#2024.12.03 Morning Trading Strategy# The market started December with a broad rally, with the median gain of +1.75% in both markets. The reason for such optimism is the anticipation of two major meetings scheduled for December.

However, the current rally in the A-share market is not without risks. First, the external environment remains unfavorable, with the RMB depreciating to the 7.28 mark, hitting a four-month low, coupled with occasional disruptions from the U.S.

Another concern is the lack of significant trading volume. For the index to break through key levels, higher trading volume is needed. While a rebound from the bottom can occur with low volume, a sustained breakout requires strong volume support.

My outlook for this week remains cautiously optimistic for the first half, with the index rebound initially targeting around 3390. As the index approaches this level, it might be prudent to reduce positions slightly.

Take it step by step—even with strong market expectations, stay rational! Next, we’ll wait for the outcomes of the two major meetings before making further moves.

Now, let’s look at sectors and stocks:

1. Robotics

The sector has strengthened for two consecutive days—first last Friday and again yesterday. Next, we’ll likely see a differentiation between stronger and weaker stocks.

High-core stocks may continue to advance, but risks in mid-tier stocks should be monitored. Opportunities may still be found in low-tier and first-day breakout stocks.

2. Big Tech

The U.S. has been consistently targeting the tech sector, with ongoing news catalysts. Yesterday afternoon, another incident occurred.

The U.S. announced semiconductor export controls, which benefit domestic self-sufficiency.

First: HBM

Second: Domestic AI chips

Third: Domestic lithography machines, photoresists, and materials

Due to frequent sanctions, the market has become less sensitive to such news. However, some stocks have stabilized after corrections, and opportunities in the tech sector may emerge if the theme gains traction.

3. AI Applications

The strongest thematic trend in November, spanning from media/gaming to various AI concepts. Yesterday, the sector showed signs of a rebound.

If no new themes emerge, funds may continue to flow into this sector. Keep an eye on opportunities today.