Today, the Shanghai Composite Index rose by 1.04%. It looks good, but if you happen to be outside these two sectors, or even in other fields like film and pharmaceuticals, the feeling is quite subtle.
The numbers in your account may not have increased much, but the headlines are telling you that market sentiment is booming, and the Shanghai Composite Index has reached a ten-year high.
This strong sense of dissonance can lead many to start questioning their lives, wondering if their holding logic is flawed. Have they once again perfectly missed the rhythm?
This afternoon at 2:30 PM, I closed my market tracking software and made myself a cup of Pu-erh tea.
The tea is strong, slightly bitter at first, but the sweetness comes quickly. Just like today’s market, it seems lively on the surface, but there are undercurrents.
In the morning, there was some fluctuation, but in the afternoon, thanks to the positive news from the artificial intelligence and baijiu sectors, the market was forcibly pushed up, creating a significant reversal.
This kind of trend does not provide opportunities for ordinary people; it tests one’s resolve.
This market has never been simply about rising or falling. I characterize today’s market as a coexistence of “deepening structural bull market” and “risk release in high-position sectors”.
In other words, the bull market is still ongoing, but the gameplay at the table has changed. The previous phase of collective drinking and feasting is over; we are now entering a phase of refined harvesting.
Some of the semiconductor-related stocks in my portfolio performed well today, especially the STAR Market 50 Index, which surged by 3.23%, keeping my overall floating profit intact.
But I also understand that this is not due to my personal capabilities, but rather a result of market capital rotation.
Yesterday’s favored computing hardware may collectively adjust today. This rapid switching is essentially the market searching for new consensus.
At this stage, any attempt to catch every rotation is dangerous.
The market always tells you directly what the current core is.
When a sector, such as semiconductors, experiences explosive growth under various positive stimuli (like the release of a new version of a domestic AI large model), companies like Cambricon even reach a stock price of over a thousand yuan.
This is not a coincidence. It indicates that the narrative of technological self-reliance remains one of the hardest logics in this market.
Similarly, the baijiu sector leading the market for two consecutive days is also a manifestation of capital seeking certainty, a repair of emotions after a sharp decline, and a return to value.
So don’t let a day or two of ups and downs throw you off balance. Respecting the market means understanding what it is expressing through capital voting.
So, in this rapidly rotating market, what specific response strategies should we adopt?
Check your holdings.
Ask yourself a question: Is the company I hold supported by stories and concepts, or does it have solid performance and industry position?
If your holdings have effectively broken through important support levels, such as the 60-day moving average, then you should consider reducing your position. Note that it is reducing, not liquidating.
In a bull market atmosphere, the cost of easily going to cash may be greater than being stuck.
Regarding chasing highs. Today, the semiconductor sector is strong, and many people are starting to get restless. My advice is to observe, rather than rush in immediately.
A sector’s initiation usually does not happen all at once, especially for large sectors like semiconductors, which require repeated fluctuations to clear floating capital.
You can add it to your watchlist and observe how it adjusts in the coming days. Is it a volume-reducing pullback or a volume-increasing decline?
The former is healthy, while the latter requires caution. A true main rising wave will not provide too many comfortable entry opportunities, but it also won’t reject people with continuous surges.
Regarding lurking. When capital flows out of a high-position sector, it will inevitably seek the next undervalued area. Today’s strength in baijiu is a signal.
But besides baijiu, are there other sectors that have been misjudged by the market? For example, some previously oversold areas where the industry logic has not changed.
This requires you to do your homework, rather than staring at the gainers list every day. Focus more on researching the fundamentals of companies rather than chasing K-line fluctuations.
Trading ultimately competes not on technique, but on cognition and mindset.
Many people lose money not because they don’t understand technical indicators, but because they can’t control their hands, and even less their hearts. They fear missing out when prices rise, fear being trapped when they fall, and feel that sideways movement is a waste of time.
This anxiety can lead you to make wrong choices at every decision point. Just like today, seeing the index rise while individual stocks fall, you rush to sell your junk stocks to chase the brightest ones, and the result is often being hit from both sides.
I have always said that the essence of trading is not how many times you predict the market correctly, but being able to avoid making fatal mistakes when you don’t understand the market.
There is always money to be made in the market, but your principal can be lost.
When you understand, go in heavy; when you don’t, stay out and observe, or use a small position to feel the market’s temperature. This is not shameful.
Investing is a long journey of self-cultivation. Every penny you earn is a result of your understanding of this world. Every penny you lose is due to your flawed understanding of this world.
Today’s market is precisely an excellent opportunity to cultivate one’s character. It forces you to think about what true value is and what is temporary emotion.
In the clamor of the market, maintaining your own rhythm is the best offense.