Smash all the pots, with my meager savings, in the end who suffers the most. -3.13 Review

The three major indices of the market all closed slightly lower today. The damage to these indices is not significant, but overall, more than 3,800 stocks declined, and the number of stocks hitting the daily limit down continues to increase. This emotional sentiment is intensifying, and a phenomenon of follow-through declines has appeared. Therefore, stocks that have risen sharply during this rally and haven’t corrected yet are expected to gradually undergo correction in the next few days. Investors holding positions related to this situation should be cautious next week.

Actually, the three major indices were quite stable in the morning, but the problem arose in the afternoon when continuous selling pushed the market down until a sharp plunge at the close. This late-day plunge has a significant impact on investors’ confidence and holding mentality. Such emotional effects are likely to carry over into Monday’s market. However, it’s still uncertain whether the market will perform poorly on Monday, as weekend news and developments need to be monitored. I will provide a detailed early review on Monday.

Currently, sector rotation is happening in the market, with no clear logic. The main focus is on oil and chemical sectors. The futures market shows a clear strength in oil, but in the stock market, funds are only flowing into chemicals. There’s no clear reason for this. The current sector market tends to shift after two days of strength, with the next sector being unpredictable and entirely driven by quantitative factors. For short-term trading, the market is extremely volatile and unpredictable. Funds lack conviction and are just chasing quick profits—buying on the rise today and selling tomorrow. It’s all very opportunistic and risky.

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Market Situation Today:
The three major indices opened lower, rallied briefly, then fell back in the morning, and weakened further in the afternoon.
Shanghai Composite Index down 0.81% to 4,095.45, Shenzhen Component Index down 0.65% to 14,280.78, and ChiNext Index down 0.22% to 3,310.28.
Total trading volume was 2,417.3 billion yuan, shrinking by 43.3 billion compared to the previous trading day.
In terms of themes, sectors like chemicals and wind power performed relatively actively today.

1. Actual number of stocks hitting the daily limit: 69; stocks hitting the limit down: 24; limit-up rate: 77%.
2. Number of advancing stocks: 1,502; declining stocks: 3,828.

Market Summary:
The entire market saw widespread declines, with a clear loss aversion effect. I continue to aggressively trade futures; today, the futures market didn’t surge to new highs as expected but remained relatively stable. The bullish trend in futures is intact, and I will keep trading aggressively. My short-term account remains fully invested in oil stocks. Not only me, but many investors holding oil stocks are suffering greatly. I am at a loss for words about this sector. Over the past two days, many retail investors have given up and sold their holdings because oil and gas stocks are now incomprehensible and unpredictable. I set a clear goal: to hold on and keep accumulating until I recover all the profits from this oil and gas rally. Once I have recouped my gains, these stocks will likely be crushed, and no one will want to touch oil and gas stocks anymore. I have plenty of time and am willing to give up some profits because my main focus now is the futures market. The funds in my short-term account are vastly different from my futures funds, so I am indifferent. Let the oil stocks continue to hurt each other until they are completely destroyed. I will watch who suffers the most.

My plan and thoughts will be posted in the comments on Monday morning.

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High-emotion zones (4):

Zhongnan Culture - planning to acquire Sulong Thermal Power, 5 consecutive limit-ups,

HuaDian Energy - power sector, 4 consecutive limit-ups,

Jinniu Chemical - methanol, 3 consecutive limit-ups,

Ruisikangda - 6G + optical modules, 3 limit-ups in 4 days,

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Upgraded to second-tier limit-up zone (5):
(1) Luhua Technology - coal chemical industry, 2 consecutive limit-ups,
(2) Zhengzhou Coal Electricity - coal, 2 consecutive limit-ups,
(3) Sanfangxiang - chemical industry, 2 consecutive limit-ups,
(4) Farsight - optical fiber concept, 2 consecutive limit-ups,
(5) Dajin Heavy Industry - wind power, 2 consecutive limit-ups,

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Thanks to @Jiaoye @Caiji Zuanxuefei @Zan Wenzhentai @IOnly2K @Shiguang Ruyou brothers for your support.
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Thanks to all the investors for liking and commenting, for your continuous support.
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Disclaimer: The views expressed are solely personal thoughts and records, not investment advice. Keep a good mindset, and may the stock market have a long rainbow.