Likes ReceivedVolatility is opportunity!
$Shanghai Composite Index sh000001$ Global stock markets rebounded collectively today. The A-share market opened higher as expected, but the index struggled to gain strength. The core reason is simple: yesterday's extreme low volume in A-shares + widespread stock declines indicated sentiment was nearing a turning point. Overnight rebounds in overseas markets and the release of market rescue measures led to synchronized high openings in Asia-Pacific markets, but they are likely to oscillate at high levels with difficulty sustaining a strong rally.
Today, A-shares opened above 4100 points, with over four thousand stocks rising, but the index couldn't move much higher, mainly because:
1. The small-cap stock recovery rally saw no movement in heavyweight stocks;
2. Financial heavyweight stocks like brokerages didn't exert force, coupled with pullbacks in large-cap heavyweights like oil & gas, directly dragging down the index.
Overall, it's a pattern of strong thematic small-cap stocks and heavyweight stocks dragging their feet. The oil & gas sector, which surged previously, saw strong profit-taking willingness, leading to continuous adjustments. Technology stocks suppressed by the Middle East situation saw their rebound elasticity highlighted as risk appetite recovered, driving widespread stock gains.
The oil & gas sector plunged 4% today, with funds withdrawing comprehensively and risk appetite declining. I previously warned everyone not to chase high oil & gas, and it has indeed come true.
Uncertainties remain in the Middle East situation, with the Iranian Supreme Leader's election possibly delayed and attacks from Israel. Keep a close eye on Brent crude oil trends (closing price on March 4th: $82.58/barrel), which directly correlates with the strength of the oil & gas sector.
The good news is that the power sector continues to exert force. The *XiDian shared yesterday hit the limit-up and reached a new high today. Friends who followed along have profited!
Don't be afraid of the feared plunge:
1. Overseas rebounds, and the emotional impact of the Middle East conflict continues to weaken;
2. The Two Sessions period focuses on "stability," with the index oscillating around 4100 points, making it hard to surge or plunge significantly;
3. Domestic capital has turned to net inflows, panic selling has cleared, and policies support technological self-reliance and innovation, making it easy to drive bullish sentiment.
Current market volatility will gradually return to normal, with low risk. I reminded everyone not to waver during the toughest times. Now it seems that volatility is an opportunity. Only by enduring can you catch subsequent gains!
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
