The index continued to fluctuate within a range today, hitting a high of 3300 before pulling back. Tomorrow, watch for support at the 5-day moving average around 3220.

Trading volume remained strong today, staying above 2 trillion. As long as the volume holds up, there will be no shortage of thematic opportunities. However, market volatility will remain intense. Don’t be afraid of shakeouts in strong stocks, and weak stocks should be phased out.

The market is still in a consolidation phase. As I’ve repeatedly emphasized, the key is to buy low and sell high. Take today as an example—the morning rally in tech stocks was a chance to reduce positions, as I mentioned last night.

【Sector Review】

Morning: Tech stocks led gains;

Afternoon: Defense/low-altitude economy sectors led;

Strongest all day: Beijing Stock Exchange (BSE);

The BSE was the standout today, boosted by positive weekend news and the excitement of 30cm limit-ups (vs. 20cm/10cm elsewhere). However, most retail investors lack trading access, so they can only watch.

1. Chips/Semiconductors:

Semiconductors offered great premium opportunities this morning. Even those who chased highs last week had exit chances. By afternoon, sector divergence emerged, with laggards falling behind.

As noted last night, chips faced divergence. Benchmark SMIC (00981.HK) pulled back after an early surge, let alone others. But StarPower Semiconductor (688256.SH), which I highlighted, hit a 20cm limit-up!

The chip/semiconductor trend remains the main play, though profit-taking and consolidation are needed. Even strong trends require pullbacks to sustain. A rebound tomorrow isn’t ruled out, but focus on leaders—ignore laggards.

Post-market, Guangdong announced chip-related policies. Watch for potential tech sector recovery.

2. Defense/Low-Altitude Economy:

Afternoon funds rotated here, partly due to weekend policy catalysts:

Suzhou released trial rules for low-altitude flight services, effective Dec 1;

Hong Kong’s low-altitude economy task force will meet next month, accepting pilot project applications by year-end;

Beijing plans a 3,000 sq km autonomous driving pilot zone.

Beyond news, this underperforming sector saw tech-to-defense rotation as a temporary pivot.

Sustainability is unclear—this isn’t a fresh theme, and policy support lags tech. Treat it as short-term; afternoon consensus means tomorrow brings elimination rounds.