Hexun Investment Advisor Jiang Linlin: Secondary New Stocks Strengthen, Market Falls on Reduced Volume, Which Way Will the Market Go Tomorrow?

Will the market rise tomorrow? Hexun Investment Advisor Jiang Linlin believes there will be weak fluctuations tomorrow. Yesterday, trading volume remained low, with total daily turnover just over 2.2 trillion yuan, and significantly reduced volume. Large funds are now on the sidelines, making it difficult to support a market rally without a clear offensive direction. The Brent crude oil price staying around $100 per barrel continues to constrain global stock market performance. Inflation expectations are rising, which is negative for equity assets overall. Additionally, the active trading of recently listed new stocks reflects a vacuum in thematic speculation, and the market is dull, lacking main driving forces to push the index higher. Today, the market experienced a sharp decline in volume with scattered hotspots, lacking sustainability. The newly listed stocks under the registration system and defensive sectors with low dividends are relatively active, indicating a current vacuum in thematic trading and a lack of investor interest in risk-taking. Therefore, current market conditions should be approached with caution.

Regarding sectors, here is a summary: one key sector is banking, which is relatively active as a defensive low-position asset. Its main role is risk aversion, without independent upward logic. It fluctuates little due to investor caution. Another key sector is securities, a perennial defensive backup, which saw slight activity today due to risk aversion needs but lacks sustained upward momentum. It mainly serves as a buffer for market sentiment. The third sector is chemicals, which are catalyzed by Brent crude oil remaining high and may repeatedly fluctuate, representing a core inflation-related direction. Short-term support comes from oil prices, but caution is needed regarding potential high-level pullbacks. The fourth focus is NVIDIA concepts, which led the decline today due to weaker-than-expected positive news, prompting funds to lock in profits. The sector remains in a short-term adjustment phase, and participation is not recommended for now. The fifth focus is newly listed stocks, which performed wildly today. This is a low-level rebound due to a lack of market themes, with no substantial positive news support. It reflects short-term capital rotation with poor sustainability. Currently, the market requires a defensive strategy. As we approach the end of March, caution is especially important: avoid opening new positions, do not chase highs or hot sectors, to prevent losses from sector rotations.

(Edited by: Wang Gang HF004)

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