"Harbors" and "Golden Pits" in turbulent times, seize the opportunity in April with sectors experiencing explosive growth!

The Middle East war has reached its current state, with both the U.S. and Iran holding their respective positions, and a polarization has emerged within the U.S. Vice President Vance has called for peace, while the Department of Defense has been mobilizing troops in preparation for ground warfare. Meanwhile, Pakistan, acting as a mediator, has initiated a meeting with four nations, making every effort for peace in the Middle East. However, the uncertainty of the Middle East war remains significant.

Currently, U.S. stocks are continuously declining, seemingly ruined by Trump, but we can observe the trends in the A-shares market. Although affected by U.S. stocks, last week’s movement was actually quite different.

Moreover, some may think that the ongoing war will continually impact our A-shares, but to say it has no effect would be false. The global energy crisis is affecting everyone and is continually escalating. Speaking of war, if we look at the Russia-Ukraine conflict, which is also a major global energy exporter, and given that our country accounts for a significant portion of its exports, even after two years of conflict, it still hasn’t hindered our A-shares from performing well. As of today, September 24, 2024, the impact of Middle Eastern oil exports on our country is actually minimal, as previously analyzed.

Furthermore, global capital must find a place to go. Funds, institutions, investment banks, retail investors, etc., will certainly choose an investment destination, and safety must be the first consideration. It can be said that our country is the safest in the world; no one can claim otherwise, whether regarding personal safety or financial security. If we talk about the fastest developing country in the world in terms of technology, manufacturing, food, etc., our country is first; no one can say second. Coupled with our recently launched 14th Five-Year Plan and the continuous meetings by various ministers with domestic and foreign investment banks and funds, it is clear that we are replicating the two-decade-long U.S. stock market performance based on international trends and domestic developments, preparing for a lengthy tech bull market.

On the contrary, I believe the U.S. involvement in this Middle East war is actually helping to establish our country as a safe nation on the international stage, showcasing strong military power and a peaceful disposition. The energy boom has produced many wealthy individuals in the Middle East, and a significant amount of their capital is flowing into our A-shares and H-shares, with even more foreign investment.

On Tuesday, I made a judgment about the market in advance, accurately predicting the situation. The title of my pre-market article on Tuesday was “The Dawn is Near,” and sure enough, there was a significant rebound on Tuesday and Wednesday. For Thursday’s pre-market article, I also analyzed and accurately predicted that the market would not rise continuously but instead oscillate upward. This slow bull pattern is inherent, which is why we saw a pullback on Thursday. On Friday morning, I also accurately predicted that the market would be influenced by U.S. stocks on Thursday, likely opening low and closing high. As expected, it opened low and closed high, with more than 4,000 companies in the green, perfectly closing the week.

I did not exaggerate in my market predictions; anyone can find my daily pre-market articles. There is only one article each day, clearly stating everything, with no deviation from my analysis of the trends.

Therefore, my analysis of the upcoming market trends is that it will oscillate upwards, likely with small incremental gains. As for Monday’s trend prediction, it is likely to open low and then oscillate, shaking off the weekend’s panic selling before moving higher. It may not necessarily increase, but the pattern is low open and high close, as it is evident that our market will continue to oscillate upwards, maintaining the slow bull rhythm. However, influenced by external markets, it will definitely build a solid base here. In simpler terms, it means oscillating here to absorb some low-priced shares, especially quality stocks that have been wrongly sold off.

As we approach April, the release of annual reports and first-quarter reports will begin, so many funds will be cautious of stepping on landmines. Therefore, selecting individual stocks must be done with utmost care. Whether for retail investors or institutions, such as Yuzu Quant, they will surely choose sectors and quality stocks with explosive earnings in the first quarter, as performance is always the most significant standard for judging stock price movements in any stock market.

In summary: The golden pit has already been dug, and now the opportunity arises, so stay on the rhythm and step to the right beat!

Sector Analysis:

Storage: The storage sector has been in focus, and recently it has faced continuous headwinds, particularly due to Google’s algorithm. In fact, from the significant drop in U.S. stocks on Friday, it can be seen that the major storage giants (SanDisk, Micron, Western Digital) did not react negatively but instead rose, indicating that Wall Street and foreign capital are seizing the opportunity to accumulate shares during the pullback. The storage price cuts announced over the weekend pertain to the price reductions of DDR5 and DDR4. This is not a new price reduction starting this weekend but rather a cumulative reduction for the week. To analyze storage simply: There are enterprise-grade storage and consumer-grade storage. It may be too complex for some to grasp quickly, but enterprise-grade storage is aimed at AI data centers and large enterprises (enterprise-grade SSDs/HDDs), and there are also enterprise-grade DDR5s. Consumer-grade storage is aimed at retail sectors for phones, computers, cameras, etc. (DDR5/DD4), and there are also consumer-grade SSDs/HDDs, primarily for computers.

Currently, the market is discussing the price cuts in consumer-grade DDR5/DD4 storage, which do not indicate price cuts in enterprise-grade storage. The price reductions in consumer-grade storage are healthy corrections after previously excessive increases. The peak price increase was 4.4 times, and now after correction, it is still at 4.1 times. Anything that has increased too much will naturally have corrections, and this round of corrections is due to the previous excessive rise, with many manufacturers reluctant to stock up. Therefore, as some stockpilers see the situation turning, they will naturally sell off, which is the reason for the price drop. However, stockpiles are not large, as the overall storage shortage is expected to last until 2028. Instead, this correction may allow many retail manufacturers to clear out the remaining stock on the market.

In summary, the price reduction of DDR5 is merely a short-term correction due to the previous excessive market increase. The structural shortage issues driven by AI remain serious, with supply distribution heavily skewed toward large clients, making it difficult for small to medium manufacturers and consumer markets to procure goods. This situation of high prices with limited availability is expected to persist until 2027-2028, so if a correction occurs on Monday, it could present a good opportunity.

Electric Power: There will still be fluctuations, with switches among wind power, green energy, grid equipment, and photovoltaics. In my opinion, photovoltaic storage should come into play. Our Zhongli is an aggressive stock, suitable for short-term trades, so the teacher will strictly control the risks and will notify us promptly if there is any news.

Attention can be focused on leading photovoltaic stocks (space photovoltaics), provided that the performance will not collapse, especially companies that can turn losses into profits in the first quarter!

Commercial Space: It is highly likely that the rebound will stop here. On Monday, there might be a high opening followed by a period of oscillation and correction. The recent rise indicates that funds are starting to position themselves, and the rebound will have to wait until late April to mid-May.

Humanoid Robots: If there is a rebound, it will also have to wait until early May. Stability has started, and funds will consider the first-quarter and annual report issues. The second point is that stability marks the beginning of fund accumulation at low levels.

Lithium Battery Concept: This follows a price increase logic. From last year’s wave of price hikes to now, it peaked in November 2025 before beginning a five-month correction. Currently, it may not necessarily exhibit a continuous upward trend; the recent rise is a high-low switching of funds for profit taking, also influenced by the rise in lithium carbonate futures. The future trend will determine participation, as the current strength appears to have the potential to mislead buyers.

Innovative Pharmaceuticals: Recently entering a high incidence period for epidemics, our entrepreneurial new drugs have also begun to see explosive growth in performance over recent years, as can be seen from many pharmaceutical companies’ 2025 annual reports.

In contrast, the trend of innovative pharmaceuticals in 2025 began to be engaged in late March, with an explosion starting in early May. The trends can refer to the index performance of innovative pharmaceuticals, as well as the movements of stocks like Angli Kang and Yong’an Pharmaceutical during this time last year.