Daily Review - 20260403

Ahead of the holiday, there’s a need for defensive positioning of funds, and today is also a day of decline. After 5 straight days of bullish candles, only 27 stocks remain, and with funds flowing back after the holiday, the broader market has a need to rebound. The semiconductor sector tends to follow the broader market; after the holiday, Jinhaitong is expected to rebound. When the broader market is not doing well, funds tend to cluster in favored, leading positions. The leader is Yangtze Optical Fibre and Cable (YOFC), which the market itself has selected; wait for the broader market to rebound after the holiday, and buy on dips during periods of disagreement. The CPO sector is relatively strong today, tracking earnings expectations. [Taoguba]

1. Patterns
   Haichuan Intelligent, 大金重工, Bochem New Materials, Tianyin Electromechanical
   Response: Buy on dips when opportunities arise

2. Turbine
   Wanze Co., Ltd., Dongfang Electric
   Response: Related to compute power hardware; buy on dips when opportunities arise

3. Batteries
   Rongjie Co., Ltd., Haike New Energy, Ganfeng Lithium, Guocheng Mining
   Response: Highly affected by lithium carbonate prices; buy on dips when opportunities arise

4. PCB
   Jinhaitong, Dingtai High-Tech, Jiangfeng Electronics, Honghe Technology, Keg Precision Machinery, Yadea (Dongshan Precision)
   Response: Buy on dips when opportunities arise

5. CPO
   Hygotek, Yongding Shares, Tianfu Communications, ZhiliFang, Sinocera, Huasen Chang
   Response: Related to compute power hardware; buy on dips when opportunities arise

6. Compute power
   Hongjing Technology, Guanghuan Xinwang, DianGuang Technology, YunSai Zhilian
   Response: Hold off and observe. Cloud computing had a period of strength before and after the Spring Festival, and the probability of breaking out into a new main trend again is not high. The chips inside are relatively messy. It can only be treated as a short-term setup, and you can use it for a rebound.

7. Biopharma
   At the beginning of the market cycle, quant strategies spread out and pushed up evenly. Now individual stocks are diverging, and funds have started to focus. On Friday’s late session, the high-profile stock Minovo Pharmaceuticals (early high) sold off, and after the close, the sentiment leader Jinzhou Pharma clarified that it has no new drug business. After the holiday, other sectors may repair, and biopharma should adjust somewhat. Once other sectors finish repairing, funds may flow back to biopharma again. So, you need to select targets that have innovative drug businesses, with clear differentiation and popular appeal.
   Kailaiying, Kelun Pharmaceutical, Xinlitel, Shuanglu Pharmaceutical
   Response: Wait for biopharma to pull back after the holiday, and buy on dips during periods of disagreement.

8. Optical fiber
   Yangtze Optical Fibre and Cable (YOFC), Hengtong Optic-Electric
   Response: Wait for the broader market to rebound after the holiday, and buy on dips during periods of disagreement.
   Response: Wait for the broader market to rebound after the holiday, and buy on dips during periods of disagreement.

On Friday, funds will be in risk-avoidance mode into the weekend. On Friday, there will definitely be an adjustment. If not, then on Thursday funds will likely rush ahead early. Thursday will probably drop, so on Wednesday you need to sell your positions—sell them earlier. Then, look at the clustered, favored sectors: optical fiber. After Friday drops, you can buy back a small portion of the position at lower levels.