Another day of eating noodles (losing money)!!

$Shanghai Composite Index sh000001$ At 9 a.m., as soon as that unreliable old man made a speech, well, the ceasefire expectations everyone had been hoping for were directly smashed to pieces by him. The whole world panicked, risk-off sentiment was maxed out, and A-shares, unsurprisingly, got hit again!

It was a whole day of weak adjustment. Yesterday we finally managed to recoup some losses, but today they were directly doubled and taken back, equivalent to a wasted effort! Looking back, the previous broad-based rally with a big bullish candlestick couldn't even generate any volume, which shows that market sentiment wasn't excited at all, and not many dared to rush in with real money.

Honestly, the things that old man Trump usually says are even less reliable than a kindergarten kid's words. But this morning's speech was actually somewhat credible—why? Because he was addressing the domestic public and the voters who will cast ballots next, so this time his words have reference value.

He basically said two things: First, he said they won, and it was an overwhelming victory. Second, if an agreement can't be reached in the next round of talks, within the next 2-3 weeks, they will launch even more severe strikes, specifically targeting the other side's power plants and oil fields.

What everyone is most worried about is actually the second point! Think about it, once the energy facilities of the other side are destroyed, the surrounding regions will definitely retaliate fiercely. When the energy war kicks off, that will be the most fatal, affecting the whole world.

Another thing, tomorrow is Good Friday in the US, a market holiday. Combined with the weekend, that's three whole days. Trump has plenty of time to stir things up. At worst, he can come out before the market opens on Monday and say something nice, talk up the market, and that'll be it. So it's not unreasonable for funds to panic and flee today.

Moreover, we also have a 3-day holiday coming up. Everyone is feeling uneasy, afraid that the big bearish candlestick from April 7th last year might repeat itself. After all, the shadow is still there!

Of course, we can't blame the entire decline on external factors. We also need to face our internal problems. First is quantitative trading, which specializes in blood-sucking during turbulent times. Look at the recent strong sectors and individual stocks. Many were doing well during the day, only to be smashed at the open the next day. It's such a trap!

But having said that, we've reached this point, so there's nothing much to fear anymore. Let me paint you a rosy picture to ease your minds: Last March and April, the market was even harder to deal with than now. Everyone was utterly desperate at the time. And then what happened? From mid-April, it rose all the way until November!

So, don't worry, just keep grinding. Good days will come, they might just be a few days late. Get through this and it'll be fine!

Sector-wise:

1. Innovative Drugs

The only thing worth a glance in today's market was innovative drugs. There was some divergence in the morning, but other themes were just too weak! For example, tech stocks adjusted again in the morning due to external news. I reminded you the day before yesterday not to chase high-flying tech stocks. See?

So, funds had no choice but to turn back and huddle in innovative drugs. During yesterday's review, I mentioned that innovative drugs were already showing signs of strength. But remember, you must find trending stocks with earnings support. Don't buy blindly.

If you didn't position yourself early, if you don't have the first-mover advantage, in this environment, absolutely do not chase rallies. It's best to wait for a pullback and then buy on dips. Focus on the performance of the leading core stocks. Only if they can stabilize will there be positive guidance.

2. Other Directions

The rotation of market hotspots is too chaotic right now, with no clear direction. The hottest sector in March, the power sector, has been falling miserably since peaking recently, with severe negative feedback, which has also dragged down overall market sentiment.

Until a new hot theme emerges to motivate people to go long, we probably need to wait for the power sector to stop falling and stabilize before market sentiment can gradually recover. During this period, everyone should try to control their positions, focus on defense, and not mess around.

Big tech and the index are tied together. With the index still exploring lows, we should focus on the opportunities to buy dips in core huddle stocks. Don't blindly try to catch the bottom.

As for commercial aerospace, I've been telling you repeatedly recently that we are now in a mid-term bottoming area, consolidating and building a base. It's impossible for a major uptrend to start immediately! It needs to grind slowly. Only after sufficient 筹码 exchange, coupled with continuous stimulation from positive news, will there be a chance for a big rally.

So you can pay more attention to those varieties that can still accumulate 筹码 against the trend during declines—after all, while other stocks are falling sharply, if there's real money buying it, it will likely outperform other stocks later. For example, the Tian..Yin and Fei..Wo I mentioned in recent reviews have been relatively resilient against the trend. You can take a closer look.

Also, as the holiday approaches, even without external geopolitical conflicts, oil price fluctuations, and other such troubles, market sentiment itself tends to be defensive. This is an old rule of A-shares for many years; it's always like this before holidays.

After all, before the market opens on April 6th, no one can tell what unexpected news might come out. Tomorrow is the last trading day before the holiday. Don't get your hopes up too high. It will most likely be a "transitional"震荡行情， not rising much, nor falling much.

The key is not how much it rises or falls tomorrow, but whether some new positive news can emerge during these three holiday days to give our subsequent 行情 a boost.