Review of Friday, April 3

Market sentiment at a low point, with funds forming cliques around momentum stocks—mostly led by CPO, which in turn boosts sentiment in thematic momentum stocks. If there are no new themes during the holiday, CPO is expected to continue, but the condition is that the broader market index doesn’t fall apart. The U.S. stock market opens on Monday, and telecom stocks keep moving up.
We don’t have a good view of the healthcare sector. Although Jinzhou Pharmaceutical is the highest version in the whole market, the starting point for a healthcare uptrend is the defensive sector during the pullback phase—so you’re doing high/low switching. Even when the high-valuation names surged, it didn’t lift the whole sector.
We don’t have a good view of compute power. After the previous round of thematic speculation, the high levels are now facing trapped positions. The downtrend in the core names hasn’t fully played out yet. The “sneak attack” at the end of Friday trading was more like follow-through from the CPO-led diffusion; either someone is laying in positions for major policy news to be released over the holiday.
Broader market sentiment is at a low point; it’s mainly a wait-and-see stance. Either buy into telecom trend stocks with a small position size on pullbacks, or trade new themes for the holiday.