Hexun Investment Advisor Li Ying: When there's a massive volume, don't buy stocks; a massive volume always indicates a potential anomaly.

Ahead of the market on Wednesday, April 1, 2026, let’s first review the good and bad catalysts from last night through this morning.

The external markets saw positive feedback in U.S. stocks. Both the Nasdaq Composite Index and several selected indices in the Asia-Pacific region recorded solid gains. Today, the Korean stock market opened up 5 points, creating an expectation of a higher open for A-shares and effectively breaking the low-open shock caused by yesterday’s pullback. But everyone should note that the market is still below the 3,900-point level, so you must not chase the rally too aggressively.

We follow the core trading rule of “when trading volume is extremely high, don’t buy; when trading volume is extremely high, something weird is likely.” With extremely high volume, do not add to positions. Measured by the week, Monday is usually the day with the largest volume. Measured by the day, the first half hour of the open accounts for about 25% to 30% of the day’s total turnover. This also should not be the time for us to buy. Instead, we should use such trading volume to see whether the tickers we hold offer better opportunities to sell into strength for a higher sell-off price and capture the spread—this is very practical hands-on experience.

In terms of external market risk control, there are two small points to pay attention to. First is the issue of export tax rebates for solar power. In the short term, be cautious with the solar equipment sector; don’t bet on its bottom. From a technical perspective, the solar power industry chain itself has excess capacity. Geopolitical factors previously drove a rise in electricity prices, but the solar sector still needs to cool down and we should manage risk with proper stop-losses. Second is whether the Federal Reserve is leaning hawkish or dovish; these kinds of short-term events don’t need to be overthought. For the precious metals sector we follow, as long as you don’t chase after price, it’s fine to anchor the stop-loss around the lowest point from Tuesday, March 24. Yesterday, the sector was slightly capped above the 60-day moving average. It has been above the 5-day moving average for three consecutive days, though it’s still a bit away from the 20-day moving average. Throughout 2026, I’ll keep an eye on precious metals because the underlying logic is very solid. The earlier large rally followed by a correction is normal and healthy. As long as you don’t chase and instead capture trading spreads by holding the core support, that’s enough.

For the internal market, around March 18, when the Shanghai Composite Index showed a contraction in volume with a bullish candle, I reminded everyone to do the opposite—buy low and sell high, and shrink expectations. This is not about chasing higher prices at the top. Chasing higher is getting on the last train once the trend is already formed. The policy bottom is around 4,000 points. Liquidity in the market will continue, but in my view there is still about a 10% gap between the policy bottom and the market bottom. In the range of 3,600 to 3,675, you need to have a clear categorization in your mind first; otherwise, when the time comes you’ll be flustered, and if you can’t control your position sizing properly, it’ll become troublesome.

For the technology theme mapped from the U.S. market, including the AI industry chain, will it show performance today? I think some performance is normal, but it will be difficult to keep pushing steadily higher. For names tied to compute power, liquid cooling, optical modules, AI chips, semiconductors, and also memory chips affected by the recent price-cut news, you should use this kind of rebound to make opportunities to reduce exposure.

For individual stock operations, I shared yesterday a model that overlays the semiconductor chip concept with the unmanned drone robotics concept. This stock hit a 20-centimeter daily limit-up on March 20 and traded with volume for four consecutive days. On March 26, it printed a single upper shadow candle, but its volume did not exceed two times the volume from the 25th—this is a probing signal. Its share structure is very solid, with a single peak that’s dense, and there aren’t many shares trapped in losing positions. In terms of execution, set a support reference point. When pushing higher, watch whether the earlier probing resistance can be broken effectively. Before the breakout, you can sell half at the resistance level; after the breakout is confirmed, buy back. If it falls back, then look for dip buying at the support level. The key to Sun Bin’s horse racing success isn’t the horses’ ability—it’s the strategy being合理ly formulated.

For sector allocation, the technology direction has flexibility and stronger volatility. It’s suitable for investors with stronger risk-absorbing capacity, but you need to pay attention to reasonable position sizing. A more steady direction is based on energy as the main line, including energy storage, ultra-high voltage transmission, wind power, grid equipment, power, and so on. If power stocks pull back, you can find core support without chasing; you can buy on the dip during the pullback. The battery sector yesterday closed with a real-body bearish candle; today you can look for dip-buy opportunities. Energy metals are similar—you need to prepare your strategy in advance, not explain things after the fact. When it rallied and then fell back the day before yesterday, some positions were sold. Yesterday’s correction of 4 points wasn’t bought back. Today, after it hit the 5-day moving average, the half that was previously sold into strength was bought back. That’s the strategy.

For defensive picks, I’ve already covered precious metals and won’t repeat. The banking sector rallied and then fell back yesterday. After it made a push, it dragged the index down, but overall the price structure is very healthy. Whether to allocate depends on your personal risk appetite.

To sum up: in April, it’s highly likely to be weak, with range-bound volatility around the 3,900-point platform, with occasional big red and big green candles. When there’s a big green candle, sell into strength; when there’s a big red candle, look for reasonable support to buy dips. I lean toward another push downward into the 3,600 to 3,675 range. This was calculated in advance based on the 15-minute chart structure. When I resume the live session in the future, I’ll review it in detail again.

Remember a few key risk-control points: don’t chase when prices rise, and don’t panic when prices fall. Avoid junk stocks. April is a period when quarterly and annual reports are disclosed in high density. By the end of the month, they’ll all be published, and you should avoid stocks that blow up on earnings. Companies with issues such as a letter of inquiry, share reductions, and similar matters should also be kept at a distance. Once the problems are public, they are not small problems. Keep position sizing at 40% to 60%. Try to use rallies to keep it under 40% as much as possible; on bearish candles, rolling exposure should not exceed 60%. For stop-losses: for “hot” stocks, you can set stops around 8 points; for “biased” stocks, set stops around 5 points. Rigorously set the take-profit/stop-loss ratio with support points. When a stock rises about 30 points, you can consider taking profit on half the position—there’s no need to be too greedy. Since it’s a range market, greed is ineffective, and fear is also too tense.

(责任编辑：张岩 ）

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