Strategy | March concludes with collective decline, awaiting new trends in April! Analysis of the market directions in hot sectors such as electricity, computing power, lithium, and innovative medicines!

(Source: Jingcheng Night Reading)

The uncomfortable March market finally ended. This month, due to the Middle East black swan event, the index fell from 4200 points below 3800, with 90% of people experiencing significant drawdowns, and 10% experiencing normal pullbacks. For those with heavy positions and no risk control, there was even a possibility of halving their holdings. Everyone endured this month’s ordeal together, and it’s understandable to feel some discomfort and suffering. But the black swan will eventually end, and the A-share slow bull will return to the right track. Adjustments are also opportunities; after Qingming last year, on April 7th, a thousand stocks hit their daily limit, creating a golden pit, which marked the beginning of a bull market. A year later, after the holiday this year, on April 7th again, a black swan created another golden pit. As for this year’s market,

In terms of the index, the slow bull trend remains unchanged. The current wave is in an adjustment cycle. At this stage, the index has tested the left-side bottom and rebounded from oversold levels. Trading volume has gradually decreased, and external changes remain one of the reasons why funds are hesitant to attack aggressively. Market bottoming requires a process and won’t happen overnight. After sufficient consolidation at low levels, a new round of market rally will begin. Continued observation and patience are needed to wait for a signal of trend reversal.

In the short term, today’s market showed a divergence with a rise and fall, adjusting after a strong yesterday. Aerospace, which was strong yesterday, did not strengthen today. The laggards have begun to fall behind, and funds are not choosing to attack new sectors. Coupled with the index reaching a stage high, profit-taking and high selling occurred. After subsequent consolidation, a new round of recovery is expected.

Regarding the direction, most sectors adjusted today. Commercial aerospace continued to strengthen, the banking sector performed well, while technology, lithium batteries, and other sectors experienced divergence and correction.

Forecast for tomorrow: At this level, the index will likely rebound and diverge again. Operation-wise, continue to sell high and buy low; dips are opportunities. Positioning should not be aggressive. In terms of sectors, focus on new energy, computing power, and hard technology.

Trend analysis + core stock analysis of the hot spots

Speculation: After the index releases panic risk and begins to bottom out, various strong sub-sectors will rotate in a trend during the bottoming process. There are no dominant breakout sectors, suitable for light positions, buying low and selling high. Once the bottom is formed and funds focus on 1-2 strong sectors, with volume bottoming out and expanding, a new main upward trend will begin.

1. Hot Spot Rotation - Budding Stage

1. Power: Today: Weak recovery!

Logic: The three major regional power grid operators in the U.S. have successively approved a total of $75 billion in transmission expansion projects. Transformer exports are booming, and the calculation and electricity collaboration has been written into the government work report for the first time.

Conclusion: Five stocks hit the daily limit all day! After a sharp decline and liquidation yesterday, today’s market showed a recovery. During the session, high-level Huadian Power opened lower and then rose, but the recovery was not strong enough to fully reverse the decline. Funds remain cautious about group buying, and there was a strong sell-off attitude at high levels.

2. Computing Power: Today: Weak divergence!

Logic: The Ministry of Industry and Information Technology issued a notice on the development of national computing power interconnection nodes + updates from models like Zhipu, Doubao, DeepSeek, Qianwen, KiMi, etc. Demand for computing power exceeds supply + OpenClaw ignited the tech circle + Tencent’s full-scenario AI agent WorkBuddy officially launched.

Conclusion: Three stocks hit the daily limit all day! There is significant divergence in computing power stocks. Overseas computing power is affected by small-scale negative news. Regardless of whether institutions have new funds or not, quantitative trading is mainly selling first. Except for fiber optics, other segments are mostly wiped out. Domestic lines are also affected by sentiment. Although there was no large-scale sell-off, with the index falling back, few funds are willing to pick up. The future will mainly be consolidation, and without stabilization of the index, big moves in tech are unlikely.

3. Metal Lithium: Today: Divergence!

Logic: In March, domestic battery sample companies increased production by 21.93% month-on-month + Zimbabwe announced an indefinite suspension of all mineral and lithium concentrate exports at the end of February.

Conclusion: Today’s market showed divergence, mainly due to signals of easing in the Middle East + sharp declines in futures. Metal lithium is essentially affected by energy substitution and production halts benefiting from war impacts. Easing signals may lead to profit-taking and liquidation. But there’s no need to be overly pessimistic; wars won’t end overnight. Currently, it’s just Trump’s TACO, with market news flying everywhere. Follow developments step by step.

4. Innovative Drugs: Today: Weak divergence!

Logic: By 2026, China’s innovative drug outbound BD total contract value has reached $57.1 billion, with an upfront payment of $3.3 billion, covering 53 deals. The total contract value accounts for 41% of all 2025, surpassing the full-year level of 2024.

Conclusion: Five stocks hit the daily limit all day! Today continued to rally and then fell back. Meanwhile, Novartis (rights protection) broke the board, indicating the sector cannot strengthen today. With the index unable to strengthen, strong sectors mostly surged and then retreated. The stocks that performed well today are mainly catch-up plays. As long as divergence remains and there’s no sign of weakening, there’s still room for recovery. Currently, it’s suitable to follow and observe.

Disclaimer: The content of this article is for information sharing and market opinion exchange only. It does not constitute any investment advice, investment analysis, or fund recommendation. Funds carry risks; investment should be cautious. Past performance does not guarantee future results. The performance of other funds managed by the fund manager does not constitute a performance guarantee. Investors should make investment decisions prudently based on their own risk tolerance, investment horizon, and goals. The information source of this article is from public data, striving for accuracy and reliability, but no guarantee is made regarding its completeness, timeliness, or accuracy.