Just one day apart, how did pessimism turn into missing out?

Recently, Buffett accepted an interview with CNBC.

In this interview, Buffett shared multiple viewpoints. Dage selected a few key points for everyone’s reference.

1. Compared with the truly great buying opportunities in history, the recent market volatility is nothing worth mentioning. Berkshire has historically gone through three episodes of drawdowns of more than a 50% decline, and “this time, nothing counts.”

2. The current U.S. stock market “is not cheap.” Only if the market drops significantly would Berkshire tap into this massive cash reserve. In the past, Berkshire has experienced three instances of more than 50% decline in market value, and it regarded such moments as truly positioning windows rather than an adjustment of this magnitude right now.

3. Signs of fragility are starting to show in the U.S. banking system.

For Dage, the first two points above mean waiting for the key buying opportunities and not wasting any crisis.

As for “this time, nothing counts,” market volatility is just a repeated splash in the historical price action. The final returns from investing don’t depend on how many times you experience volatility; they depend on whether, during the key “buying opportunities,” you still have the courage and the “ammunition” at hand.

Let’s get back to the market.

Today, China’s A-share market saw a strong start to April. As of the close, the Shanghai Composite Index rose 1.46%, while the Shenzhen Component Index and the ChiNext Index rose 1.70% and 1.96%, respectively. Turnover amounted to 2,025.1 billion yuan, up slightly by 19 billion yuan from yesterday.

Yesterday’s market sentiment was relatively pessimistic, and today many people feel like they’re chasing a missed move.

More specifically, the number of stocks that rose was close to 4,500. The median daily percentage gain among individual stocks was 1.49%, and the average share price hit a new high since March 23. The sector direction surged sharply.

Today’s big rally in A shares is closely related to the overnight big rally in U.S. stocks.

As Dage mentioned in Monday’s article, U.S. stocks fell sharply for two consecutive days, but China’s A shares opened lower and then recovered. Once U.S. stocks turn upward in a mirror-like reversal, it will strengthen the intrinsic momentum for A-share rebound.

In addition, the market’s strong rebound is also related to statements from both Iran and the U.S. signaling conflict de-escalation.

The Iranian president said that Iran is willing to end the war on the premise that its demands are met. Trump said he would end the fighting in Iran within “two to three weeks.”

However, the situation in the Middle East remains back-and-forth and confusing, and it still has some impact on the market, so the timing and rhythm must be taken seriously.

Today, the Shanghai Composite Index filled the gap at the upper end of the 3,955-point gap, which matches Dage’s expectation from the past few days. The overhead resistance level is around 4,000 points.

From the 30-minute K-line chart, the end of the rising triangle from March 23 provides some support. Tomorrow, the market will still have upside momentum.

As of 5 p.m. today, the gains in the CME Micro E-mini S&P 500 index futures and the CME E-mini Nasdaq 100 index futures are both around 0.5%. If U.S. stock index futures and U.S. technology stocks rise early tomorrow morning, it would be favorable for sentiment in the A-share market.

Overall, the market is still in a rebound cycle, with resistance around 4,000 points overhead.

In recent times, most individual stocks have not formed a trend structure—only amplitude, with very few moving up—so timing is extremely critical.

In terms of execution, it’s generally more appropriate to enter when a stock drops sharply or experiences a rapid intraday selloff, and to take profits on a big surge with a high sell.

As for sectors, technology stocks and innovative pharmaceuticals led the gainers. The former have had a larger pullback recently, while the latter are related to the “four major news items” or logic.

First, there were two U.S. biotech/pharmaceutical companies that were acquired at high prices by large multinational pharma companies. Specifically, Eli Lilly announced that it would acquire the U.S.-listed company Centessa Pharmaceuticals for a total of $7.8 billion, and Centessa’s share price jumped 44.02%. Biogen agreed to acquire Apellis for $5.6 billion, and Apellis’s share price surged 135.4%.

Second, the overseas expansion of innovative drugs is accelerating further. In the first quarter this year, the total value of China’s innovative drug BD transactions exceeded $60 billion, approaching about half of the total for all of 2025.

The two points above indicate that large multinational pharmaceutical companies are bullish on high-quality innovative drug assets.

