The divergence came one day earlier than expected, and the index pullback is still within this range. Although 4,000 stocks fell today, the number of limit-up stocks remained above 150!

In the final trading session, speculative stocks began to diverge, marking the end of the mindless rally mode! The frenzy of trading small-cap and restructuring junk stocks in the past two days will see further divergence starting tomorrow. The junk stock rally is likely to fade, and the high-stakes elimination game begins tomorrow. Either go for the strongest plays or look for those with sector potential.

As for today's decline, don’t worry—news hit after the market closed: If Trump wins, China may announce a stronger fiscal stimulus package.

As soon as the news broke, the FTSE China A50 index surged at one point. These foreign media outlets are so sneaky—they dangle a huge number to whet everyone’s appetite, then dump stocks if expectations aren’t met. Are they trying to force us to play our trump card? Our stimulus package will definitely be substantial, but we won’t be led by the nose by foreign media. Whether it’s Trump or Harris in the White House, we’re prepared. Any major moves will likely be announced during the November 4-8 meetings.

So for the remaining two trading days in October, you can either stay lightly positioned or start thinking ahead about potential sectors to position in early.

Sector-wise:

1. Restructuring plays: The sector saw major divergence in the final session today. Many stocks will likely continue to drop out tomorrow, and a big shakeout is needed to identify the strongest contenders. For now, Shanghai Electric (601727), Wantong Development (600246), and Sichuan Development Longmang (002312) appear relatively strong, while the leader Shuangcheng Pharmaceuticals (002693) is mainly fluctuating at high levels.

2. Solar + Financial Securities: Short-term solar trades are mostly driven by expectations of looser U.S. restrictions, with additional speculation on industry price caps and supply-side reforms. This makes it a potential stealth play, betting on either securities or solar as relatively less sentiment-driven sectors for future index expectations.