#2024.11.05 Morning Trading Strategy# The median gain of A-shares yesterday was +2%, the money-making effect was quite good. All indices closed in the green, with most stocks rising, and even some speculative stocks rebounding sharply.

Brokerages surged at the close, pushing the index back above 3300! Especially East Money Information and Tonghuashun, which saw frantic buying at the close. East Money had a whopping 1 billion yuan in buy orders during the auction—absolutely wild!

Brokerages have always been a tool to adjust the index. Yesterday, they broke through a small resistance level. If the index is to surpass the high of October 8th again, it will still rely on brokerages.

The index has been consolidating around this level since October, and the probability of an upward breakout this week is high. The next target is 3400.

In terms of themes, yesterday’s focus was on "new quality productivity," with new sectors like robotics and auto parts emerging. But can this momentum last?

The robotics sector already peaked yesterday, largely driven by quant funds. Many stocks hit the limit-up early in the session. Since quant funds were the main buyers, they’ll likely sell aggressively today—that’s just how they operate.

So, sustainability is questionable. Today, only the strongest stocks will advance, while the rest will be left behind.

Today, focus on sectors with potential for a turnaround. Weak-to-strong reversals can quickly attract capital, such as trending themes like Huawei, photoresist, and lithography machines.

Now, let’s look at specific themes and stocks:

1. Huawei

Huawei’s new Mate series is set to launch this month. Richard Yu’s statement—"The most powerful Mate ever! See you in November."—has raised expectations to the max.

Reports suggest Huawei’s November lineup isn’t just the Mate 70. Foldable phones, tablets, and watches are also coming. Based on the timeline, Huawei will likely announce the Mate 70 release date this week.

The Huawei theme might see a few more days of hype, but be wary of profit-taking. If the news exceeds expectations, sell the fact—especially for stocks that have already rallied hard.

2. Lithography Machines/Photoresist

Photoresist and lithography machines were hot topics over the weekend and showed some movement yesterday, but were overshadowed by robotics. Zhangjiang Hi-Tech opened with a drop, dragging down Tongfu Microelectronics and China Great Wall, which hadn’t corrected yet.

Today, photoresist might see a weak-to-strong reversal. Whether it gains traction will be clear at the open. If the sector heats up, focus on core opportunities.