$SSE Index(000001.SH)$SSE Composite Index sh000001$ saw a slight decrease in volume today, with the focus of the Shanghai and Shenzhen indices shifting upward, indicating a technical recovery. The Shanghai index has a chance in the short term to touch 4100 points and test previous highs, but sentiment remains unstable—while over 3200 stocks rose and 84 hit the daily limit-up, there were still 52 limit-down stocks, indicating that the market downturn is not over, only taking a temporary breather.

The current market is a structural trend under intense competition, with opportunities scattered and rotating quickly. The ChiNext and STAR boards have recently shown a seesaw pattern.

Now, more important than judging the direction is understanding the flow of capital. The core situation is: index recovery, sentiment receding, and capital switching tracks. Success depends on seeing the direction clearly, staying patient, and following the rhythm of capital is more reliable than blindly following the crowd.

Sector directions:

1. Semiconductors

Having undergone sufficient prior adjustments, with large capacity and solid logic, this sector is absorbing high-level capital and warrants close attention. Today's surge has four major triggers: institutional portfolio adjustments, Intel's significant rise boosting CPU expectations, the potential restriction of lithography machine exports by the U.S. "MATCH Act" (strengthening self-reliance), and DS-V4 reducing computing power inference costs.

It's worth noting that while DS-related concepts plummeted, inference application chips surged, with the core being hardware. Capital is focusing on attacking semiconductor blue chips like SMIC, Hanwang, and Haiguang. These targets can absorb large capital and are less prone to pitfalls.

2. Domestic Computing Power

The core divergence is between domestic computing power (corresponding to the STAR board) and offshore computing power (corresponding to the ChiNext board). DS V4's adaptation to domestic computing power strengthens the domestic supply chain's position, while the offshore chain (e.g., optical communication) is being sold off due to underperforming earnings.

The lithography machine and photoresist sector indices hit new highs, with "price + capital" resonance. The short-term trend is strong, and one can watch the rhythm. Although the intelligent agent sector saw a pullback due to DS profit-taking, some targets performed strongly against the trend, offering medium-to-long-term opportunities. Short-term positions should wait for a pullback to support levels before entering.

3. Lithium Mining/Lithium Battery Industry Chain

After a long period of adjustment, there is a need for a rebound. Leading companies' earnings exceeded expectations, making this, along with the tech hardware sector, a direction with strong earnings certainty. Look for leading stocks to buy on dips along the 5-day moving average and explore quality targets independently.