The funds are all hiding here... | Tuesday midday trading session

Market Overview: Limit-ups in the Two Markets: [Taoguba]
Robots: Shenhua Fa A, Zhuolang Intelligent
High-speed Copper Cable Connections: Xinya Electronics
Real Estate: Jingtou Development (Real estate + major asset sale planning), Zhongzhou Holdings, Jingneng Real Estate
Steel: Anyang Steel, Jiugang Hongxing
Chemicals: Sanfangxiang, Antai Group (Coal Chemical Industry)
Photovoltaics (Space Computing): Shunhao Shares (Space Computing Power), Zhaoxin Shares, GCL Integration, Yabo Shares, Xineng Technology, Chint Power, Renzhi Shares
Big Finance: Aijian Group
Performance: Yaxiang Integration
Wind Power: Huaneng Liaoning, Jiangsu New Energy, Xihua Technology (New + Wind Power), Energy-saving Wind Power
PCB: Chaoying Electronics (New)
Optical Fiber: Farsight
Lithium Batteries: Nabajian + Gude New Materials (New + Lithium Batteries), Shuangxin Materials (Photovoltaic + Lithium Batteries + New)
Newly Listed Stocks: Gude New Materials, Nabajian, Chaoying Electronics, Shuangxin Materials, Xihua Technology

The market is difficult to operate in, so funds are like headless flies. The strongest sector in the market is newly listed stocks, which account for 20% of the two markets. Usually, the market targets new stocks for one reason: risk aversion!

This indicates that the market does not see a clear trading direction because there are too many opportunities, such as real estate, steel, wind power, robotics, and photovoltaics in the morning.

From a logical perspective, sectors like power grid equipment may still fluctuate. Yesterday, I saw a viewpoint that I’ll quote below:

I asked my friends in the US
Are the circuits in the US seriously aging?
They were confused
So they asked me to observe
Just now they replied yes.
Then I asked the major AI companies in the US
They all said yes.
So I checked some “power equipment” companies on A-shares
Damn, they are soaring.
Then I looked into orders of leading companies
Damn, their orders are full for the next three years.

Of course, this only reflects the issue indirectly. It’s about long-term trading, combined with energy substitution driven by oil, so it will fluctuate repeatedly.

In the meantime, clean energy sectors like photovoltaics and wind power also take turns.

——————

1. Steel: Select leading companies in key industries like steel and form alliances. This is also the logic behind steel’s rise. The opportunity is mainly in the early trading moments. Personally, I feel that funds are not very sensitive to this news; if they were truly optimistic, the stock would open significantly higher.

But it didn’t. Because this news is accompanied by automotive, with the original text: “Select leading companies in steel, automotive, and other industries to form a ‘coalition,’ systematically building a new ‘1+4+N’ industrial data ecosystem, and creating AI-enabled high-quality data sets.”

Funds prefer steel because it was hot a few days ago, and the stocks showed strong momentum, like Anyang Steel and Jiugang Hongxing, which hit the daily limit or attempted to. Funds are more like self-rescue by choosing these.

This sector is generally not recommended for heavy trading.

2. Photovoltaics: The hype here isn’t about green power logic but about Nvidia’s space computing. This sector has two branches:

First, the computing power concept of space computing, with Shunhao Shares (the company holds 19.30% of Beijing Orbit Chuangguang Technology, and its first experimental satellite “Chuangguang No.1” has been completed).

Second, the power auxiliary for space computing, which is driven by photovoltaics because space computing can only use electricity as energy—you can’t lay power grids in space, so photovoltaics are the most practical.

The logic is similar to Musk’s space-based photovoltaics, essentially the same.

There’s not much to add here, just revisiting the earlier photovoltaic hype.

3. Wind Power: Likely a recovery sector. There’s good news here—Britain has canceled 33 import tariffs on wind turbine components since April 1.

However, there are differing opinions. For example, Daikin Heavy Industry, which hit the daily limit yesterday, remains green today, indicating that each is fighting their own battle. Conversely, Xihua Technology, leveraging its new stock status, has hit three consecutive daily limits.

So, the core positive factor for this sector is newly listed stocks. Keep this in mind.

4. Newly Listed Stocks: Currently the market’s hot spot and a safe haven amid uncertainty. The downside is that once the market recovers, this type of risk-averse new stock will quickly collapse. Be aware of this risk.

Another reason funds favor new stocks is the uncertainty of war—no one knows how long it will last, so new stocks become a safe harbor.

The reason for choosing new stocks is also simple: they have clean market caps with little trapped or profit-taking positions.

The key stock here is Nabajian, which is in the lithium battery sector. Its logic is that CATL’s performance has boosted confidence in the entire lithium battery sector.

Another 20% is Gude New Materials, also in lithium batteries, so lithium battery new stocks are more favored by funds. If you want to participate in new stocks, keep this in mind.