Third, innovative drugs are entering a profit cycle, and leading innovative drug companies are moving in dense clusters toward breakeven.

Finally, the efficiency of medical insurance negotiations has improved significantly. The average percentage decrease for negotiated drugs has stabilized, maintaining a high approval rate for truly innovative drug candidates. In 2025, the first “Commercial Insurance Innovative Drug Catalog” was established, which is expected to expand the space for innovative drugs to ramp up volume.

In the second quarter of this year, the innovative drug sector will also have multiple major academic conferences as drivers, including the 2026 American Association for Cancer Research annual meeting and the 2026 American Society of Clinical Oncology annual meeting. The market expects that there will be data presentations for several major domestic new drugs at that time.

After nearly half a year of adjustment in the innovative drug sector, over the last two weeks the sector index has pulled out three consecutive medium-to-long bullish days, and the flavor of a phased rally is clearly evident.

China Jinguo Securities pointed out that, with multiple favorable factors stacking up, the innovative drug sector has entered a golden window for a “triple-cycle” overlay of performance, valuation, and events. It recommends focusing on leading targets, Biotech turnaround/breakeven targets, and ASCO-catalyst targets, to capture medium- to long-term growth opportunities in innovative drugs.

In AI hardware, although market volatility in A shares has been significant since the beginning of this year, the communications equipment sector index continues to maintain a box-like consolidation pattern.

Among the sub-sectors, Dage pays particular attention to the optical communications sector. The reason is that new optical communications technologies keep emerging, and products such as CPO, NPO, and OCS are all just before their breakout. The phase from 0 to 1 is often where historical opportunities lie.

In the optical communications industry, key upstream components include optical chips, electrical cells/chips for optics, optical modules, and basic components (such as ceramic sleeves, optical isolators, and PCBs). Downstream devices and equipment include optical devices, optical modules, fiber optic cables, and optical communications equipment (such as OTN and switches).

These various links have produced multiple big winners. From an industry trend perspective, optical chips are worth watching.

In March, Nvidia announced strategic investments of $2 billion each in Lumentum and Coherent, and signed long-term large-volume procurement agreements to secure high-end EML and silicon photonics chip supplies for AI data centers. This means the industry is entering a large-scale capacity expansion cycle.

On the earnings front, among the companies that saw yesterday’s sharp drop due to earnings that exceeded expectations, today their share prices have shown some repair. However, sentiment in this direction still isn’t very stable. One important phenomenon is that Damingli’s earnings exceeded expectations, but today it opened higher, then fell, and closed down.

For companies with earnings that exceed expectations, you should observe the valuation level of the share price. Stocks whose prices are in the mid-to-low range are worth paying attention to.

Now let’s look at today’s news.

1. According to Xinhua News Agency, an interview article with U.S. President Trump published by Britain’s The Daily Telegraph on April 1 said that after NATO allies refused to help in striking Iran, Trump is “seriously considering” having the U.S. withdraw from NATO.

This news triggered a significant rally in European aerospace and defense stocks. In this regard, you can watch whether A-share defense industry stocks and military metal-related products show any unusual moves.

2. According to reports by media including CCTV News, the White House said on Tuesday that U.S. President Trump will deliver a nationwide address at 9:00 p.m. Eastern Time on April 1 (9:00 a.m. Beijing time on April 2) to issue an “important update” on the Iran issue.

Finally, Dage offers a summary: Today, the market rebounded strongly, breaking through the upper end of last Monday’s gap. In the short term, there is still upside momentum, but resistance near the 4,000-point level is obvious. Since Dage expects this rebound to be driven mainly by time, if the market rallies sharply tomorrow, it isn’t advisable to chase gains. In terms of trading, investors with weaker execution ability should not carry overly heavy positions; they need to manage the timing and rhythm well.

(Editor: Zhang Yang HN080)

     【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. Hexun’s website maintains a neutral stance toward the statements and judgments in the text, and does not provide any express or implied guarantees regarding the accuracy, reliability, or completeness of the content included. Readers are asked to treat this as reference only and bear all responsibility themselves. news_center@staff.hexun.com

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