Today's decline mainly comes from those hot-topic sectors that have been hyped up. Interestingly, performance stocks performed relatively well, and some of the performance-related stocks that were previously drained by thematic funds still maintained strong momentum today.

The regulatory authorities want to cool down the market, essentially targeting those overhyped sectors, rather than aiming to dampen the entire market. This signal is very important.

In the morning, the volume shrank significantly, and when trading volume contracts, the market tends to fluctuate repeatedly——but this is not necessarily a bad thing for performance-focused traders. Reduced volume and oscillation can actually help us identify truly valuable targets.

From this perspective, companies with genuine performance support are often able to stand out in such an environment. Stocks that rely solely on thematic stacking tend to reveal their flaws easily.