Evening Market Review.

The market indices have surged with high volume for two consecutive trading days, igniting everyone's emotions. Interestingly, those who a month ago were calling for account clearance are now raising funds to chase the highs. This is the most addictive aspect of this market—when it falls, it causes insomnia; when it rises, it drives madness. In plain terms, it amplifies human weaknesses.

The market has broken through 4,000 and hit a ten-year high, with major stocks collectively pushing the index higher. Many are already calling for 5,000 points. Seeing others' accounts thriving, some are envious of those who haven't risen yet, some envy those who have hit the daily limit, and even those who hit the limit regret not buying more. As a result, people chase every position and increase their holdings at any level.

But this is where the problem lies. The market has its own rhythm; a sharp rise followed by a pullback is normal, and retracements will occur. The hotter the market, the more important it is to stay calm. Follow your trading system, and scrutinize every trade. A big rally is certainly cause for happiness, but don’t lose sight of the essence of trading in joy.

From a technical perspective, the recent upward momentum of the index is indeed strong, and the atmosphere is very bullish. As long as there are no black swan events causing a crash, this bullish trend is unlikely to extinguish quickly. But the question is, how long can this continuous surge last? Honestly, at this pace, reaching 5,000 is not a dream. Looking back at the previous breakout past 4,000, there was always a retracement for confirmation. So, be prepared for possible high-level oscillations or short-term corrections.

Regarding individual stocks, although the overall rise is significant, there is clear differentiation. Many stocks are actually declining, but the recent surge in large financial stocks has masked this. This often signals that divergence is about to become apparent.

Key sectors to watch:

Commercial aerospace is currently a heartbeat every day. It sharply retreated in the morning but then showed strong rebound later. The electronics sector has been the most resilient recently, with clear logic and high recognition. Other segments like 3D printing, space industry chain, and antennas are rotating. The strategy is to reduce positions moderately during big rises to lock in profits, and to buy on dips when divergences appear. This phase won't offer a smooth linear rise; it tests your sense of rhythm.

Brain-computer interfaces experienced a batch of limit-up hits today, and the momentum may continue into tomorrow’s early trading, but many will face reversals later. It’s advisable not to chase limit-up stocks easily; wait for divergences to form before looking for opportunities.

In the tech chip sector, significant information was released after hours. Expectations are that there will be countermeasures, mainly around domestic substitution and self-control. I am optimistic about storage chips, and lithography could also become a trend.

Finally, a small opportunity: upstream lithium battery materials stocks. Lithium carbonate futures hit double limit-ups and new highs today. As a supplier of lithium battery materials, this stock, after a significant correction earlier, stopped falling and turned red today. There may be a rebound tomorrow; if the bidding is not high, it’s worth paying attention.