be more effective—but going straight into a repair by抢修 (chasing the rebound) led to a reduction in trading volume. Investors don’t want to take high-level chips. Today, more than 4,000 stocks closed in the red. The ones being lifted are mostly the core stocks that have fallen for a long time. Funds are carrying out an oversold rebound, and pulling pharma fits this scenario—it’s essentially doing “preemptive” hedging expectations.

As for the chain of consecutive limit-up stocks, the front-runners can drive their own themed opportunities. Today, the commercial aerospace bid for 4-to-5 failed, and the highest board is a 4-board pharma stock, which has a driving effect on the theme. Huang Ruchen personally tends to think that the market may see differences tomorrow. Making a move into pharma in advance is based on hedging expectations, for two reasons: first, most of the newly active directions today are oversold rebound plays. For example, the rail transit theme that was active yesterday performed poorly today; second, hedging in advance is because index sentiment still needs to move downward, and tomorrow is Thursday. Of course, the above only represents his personal view. Investors should focus on the stocks and positions they hold; if they can make money, that’s what matters.

(Editor: Cui Chen HX015)

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