A rumor has led to a significant drop in CPO prices.
Last night, NVIDIA’s stock performed strongly in the US market, closing at around $920, just a step away from its historical high. However, CPO in the A-share market has seen a continuous decline for two days.
My cousin looked at a small article that stated: the market has two concerns:
1): Overseas research indicates that Mellanox-fabrinet’s 1.6T will ship earlier?2): There are concerns that Lumetum, which will announce its earnings in the early morning, may not meet expectations for sequential growth in the next quarter.
This seems like a small article released by public funds. My cousin wonders if the recent strong performance in the chemical sector has led some public funds to sell their tech stocks to chase chemical stocks.
Retail investors and institutions are not on the same page; the former seeks quick profits while the latter aims to repeatedly buy high and sell low to cut losses.
Since institutions hold very few stocks in the chemical and synthetic biology sectors, retail investors and quant funds can easily push certain stocks to high positions with a small amount of money, attracting a large number of retail investors to follow suit, leaving institutions with no stocks to sell.
The dominant style of making money recently remains in the short-term style of retail investors and quant funds.
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1: Wow, a new concept has emerged.
Today, news emerged that the “Chinese version of Starlink” is expected to launch before June 2024, somewhat similar to Musk’s SpaceX Starlink project.
My cousin has just started learning synthetic biology and is transitioning from the foundational stage to the advanced stage, and now he has to learn about aerospace satellites. It’s a bit overwhelming to go from cultivating immortality to the vast universe.
The A-share market is always an unpredictable market, as various short-selling tactics by institutions emerge endlessly, making collective bullish actions quite challenging. The current market funds are limited, and retail investors and quant funds will not go for institutional stocks because they have suffered enough from institutions.
Currently, the 20CM stocks created by small retail investors and quant funds are also avoided by institutions; their large size makes it easy for them to get stuck at the peak if they enter, creating two distinctly different styles in the A-share market.
My cousin prefers stocks from institutions with good performance; he sells some when they rise significantly and buys some when they drop. As long as he operates in the opposite direction of institutional public funds, he won’t suffer major losses, but he tries to avoid chasing the “four major scoundrels of A-shares” from institutions.
2: CITIC Securities: The synthetic biology sector shows impressive revenue and profit growth, with industry valuations significantly lower than the levels of the past three years.
My cousin: Oh, here comes the brother~~
3: Jia Yueting’s FF electric vehicle company listed in the US has been forced to delist.
Xiaomi spent 10 billion to build a car in three years, while Old Jia has been drawing PPTs for over a decade and has lost the chance to build a car. He now claims he will use his personal IP to repay debts; is he planning to do live commerce?
Old Jia has 15 million followers on Weibo and over a million on Douyin. If he shamelessly goes live to sell goods, my cousin feels it would create more buzz than Luo Yonghao.
4: Offshore RMB at 7.21
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Tomorrow’s Observation: The index is slightly up, but trading volume has shrunk again.
Yesterday, the stock Zhengdan was temporarily suspended, marking the first time the new village chief has put a stock in the black room. The A-share market has too many oddities, with various limits on price fluctuations of 5%, 10%, 20%, and even 30%, creating a chaotic environment.
Recently, the 10% continuous limit has been ruined by the industry chain, usually after a sharp rise, it starts a series of declines, so many small retail investors have shifted to 20% stocks, which are relatively less likely to be trapped, at least they can escape when the price drops.
The recent main theme is price increases, whether in high-speed rail, electricity prices, or bulk raw materials in the chemical sector, there is a chorus of price hikes. Focusing on the main theme for repeated operations is likely to avoid losses.
Trend Arbitrage Model: Chip Sector: Eager to try Military Industry Sector: Crossing the river by feeling the stones Liquor Sector: Drowning sorrows in wine Innovative Pharmaceuticals: Policy Support Lithium Battery Sector: Adding insult to injury Photovoltaic Sector: Going with the flow Real Estate Sector: Policy Support Tourism and Hotels: Coming back in summer Artificial Intelligence: Performance is king Coal Sector: High double tops Non-ferrous Metals: High position shipments Special Valuation: Halo effect Securities Sector: Even the floating corpses have their spring
PS: The index trend is very stable, with daily rotations of rising sectors. Usually, hot sectors are hard to sustain for long; in a market without incremental funds, it can only be like this.
Currently, funds are not very interested in high-position AI and flying cars, while there is still some capital trying low-position stocks in pharmaceuticals and chemicals that institutions hold not much of.
Last month was non-ferrous metals, this month is chemicals; both are cyclical sectors. The characteristics of large cyclical sectors are that they come fiercely and retreat just as fiercely. Fortunately, the chemical sector has been in a long-term downtrend, mostly lying at the bottom, so it can still be worked on in the short term.
Yesterday, a fan asked my cousin: What are the sectors experiencing price increases?
I briefly mentioned: TMA, titanium dioxide, dyes, refrigerants, MMA, phosphorus chemicals, caustic soda, PV-DF, viscose filament, vitamins, and manganese ore.
There are not many strong leading stocks corresponding to these; each subdivision has about 4-5. The recent gains are decent, but they are mostly at the bottom. If there is a general decline in the next few days, it would be wise to allocate some funds to buy low.
The price increase sector is a continuation of the flying car sector from the past two months; although its intensity is not as strong as the former, it should not be over yet.