Don't panic!!

$Shanghai Composite Index sh000001$ This wave of indiscriminate decline today is indeed brutal, causing widespread panic.

But to be honest, having fallen to this extent, there's no need to be overly worried—because the overall valuation has become relatively reasonable.

This is also why the importance of position management is repeatedly emphasized.

The core of position control is to deal with all uncertainties. Even if such extreme market conditions only occur once a year, it is a key to survival.

Here are 4 key signals to sort out for everyone; the more it falls, the more rationally you should look at it:

1. Index point level is reached: It has been mentioned repeatedly before that there would be no substantial decline before the index reaches 4200 points, with a maximum adjustment of around 10%. As of today, it's just close to a 10% drop, and the expected adjustment has basically arrived.

2. Heavy volume releases panic: Today's trading volume increased by 150 billion, with panic selling concentratedly pouring out. This is a good sign! However, the overall increase in volume is not yet particularly sufficient. If volume continues to increase tomorrow, panic selling will be basically released, making the bottom more stable.

3. Technical indicators hit bottom: The BIAS deviation value has already fallen below -4. According to historical patterns, a rebound is highly likely within 3 days.

4. Short-term oversold signal: Stocks that hit the daily limit up have fallen below the 5-day moving average. The probability of a rebound in the short term is extremely high, which is a demand for recovery after being oversold.

Currently, it is in the stage of inertial decline. This inertia is more of an irrational emotional venting rather than a fundamental issue.

According to the pattern, how it fell down, it will most likely rise back up in a similar way. Especially today's price gap has a strong demand to be filled in the short term.

Now, all that's missing is a positive news catalyst—no matter what the good news is, in the current sentiment, it's a lifeline.

Opportunities are always born from declines. Rather than complaining about the bad market, it's better to plan ahead for the response strategy after the oversold rebound.

Now let's look at the hot sectors:

I. Photovoltaic Equipment (Mid-term focus, solid logic)

Photovoltaics showed divergence today. The stimulus from news is short-term, but it's a hard fact that Musk's SpaceX/Tesla has confirmed purchasing gigawatt-level Chinese photovoltaic equipment.

The logic of this trend has completely moved from "story" to "implementation," and there will likely be repeated opportunities in the future.

It is recommended to continue focusing on it as a mid-term direction, with a focus on core varieties with significant performance improvement and leading technology.

II. Power (Strongest resilience, mainstream character emerging)

From the market performance, power stocks opened low and closed high today, showing the initiative that a mainstream theme should have;

Although they accelerated their decline with the index in the afternoon, they successfully attracted buying at the close to recover the 20-day moving average, showing clear capital intention.

Dual support at the logic level:

1. AI demand + overseas conflict energy substitution, the logic is completely superimposed, making it a theme with both defensive and offensive attributes;
   2. Summer electricity peak expectation, bringing periodic speculation catalysts.

Today, the entire market was in a mess, and power was one of the few themes that showed resilience.

Subsequently, focus on active varieties first, avoid mid-tier ladder varieties, and prioritize capturing core survivors in the current weak environment.