Stand in the light, don't just stand there!

Last night, all three major U.S. stock indices, especially the tech-heavy $NASDAQ Composite Index(.IXIC.US), rose, with the NASDAQ surging a whopping 1.64%! The semiconductor and hydrogen energy sectors led the gains. Brent crude oil also performed well, reclaiming the $100 per barrel mark, while gold and silver dipped slightly. However, Brent oil pulled back after an early morning surge this morning, and gold and silver rebounded slightly.

However, our Chinese concept stocks and the FTSE A50 were a bit weak. Chinese concept stocks fell 0.05%, and the A50 fell 0.1%. The declines weren't large but they just didn't keep pace with the U.S. market rhythm. So, when the A-share market's $SSE Index(000001.SH) opens today, it's estimated to either open flat or slightly higher, without much significant movement.

Brent oil has been rising for days, and the capital markets have followed suit, with Japanese and Korean stock markets also rising this morning. On our A-share side, the Shanghai Index is back above 4100 points. The Shenzhen Component Index and the ChiNext Index both rose over 1%. The most impressive was the ChiNext Composite Index, which directly hit a new all-time high, breaking the peak from June 3, 2015. That's incredibly strong!

But there's an interesting point: while the indices look lively, individual stocks are quite weak. Out of a total of 2920 rising stocks, the median gain was only 0.16%, far behind the index performance and impossible to beat. The trading volume across both markets also expanded to 2.56 trillion yuan, an increase of 151.2 billion yuan from before! Simply put, all the incremental funds have gone into group hugging, piling into the hot sectors, ignoring the small-cap stocks.

There's an online joke: basically, any stock with the word "light" in its name has hit a new all-time high! This is no exaggeration. The big winners that emerged over the past year are uniformly "light" + tech stocks, nothing else.

Moreover, the tech sector is clearly in its main upward wave, with capital deeply entrenched. Institutions, hot money, and quant funds are taking turns pushing it up in a relay, continuously producing short-squeeze rallies. It's so strong it's a bit scary, giving no chance for those who missed out to get on board.

Although institutions are calculating every day, talking about how good the earnings and high the prosperity of optical modules and CPO are, at this level of gains, A-share tech stocks can no longer be measured by valuation. You think it's worth 30 times P/E, someone else thinks it's worth 50 times, 100 times. Frankly, what's being traded now isn't earnings, it's imagination, it's the "dream multiple." The bolder the imagination, the higher the price.

In short, the current market is extremely polarized. If you've stepped into the "light"-related sectors, you're in a bull market. If you haven't, this bull run has nothing to do with you. You might even feel like you're struggling in a bear market, with nothing you buy going up.

This is the current major trend. How long the "light" theme will stay hot, no one can say for sure. But one thing is certain: it will cool down eventually, just like the previous Moutai 20, liquor, new energy, and solar power booms. Weren't they all red-hot and universally popular back then? No single main theme can stay strong forever. When the tide recedes, you must remember to run, or you'll be left stranded on the mountaintop, trapped for years.

April markets in previous years were usually not great, a traditional off-season. But this year is different. The ChiNext Index has already risen 17.8% this month, and the average stock price index has risen 13%. The gains are truly fierce! I wonder if your returns this month have beaten the index?

Personally, I don't think the tech sector alone can support a full-blown bull market. Only when tech and domestic demand work together can the bull market go further and steadier. The key lies in whether the upcoming consumption and real estate data can show significant improvement. Only when these two sectors rise can the market truly bloom across the board.

Finally, let's talk about thematic plays:

I. Institutional Tracks

1. Semiconductor

In the current market, stocks with the word "light" or "light-related" attributes are still exerting force repeatedly. This heat is estimated to last until the end of the month. If you want to participate, you can control your position appropriately, no need to be too aggressive. Hold until the end of the month and see.

Also, the STAR Market performed well yesterday. When those big names on the ChiNext were charging upwards, the STAR Market didn't back down either, holding its ground! But it was still somewhat affected. For example, semiconductor raw materials like photoresist were leading in the morning, but later funds were still siphoned off by "light"-related stocks, which is a bit of a shame.

But then again, every coin has two sides. "Light"-related stocks have earnings advantages, while semiconductors have low-valuation advantages. Both are key national strategic focuses. In the future, the wheel of fortune will surely turn. Semiconductors are just temporarily suppressed now and will have opportunities later.

STAR Market blue-chips + photoresist will likely become strong contenders for the next main theme after the "light" theme ends. Everyone should keep an eye on them.

2. Resources (Rare Earths / Non-ferrous Metals)

The non-ferrous metals sector is currently the only one among all the outperforming sectors in this round that hasn't seen substantial gains. It's also the small metals I've repeatedly mentioned recently. Some have already started to show strength, slowly making moves.

Actually, the only sectors that can compete with optical modules on earnings right now are non-ferrous metals and rare earths. Because last year's surge in commodity prices directly pushed bulk commodity prices to high levels, the earnings of these sectors this year will mostly show year-on-year growth for sure, and won't be bad.

Earnings will be announced at the end of the month. Everyone can pay appropriate attention; you might be able to do some bottom-fishing.

II. Hot Money Tracks

1. Computing-Power Grid Coordination

Liaoning Energy rose by the limit again today. This shows that the main players in this direction have never given up and have been quietly positioning.

Moreover, there was good news after the close. The General Office of the State Council issued the "Opinions on Doing a Better Job in Energy Conservation and Carbon Reduction at a Higher Level and with Higher Quality," mentioning the need to reasonably control coal-fired power capacity and generation, and vigorously develop non-fossil energy and new types of energy storage. This undoubtedly adds fuel to the development of green power. This direction is worth watching further.

2. Computing Power

The computing power direction moved again today. Those familiar with this sector know that every time it plunges, it bounces back, a very clear pattern.

This direction is purely about repeated force in the short term, a pure hot money track, with back-and-forth speculation, no long-term logic, just trading on sentiment and concepts. Everyone should note that stocks with the word "net" or "data" in their names have the highest recognition in this track and are more easily speculated on by hot money. Those wanting to participate should focus on these types of targets.