March 17 Review Notes

Today, the index moved in a zigzag pattern. The external markets were doing quite well, and the Asian markets also performed nicely, but this is the familiar big A-shares. It opened high and then declined. At 10 o’clock, it started rising steadily, reaching 4100 points, but then began to decline sharply, dropping 50 points directly. It finally closed at 4049. Luckily, it didn’t break below 4048, but today’s movement was really frustrating. Banks, brokerages, and insurance stocks were all surging, yet other sectors were also crashing wildly. Once again, 4,500 stocks fell sharply, and trading volume remained sluggish at around 2.2 billion yuan.

So today, I couldn’t help but comment during trading, warning everyone not to chase highs. Because even with brokerages pushing the market up, the index was still heading down. No sector was able to rally alongside brokerages, which shows the index is weak, and sectors are also weak. Therefore, you must not chase high; instead, sell high and buy low. Today proved that if you chase high during the day, you might find yourself hanging high on the tree after the close. That’s the big A-shares for you. Trust it, and it will hang you. The way to profit is through buying on dips and selling on rallies. [Taogu Ba]

At the same time, the pharmaceutical sector performed well today. After hitting bottom previously, I said that from that day on, as long as there was a chance to buy on dips, just do it. If not, hold onto your positions. The new drugs sector also showed signs of a bottom reversal because it started to increase volume above the support level. So holding on is good, or you can buy on dips and sell on rallies. When the fund rises more than 3% during the day, it’s considered a significant gain, and you can sell high and wait for a pullback to buy back. Especially when the index is weak but a certain sector is doing well, it’s very likely that the sector will pull back in the late session. When the overall market is weak, even the stocks that are rising tend to be dragged down by the index.

In the afternoon, crude oil suddenly surged, which is related to the ongoing mutual bombardment. Currently, crude oil is experiencing fluctuations driven by news stimuli. When crude oil rises, the stock market is likely to pull back. A reminder: Australia announced an interest rate hike, adding new uncertainty to the news from the US on the 19th and Japan. So if the index falls below 4048 tomorrow, consider reducing your positions to avoid the impact of the two upcoming news events. If it drops below 4000, there’s no need to say more—it’s a broad decline across individual stocks.