$SSE Index(000001.SH)$Shanghai Composite Index sh000001$ The market continued to decline on Friday, breaking below the 3977-point support level from January 5th. For two consecutive days, over 4500 stocks fell, and the impact of this correction is indeed severe.

This week's market has been truly torturous, but it's precisely in times like these that we must not lose our composure. The market has always been about rising after falling too much and falling after rising too much; there's no market that only falls without rising.

This wave of decline is more about a concentrated release of sentiment. The economic and corporate fundamentals haven't encountered major problems. Many quality stocks have already fallen to attractive valuations. Blindly selling at a loss is very likely to sell at the bottom, missing the subsequent recovery.

At this stage, it's better to maintain a calm mindset, control your position size, and patiently observe. Wait for the pullback to reach a suitable level and for clear signs of stabilization to appear before taking action to bottom-fish; it won't be too late.

Regarding hot sectors:

1. Technology Sector (Memory, Computing Power)

During a sharp index decline, tech stocks are usually hit the hardest.

On Friday, core memory and computing power stocks fell sharply across the board. If the index cannot find a bottom in the short term, the tech sector will find it difficult to strengthen independently. Stocks that haven't fallen much should also be wary of a catch-up decline.

Even if participating later, focus only on the few targets with earnings exceeding expectations and the potential for independent trends. The overall operational difficulty is extremely high.

Ordinary investors should try to avoid buying the dip on high-priced tech stocks. Even if participating, set strict take-profit and stop-loss orders to avoid buying halfway down the mountain.

2. Power + Photovoltaics (PV)

The power sector has been repeatedly active recently, with a solid logic:

The explosion in AI computing power brings increased electricity demand.

Overseas conflicts boost the logic of energy substitution.

Coupled with expectations for peak summer electricity consumption.

While the index was continuously declining, the power sector showed significant resilience for four days last week. It's a direction where funds are actively clustering, offering both risk aversion and the ability to follow AI on the offensive.

However, the overall market environment is too poor, making a comprehensive surge difficult for now. It's more about rotation and activity within the sector, shifting from high to low valuations.

For photovoltaics, the main catalyst is positive external news:

Musk is rumored to have signed a 20 billion domestic PV order; European electricity prices have soared, leading to an emergency increase in imports of Chinese PV products.

The sector has already undergone a significant correction and is expected to see a recovery spurred by the news. Focus on core varieties that are at low levels and show clear earnings improvement.