#2024.10.23 Morning Trading Strategy# The index held up well yesterday, with securities firms playing a good supporting role. However, it's clear from the themes that low-position sector rotation has begun.

Counting from the surge last Friday's climax day, the market has held for three days, but it retreats intraday every day.

This indicates that the market is starting to diverge, with some previously skyrocketing sectors showing signs of adjustment. Hence, the gains in the past two days have been in low-position sectors.

Monday's low-altitude economy retreated yesterday, while media took its turn, surging intraday before pulling back in the afternoon, followed by agriculture.

Fortunately, the current pullback is very mild. Recently, there have been few stocks experiencing sharp declines (A-shares), and the peaks have been gentle, allowing for 1-2 days of consolidation.

In terms of themes, for ultra-short-term trading, consider low-position sectors with rotation potential first. Otherwise, wait for the main tech sector to adjust before re-entering, as rotational themes are harder to trade.

1. Tech Sector

The semiconductor sector is likely to retreat in the short term. Yesterday, only Shanghai Belling, Silan Microelectronics, and Taiji Co. remained strong. The core popular stock, Nationz Technologies, showed mild divergence.

Last night, news broke that E Fund reduced its stake in SMIC. Why did E Fund sell? Likely due to retail investors cashing out on the STAR 50 ETF, forcing them to sell shares to meet redemptions. This news is negative for chip stocks.

Semiconductors and chips are far from done, but as the main theme of the last rally, they surged too sharply, with huge short-term profits and volatility. Hence, be cautious about short-term adjustments.

If focusing on the tech sector today, watch how Huawei performs. Last night's "Pure Harmony" launch event gained traction.

However, the Huawei theme has been hyped for a while, and the sector is at a high level. Whether to participate today depends on capital flows. If watching, focus on core leaders first.

2. Robotics

The market is in rotation mode, with low-position sectors having opportunities. Robotics also has rotation potential, and speculative capital might target this direction.

In terms of news, XPeng's second-generation humanoid robot and factory application scenarios are catalysts.

3. Solar

Capital flowed into this sector late yesterday. The solar sector is also at a low position and reacts easily to minor news, but it often lacks sustainability. Hence, only consider it for short-term arbitrage.

As mentioned, solar lacks sustainability. Whether to participate today depends on sector performance. If watching, prioritize core stocks.