Youlan Travels the World: March 18 Gold Panning Morning Brief

Gao Shan Liu Shui Seeks the Heart Spring, Discussing Stocks and Gold with a Smile on Money. On the road to wealth, Orchid accompanies you! Your support is my motivation to persist. Welcome everyone to actively comment, recommend, bookmark, cheer, and support. Thank you all for your support! Please credit the author and source when reprinting in part or in full. Any uncredited reprints under the name “Yulan Travels the World” are considered plagiarism. [Taogu Ba]

1. Today’s Market Analysis and Tomorrow’s Trading Strategy
Today’s major index opened high, then oscillated and fell 0.81%, with the Shenzhen market even weaker, led by the ChiNext index down 2.29%. Sub-sectors like new stocks, green energy, and chemicals showed some activity. Certain sectors such as insurance + banking + securities, real estate, rose, while CPO + optical communications, PCB, diamonds, liquid cooling, MicroLED, and semiconductors led the decline. 867 stocks rose, with 39 hitting the daily limit, including 2 one-word limit boards; 17 stocks were hit with limit-down, and 10 stocks hit the daily limit-down, with another 14 falling more than 10%. There are as many as 436 stocks down more than 5%.

The market’s slight opening high was followed by a rush to sell, with early heavyweights in finance amplifying the sell-off sentiment. Nvidia’s GCT conference caused a chain reaction across the industry, vividly illustrating how high opening gains are often quickly reversed in the ecosystem. Positive news sometimes turns into a major negative, and even slightly below expectations can lead to sharp declines. Quantitative trading is causing market logic to become chaotic. Previously, quant mainly dominated small caps; now, even large-cap stocks are affected, with stocks trading around 10-20 billion yuan either being driven straight up intraday or crushed in a V-shape daily decline. If this continues, it’s best to let quant traders play their own game until they tire out, then wait for a turnaround—patience is needed until the extreme turns back.

The only bright spot today was that stocks with consecutive daily limit-ups yesterday all advanced further. But don’t think the “number of limit-up stocks” rally is back—that’s just a temporary phenomenon. The short-term ecosystem shows no signs of turning around; chasing themes is likely to be a trap. Only some independent stocks perform better, but once the overall trend aligns, it can also be risky. The theme sector is no longer forming properly, and the quant trading approach is struggling to operate effectively. Using weightings to cover up the weakness is pointless; most weightings now serve as tools to regulate the index.

In the afternoon, the index fell sharply in a single direction, which is rare in recent times. Tomorrow, a further decline might trigger a rebound, but the key depends on individual stocks. Recently, individual stocks have been much weaker than the index, and without stabilizing their sentiment, stabilizing the index alone is meaningless. While the external rebound has occurred in recent days, A-shares continue to fall, reflecting a vicious cycle driven by quant trading. If this doesn’t change, efforts are futile; the more effort, the more harm it may cause. To change this, either heavy-handed restrictions on quant trading are needed, or let quant traders exhaust themselves—there’s no other way.

2. Main Hot Sectors During the Day

1. Chemicals
   Methanol + Fertilizer: Chitianhua, Lu Hua Technology
   Bottle-grade Polyester Chips + PTA: Sanfangxiang
   Phosphorus Chemicals + Fertilizer: Jinjingda

2. Green Energy
   Wind Power + Green Electricity: Huadian Liaoning, Jiangsu New Energy, Energy-saving Wind Power
   Photovoltaic + Lithium Battery: Zhaoxin Shares
   Lighting + Green Electricity: Chenfeng Technology

3. Space Computing Power
   Perovskite Batteries: Guosheng Technology, GCL Integration
   Space Computing Power: Shunhao Shares
   Photovoltaic + HJT: Yabo Shares

4. New Stocks
   New Stock + Battery Thermal Runaway Prevention: Gude Materials
   New Stock + Energy Storage Thermal Management: Nabaichuan
   New Stock + Wind Power: Xihua Technology
   New Stock + PVA: Shuangxin Materials

5. Real Estate: Zhongzhou Holdings, Jinneng Real Estate, Shilianxing

6. Others
   Annual Reports + Semiconductor Cleanroom: Yaxiang Integration
   Kitchen & Bathroom + Elderly Care Robots: Songlin Technology
   Steel: Jiugang Hongxing, Anyang Steel
   LCD Display + Property Management: Shenhua Development A
   Fiberglass Spinning Equipment: Zhuolang Intelligent
   High-speed Copper Cable Connections: Xinya Electronics
   Industrial Modules + Hydrogen Energy: Libote
   Energy Storage + Inverters: Chint Power
   Robotics + Wind Power: Xiangming Intelligent
   Optical Communications + Environmental Protection: Farsun
   Coke + Hydrogen Energy: Antai Group
   Automotive + Hydrogen Energy: Haima Automobile
   Oil & Gas + Photovoltaics: Ren Zhi Shares
   Divest from Real Estate: Jingtou Development
   Power Grid Equipment: Shunna Shares
   Diversified Finance: Aijian Shares
   Carbon Fiber: Zhongfu Shenying
   Healthcare: Jidan Biotech

Note: This article is solely a personal review and analysis. The stocks mentioned are summaries of information and not stock recommendations. I do not endorse any stocks. Trade at your own risk. Please credit the author and source when reprinting in part or in full. Any uncredited reprints under the name “Yulan Travels the World” are considered plagiarism, and plagiarism will be prosecuted. Feel free to leave comments or report any issues.