2/27 Retrospective Notes

Today, the index experienced normal fluctuations. In the afternoon, brokerages made some small moves, which also helped push the index higher. In terms of trading volume, the index remains around 2.5 billion yuan, which is considered normal. Looking at external market news, today the central bank took measures to suppress the continuously rising yuan, implementing policies to do so. Foreign exchange reserves were reduced from 20% to 0, as the yuan’s appreciation has been too rapid, and intervention was necessary. Meanwhile, negotiations between the US and Iran are likely to reach a conclusion in the next couple of days. Currently, both sides are beginning to withdraw personnel from Iran, and it’s possible that the US might launch a surprise attack on Iran this weekend to gain the upper hand in future negotiations. The situation in Iran remains quite tense. Brent crude oil surged over 2%, influenced by this development, and crude oil prices are starting to move. Gold and silver are likely to wait until actual conflict occurs before rising. In the Middle East, Pakistan and Afghanistan have also started to clash. The long-term peace and development era is over; no one knows when it will return. Perhaps only after humanity is wiped out by nuclear war will Earth finally enjoy lasting peace. [Taogu Ba]

In terms of sectors, rare metals are still soaring. Xiamen Tungsten, Huaxi Nonferrous, Oriental Zirconium, Guoyan Platinum, and Baowu Magnesium all hit the limit-up. Others like Yunnan Germanium and Oriental Tantalum also continued to rise sharply. Rare metals are still gaining momentum, and the rare earth sector is also surging. Don’t worry about rare earths; I personally believe the rally isn’t over yet because some rare earth materials from the US have been cut off, making it impossible to accept new orders. Supply and demand are in short-term normality, so I think the rise isn’t finished. Hold onto your positions; we bought low and have already made good profits. There’s more room to operate comfortably. The strategy now is to buy low and sell high—buy on dips, and if the price rises, take some profits. Just buy on dips whenever there’s an opportunity, and sell when it’s high. As for Baowu, it opened strongly today and hit the limit within 15 minutes, showing strong institutional buying. So, it’s not a good time to sell today. Even if you want to sell, wait until tomorrow’s rally to do so, because the first 30 minutes of trading after opening are the most valuable. Today also broke through previous resistance levels, so selling now isn’t advisable. Although Baowu has already risen from around 15 earlier this year to over 20, reaching my target, I believe the rally isn’t over. At least aim for a 50-point gain before considering selling. The current price of 21.79 is a new all-time high, just broken through, so the upside potential is only limited by imagination.

Regarding Muyuan Foods, I previously mentioned that the support at 44 yuan is very strong. The closer it gets to 44, the more you should add. Today, it gained a small profit, but there’s no need to rush—just hold. If a domestic pig disease outbreak occurs, it could be an opportunity to pick up panic selling. Currently, there’s no news of such an outbreak, so the impact is limited. Domestic large pig farming companies are very strict in management, and it’s difficult for employees to leave, mainly to prevent diseases like swine fever. Their epidemic prevention measures are very strong, so there’s no need to worry too much. Just keep holding.

As for Huaming, I think the impact isn’t significant. It’s just a high-level shakeout. If it continues to fall back to around 30, then another opportunity will arise. The US is suffering from power shortages, so data center power equipment stocks will continue to fluctuate upward, benefiting from this. No need to panic. Also, in the post I shared today, I mentioned some gas turbine stocks. I favor a few, mainly Jereh Group, Yingliu Holdings, and Lian Shi. Lian Shi was already announced as a major stock back on January 11, with concepts like rhenium and commercial aerospace, which I believe will be hot topics again this year. It also has gas turbine blades business. The combination of these three concepts is quite promising. Today, it hit the limit-up, but it’s an ST stock, so those who see risks can choose not to buy. Jereh and Yingliu are already high, but no one knows if they can go higher—market will decide. When to buy depends on your risk tolerance: wait for a pullback or chase the high. That’s up to you. I won’t tell you when to buy or sell; everyone makes their own decisions. I only share my personal favorite sectors. You can also find other stocks you like within these sectors.

Other stocks didn’t have big movements, so I won’t go into detail. This weekend, let’s see if the US will secretly strike Iran to cause a surge in their oil prices.