Thursday morning's market performance was quite typical — high-level thematic stocks collectively loosened, while lower-tier sectors showed some signs of activity. The three major indices opened lower and fluctuated, with the day's total trading volume shrinking to 3 trillion yuan, down 23% month-on-month. Just by looking at the market, you can see how difficult it is to make money: nearly 3,500 stocks are in the red, with 54 hitting the daily limit down and 38 hitting the limit up. It's clear that funds are repeatedly switching in the "high to low" rhythm.

The divergence behind this is actually quite straightforward. On one side, the previously hot sectors have been hit hard — commercial aerospace nearly collapsed across the board, with several leading stocks experiencing consecutive limit-down sessions; AI application concept stocks also didn't escape the sell-off, with blue-chip stocks like Blue Cursor dropping a solid 14%, and many related stocks hitting the limit down directly. On the other side, opportunities are sporadically emerging in low-priced sectors such as photovoltaics, solid-state batteries, and autonomous driving. Although the momentum isn't strong, it clearly indicates a shift in capital flow.

Why is this happening? Several reasons stack up: regulatory authorities are continuously tightening rules, suppressing excessive speculation; technical signals also show divergence, indicating a need for index recovery; plus, the negative impact from overseas markets overnight has collectively "pressed" on the previous hot spots. However, this adjustment is essentially a reallocation of funds, not a change in the bull market pattern. In the short term, indices are finding a bottom near the 10-day moving average, which is an ideal opportunity for low-cost buying.

Looking ahead, this market cooling does not change the slow bull trend. The purpose of regulation is to protect market order, not to end the upward cycle. From historical experience, similar regulatory measures are often just pauses in the middle, and they cannot fundamentally alter the direction of a bull market. Investors need not panic excessively; they can focus on two main directions: first, the non-ferrous metals sector benefiting from rising costs; second, technology stocks still undervalued, especially core players in autonomous driving and AI applications. Once this short-term adjustment concludes, the market is likely to push for new highs again.