Afternoon Review: Power equipment leads the rise, the A-share market slightly rises in the morning, with the ChiNext index rising over 1% leading the two markets. Will the rise of A-shares continue in the afternoon? Is there a risk of pulling back after a high?

Power equipment leads the rise, with grid equipment and the semiconductor sector showing significant gains. The hot sectors leading in the morning include other power equipment, small metals, grid equipment, flexible DC transmission, liquid-cooled servers, optical fiber concepts, co-packaged optics, ultra-high voltage, and pumped storage; among these, other power equipment surged by four points leading the two markets. It is not difficult to see from the leading hot sectors that grid equipment, semiconductors, and electronic manufacturing are the main directions for the rise in the morning A-share market. Semiconductors, electronic manufacturing, communication equipment, and components are the gathering places for technology themes, and their rise contributes to the rebound of the Innovation Index. The 40-point surge of the ChiNext index in the morning, exceeding 1%, is a good proof of this. The sectors related to power such as grid equipment, electricity, ultra-high voltage, and flexible DC transmission are investment directions that we should continue to pay attention to, where the expectation of future补涨 for lagging blue chips will be even stronger.

The rise of technology themes will inevitably lead to a general decline in traditional industries, with morning declines in liquor, banking, insurance, food and beverage, retail, and aquaculture all exceeding one point. The recently surging film and television cinema sector continues to decline and adjust, with an intra-day drop exceeding five points leading the two markets; the larger the increase in the film and television cinema sector before the holiday, the less worth it is for us to hold stocks through the holiday. The seesaw market of traditional industries and technology themes is the main theme of the recent A-share market. Before the Spring Festival, the insufficient incremental funds lead to a lack of sustained upward momentum in the A-share market, and the seesaw market of A-shares will continue.

The Shanghai index rose by 5 points, with a turnover of 560 billion. In the morning, the Shanghai index continued to adjust within a narrow range, closing with an increase of 5 points and a turnover of only 560 billion. It is expected that today's turnover in the Shanghai market will be around 800 billion. Although the Shanghai index has both rises and falls, the daily K-line shows a trend of eight consecutive rises, and it has remained above the 20-day and 5-day moving averages for the past four trading days. From a short-term perspective, the Shanghai index shows signs of strengthening again, but insufficient trading volume and the approach of the Spring Festival, along with insufficient trading time, are the main reasons for the weak rise of the Shanghai index. Looking at the short-term trend, the narrow fluctuations of the Shanghai index will continue, and new directions will only appear after the holiday. Short-term investors should avoid holding stocks through the holiday, while long-term investors should also appropriately reduce their positions before the holiday.