March 26, 2026, a decline in volume leading to a correction!

March 24, 2026, Tuesday.

Last night, Trump said that peace talks are progressing smoothly, oil prices plummeted, and the US stock market surged. Although Iran later came out saying no negotiations had taken place, the US stocks still rose.

So today, the market sentiment has shifted accordingly. However, coal and oil sectors are mostly under pressure (after all, they are inverse sectors; recently, I’ve been desperately opening positions, and the rebound the next day still faces repeated setbacks). Shanxi Coking Coal chose to exit at the open.

Today, the stronger performers in the bidding were non-ferrous metals and electricity. I’m not paying much attention to non-ferrous metals now, mainly because silver and gold have been under pressure due to the rising dollar. With easing tensions, they rebounded. This morning, I mainly focused on electricity-related stocks.

Beijing Keli, Jincheng Co., Saiwu Technology, Mingyang Smart Energy, Xichang Electric Power, Guangdian Electric, Meiyan Jixiang, Leshan Electric Power, Huayin Electric Power, Great Wall Electric, and Solar Cables. The electricity sector is quite subdivided. In the early trading, photovoltaic equipment was strong, like Jincheng Co., which is related to solar PV. Later, power supply and electrical equipment, then green electricity. Beijing Keli surged early but didn’t go all-in due to insufficient volume. This stock had a positive order yesterday, which was a good signal. Huaguang Huaneng and Huayin Electric also surged but didn’t go all-in due to volume issues.

Later, sector rotation shifted to pharmaceuticals. (My initial judgment was that the recovery was below expectations today, so funds were somewhat risk-averse. Looking at the news, WuXi AppTec’s performance growth was a stimulus.) This sector doesn’t seem very meaningful. If it’s risk aversion, then, as seen yesterday, inverse sectors couldn’t hedge risk at all. The best way to hedge is to stay completely out of the market. Otherwise, a big drop would scare even the defensive sectors. It’s just clowning around. If the rally is driven by WuXi AppTec’s earnings, then since WuXi didn’t hit the daily limit, what’s the point of other stocks rising? It’s not very meaningful. So I’m not paying much attention to this sector.

Then there’s rotation into military industry and other sectors, but I can’t remember all of them. Eventually, the market returned to electricity. Honestly, electricity has been quite decent recently. Green electricity (power generation) often moves with electricity coordination, while equipment-related stocks are in infrastructure and overseas lines (export of PV and energy storage under the energy crisis), plus Elon Musk’s space PV. My basic idea is that everything can be involved. Today, the strong sector was electricity coordination and green electricity. The stocks that broke the board during sector rotation, Huaguang Huaneng and Huayin Electric, were the main targets. Huaguang Huaneng surged directly to the limit.

Yesterday, Trump’s comments caused a big rally in US stocks. I truly believe that the gap in our market is confidence. Trump’s credibility is trusted by their markets; they genuinely believe what he says. Our market, however, has seen a collapse in confidence over the past few days, for various reasons. The morning decline left me speechless. Later, the banking sector rallied to support the market, and the index finally showed some decent recovery. But honestly, it’s still below my expectations: first, overall volume shrank; second, the recovery was not decisive enough, and the strength was lacking.

We’ll see how tomorrow goes!