1. Previously highlighted opportunities and logic in the auto sector
Whether it was last night's US stock market or today’s A-share or Hong Kong stock markets, the auto sector is the star performer across the entire market. $Tesla (TSLA.US)$
Anything even remotely related to cars made investors smile today.
In fact, the rally in the auto sector has been going on for some time, but last night’s State Council meeting announced policy support, which reignited the sector today.
I wrote an extensive article about the auto sector on the 7th of this month.“Beware of Short-term Overheating, Keep an Eye on This Sector When It Pulls Back!”(This article also pointed out short-term overheating in the STAR Market; as of today's close, the STAR 50 Index is down 2.7% compared to June 7th), reminding investors of the opportunity in the auto sector,Moreover, this auto sector opportunity is not just short-term, but a medium- to long-term one.(Depending on the subsequent policy support for the auto sector, which has already been increased; the next part will discuss this further)
At that time, I predicted the automotive sector's rally would last until October this year (before any policy intensification). To ensure capital safety, I only recommended SAIC Motor and some Hong Kong stocks to everyone $GEELY AUTO (00175.HK)$
As a practitioner focused on real-world trading, it’s not just talk. The next day (June 8th), I tested the waters with a light position in SAIC. The reason I didn’t build a position in Geely was not due to lack of optimism but because my Hong Kong stock portfolio was already close to 88% allocated, with the remaining funds reserved for short-term trades (I didn’t establish positions in Hong Kong-listed pig farming companies either for the same reason) $COFCO JOYCOME (01610.HK)$It was also for this reason
Looking back now...