Introduction: ① As the willingness to follow-up funds gradually decreases, the current market hotspots still focus on high and low switching; ② The new energy fund track is attractive due to its low rank, and amid the continued divergence in technology, there may be a stage of repair in the market; ③ Although the low-altitude economy concept is active, there is a great divergence, leading to a rise and fall. If a quick reversal cannot be made, the short-term consolidation time may be extended.

Yesterday, the market continued its volatile and divergent trend, with faster rotation between various hotspots, and internal divisions still predominant in technology stocks. Military industry, new energy fund track stocks relatively strong, and restructuring concept stocks once again actively performing. Overall, as the willingness to follow-up funds gradually decreases, the current market hotspots still focus on high and low switching.

Looking back at the market performance, the new energy fund track direction initiated a collective rebound yesterday, with the photovoltaic sector experiencing a pulsed surge in the afternoon. On the news front, the US Department of Commerce partially revokes the antidumping and countervailing duties (AD/CVD) on Chinese crystalline silicon photovoltaic cells, involving certain small, low-wattage, off-grid CSPV cells. Combined with the previous week's photovoltaic association symposium and the call for price limits beginning to show results. Market expectations for a turnaround in the photovoltaic industry have significantly strengthened. However, it is worth noting that as the photovoltaic sector surged in volume, the selling pressure gradually increased towards the end of yesterday's session, with JA Solar Technology being a typical example, experiencing a sharp decline in the final moments with a dominant position whether it can give positive feedback today, which could be instructive for the overall sentiment of the sector.

In the last two trading days, wind power stocks have shown even stronger performance, with Titan Wind Energy hitting the limit up consecutively, and stocks such as Daquan Energy and Riyue Heavy Industry also performing strongly. From a fundamental perspective, the wind power sector is expected to bid for over 130GW this year, doubling from 64GW last year, with continued growth expected in next year's installed capacity. Anticipated for a future cyclical outbreak. From a market perspective, due to the current market's lack of momentum for chasing high, the lower-ranked but more attractive new energy fund direction is in a more favorable position compared to the lofty financial and technology sectors. There may still be a phase of repair in the future as a transitional theme.

Turning to the low-altitude economy concept, on the news front, the Ministry of Industry and Information Technology once again stated post-market that it will strengthen the low-altitude economy and other new industries. However, it is worth noting that the low-altitude economy exhibited a retracement tendency following a rise yesterday, which can be seen since the outbreak earlier this week, although it has been active intraday, overall, there is still significant divergence, with each rise in intraday encountering merciless selling pressure. Therefore, if unable to quickly reverse the upward trend after intense turnover, then the short-term consolidation in the direction of the low-altitude economy may be further prolonged.

MergerThe restructuring concept remains the best direction for the current market continuity, although one of the core high benchmarks, Hainan Shuangcheng Pharmaceuticals, hit the limit down yesterday, the impact on the sentiment toward this direction is relatively minor. Optics Technology Holding, SPIC Industry-Finance Holdings, Baoding Tianwei Baobian Electric, Datang Telecom Technology, Baota Industry, and other individual stocks once again hit the limit up. However, as emphasized in previous articles, due to the scattered distribution of mergers and acquisitions restructuring industries, it is difficult to form a clear sector effect to drive the index, and it is still important to consider it as an important component of individual stock selection.