Control your position, buy the core at low prices.

$Shanghai Composite Index sh000001$ has been perfectly manipulating retail investor sentiment these past few days.

A few days ago, consecutive big bearish candles caused painful losses in accounts, with everyone shouting about closing accounts and leaving the market; after finally getting two days of rebound and recovering a bit of blood, they start getting cocky again, thinking about making profits, recovering losses, and charging to new highs.

And the result? Lost a few cows, barely got back a couple of chickens, and they all ran away overnight. This rebound was pure emptiness.

Yesterday's adjustment was completely within expectations, only the magnitude of the adjustment slightly exceeded expectations. The index filled the 3881 gap. Currently, there are dual gaps above and below. Filling the lower gap first is a good thing, as it can thoroughly eliminate hidden dangers and pave the way for subsequent rebounds.

There's no need for everyone to panic. This adjustment is completely different from the previous panic selling. That was an emotional crash; this is just a technical pullback, a normal movement within the bottom consolidation range. If the market opens lower by inertia in the morning session today, it's still a good opportunity to buy the dip for spread trading.

Key themes for today:

1. Power: Differentiation after climax, watch the leading stock's support

After two consecutive days of sector frenzy, it saw a significant adjustment yesterday. The top leader's streak broke, and all the following stocks closed with big bearish candles. This was also the trend I warned about in advance.

The medium-to-long-term logic remains solid, but short-term gains have been severely overextended. There's no need to blindly cut losses from now on. Focus on observing the leading stock's strength in oscillating and recovering. As long as the leader doesn't see consecutive sharp declines or extreme negative feedback, the sector still has opportunities for local catch-up gains.

2. Commercial Aerospace: Unusual fund activity in the final session, becoming a new direction for high-to-low rotation

SpaceX's IPO news has been flooding screens these past two days, but the sector has consistently underperformed expectations. It wasn't until yesterday's final session that funds started pouring in, creating an independent trend, remaining firm and resistant to declines even as the index plunged.

News confirmed: SpaceX plans to submit its prospectus soon and officially list in June, far exceeding market expectations. The sector has undergone a long period of adjustment, with declines nearing 30%. The adjustment is complete, laying the foundation for a rebound.

3. Lithium Batteries

Lithium batteries showed strength against the trend yesterday. There's no need to excessively chase the single-day rally, but the earnings-driven main theme it represents deserves attention. During the subsequent market consolidation period, sectors with solidly confirmed earnings will have higher safety.

Overall, the market is still grinding at the bottom. Don't chase highs, control your position size, buy the dip in core assets, and patiently wait for the direction to become clear!