The situation is unstable, better to be conservative!

$Shanghai Composite Index sh000001$ Last Friday, the market opened low and closed high. The familiar "coal and nonferrous metals surge" is back, with cyclical sectors leading the gains again. By the close, over 3,200 stocks rose, with the median gain/loss across the market at 0.35%. February ended well for A-shares, with overall performance being quite good.

From a technical perspective, all three major indices opened low and closed high last Friday. The Shanghai Composite Index has been firmly above all moving averages, maintaining its strong pattern. Last Thursday, we mentioned a "golden triangle" formation; at that time, the 10-day moving average crossing above the 20-day wasn't very obvious. By Friday, this golden triangle became much clearer. Going forward, as long as it doesn't break below the 20-day moving average, any pullback would be a good opportunity to buy on dips.

Additionally, due to the Middle East situation, the market is expected to open lower today, and sentiment will likely be panicky. But whether it's a risk or an opportunity depends entirely on the attitude of the main players (i.e., financial stocks). If the main players step in to support the market, today's low opening would be a chance to buy cheaply. If they stay inactive, we should also be cautious and not blindly enter the market.

Let's sort out the sector and stock opportunities:

1. Nonferrous Metals, Precious Metals
Driven by events, this sector has accelerated its rise recently. The logic has shifted from previous earnings support to short-term emotional speculation. If gold and nonferrous metals surge rapidly in this wave, it's easy for many funds to change strategy, moving from long-term holding to taking the chance to cash out.

Expectations for this sector are already maxed out. There likely won't be good entry opportunities in the morning session. Those holding positions can just ride the wave; it's not recommended to chase the rally recklessly, as it's easy to get trapped.

Whether to exit after a surge or continue holding firmly depends on the strength and sustainability of this rally. In the short term, focus on tungsten and zinc.

2. US-Iran Conflict Related
(1) Iran's Supreme Leader Khamenei was attacked and killed;

(2) The Strait of Hormuz is closed;

(3) The US Space Force participated in Iran combat operations for the first time, mainly responsible for satellite surveillance and communication support;

(4) The US used the Claude AI system for the first time in this military operation.

This benefits oil, but expectations are too high. Don't chase the rally; be aware of the risks.

2. Humanoid Robots
There was important news recently: China's first national-level humanoid robot and embodied intelligence standard system was released. The Humanoid Robot and Embodied Intelligence Standardization (HEIS) annual meeting was held in Beijing, with government, enterprises, research institutions, and capital all attending to discuss industry standardization. The "Humanoid Robot and Embodied Intelligence Standard System (2026 Edition)" was officially released at the meeting.

This is China's first top-level standard design covering the entire industry chain and lifecycle of humanoid robots, marking the industry's formal entry into a new stage of standardized development. The system mainly consists of 6 parts: basic commonalities, brain-like and intelligent computing, limbs and components, complete machines and systems, applications, and safety ethics.

Expectations for this sector were already high before the holiday. Post-holiday performance has been average, but related news catalysts haven't stopped. Just keep an eye on the core directions.

The sectors with the highest expectations today are nonferrous metals and oil & gas stocks. However, these sectors have many latent and profit-taking positions. If they gap up significantly today, definitely don't chase! Be wary of "buy the rumor, sell the news"—chasing will get you trapped.

If the market falls sharply today, it might be an opportunity to buy some on the dip. The larger the gap down, the more opportunities there might be; it will likely open low and close high.

Today is mainly about digesting weekend news. The real normal market action will have to wait until Tuesday. If the market doesn't fall today, or even closes in the green, you can consider reducing some positions to lock in profits.

After all, the medium-term impact of the Middle East situation is still uncertain. It's better to be slightly more conservative, don't rush in aggressively, stability is more important!