[Red Envelope] Post-Spring Festival A-share Review: Energy and Cyclical Sectors Celebrate, Predictions Coming True One by One

I reviewed the market performance over the past half month after the Spring Festival. The A-shares have shown a very clear structural divergence. On one side, minerals, non-ferrous metals, and electricity continue to strengthen; on the other side, media and gaming have experienced deep corrections. Both the overall market and individual sectors are exactly in line with our pre-market judgment before the opening!

Looking at the interval gain rankings, oil and gas exploration and services are leading, followed closely by power, power grid equipment, and pumped storage.

Oil and gas, shale gas, and natural gas sectors have exploded, with Tongyuan Petroleum, Shandong Molong, and Intercontinental Oil & Gas seeing significant gains.

At the same time, coal, coal chemical industry, and precious metals, as well as non-ferrous metals, have collectively strengthened, with gains exceeding 10%.

The power, power grid equipment, flexible direct current transmission, and pumped storage sectors have all experienced explosive growth. This is something many investors tend to overlook, but we have emphasized it multiple times.

Yunnan Energy Holdings, GCL New Energy, China Energy Construction, Shanghai Electric$Shanghai Electric(sh601727)$, Dongfang Electric$Dongfang Electric(sh600875)$, China Western Electric$China Western Electric(sh601179)$, TBEA, as well as energy-saving wind power, green power, and Huadian Energy, have all performed very well. This was a key focus for us before and after the Spring Festival.

In stark contrast to the frenzy in the sectors mentioned above, film and television cinemas, Sora concepts, short drama games, and cultural media have become heavy losers. These themes are most easily targeted by retail investors who don’t understand quantitative short-term highs and lows or market sentiment chasing, leading to frequent losses.

Overall, in an uncertain market environment, capital instinctively gravitates toward visible and tangible certainty. This certainty includes sudden events, policies, as well as performance and technical aspects. Investors’ expectations are becoming increasingly high.

As sector gains expand, some individual stocks are already showing valuation bubbles, and further divergence is likely.

For investors, rather than chasing short-term hot spots, it’s better to calmly consider what assets can truly withstand the cycle. Is it stories or performance? Is it emotion or规律?

In this increasingly competitive market, staying clear-headed and respecting the cycle are the keys to long-term survival.

I took a rest last night; tonight, I will continue to discuss from an investment perspective the interpretation of the Tao Te Ching.