3.11 Review and Rotation

Yesterday, the combined trading volume of the two markets was 2.5 trillion yuan, an increase of 110 billion yuan compared to the previous day. The indices fluctuated around the moving averages throughout the day, remaining a rotation-driven market. The situation in Iran and the Middle East remains unclear; from the current perspective, there is no sign of resolution in the short term. Therefore, this is a pressure point for global indices. Last night, all European indices closed in the red, while U.S. stocks fared slightly better. If the issues are not resolved later, there could be systemic risks in the indices. Overall, the current situation suggests it’s wise to control positions.

Conflict zone: The Middle East situation, as mentioned the night before, remains unresolved. Oil prices continued to be supported after a slight decline at the opening yesterday morning. Last night, news indicated Iran is quite hawkish, and the conflict persists. Oil futures also rose slightly. After the market closed yesterday, Shandong Molong in Hong Kong added over 10 points. It’s expected to open high today, and then observe whether funds take profits before pushing higher again. If disagreements continue, attention should still be paid.

Electric power: Yesterday, from a low position, one entry triggered two upgrades, supporting high-level stocks like ShunNa and Yunnan Energy, which saw buying rushes at the close. The U.S. still faces severe power shortages. News reports that Google and Tesla are forming a power grid alliance, and the Middle East energy crisis has led many countries to focus on clean energy alternatives. Yesterday, funds also shifted towards energy storage and lithium batteries. The current market is mainly rotating; key sectors are moving in and out. Buying dips in sectors with ongoing divergence can be profitable.

Crayfish: The night before, a series of negative news came out, such as the first batch of installed customers starting to uninstall, potential safety issues, etc. Ningbo Construction, a core stock, couldn’t break above 1 yuan, and after hitting the daily limit, it repeatedly failed to hold gains. Another core stock, Youke De, with a 20cm pattern, showed healthy divergence around the moving averages throughout the day. Near the close, funds pushed Tencent-related LIT Electronic. Today, watch whether this sector can rebound and strengthen. Regardless of whether it weakens or strengthens, there are no good entry points today, so it’s better to handle positions proactively.

Institutional trend directions are also quite random: a few days ago, they pushed CPO, fiber optics, then storage chips, and yesterday, energy storage. Given the uncertain external situation, indices are under normal pressure today. Yesterday’s market also saw funds taking early positions in banks and securities. Personally, I believe that today’s institutional trend faces pressure. If the market continues to rally banks and securities to support the market, risk should be watched carefully.

The above views are personal notes for reference only and do not constitute any investment advice.

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