Interesting phenomena in this morning's trading session are worth pondering: the Sci-Tech Innovation Board's new stocks led the entire market higher, with gains approaching 5%, followed by sectors like semiconductors and small metals. After a collective gap-up, the four major indices began to retreat. Is this correction just beginning or merely a pullback? Can the upward trend continue?

Looking at the hot sectors in the early trading, besides the Sci-Tech Innovation Board's new stocks leading the rhythm, electronic chemicals, cobalt and nickel small metals, new metal materials, controlled nuclear fusion, superconductivity concepts, storage chips, and rare earth permanent magnets are all very active. A closer look reveals that the two main themes driving the morning rally are small metals and semiconductors.

However, a realistic issue must be acknowledged: the small metals sector has already surged significantly this year, with related stocks generally up over 70%. As you know, high gains often come with high risks. For sectors that have already risen substantially, blindly chasing the highs is not a wise move. Conversely, sectors that have been sluggish over the past year—such as consumer goods, insurance, securities, pharmaceuticals, and photovoltaics—are seeing increasing expectations for catch-up gains. From a portfolio perspective, these areas are actually more worth paying attention to.

The ChiNext Index performed most impressively. After a strong gap-up in the morning, it continued to rise, once lifting 32 points during the session, breaking through last year's 3331-point high and hitting a new three-year high. What does this breakthrough signify? It indicates that the upward space for the ChiNext Index has been further opened. As long as it doesn't form a reversal pattern like a triple top, there is still potential for a new round of accelerated gains.

However, it must be said that for individual stocks within the ChiNext that have already experienced substantial increases—especially those that have risen tenfold—caution is necessary. Blindly rushing in carries significant risks. In contrast, blue-chip stocks within the ChiNext that have limited gains or have been severely hammered—some even halved—are different. These heavyweight companies, with relatively flat stock prices over the past year, provide room for a rebound due to their lagging and oversold conditions. For the ChiNext to continue breaking upward, these types of blue-chip stocks are essential to provide core momentum.

Looking at the Shanghai Composite Index, after an early rally, it began to retreat, indicating some fatigue in the upward momentum. However, in terms of trading volume, the Shanghai market's turnover in the morning exceeded 700 billion yuan. At this pace, the total daily turnover could break through 1 trillion yuan. A daily trading volume of this magnitude is an important foundation for the Shanghai Index to stabilize above 4,000 points and also provides sufficient ammunition for the index to continue upward. In the short-term trend, the Shanghai Composite remains in a strong operational range, with the 5-day moving average serving as a key short-term support level.