February 26 Review Notes

Today, the index fluctuated normally, with a low retracement to 4127, which is acceptable. The retracement is normal, mainly because brokerages dragged from the open to the close, which is typical when there is no market trend. Today, the semiconductor CPO performed well, with South Korean and Chinese semiconductors almost hitting the daily limit. The storage sector in Korea has recently surged sharply. Nvidia’s earnings report exceeded expectations, so related stocks here also performed well today, indicating that storage remains a hot and tight sector.

Robotics, Hang Seng Tech, and innovative pharmaceuticals still underperformed, but the Hang Seng Tech Index has now reached 5100 points, only 100 points above the support level at 5000. If it breaks below 5000, the next support is at 4150, which is a significant gap. The Hang Seng Tech is now almost at a point where everyone is calling for a fall, haha. The Hong Kong stocks in the innovative pharma sector also fell sharply, with the sector dropping 5%, BeiGene fell 9%. These sectors have been heavily criticized online, which reminded me of early March 2025, when I posted articles and comments on Linjiapuzi about undervalued innovative drugs. At that time, the Hong Kong innovative pharma index was only 600-700 points, and it was directly knocked below 600 on April 7, then started to rally. Back then, innovative pharma stocks were also despised, but the more they were hated, the more you should think differently. Many retail investors were losing confidence, nearing their limits, which is why they cursed. It also meant that if the decline continued, they would start to sell off, and only when retail investors begin to sell does the shareholding become concentrated, indicating the end of the shakeout. Because it’s always darkest before dawn, and a little light begins to shine. Think about it—there’s no dawn before the night is completely dark, just like Buffett’s words echoing in your ears: “Be fearful when others are greedy, and greedy when others are fearful.” Now is the time to practice this again. Can you hold on? Do you have bullets left to buy low? It depends on your own skill. If your skills are lacking, surrender and give up your chips. This market is always about everyone taking money from each other’s pockets. Whether you are taking from others or others are taking from you depends on your ability.

Looking at volume, 2.5 billion yuan is still okay, but brokerages are inactive, so the market’s sustainability is questionable. We can only keep observing the movements of the brokerage sector, which is a daily focus.

I won’t go into individual stocks much, but I’ll mention EVE Energy. Today, it clearly declined on increased volume, but stocks below 60 yuan are very cost-effective. My view remains unchanged.

Additionally, Jindawei showed obvious increased volume today. I mentioned yesterday that when it rises, it often forms long upper shadows, opening high and falling back to shake out retail investors. Yesterday, there was a long upper shadow, and today, again, a long upper shadow with increased volume. I see this as a very good signal, likely indicating the market is about to start moving. Holders should pay more attention and not be easily shaken out by upper shadows.

I won’t say much about other stocks; there’s nothing else I want to add.