As anticipated on Friday, hardware stocks experienced a concentrated sell-off, and subsequent sectors began to dull in response to positive news, making it difficult to stimulate further unexpected messages. Core stocks saw a significant decline, and by the end of the year, a resistance-style adjustment is expected, with a downward trend prevailing, making it suitable to reduce positions in this sector. We should wait until next spring when the sector’s chips are consolidated, valuations switch to next year, and with annual report expectations, mid-term opportunities in this sector will re-emerge, as the space is created by declines.
November is likely to be dominated by speculative themes, with a performance vacuum period. Therefore, the sectors resonating with the index at the beginning of the month will continue throughout this month, with a focus on newly emerging themes. AI applications went against the trend at the end of last month, and this month we will first observe its continuity. If it peaks again, combined with the low institutional holdings in this sector and factors like performance reversals, it is expected to remain active this month, suitable for low-cost rolling purchases when adjustments are in place, with a core focus on BlueFocus and Sangfor.
Robotics also has thematic attributes, and the vote on Tesla’s compensation plan is an important catalyst. This sector has historically performed well in November, making it suitable for positioning, with a core focus on Dongfang Precision and Xinquan.
Additionally, quantum technology may see a rebound on Monday, but overall it is in the final phase. Controlled participation in Keda Technology and Shenzhou Information is advisable.
Overall, the major certainty of institutional capacity trend opportunities for this month has passed, and the focus will be on high-level fluctuations. It is necessary to control the participation rhythm, only making low-cost buy points in the core of each sector, and firmly avoiding chasing high prices.