Extreme polarization, safe-haven surge, growth plummet

Today, A-shares staged an extreme split market: all three major indices closed lower with increased volume and sharp declines, while oil & gas / shipping / high-dividend stocks surged against the trend, and technology growth stocks plummeted across the board, bringing the profit-making effect to a freezing point. To be precise, it’s a tale of two extremes—droughts killing everything and floods drowning everything! [Taogu Ba]

The Shanghai Composite broke below the 10-day moving average, down 1.43%. This outcome was actually foreseeable. Many thought yesterday was the first day after the conflict erupted, and the impact seemed minimal, with over 5 trillion yuan in volume, yet today’s sharp decline was strange. In fact, I mentioned in the comments and review yesterday that it was odd—funds had already entered before the war, and after the sudden outbreak, there was no choice but to push prices higher on Monday, then sell at a better position. After all, funds had been deeply involved earlier, and the market had already released volume, meaning chips were being distributed.

Today, after some resistance, the market couldn’t hold back any longer. Funds flowed out and flooded into oil, natural gas, and shipping—safe-haven assets. Positions were shifted and became more concentrated.

The Shanghai index hit a nearly 10-year high, but the market was quite ironic. Technology growth stocks suffered a heavy blow.

Trading volume: Shanghai and Shenzhen combined totaled 3.16 trillion yuan, an increase of 111.8 billion yuan from the previous day, surpassing 3 trillion yuan for two consecutive days, with increased volume accompanying declines.
Stocks: Only about 600 stocks rose across the market, over 4,800 declined, with a rise-to-fall ratio of about 1:8. 82 stocks hit the daily limit down, and the profit-making effect hit rock bottom.

II. Sector performance:
A tale of two extremes 🔥 led the rally against the trend (safe-haven + cyclical stocks).
Oil & Petrochemicals: China National Petroleum, Sinopec, China National Offshore Oil Corporation all hit the daily limit (2 consecutive boards), creating a rare historical trend; oil services and oil equipment surged across the board.
Shipping / Ports: Benefiting from oil prices and geopolitics, companies like COSCO Shipping Energy hit the daily limit, leading the sector.
High Dividend / Defensive: Banks, insurance, coal, gold, and other low-valuation heavyweights supported the market, with funds clustering for safe-haven.
Gas / Chemicals: Jinnuo Chemical hit 5 daily limit-ups in 11 days, Orient Shenghong also hit the limit, driven by supply contraction and oil price transmission.

All sectors suffered heavy losses (technology growth):
Semiconductors / Chips: Guoke Micro, Hengshuo Co., Ltd. fell over 10%, with storage and computing chips leading the decline.
AI / Computing / Computer: High-level themes collectively sold off, with large outflows of funds.
Military / Non-ferrous metals / Photovoltaics: Commercial aerospace, rare earths, and new energy sectors experienced deep corrections.

In other words, everything that could be sold today was sold—an all-out massacre! This kind of market situation isn’t very useful to review because the trigger was the US-Iran tension; we can only wait for the situation to change. Holding oil & gas and shipping stocks also causes worry—once the situation eases, there might be a sharp sell-off tomorrow. So whether you hold or not, it’s all uncertain and uneasy.

This morning, there was a lot happening, so I didn’t give an early warning, but I think everyone could see that:

1. UK natural gas surged 40%
2. European shipping stocks surged 18%
   Plus, the morning news about the Strait being blocked—it’s not hard to guess the direction of today’s attack.

Today’s Easter egg:

Although likes and tips didn’t meet expectations, and I didn’t see much encouragement, I still insisted on sharing Easter eggs with brothers under this market condition—just to give everyone some guidance.
Today’s market was so intense that 6 out of 9 eggs turned green—still top!

The bias of the eggs is very obvious—oil sector.
I personally took Potential Hengxin because Tongyuan Kai’s price was too high, not worth it, with low cost-effectiveness.
I also hold Heshun Oil, so I didn’t go for Beiken Energy. Although Heshun Oil’s logic isn’t perfect, it’s still a position. The battle in the 2-3 board zone is quite fierce, and there aren’t many options between 2 and 3.

Today’s operations:
Aerospace Electronics: Corrected, sold at the open, lost 1 point.
China Satellite: Sold at -2, break-even.
Dongcai Technology: Sold at -2, took 6 stocks, a pity—this tech sector’s starting point wasn’t good. I sensed something was wrong yesterday, after selling Huaguo Gaoke and Runze Technology, but I wasn’t ready to sell Dongcai. This morning, I also hesitated but sold.
Heshun Oil: Hold position, logic isn’t good, but it’s still a position.

New positions today:
Potential Hengxin: Chose this at 11 points, as Tongyuan was too high.
GCL Integration: Strong bidding, bought in the middle of the session—no idea why it rose, just followed the trend. If it’s about photovoltaics, other PV stocks also fell sharply. Perovskite still has some news stimuli.
Taijia Co.: Bought at 7 points, a bit impulsive—didn’t want to be constrained, wanted to try some tech. Failed, but the end of the day wasn’t bad, currently down about 2 points, acceptable. Followed Tuo Wei La to rise at the close; tomorrow’s trend depends on Tuo Wei La’s performance.

Today’s strongest sector, without a doubt, is oil services.
A batch of 2-boards, with a fierce elimination race tomorrow. Who can make it to the end is anyone’s guess.

Natural gas also remains strong, with a team of three-two-one stocks. It’s also driven by news; analyzing too much is pointless.

Shipping: A brother asked which is the most authentic. The top two stocks in yesterday’s morning session are the most genuine…

Tomorrow’s market still depends on news; I personally feel Thursday might see a reversal, as the market needs some time to digest. But once the Shanghai Composite breaks below a certain level, it will be hard to turn back. Watch whether the index can stop falling tomorrow.

Everyone, please give a free like if you find this useful, tip if you can, and support each other—thank you!

Switching sesame for watermelon!! 100 points or tips! Long-term persistence is needed. If you want answers, I want data. Mutual support, thank you!!!

Writing is not easy—brothers, please like, tip, comment, support, and encourage. I have no theories, only practical experience.

Join the stock sea, set sail for distant horizons.

Respect the market, follow the market.
Focus on main lines, pay attention to core.
Don’t rejoice at rises, don’t mourn at falls.
The waters are deep—try to catch a scoop.
Plan your trades, unify knowledge and action.
Always remember: stability and profit.