The final battle!

Last night, US stocks opened high and moved higher. All three major indices closed in the green: the Nasdaq rose 2.78%, the S&P 500 rose 1.66%, and the Dow Jones Industrial Average rose 1.19%. Individual stocks and sectors were even more explosive. Microsoft surged over 15%, marking its largest single-day gain since October 2008, with its market cap directly increasing by $450 billion in a single day. The semiconductor storage sector took off completely; the Philadelphia Semiconductor Index rose over 8%, SanDisk gained nearly 26%, and Micron Technology rose over 18%.

Influenced by overseas market trends, the Korean stock market hit the circuit breaker on the upside this morning. For A-shares, the chip and semiconductor sector is stable today, with a high probability of an overall rise exceeding 5%. There will likely be many limit-ups during trading, including batch 20CM large limit-ups. However, everyone should note a key issue: most tech stocks will open significantly higher today. If you didn't position early yesterday, absolutely do not blindly chase the rally today; the risk is very high.

Yesterday's A-share market was another typical case of blue-chip stocks supporting the index while small-cap stocks lost money. The broad market index didn't fall much, but the tech sector was a disaster zone. Popular tech stocks like Yizhongtian and Jilianhai all experienced sharp dives from highs, with daily losses generally exceeding 10%. Even worse, tech stocks have been weakening continuously for the past month, with many individual stocks losing half their value. The entire trend was an 'A-shaped' crash with almost no rebound, a pattern rarely seen in A-shares, as market panic sentiment has reached its peak.

The important meeting that just concluded featured policy wording that clearly escalated compared to April, releasing positive signals throughout. Here are the core points broken down for everyone; the detailed changes are critical:

1. Capital Market: In April, the phrasing was "stabilize and enhance capital market confidence." This time, it was changed to "enhance the resilience and confidence of the capital market." The meaning is straightforward: the market can undergo normal fluctuations and adjustments, but a crash is absolutely not allowed. Main force funds have been entering the market to provide support recently, but currently, they are stabilizing without pushing up. It still takes some time to stabilize the market.

2. Monetary and Fiscal Policy: The 基调 (tone) remains active fiscal policy + moderately loose monetary policy. However, it has adjusted from April's "precise and effective" to "implement well," meaning that policies will actively exert force and accelerate implementation, rather than just mild micro-adjustments.

3. Real Estate: The word "effort" (努力) from April's "strive to stabilize the real estate market" has been deleted. The stance has shifted from striving to maintain stability to proactively stabilizing the market, showing a firmer attitude and stronger stabilization efforts.

4. Tech Industry: No longer just emphasizing technological self-reliance and independent control of the industrial chain, this time it is directly positioned as an emerging pillar industry + future industry. Emerging industries include aerospace, low-altitude economy, biomedicine, etc. Future industries explicitly define six directions: quantum technology, bio-manufacturing, hydrogen energy and nuclear fusion energy, brain-computer interfaces, embodied intelligence, and 6G. Subsequent policies and funds will focus on tilting towards these areas.

5. Domestic Demand Consumption: Upgraded from "deeply tapping into domestic demand potential" to "effectively expanding domestic demand," with more positive wording. The core of the second-half economy is to exert force on domestic demand and activate consumption. Two key directions: first, service consumption, covering cultural tourism, catering, housekeeping, elderly care, and childcare; second, the construction of the "Six Networks," namely water networks, power grids, computing power networks, communication networks, underground pipe networks, and logistics networks, with clear directives to solidly promote implementation.

Overall, looking at this meeting, exertion, domestic demand, and consumption are the three core keywords. The signal for comprehensive macroeconomic effort in the second half is very clear. Currently, the Six Networks and consumption sectors have already shown early abnormal movements. Tomorrow, the focus will be on whether funds will cash in on good news and exit or continue to cluster and push prices up. Additionally, the meeting mentioned stabilizing live pig prices and supporting emerging industries; these two directions can be tracked closely.

Regarding overall market sentiment, there is absolutely no need for excessive pessimism. The downside space for the current market has basically bottomed out. The broad index retraced to around 3750 points, and the ChiNext board saw a rare sharp drop. Even leveraged ETFs in the Korean market plummeted by 90%. Various leveraged funds, panic selling, and crowded trades have been cleared to the extreme, and selling pressure is basically exhausted. Every time the index retraces to 3750, a large amount of protective capital enters to support the bottom. The bottom signal is very obvious, so there is no need to panic sell.

Finally, let's discuss the core thematic directions:

I. AI Applications

Currently, AI hardware has not fully started, so software applications are the core carrier of market sentiment. Microsoft's surge last night will directly drive the repair of the A-share AI software sector. However, pay attention to risks: once the hardware sector starts and diverts funds, the software sector will likely come under pressure. This uncertainty must be avoided. Additionally, recent tech finance has received policy support, with relevant notices explicitly supporting the construction of tech finance data. The tax and digitalization branch that funds are mainly attacking today can continue to be tracked for sustainability.

II. Computing Power Hardware

Deli's limit-up has already released the signal of a tech sector repair. Subsequent fund rebounds will prioritize two directions: first, ultra-oversold tech blue chips like Yi Tian; second, ultra-oversold individual stocks in the disaster zone with short-term declines exceeding 60%. Key reminder: You must wait for the sector to increase volume overall and form synergy before acting. If there is no volume and no sentiment, patiently observe and do not blindly bottom-fish.

III. Low Valuation Value Tracks

No matter how the market style switches, low valuation remains the core main line for the second half. The three tracks of chemicals, non-ferrous metals, and securities brokers have the highest certainty, aligning with the management's value investment orientation, and are also the key directions for long-term protection by main forces. Besides this, the military industry sector has been oversold for a long time and is at a very low position. The 15th Five-Year Plan plan prominently mentions the securitization of military assets, offering subsequent 潜伏 (positioning) opportunities, which can be moderately followed.