April 9, 2024 review: The market rose across the board today.

Yesterday was a broad decline, today it's a broad rally again. The market is just so extreme. The only question is how much our accounts have recovered with today's rise??

Today the index didn't rise much, but the median gain for individual stocks was 1.28%, with 60 stocks hitting the limit-up. Unfortunately, trading volume shrank significantly, with full-day turnover failing to reach 800 billion yuan. Rumor has it that selling was restricted in the afternoon, which pushed up the index but not the volume. Domestic capital still fled 9 billion yuan today!

As mentioned yesterday about the index, it would be best if it could pull back today to fill the gap. The Shanghai Composite did fill that gap today - now we'll see if it can break out with a positive candle in the next two days. If the index fails to rise tomorrow or the day after, we need to watch out for risks.

In terms of themes, we finally saw a rotation today - the lithium battery sector surged!! Why? Catalyzed by news!

Last night, SAIC Motor's subsidiary IM Motors launched the L6 smart sedan, touted as the world's first mass-produced vehicle equipped with "ultra-fast charging solid-state batteries." This sent solid-state battery, sodium-ion battery, CATL, and lithium battery concept stocks soaring today. The key question remains sustainability - whether this rally continues will determine whether to enter.

Non-ferrous metals---- We warned you about divergence last night. Today the sector clearly saw rotation from high to low - rare earth permanent magnets at lower levels and minor metals at the bottom began catching up.
However, the previously strong copper and aluminum likely haven't finished their runs either. After some consolidation, we can watch for opportunities.

Batteries---- The strongest sector intraday today, where most limit-ups came from. If you hold stocks in this sector at not-too-high levels, you might consider holding longer. Looking at today's limit-ups and big gainers, most were 300 and 688 stocks, suggesting newer companies are being targeted.

Consumer---- Qingming holiday consumption data plus May Day expectations kept this theme going today, rotating from yesterday's food & beverage to tourism/hotels. However, the rally was scattered rather than concentrated, making stock-picking and identifying the right sub-sectors crucial. Next we'll see if duty-free and retail department stores get attention.

Tomorrow's session is quite critical - it would be great if thematic stocks could sustain further gains. But if divergence continues with daily rotations, caution is warranted.

Historically, April tends to be viewed more pessimistically as it's peak earnings season when many funds reduce positions to avoid risks. Over the past decade, the last week of April has been particularly rough. As the saying goes, "A wise man doesn't stand under a dangerous wall" - if the market ebbs, focus on position control rather than reckless moves.