Watching more and moving less is the wise choice!!

$SentinelOne(S.US)hanghai Composite Index sh000001$ On Friday, with the implementation of overseas interest rate cuts, the news flow is expected to be relatively pressure-free in the coming period, entering a vacuum phase for negative factors. However, year-end liquidity is typically tight, so shrinking market volume may become the new norm.

From a fundamental perspective, there’s little to worry about for now. After all, against the backdrop of global interest rate cuts, monetary policy remains accommodative, and there’s a potential inflow source from the massive ¥330 trillion in bank deposits, keeping market momentum strong. Overall, we remain optimistic about the broader upward trend of the market’s oscillating recovery!

However, during Friday’s market close, high-flying stocks suddenly plunged, sparking panic that quickly spread across the board. A closer look at these stocks reveals common traits: they were at medium-to-short-term highs, served as key sentiment anchors, and were largely driven by speculative capital.

Many friends are concerned that this wave of negative sentiment will persist, but I believe this might actually be a great opportunity to focus on new opportunities at lower levels! After all, only when high-level chips loosen up will low-level opportunities have room to rise.

If these high-flying stocks continue to weaken today, a broad “high-to-low” rotation is highly likely in the short term, with capital flowing out of high-level stocks and into promising low-level sectors. This rotation is likely to target institutional themes with incremental narratives, such as TMT, new energy, and robotics—worth keeping an eye on in advance.

Of course, if Friday’s plunge was just a “fake drop,” short-term market games could intensify, with volatility becoming even more chaotic. In such cases, watching more and acting less might be the wiser choice.

Now, let’s look at sector and stock performance:

1. Commercial Aerospace
New catalysts mainly come from the U.S. On one hand, there’s a shift in U.S. space strategy; on the other, giants are entering the space data center sector, driving a surge in related U.S. stocks on Friday night. That day, Trump signed an executive order outlining a vision for an “America First” space policy, aiming to ensure U.S. leadership in space exploration, security, and commerce.

The order mandates a U.S. return to the Moon by 2028 and the establishment of initial facilities for a permanent lunar outpost by 2030, while also directing the deployment of nuclear reactors on the Moon and in orbit. Additionally, by upgrading launch infrastructure and developing commercial pathways, the U.S. aims to replace the International Space Station by 2030, stimulating private-sector innovation and investment.

Key focuses remain “recovery technology” and “space computing power.” In lunar missions, launch vehicles play a critical role. Meanwhile, ground-based AI data centers face increasingly severe energy and cooling limits, while the space environment—with 24-hour sunlight and deep-space cooling—offers a perfect solution. Once low Earth orbit (LEO) launch costs drop to the $200/kg affordability threshold, space computing will gain a substantive cost advantage over ground facilities, potentially becoming another commercially viable space application. Aggressive investors can continue targeting high-flying leaders, while conservative ones may focus on laggard plays.

2. Consumer Sector
A new concept, “reward economy,” has emerged in the consumer space. Simply put, it involves high-frequency but low-value consumption focused on self-gratification. For premium products, affordability is emphasized, giving rise to duty-free concepts. Moreover, the consumer sector has largely broken the three-day rotation curse, with capital reaching some consensus, suggesting further upside. As long as popular stocks remain strong, opportunities in this sector can still be explored.

3. Robotics
At his Chengdu concert, Wang Leehom debuted humanoid robot dancers. These robots precisely synced with the music, matching Wang and other dancers’ movements flawlessly, even performing a challenging “Webster” flip in unison, electrifying the crowd. On December 20, Musk reposted the video, sending related topics trending on social media.

The concert featured six Unitree G1 robots, priced from ¥99,000, dressed in silver sequins. The performance showcased their precise motion control and ability to execute complex moves. Just earlier this year, they were limited to simple dances at the Spring Festival Gala—their rapid technological evolution is astounding. Robotics, already a rotation play, now has this catalyst and could see action today.