[Red packet] The market is completing a clear transition

Today, the A-shares didn’t perform very well, but the logic was very clear. The index closed lower, individual stocks mostly declined, with 4,500 stocks falling. Trading volume continued to shrink. The entire market was not panicking, but there was a calmness as funds actively reoriented their positions, which is worth paying attention to.

The sectors that were the most popular and most crowded in valuation earlier, such as computing power and semiconductors, collectively pulled back today. This is not negative news or panic, but a natural process of sector rotation. The early movers profit, while latecomers buy in afterward. It happens every time, and there’s nothing much to discuss.

Any sector reaching a high level doesn’t happen overnight. It goes through various forms of consolidation, washing out uncertain chips and filtering out story stocks. Only those that can sustain will continue to move forward. This applies to individual stocks and investors alike.

Big financial sectors like securities firms, insurance, and banks performed strongly against the trend today. Yesterday, they took a hit on China National Petroleum, but today they gained some ground and moved on. This kind of movement in the big financials isn’t accidental. It reflects the market’s instinct to embrace undervalued, high-dividend, fundamentally solid assets during periods of rising uncertainty, as we’ve discussed in smaller circles.

The real estate sector showed some unusual activity today. Shanghai relaxed commercial real estate policies, with some down payments reportedly dropping to 30%. I’ve been paying attention to the real estate market before and around the Spring Festival, but I haven’t yet taken any action—just observing.

Wind power, photovoltaics, electricity, and cyclical stocks continue to rotate actively, reflecting that after funds flowed out from high-growth areas, they are now seeking undervalued sectors with supply-demand logic, policy expectations, and earnings bottom lines. Examples include JinNiu Chemical, Jinzhengda, Chitianhua, and recent wind and solar stocks.

Also, stocks related to smart grids and energy storage like ShunNa Shares, energy-saving wind power, Hanlan Cable, and leading companies in the photovoltaic sector like Guosheng Technology and GCL-Integrated have performed well recently.

Overall, the index remains in a state of oscillation and adjustment. Our system has been quite accurate in judging these recent high-low rotations. The market is suppressing overheated sentiment, dispersing overly concentrated funds, letting the gains of some stocks correct, and seeking quality sectors at low levels. Smart money is also looking for opportunities in undervalued sectors before starting the next cycle. This is the market’s cycle, rhythm, and sentiment.

The upcoming market will increasingly test stock-picking skills. Days of broad gains will become fewer, and structural opportunities will increase. High-flying sectors won’t collapse entirely but will experience significant differentiation. Low-priced sectors won’t surge immediately but will gradually show sustained growth.

The truly profitable directions will be those with solid logic, stable performance, and reasonable valuations. Our task remains to find precise trend-based entry and exit points for quantitative trading. This applies to both the overall market and individual stocks. Otherwise, patience is key.

Every market pullback helps us filter risks and clarify the main themes. As long as we don’t chase highs, avoid blindly following, and stick to opportunities we understand, it will be easier to make money in the upcoming market.

Recently, I’ve hit a plateau in weight loss. Despite walking over 15,000 steps daily for two consecutive weeks and paying close attention to my diet, my weight hasn’t dropped much. The revolution is not yet complete; comrades, we still need to work hard!