Unyielding, the market index has seen 7 consecutive days of gains, and it simply can't decline! Currently, it seems that the market index has transitioned from a rebound to a reversal, as today marks the third day of breaking through the 3936 points. The index remains above 3936 points, so we can be a bit more optimistic about the trend. But how should we view the short term? Here are the main points:

1. On Tuesday, the market index broke through 3936 points and then retreated. Yesterday and today, the market index continued to rise, having stayed above 3936 points for three consecutive days. Thus, the market index has transitioned from a rebound to a reversal. A reversal means that the trend of the index is once again positive. Although the trading volume in the two markets is not significantly increasing, the trend has returned, making the medium-term outlook relatively optimistic.

2. With a positive medium-term trend, does that mean the short term will continue to rise? For retail investors who have not increased their positions, should they consider adding to their holdings? Here is my view:

From the daily level of the market index, we currently see a strong bullish arrangement. Technical indicators have shown some signs of overbought conditions in the short term, but since the index refuses to adjust downward, we cannot blindly take a bearish stance.

However, if considering adding to positions, I think it's best to wait for a bearish candle, because as I mentioned, the trend has reversed, indicating that new highs in the trend are likely. Yet, in the short term, with technical overbought conditions, we should wait for a bearish candle before acting.

This is essentially what we confirmed over the past few days of continuous rebound, indicating that we have exited a trend reversal. If we are to add positions, it is not suitable to do so after consecutive bullish candles; we need to wait for a bearish adjustment.

This is often said in the stock market: the trend looks good, but to add positions, one should wait for a bearish pullback in the trend before buying.

The trend is viewed in the medium term, while buying points mainly depend on the short-term rhythm. If the short-term bearish pullback does not materialize, then positions should remain unchanged, simply passively following along with the rising stocks.

3. For those with positions, passive following can be considered. But what about many retail investors who are out of the market? At this time, one must participate according to their own risk preferences.

What needs to be done is to maintain a calm mindset; although the trend has returned, blindly chasing high prices still carries risks. At this point, one can choose to look for low positions with room for rebound instead of chasing high-priced thematic concepts.

For example, today, some hard technologies like CPO optical modules that institutions previously favored did not surge significantly. However, commercial aerospace and robotics have exploded.

In fact, market sectors are still rotating quickly. If you see something that has surged today and you can't resist jumping in, the next day, those high-performing sectors might rotate back and adjust.

Thus, I believe that commercial aerospace is one of the main lines of the year-end market, but I do not recommend chasing gains today; it is better to buy during pullbacks or divergences within the main trend.

It's worth noting that today, the liquor sector showed unusual movements and surged during the day. Relatively speaking, the liquor sector still belongs to the bottom and may not showcase a major trend like technology or commercial aerospace, but at least there is room for a rebound from oversold conditions.

For retail investors who are out of the market, post-today operations can be of two types:

One is to buy during pullbacks of strong trend main lines;

The other is to choose sectors like liquor that are oscillating around the bottom. This way, regardless of whether the index continues to rise or retracts, the bottom will at least not be significantly affected.

After confirming the reversal of the index trend, these bottom sectors will at least have opportunities for rotation and rise.

4. Regarding tomorrow's market on Friday, this week has already seen a continuous 4-day rise, and the market has recorded 7 consecutive bullish days. What do you think will happen tomorrow, Friday?

Compared to habitual thinking, most will feel that it will continue to rise, as every Friday since December has not seen a decline, so the bullish expectation for tomorrow is likely very high.

However, the more unanimous the bullish sentiment, the more likely the results will be contrary.

Currently, I acknowledge that the market trend has reversed, but for tomorrow's outlook, I believe that the main capital may reverse and sell off, that is, under the bullish expectations, we may face a correction on Friday.

However, according to what was mentioned earlier, after confirming that the trend is strengthening, adjustments at the daily level are a good thing, as they provide opportunities for those who are out of the market or hesitant to act.

Just make sure to choose the right sector rhythm. Index pullbacks are entry opportunities, and for many stocks that have hit new highs or reached pressure zones, be cautious not to chase gains at the last moment.

According to the current intentions of the index, it seems that there is a desire to pull the market index close to the 4000 points by the end of the year. Even if it doesn't stabilize at 4000 points, it should at least reach around that position.

Therefore, it is very likely that the index will take a short break tomorrow. There are three more trading days next week, and then it will move toward 4000 points.

This is my current view on the market, and you can take it as a reference.

In summary, if you hold stocks, just passively follow along. If you are adding to positions, you must wait for the market to exhibit a bearish adjustment. For retail investors who are out of the market, choose sectors that are building a bottom at low levels or participate gradually during pullbacks of strong stocks.

Although adjustments may occur tomorrow, at least it shows us the good phenomenon of returning to the trend. Thus, this adjustment is not a risk signal, but a healthy pullback for washing out positions.