#October 18, 2024 Morning Trading Strategy# The index plunged at the close yesterday, ending at the day's low, with increasing short-term adjustment pressure. Technically, there are three gaps below the index.

The nearest gap is at the September 27 high of 3087, which is also the short-term bearish target adjustment level.

There's still about an 80-point adjustment range to this gap. Whether it will drop to the target in one go or slowly oscillate downward, the previous trend suggests a gradual downward oscillation.

In any case, the index will likely grind slowly in October. The market's directional choice awaits the resolution of two key events in November: 1. The Congress (domestic); 2. The election (U.S.).

For the market to stage another significant rally, it will undoubtedly require stimulating policies, which will only emerge after the two major events are settled.

During this oscillating adjustment phase, focus on managing your current holdings and monitoring promising market directions.

1. Tech Sector

Yesterday's focus was on consumer electronics and software security, primarily driven by the Intel news from the night before.

The core leaders were still stocks with the "Huawei" concept, which has been a central theme in this round of tech stock speculation. Huawei has arguably been a year-long focus.

However, signals from yesterday's session suggest risks are accumulating. The leading Huawei stock, Changshan Beiming, faltered, and popular stocks like Runhe Software and Ruantong Power also showed signs of lagging.

Today, consider focusing on domestic large models in the tech sector.

News-wise: Microsoft Azure announced the suspension of OpenAI API services for individual developers in our region. Today, attention can turn to domestic AI model alternatives.

The underlying logic of this speculation is also about domestic substitution and self-reliance. Watch for developments in ChatGPT and AI models today, and seize opportunities if the sector shows strength.

2. Huawei

Huawei deserves separate mention because, as a core representative of domestic self-reliance, it has many branches for speculation.

While the first batch of speculative stocks in the sector shows divergence, new themes will undoubtedly emerge. For example, the HarmonyOS Native App Developer Incentive Program and the upcoming Huawei All-Scenario Launch Event.

Rumors suggest this all-scenario event may unveil high-end MR/VR devices.

MR/VR was first introduced by Apple's Vision Pro. Now, Huawei is also launching high-end visual simulation products, which could open new speculative directions for the market.