03.30 Review: Both hit the daily limit down.

Declaration: The following are my personal thoughts, not investment advice [Taoguba]
Limit-up situation

Two consecutive limit-ups

2nd board upgrades to 3rd board

3rd board upgrades to 4th board
None
4th board upgrades to 5th board

Limit-up was sold off

Down more than the last 20

Yesterday’s limit-up on the ChiNext board

Today’s limit-up on the ChiNext board

Up/down situation
Limit-up 62 (excluding ST), down-limit 10

1. Market

(1) Fire and ice side by side

During the pullback phase, you often run into this kind of situation.

When there were extreme consecutive down-limit moves in Silver Lake and Nonferrous Metals, the funds also switched between high and low.

Later, Hengdian Film and Television (when it was on the 2nd board it hit a down-limit for Silver Lake and Nonferrous Metals) emerged and led a wave of AI + film and television concept stocks.

Of course, when Hengdian Film and Television finally topped out, it still went with a “A” exit; but the funds still, without hesitation, went to gamble on the highs. So don’t think that when the leader goes with an “A” exit, the multi-day limit-up sequence is beyond saving.

Because no one can know the future, funds will think: what if this time it doesn’t go with an “A” exit?

(2) About tomorrow

The two big leaders, Huadian Liaoning and Huadian Energy, both hit down-limit again, and they’re back under regulatory scrutiny and got hammered; going forward, you can still pay more attention to the first-board stocks or those with stronger follow-through. If the leaders open sharply lower again, there may also be opportunities to surge up and then pull back.

At the next level, Menovo Pharmaceutical pk’d Rongjie Co., and while Menovo Pharmaceutical has higher premium, the order of who goes first in the next-level contest is relatively important—especially during the pullback phase. If you make the wrong call, it’s easy to get a major loss. Observe during the day more on how the follow-through is behaving—whether it can hold. If it can hold, then lean toward weight-loss drugs next.

The divergence in lithium batteries is a bit larger than expected. Rongjie Co. saw consolidation and a surge higher; I expect it will continue to trade sideways or take a trend move. Funds then rotated again into the optics-fiber concept—Farsight Victory, Hangdian Co., and others hitting limit-ups. These are price-hike themes as well. After all, price-hike-related items tend to show performance.

Commercial aerospace was relatively more than expected today. Shenjian Co. got a turnover into a three-day limit-up and still has room to rise; it can also coordinate with the sector, though the sector wasn’t really doing much in terms of support.

Going forward, you can also focus more on earnings, and the high/low rotation.

2. Trading

Oryde had already prepared to cut loss on the down-limit, but the fact that it could still be pulled back meant no action.

Wishing you well
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