Hexun Investment Advisor Xu Binqing: Why can't we touch the pharmaceutical sector?

On April 3, He Xun Investment Advisor Xu Binqing said that in this market, he truly felt like he had dodged a disaster. Honestly, when he had been giving risk warnings to family members in the past period, he already sensed something was off—especially the part about performance-driven stock group trading. Sure enough, it came true. He remembered that before the chip storage theme was finalized, he had specifically reminded everyone that chip storage was going to be finalized; later, when the first-quarter report came out, it basically confirmed that. And after that, he still reminded that performance-driven stock group trading could no longer be participated in. In other words, by the end of this week, the routes we previously looked good at and traded have all been rejected. Clearly now, performance-driven stock group trading doesn’t work anymore. The market’s aesthetics can’t be lifted at all; most trends only turn into “half-day tours” once there’s a favorable catalyst. Now it’s even less than a one-day tour—it’s become a half-day tour directly. Like today’s market: after it surged up, everything surged and then retreated, especially stocks like PCB Precision that are performance-driven group-trading stocks—they’re exactly like that. So our earlier point that performance-driven stock group trading ends here is correct.

A classmate asked, what should we do next? Honestly, we can only wait—wait until after the broader market stabilizes, and then trade the first-board setups that move in sync with the broader market. You also can’t touch the medicine sector. Why? Because the medicine sector started being actively traded while the chip storage sector hadn’t finished yet, and it kept getting traded until now. In fact, it has already run up very high. Stocks that have run up so much are also hard to trade. As for those with five boards, six boards, or above—next week, the ending is probably that they break down and halt. For those with a rebound and trend reversal—maybe one day the pattern just disappears. Now it’s also hard to trade trend stocks: they constantly flip, with candles like a bullish engulfing after a bearish one, or a bearish engulfing after a bullish one, with limit-up and limit-down repeatedly and unpredictably. You can’t even figure out what’s going on. Honestly, you can’t even “hold a group” and you can’t even “connect” limit-ups. This market clearly has too little volume—it finally shrank to below 18000 billion. The shrinkage that was supposed to come is still here after all. So, everyone should just be patient and wait a bit. After the broader market stabilizes, go do the first-board trades. Maybe you’ll just catch a new sector, a new theme, and then a new cycle will start. So next week is essentially all about trial and error—just that simple.

(Editor: Zhao Yanping HF094)

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