Huatai Securities: Focus on the intersection of low valuation, low crowding and industries potentially benefiting from high oil prices.

Huatai Securities Research Report stated that last week, global liquidity tightening expectations were intertwined with geopolitical tensions, causing extreme caution in market sentiment. Against the backdrop of constantly changing macro pricing logic, micro gameplay within the market intensified, with funds beginning to seek certainty in the energy sector. However, it is important to note that in a market with shrinking trading volume, the sustainability of single sector growth is facing a test. Therefore, the core focus of the gameplay direction lies in the "cost pass-through" ability within the industry chain. Looking ahead, the current weak balance is about to face multiple test windows. In the future, external variables such as geopolitical changes and internal factors like "pre-holiday effects" will suppress trading activity. However, taking a longer-term perspective, as China's A-share market enters a period of intense financial report disclosures in April, market pricing anchors are expected to gradually penetrate emotional disturbances and return to fundamental validation. In terms of allocation, it is advisable to moderately focus on coal, power chains, and chemical raw materials, which may benefit from high oil prices and have the ability to pass on costs, while also maintaining a position in low-priced essential consumer goods.