The main theme for October is volatility, partly because there are no more stimulating news, and also because the management prefers a slow bull market.

A breakthrough in the index is likely to wait until two major domestic and international events are settled in November: 1. Domestic (the conference, held from November 4-8) 2. International (the election, voting on November 5).

The last meeting of the Ministry of Finance did not reveal the specific scale of policies, and further policy releases are expected to come after the election is settled. Before that, the index will continue to fluctuate within the current range.

There are only four trading days left next week. As long as the trading volume does not shrink significantly, thematic stocks will not lack opportunities. The rotation strategy should still be adopted. In the last few days of the month, it is also possible that the market will see funds exploring new cycles to position for November.

The strongest performers at the opening last Friday were Shenzhen local stocks, but divergence emerged during the session, followed by surges in photovoltaics and solid-state batteries. The reason these sectors led the gains on Friday was mainly due to positive news.

News highlights:

1. Shenzhen Municipal Financial Office released the "Shenzhen Action Plan for Promoting High-Quality Development of Venture Capital (2024-2026) (Draft for Public Comments)."

2. Photovoltaics: The U.S. Department of Commerce initiated a Changed Circumstances Review (CCR), considering partial revocation of anti-dumping and countervailing duties on Chinese crystalline silicon photovoltaic cells.

3. New energy batteries: China's first mass production line for all-solid-state lithium batteries officially began operation.

Sector highlights:

1. Photovoltaics/Batteries: Low-position rotation sectors, coupled with news-driven momentum, saw a surge last Wednesday, divergence on Thursday, and a unified rally on Friday. Core stocks in the sector mostly hit the limit-up.

The leading stock in this wave is HYCAN, currently at a four-day limit-up streak. If it continues to advance next week, it will drive the sector's laggards. Trend stocks include LONGi Green Energy and Tongwei Co., while capacity stocks like JA Solar could be watched. If the sector continues to rally next week, low-position laggards could be considered for opportunities if high-position leaders are too risky.

2. Securities: A breakthrough in the index still requires leadership from brokerages. The leading stock, Tianfeng, has already risen to a high position.

3. Tech sector: Tech stocks are undergoing high-low rotation. Semiconductor chips have not seen a decent rebound after continuous adjustments. The only remaining trend stock is Shanghai Belling. Quant-driven Taiji Co. also showed divergence last Friday, and tomorrow will test the pressure at the 5-day line.

If semiconductor chips continue to adjust next week, other tech stocks could be considered, such as consumer electronics, AI, or new productive forces in rotation.