Likes Received2024.4.24 Review: Broad-based rally
A general rebound is here! This is a rare broad-based rally in April, with all indices closing in the green today. The Shanghai Composite Index is likely to remain range-bound within its current range before the holiday, making it less meaningful to focus on. The key is still to observe whether the sector momentum is actionable.
Today, the strongest sector is the low-altitude economy, and the most dynamic stocks are on the ChiNext board, which is leading the charge again today! Speculative stocks are very active today, and this kind of small-cap rally aligns with the account performance of most market participants.
As expected, the market is likely to diverge tomorrow. This week, the strongest sectors have been military-related and the low-altitude economy/flying cars. The low-altitude economy has already reached a consensus today, so to continue focusing on this sector, one should look for core players or low-position catch-up opportunities.
Low-altitude economy—The sector began rebounding on April 17, showed signs of movement yesterday, and accelerated directly today, with the sector index posting a strong gain. Many stocks that rose today are actually tied to this concept.
The concept of the low-altitude economy is broad, covering helicopters, civilian single-wing propeller aircraft, drone delivery, flying cars, and more.
This low-altitude economy requires supporting infrastructure, including low-altitude airport construction, air traffic control command and dispatch systems, radar mapping, and a series of derivative supporting facilities, all of which fall under the scope of this theme.
Many ChiNext-listed stocks in this sector hit the limit-up today, mostly low-positioned ones. When selecting stocks, focus more on the ChiNext board. Since I started following this trend, I’ve kept an eye on: Shenzhen Urban Transport Planning Center Co., Ltd. (深城交), a Shenzhen-based low-altitude economy stock. If the sector continues to be hyped, this stock will likely keep rising.
Another stock to add with a military concept is Huace Navigation (华测导航), which is involved in drones + satellite positioning and also falls under the low-altitude economy theme. Its 5-day moving average pattern looks solid, but it needs volume support—watch for pullback opportunities.
Consumer sector—After a rally around the Qingming Festival in late March and early April, consumer stocks began correcting. Now, with the Labor Day holiday approaching, will tourism stocks move again? There’s an expectation, but historically, consumer stocks rise when other themes adjust. If hotspots like the low-altitude economy pull back, consumer stocks might see movement.
But remember one thing! Focus more on tourism and hotel-related consumer stocks, as the expectation is for travel demand. Do your own research!
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