When trading volume starts to "take a break"...

【Market Review】[Taogu Ba]
Overall Market Performance
① The three major indices narrowed their declines in the afternoon but closed lower for the day (Shanghai Composite -0.64%, Shenzhen Component -1.44%, ChiNext -1.55%), with the CSI 50 down over 2%. Over 3,700 stocks declined, indicating a clear loss-making effect.
② The combined trading volume of the Shanghai and Shenzhen markets was 2.18 trillion yuan, shrinking by 304.8 billion yuan from the previous day, hitting a recent low. The sectors leading the decline included non-ferrous metals, power grid equipment, and photovoltaics, while the big consumer sectors defied the trend and strengthened. Food and beverages, retail, film and television, and tourism and hotels sectors took turns being active.
【Author’s Remarks】

1. Traditional low-position sectors represented by consumption and finance (old leading stocks) are favored by funds due to policy support, risk aversion, and valuation advantages; meanwhile, technology growth stocks (small leading stocks) that previously surged continue to pull back. This style shift may not happen overnight, and there will be repeated fluctuations.
2. The pre-holiday market trend is becoming more subdued, with volatility as the main theme. As the Spring Festival approaches, large fund trading willingness declines, and trading volume shrinks. Market hotspots exhibit rapid rotation like a “electric fan” (e.g., photovoltaics led yesterday but led today’s decline), with poor sustainability, making short-term trading very challenging.
3. Consumption sector: Long-term bottoming or forming a positive structure. After years of adjustment, the valuation of the consumption sector has entered a historically low range. Driven by the Spring Festival peak season and multiple stimulus policies (such as Hainan tax exemption reforms and consumption promotion plans), the sector is experiencing a phased recovery, and its long-term investment value is worth noting.
4. Technology main line: Short-term pressure, long-term unchanged. Due to overseas market volatility and internal fund reallocation, tech stocks generally adjusted. However, industry trends like artificial intelligence and commercial aerospace remain unchanged. The short-term correction is to build strength for a healthy long-term rise, and core stocks still hold medium- and long-term value.
   【Strategy Reference】
5. Don’t chase the “electric fan” market trend. Currently, market hotspots switch too quickly, and chasing gains intraday can easily lead to being trapped. A better strategy is to buy on dips in main sectors (like consumption and technology) rather than chasing intraday hot spots.
6. Maintain proper position balance; don’t “put all eggs in one basket.” During this period of market style fluctuation, betting solely on “old leading stocks” or “small leading stocks” may face volatility risks. Appropriately balancing between undervalued sectors (consumption, finance, etc.) and high-growth sectors (core technology assets) is a more prudent approach.
7. Lower expectations before the holiday, watch more and act less. As the Spring Festival approaches, market activity may further decline. It’s advisable to reduce short-term profit expectations, avoid frequent trading, conserve strength, and wait for clearer market signals after the holiday.
8. Believe in cycles; there are no sectors that only fall and never rise. The recovery of consumer stocks and the adjustment of tech stocks are part of market cycles. Understanding cycles helps in deploying at lows and staying alert at highs.

(Note: The above content is organized based on publicly available information, only as an investment point analysis, and does not constitute any investment advice. Investment involves risks; trade cautiously.)