[Red Envelope] Can aerospace continue? Medicine, can cross-strait rebound together!

[Like and follow, you can’t stop the daily limit][Keep going and tip, your positions are all going up][TaoGuba]

Hi everyone, I’m “Dad Naitai.” I’m very glad to meet you here. I mainly focus on market logic and sentiment core. If you have any questions, feel free to leave a comment to exchange.

1: Market recap

Affected by the big drop overseas and geopolitical disruption, the three major indexes all opened lower

This is the time to test your staying power

Dad Naitai also made it clear yesterday: when we look at a problem, we can’t just look at one side. At this point, it’s obvious that both sides don’t want to waste time consuming each other here.

The reason stocks fell at the open is because they were impacted by the overseas big drop on Friday. At this moment, you shouldn’t focus on the indexes, but instead pay attention to the moves of the sectors.

For example, power generation was strong earlier, but there’s clearly been divergence. At the open, Huadian LN was pressed down to the limit-down, Huadian NY was held at the limit-down, the “L” head fell from grace, and the sector direction naturally couldn’t be maintained. So at this time, you can’t touch this direction.

As for chemicals recently, with “tagging” positioning around L gold coal KJ, it directly blew up at the open—chemicals also became the place where Z gold was abandoned. So you can’t go there either.

The most obvious at the open was low-position rebounds in healthcare. Then it rotated to the across-the-Strait sectors, and then to the commercial industry. For example, Hangdian GF—the acceleration phase that was specifically mentioned last Thursday and Sunday.

If you have a clear and explicit viewpoint, then for something like low-position follow-up gains—Hefut ZG—doesn’t it match this point: across-the-Strait + healthcare

Now that the logic is clear and you understand the market’s turning-point timing, then you’ll know what to do with which piece right now.

Let’s talk about computing power. I said earlier too: it’s not weak at the moment—it’s just that Z gold is pinning it on computing power and electricity. Once there’s divergence between computing power and electricity, then computing power will show rotation and “follow-up gains.” For example, YunSai ZL, which has been trading sideways; today it steadied and held the board.

The market is always changing. We must understand how its logic runs, and when the timing for a “low-to-high cut” is.

2: Index-related

The indexes were able to rebound and turn red today—this isn’t unexpected. It’s the market’s normal course.

Without talking about the long term, in terms of the situation just recently: the US and Iran sides have gotten tired, and during this period, there’s nothing to worry about. Light on the index, heavy on individual names.

First look near the gap (1). Then once it breaks through, look at the prior trapped-holder area (2).

3: Intraday strong sectors

1. Healthcare

10cm: Meinonghua 7-day 6b, Shuanglu Pharmaceutical 4-day 3b, JinYao Pharmaceutical 2b, Lianhuan Pharmaceutical 2b, Jiu’an Medical 2b, Dongcheng Pharmaceutical, Asia-Pacific Pharmaceutical, SaiLi Medical, Hefut China

News:
According to reports from news media, Eli Lilly and Insilico Intelligent have reached an agreement worth $2.75 billion. It plans to roll out drugs developed by the latter using artificial intelligence to the global market.

2. Commercial aerospace

10cm: ShenJian Co. 3b, Regenerative Technology 4-day 3b, JiangShun Technology 4-day 2b, Yangtze River Communication 4-day 2b, Aerospace Power, Zhongheng Design
20cm: Guanglian Aviation

3. Optical communications

10cm: China Unicom Fiber 5-day 3b, Hangdian Shares 4-day 3b, Farsen 2b, Yangtze River Communication 4-day 2b, Honghe Technology, Huashengchang, Fokki Technology, Hengtong Opto-Electronic

News:
According to research reports from institutions, in February this year, China exported 3,779.9 tons of optical fiber, with a value of 790 million yuan, up 63.6% year-on-year, and 126.8%.

4. Robots

10cm: LianXiang Shares 6-day 3b, Jingji Zhinong, Titan Shares, Shenzhou High-Speed Rail, Zhejiang Xiantong

3. New faces

1. Metal aluminum

10cm: Tianshan Aluminum, Changlv Shares, Minfa Aluminum, Yiqiu Resources, Aluminum International, Liyuan Shares, Yilizd, Nanshan Aluminum

News:
According to reports from news media, Iran attacked two major aluminum companies in the Middle East—the United Arab Emirates’ Global Aluminum company and Bahrain Aluminum. Combined, their production capacity exceeds 6% of the global total production capacity.

4: Key observation points

Computing power divergence—whether it’s high-position or low-position, just deal with it all in one pot. Generally, the big direction won’t end here. It’s a bit like offshore engineering equipment back then: commercial aerospace—after it was lifted, it started rotating, and then everything collapsed across the board. After that, following several months of stabilization, it gradually pulled back.

For this direction, it’s not really over. It’s the divergence phase—it’s not good to act on immediately. Everywhere you go, you need to have the initiative (the lead). Without the lead, it’s easy to get beaten. So you can only observe quietly, and wait for the second wave to start.

Chemicals mainly depend on oil prices, but neither the US nor Iran sides has any intention to continue. So chemicals can only be viewed as a “follow-up gain” direction unless changes happen later on.

So what should be thought about now is to put more effort into the rebound direction.

After months of commercial aerospace being out of focus, it’s back in people’s sight again. Then as it rises again with KJ and ShenJian GF launches a second-wave surge, the key thing to watch is whether the “again rise” can open the situation and push to challenge the high points, and whether it can pull commercial aerospace into another round. Then for low-position issues that have stabilized without much follow-up, they have a good chance to move with the rebound—for example, aerospace navigation that hasn’t really been lagging much: Tongyu TX, Tianyin JD, and Leike FW. Can they bounce back and press toward the low points?

Also, lithium batteries. Right now, it’s the strongest direction that’s “holding the position” relative to computing power. Here, the key is to watch whether Rongjie GF can continue its trend. If it can, then options like Nord GF, Chuaneng DL, and Tongguan TB are also still solid choices.

In addition, there’s healthcare. Yesterday I also said: right now healthcare’s pullback has been deep. The market’s main consideration for Z gold is that its value is undervalued, so it can be waited on for the timing of the low-cut (low-position shift).

As for computing power, keep observing YunSai ZL, MeiLi Y, and AoRi D’s trend.

Alright, if there’s a particularly great opportunity, leave a message in the comments—did you catch another leg today?

That’s all for today! Finally, I wish you all, brothers and sisters, a big rise in the market!

Stay clear-headed to see through the mystery,
and avoid arrogance and impatience to go the distance.

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