February 3rd Review

Three Major Principles of Buying Stocks
The first is the sector, which can also be called the main theme. When selecting stocks, you must choose within the main theme or during rotation when popular sectors emerge. This provides certainty for individual stocks because sector anchoring can set expectations for the next day.

The second is recognizability. Leading stocks must have popularity. With popularity, there will be trading volume, and with large trading volume, safety is ensured. Safety means freedom to enter and exit. Funds are willing to move only when the sector is in a main upward trend, reflows, or rebounds.

The third is proactivity. Proactivity helps you lock in profits quickly during the main rise, often hitting the daily limit within the first one or two minutes after opening. During chaotic periods, the most proactive stocks are the safest because fewer funds are choosing where to go. Unlike during the main upward phase, where funds spread across sectors, smart money and quantitative strategies will only pick the most active stocks. Almost exclusively. Missing the most active stocks means reducing positions in all other stocks. Missing Dragon 1, you can only hold half positions on Dragon 2.
This third point is especially important in markets dominated by quantitative strategies (such as chaotic periods). Only with enough proactivity can there be sufficient safety.

Index: Today, the index rebounded on lower volume. Overall, the rebound strength is sufficient. But remember, this is a rebound, not a reversal. The five-day moving average trend has been broken, so whether the index can stay above the five-day line is crucial. Tomorrow, focus on the five-day line to observe whether the index faces resistance and pulls back or can rise again. This is very important.

Volume: Volume shrank to 40.5 billion, with total trading volume reaching 25,442 billion. This liquidity shortage is mainly caused by the influence of metals and non-ferrous metals, as well as external funds being hesitant to enter the market. The next step depends on where liquidity concentrates after Silver opens its board.

Themes:
Commercial Aerospace: Today’s strongest sector. The current focus is still on a rebound. The future trend may gradually move upward, but for now, focus on the rebound! Tomorrow, identify stocks with strong momentum. Stocks like Juli need to quickly hit the limit-up. If Tongyu can advance, the sector outlook will be more positive. Additionally, for Aero Engines, follow the trend or continue to advance. If they truly advance, wait another day to see.
AI Software: The AI sector is still betting on news related to the Spring Festival, but the sector’s chips are not strong enough. It needs a dip to shake out weak hands; a decline is an opportunity.
Metals: Don’t look for opportunities here. Even if futures continue to rise, such a market may not happen again. Individual stocks will find it hard to return to previous levels, but authentic stocks like Zijin Mining should continue to follow futures trends. Recently, short-term traders piling into the sector may affect the normal trend.

Sentiment: 22 stocks hit the limit down, 83 stocks hit the limit up, 17 stocks fell sharply, 463 stocks surged, with a board lock rate of 78.3%. Market sentiment has clearly improved.
Up 4856, Down 532

Comment: The market will be easier to handle moving forward. Most of the declines have already happened, and the pre-Spring Festival game has begun.