The main trend has already begun; seize the opportunity to open a new chapter!

The Middle East conflict intensifies over the weekend, which will still have an impact on the global stock markets. However, for the A-shares, it hardly has any effect. The first ship passing through the strait over the weekend was ours, and GJD remains firm in its determination for the A-shares to break upward.

Due to external influences, it is predicted that the market will generally be weak in the first half of this week. Additionally, last Friday’s trading volume decreased by 189.9 billion. I have always said that a volume above 2.5 trillion is ideal, as it can support multiple sectors rising simultaneously. With the Two Sessions ending from Wednesday to Friday, it’s important to control positions and pace in the first half of the week, take profits when appropriate.

This week, we will gradually focus on main sectors, pre-positioning and waiting quietly for the market to explode!

Sector directions: AI applications, storage chips, power grid equipment, humanoid robots, commercial aerospace.

The energy, oil, shipping routes, and military industries affected by the Middle East conflict will fluctuate, but it’s not suitable for trading—these are ultra-short-term plays.

AI applications: The biggest news over the weekend was the lobster farming project (OpenClaw), which can be understood as an AI large model. Our domestic ones include Yuanbao, Qianwen, etc. In my view, AI performance has not yet been realized, and combined with the release of risks by the Ministry of Industry and Information Technology, it is still mostly driven by news catalysts. All companies will announce their 2025 annual reports and Q1 2026 reports by the end of April, so it’s best not to chase this hot topic for now.

Storage chips: Storage chips are now shifting from a cyclical phase to a growth phase.

Firstly, the rising trend and supply-demand imbalance of storage chips are expected to continue throughout 2026, with some segments like NAND flash possibly extending into 2027.

Secondly, this shortage is not a traditional cyclical fluctuation but a structural shortage triggered by explosive AI demand.

Thirdly, in the chip manufacturing (front-end) sector, storage chips and CPUs (logic chips) follow completely different technical routes, but both represent the pinnacle of human precision manufacturing. In terms of market scale, storage chips are “trillion-level” giants, far surpassing CPO. While markets related to CPO (optical modules, optical engines, etc.) are growing rapidly, their overall market size is only in the tens of billions to over a hundred billion dollars. In comparison, the storage chip market exceeds hundreds of billions of dollars. In terms of output value and scale, storage chips are much larger than CPO.

Power grid equipment: Currently in the early stage of explosive growth, supported by the 4 trillion yuan plan, the Southern Power Grid’s 180 billion yuan investment, and the signing of power self-supply agreements by North American tech giants with Teco, which has increased market confidence. Good opportunities will emerge.

Humanoid robots: Over the weekend, the Two Sessions repeatedly mentioned embodied intelligent humanoid robots, which may see a rise. However, the mainline market is unlikely to include humanoid robots at this stage.

Commercial aerospace: The launches of domestic rockets and news related to Elon Musk, combined with the Two Sessions’ catalysts, will bring a second wave, but not now. It’s better to wait quietly for good news.