Big A makes a comeback!!

$SentinelOne(S.US)hanghai Composite Index sh000001$ Yesterday, A-shares staged a dramatic "last stand counterattack," with all three major indices rising over 1%. Even more delightfully, 4,856 companies across the market saw their stock prices rise, with a median gain of 1.89%—a solid "meat-eating market." Many friends are asking: Has the bull market returned?

This market performance is truly theatrical—on Monday, it was falling so hard that people wanted to lie down, as if needing ICU care, but yesterday it suddenly revived at full health and headed straight for a KTV party. However, one detail to note: the trading volume across the two markets was 2.54 trillion yuan, 40.5 billion less than the previous day, a classic case of "rising on shrinking volume."

This is quite interesting—whether rising or falling, the trading volume hasn't expanded, leaving people baffled. In fact, the A-share market has always been like this "middle-aged man": just when you think it's done for, it suddenly throws you a big bullish candlestick; just as you confidently charge in, it starts a series of bearish adjustments. Often, it surges for one day and then rests for three—no use rushing, just grind it out slowly.

Moreover, compared to global markets, our rebound is nothing special. Japanese stocks surged 4%, Korean stocks skyrocketed 6.84%, and Indian stocks also rose 2.5%. From this perspective, A-shares are clearly following a "slow bull" path, steady as ever.

Of course, yesterday’s high opening and upward trend in A-shares were partly due to timely support from the global market rally. Although there were intraday divergences and capital back-and-forth, the market ultimately withstood the pressure and closed with a decent bullish candlestick.

But here’s a crucial reminder: Don’t get carried away by this big bullish candlestick! Treat it as a post-overdrop rebound for now—don’t assume the bull market is back just because of one rise. After all, it’s a rebound on shrinking volume, meaning that while panic sentiment has eased, it hasn’t completely disappeared—people are still somewhat cautious.

So if the market continues to rise out of inertia, it’s definitely not a bad idea to reduce positions and lock in some profits—don’t get greedy!

Now, let’s talk about the sectors and opportunities everyone cares about most. Here are a few key areas to watch:

1. Commercial Aerospace: Rebounding After Adjustments, Solid Logic

Pre- and post-market news is all positive: First, SpaceX announced a merger with xAI, sending the new company’s valuation soaring to $1.25 trillion. After hours, China’s Academy of Launch Vehicle Technology also announced plans to ramp up rocket production capacity.

This sector was heavily suppressed earlier but has recently started stabilizing and rebounding. Musk’s influence is undeniable—when he says he’ll launch 1 million satellites, the market believes him, and the imagination runs wild. Moreover, we haven’t even seen more big moves from our side yet, leaving plenty of room for future speculation.

The logic behind commercial aerospace has always been strong—any slight movement can easily make it a market pioneer. The core stocks in this sector are well-known, and judging by the current trend, they’re likely to challenge previous highs—worth keeping an eye on. Additionally, the high-flying leaders from the last wave have adjusted thoroughly this round and even led the charge with limit-ups yesterday. If the sector continues to strengthen today, they might advance further—definitely worth watching closely.

2. AI Applications: Continuous Catalysts, Spring Festival Gala as the Main Traffic Battlefield

AI applications have been repeatedly mentioned lately—the logic is already clear, and positive news keeps coming:

• The "Ant Ah Fu" App surged to No. 3 on Apple’s free chart;
• U.S. AI application company Palantir’s revenue and guidance far exceeded expectations, with pre-market gains over 10%;
• Alibaba’s Qianwen App is investing 3 billion yuan in a Spring Festival offensive, launching on February 6 with full integration into Taobao, Damai, and Fliggy’s ecosystem;
• Xiaohongshu and Douyin secured exclusive interactive and vertical-screen viewing rights for the CCTV Spring Festival Gala, respectively.

Clearly, tech giants are scrambling for the traffic gateway of the Spring Festival Gala, and the catalyst news for AI applications just won’t stop. In the short term, keep an eye on computing power leasing and AI application directions. Also, don’t overlook upstream computing power: last year, computing hardware surged, but servers remained stagnant—there might be catch-up opportunities ahead, and liquid-cooling stocks are also worth watching.

From a macro perspective, the two biggest events in U.S. stocks this year will likely be the IPOs of SpaceX and OpenAI, corresponding to commercial aerospace and AI applications in A-shares! In recent years, A-shares have become increasingly synchronized with U.S. stocks—previously, AI computing and humanoid robots followed the same trend. Big money is deeply involved in these two directions, and they’re likely to trend further.

3. Nonferrous Metals: Don’t Chase Blindly! Only These Two Sub-Sectors Are Worth Watching

A word of caution here: If you’re not already in, don’t chase nonferrous metals! Especially silver—I suspect that when it hits 100 again, the bulls will get slaughtered, and the risk is too high.

Right now, I only like two metals: One is copper—no need to repeat the old logic; the new logic is that the country plans to build strategic copper reserves, which will inevitably lead to massive stockpiling of copper ore, absorbing current prices and supporting further gains. The other is rare earths—the logic has always been solid, and today adds another layer: AIDC growth this year will be explosive, as evidenced by the performance of various computing hardware stocks, and AIDC has a rigid demand for rare earths, with significant usage.

Other resources are rising in price, and rare earths are something we can price independently—there’s no reason they shouldn’t rise. But again, these sectors are highly volatile—if you don’t understand the logic, stay away and don’t blindly follow the crowd.