Likes Received2024.4.18 Review: Pullback after rally does not change upward trend
Today, the Shanghai Composite Index showed a pattern of rising and then falling back. There is still relatively strong pressure near the 3,100-point level. However, it is now evident that major heavyweight stocks and banks are showing clear upward trends. In the later stages, the focus should be on changes in trading volume. A genuine breakthrough requires increased volume; without it, avoid blindly chasing highs. Instead, focus on buying on dips. After repeated fluctuations, the market will be more conducive to strengthening upward. Continue to focus on policy-supported sectors and performance expectations for buying on dips.
In terms of sectors, the low-altitude economy continued to perform well today. Stocks such as Jindun Shares, Andawell, Traffic Control Technology, CITIC Offshore Helicopter, Design Institute, and Wan'an Technology hit the limit-up. Yesterday, the National Development and Reform Commission stated that the low-altitude economy is a typical representative of new quality productive forces, and actively and steadily promoting its development is of great significance and bright prospects. The Ministry of Industry and Information Technology also emphasized actively cultivating high-tech enterprises in the low-altitude economy sector and accelerating breakthroughs in low-altitude intelligent connectivity technology and model innovation. Although some stocks saw a pullback in late trading, major policies remain supportive. After short-term fluctuations, opportunities for buying on dips in related sectors can be considered.
In the afternoon, the non-ferrous metals sector rose again, with copper concept stocks leading the gains. Tengyuan Cobalt and Northern Copper hit the limit-up, while core stock Luoyang Molybdenum rose over 4%, reaching a historical high. Other stocks such as Western Mining, Jiangxi Copper, and Tibet Mining also saw significant gains. From a macro perspective, the supply side of copper ore is tight, requiring increased scrap copper supply to support high output from copper smelters. On the demand side, the new demand base brought by the transition to new energy continues to rise. Even if growth slows, the absolute increase remains substantial. In the short term, new energy vehicles, photovoltaics, wind power, and home appliance exports continue to drive copper consumption. Domestic economic recovery and the decline in the real interest rates of the U.S. dollar overseas also favor copper prices. As a branch of commodities, the trend of copper should continue to be monitored.
In summary, the Shanghai Composite Index briefly touched 3,100 points in the morning, driven by the financial sector, but later pulled back due to insufficient follow-up buying. The key focus remains whether the index can successfully challenge the annual line pressure zone. If the index can break through this level with increased volume, further upward movement can be expected. Otherwise, it may continue to consolidate within a range. However, after the irrational sell-off of small and micro-cap stocks earlier, short-term risks have largely been released. In recent trading sessions, the market has shown strong support during declines. At this stage, when the index pulls back again, opportunities outweigh risks. Investors can still take advantage of rotating hot sectors to time their buying on dips.
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