7.14 pre-market thoughts, ice point

Good evening, everyone![Taoguba]
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270 stocks hit the daily limit down—an extreme ice-point data set.**
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For the ChiNext Index, after the 7.9 big bullish candle, it should be a 2+1+2 structure. The big bearish candle last Friday was actually not too bad, but this one today feels a bit excessive.**
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Today in the Big Light and communications ETFs, even though the damage wasn’t that severe, after looking at the market action I still feel heartbroken—how did the sell-off cool down into something like this?**
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Here, the structure is basically consistent with the period after the commercial aerospace sell-off on January 13.
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**The main theme is in retreat, and other concepts become active, but no single direction can form a consensus.
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**In the end, there will be a small main theme during this stretch as well, but when it happens it’s hard to get involved. To confirm whether a sector is working, it needs to show strength—but how long that strength can last varies a lot between different sectors. For example, last Friday, commercial aerospace was strong, and so were domestic supply-chain components like exchange units. But today, their outcomes are completely different.
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Turnover is fast, and randomness is strong. There are many risks that look like opportunities. During the trading session, you surge up and can’t resist chasing, and then the next day—or even the same day—you get trapped.

such as:
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Let’s talk about the plan for tomorrow:
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ChiNext has two consecutive down days, ice-point data, and a repair expectation**
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If the indices rebound later, oversold technology won’t be able to be avoided; optical communications is likely to still lead**
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From the recent high, being down about 20 points is better. If it drops too much, the rebound strength will also be weaker
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**Not all of the technology that fell this time will make new highs
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Some newer “fresh faces” that are relatively more defensive might be better—such as power supplies and liquid cooling
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Innovative drugs and domestic compute power—those sectors that rise against the index. When the index rebounds, they can keep leading, so you can give them a bit more attention**
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That’s basically it.**
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Best regards~**
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This article is only for personal review and does not constitute investment advice. Investing involves risk, so be cautious when entering the market.**