There's a high probability of a fix!

The market didn't perform well yesterday, with the three major indices pulling back together. Nearly 3,700 stocks were down, and the trading volume was 2.55 trillion yuan, shrinking by 50 billion compared to the previous day.

It can be seen that defensive sectors like brokerages and pharmaceuticals are starting to strengthen, which indicates that the market is already showing signs of a holiday lull. Everyone is beginning to think about risk aversion and is hesitant to make any rash moves.

The ChiNext (GEM) has fallen for four consecutive days. The gains from this rally have been almost wiped out by a third, a quite noticeable decline.

The STAR Market also experienced a pullback after an early rally yesterday. It was doing well initially but then fell back. The main reason is that tech stocks had surged too much before, and the major players are now divided in their opinions—some want to sell, some want to hold, leading to a divergence.

The Shanghai Composite Index is still holding up, remaining in its usual pattern of volatile trading. It has been fluctuating between 4050 and 4125 recently. In the short term, it will likely test the lower support level of 4050 repeatedly, and it's uncertain whether it can hold.

This is a critical time for institutional portfolio adjustments. Everyone needs to pay close attention: some sectors may look strong, but institutions are actually quietly reducing their positions; some sectors may look weak, but there might be funds quietly accumulating positions at low levels.

Furthermore, today is the last day before the holiday to sell and withdraw funds. It's estimated there will be one last wave of pressure on liquidity today. However, there's no need to panic too much. After several consecutive days of decline, a rebound is highly likely, so don't lose your nerve.

The holiday period is not short, and the international situation is uncertain with many unpredictable factors. Position sizing must be controlled—don't exceed 50%! The short-term market will remain volatile, and there will definitely be pressure around the 4100-point level. Don't be too greedy or hold on too stubbornly; take profits when you should.

Let's also talk about the sector themes:

1. Semiconductors

Yesterday was the third day of divergence in the semiconductor sector, which is normal, no need to panic. If there are a couple more days of adjustment, just focus on the STAR 50 index and the leading companies within the industry.

The bellwether is Haiguang. It pulled back after testing previous highs, but trading volume has remained ample. After the adjustment, it will likely make repeated attempts to push higher, so there are still opportunities.

2. Green Power

Green power is currently the most active playground for hot money.

This direction is mainly driven by hot money repeatedly speculating, and it's not operated by quantitative funds. Therefore, it generally won't experience a sharp 'A-share' style crash or be a one-day wonder, making it relatively more stable.

3. Commercial Aerospace

This sector is experiencing significant short-term divergence, and the hype has cooled down a bit. However, satellite communications, space computing power, and recovery technology remain key points that cannot be ignored.

From a business logic perspective, Shunhao has the strongest logic within the space computing power segment. However, for short-term trading, price and timing are crucial. This sector rotates too quickly; buying at a high point can easily trap you, so be very cautious.

4. Rare Earths / Non-ferrous Metals

Financial reports from related companies are all out, showing very good performance. However, short-term funds haven't rotated to this sector yet. Achieving these results in the Q1 report makes a valuation recovery in the long term something to look forward to. But a reminder: this direction is not a hot topic now. If you can't stand the boredom, it's better not to touch it, as you might get stuck waiting.