April 25, 2024 review: Divergence within the sector, high-low rotation

The market divergence today was within expectations. Looking at individual stock data, it's still acceptable, with trading volume remaining below 800 billion. However, the number of daily limit-down stocks this month is significant, which is also related to the disclosure of earnings reports.

In terms of market performance, the price increase theme stood out today, with chemical stocks leading the gains. The low-altitude economy sector also remained active, although it peaked yesterday and saw internal divergence today, with rotation between high and low positions.

Overall, the market performed decently today, at least without extreme polarization. Although trading volume tends to be less active before holidays due to habitual thinking, which explains the reduced volume in the past two days, it's clearly better than before the Qingming Festival.

The two directions I mentioned last night—low-altitude economy and major consumption (tourism, hotels)—also had standout performers within their sectors today, especially stocks combining tourism and low-altitude economy concepts.

Low-altitude economy—The sector index formed a high doji star today. As I mentioned last night, divergence was expected today. It started the day before yesterday, consolidated yesterday, and diverged today—a very reasonable rhythm. The doji star indicates that a directional choice is imminent. If it moves upward, new highs are likely before the holiday, and popular stocks within the sector have the potential to reach new highs.

Major consumption—Last night, I suggested focusing on tourism and hotel directions. The current leader in tourism is Tibet Tourism (2-day limit-up). If it continues to advance, this direction is still worth positioning in before the holiday.