The major index rose from 3,815 points to 4,179 points, increasing by 364 points with consecutive gains, and today marked the first clear cooling-off after the streak of gains. The impact is only limited to themes that have risen too much, and it won't lead to the end of the market trend.

From the index perspective, the market has risen over 300 points in less than a month, so it needs to slow down the pace of upward movement, as the goal remains a steady 'bull market';

From the sentiment perspective, with increasing trading volume, the market has accumulated substantial profits. These profit-taking funds need time to digest. Although there are still many investors who missed the opportunity, those inside the market—especially quant traders, speculative funds, and retail investors—have already made significant gains, making it natural for some to take profits;

Therefore, for retail investors, the following strategy is recommended:

1. Today, the major index peaked at 4,179 points before retreating. The intraday chart shows clear up-and-down volatility. Although the daily chart remains above the 5-day moving average, it's no longer showing the previous single-directional, steady upward momentum.

This suggests that the index is likely to experience high-level consolidation in the short term. After rising hundreds of points, a moderate short-term adjustment should be acceptable for most investors.

After the New Year, I mentioned that the first target for the major index was around 4,200 points. Since the index hasn't reached that target yet and we're now seeing cooling in certain themes, the pace of index growth will be affected.

In my view, this is understandable—we're not bullish just because the market is rising, nor do we turn bearish simply because it drops. We always focus on the trend.

If your mood depends solely on consecutive green candles and panic arises at the first red candle, this reflects not only a lack of understanding of the trend but also disrespect for the market itself.

Therefore, now everyone should calm down and reflect: Are you willing to accept short-term high-level consolidation? Can you tolerate a moderate pullback? Of course, any comments predicting the index could drop to 4,000, 3,900, or even lower can be safely ignored.

Don't blindly lower your expectations just because the market dips, nor should you blindly raise your targets just because it rises. Note that financial sectors are still maintaining control over the index, indicating that the current adjustment is just a moderate slowdown, not a reversal.

Slowing down the index's rise is due to the pace being too rapid recently, not because the target has been reached and now we're being suppressed. This distinction is crucial.

2. Unless unexpected, the first red candle after a streak of green candles will likely shift market sentiment again. I can already imagine the panic and concern some people will feel.

In reality, most panic stems either from chasing gains or from missing out. Investors who are holding positions with a clear strategy tend to remain relatively rational.

For those who chased gains, being trapped at a high price creates extreme inner instability. Without a first-mover advantage or sufficient profit cushion to hedge risk, anxiety naturally follows.

For those who missed the opportunity, seeing a market drop may lead some to go against the trend and enter, while most others still believe it will fall further, even hoping for a deeper drop, so they can re-enter at their original low price.

These are all human behaviors in the stock market. But one thing must be clear: Is this adjustment signaling the end of the spring rally, or is it just a correction after a sharp rise?

If you believe it's the end of the spring rally, then sit out and stay out of the market. If you believe it's just a correction after a strong run, then simply reduce your position or lock in part of your profits, wait until the market drops to a level you're comfortable with, then add back in.

3. As for my view, I clearly stated it last night: if the index continues to rise, it's due to momentum; if it pulls back, it's just a correction after a strong rise. A continuous sharp drop is unlikely. More likely, the adjustment will happen through consolidation and accumulation.

With today's index rising and then retreating, the major index is likely to trade above the 10-day moving average for the second half of this week, with sector rotation expected in the market.

Today's main losers were in the commercial aerospace sector. While this cooling has some short-term emotional impact, it's unlikely to continue with consecutive losses. After a day or two of divergence, localized rebounds are expected.

This is the rhythm of the main theme: after the leading sectors rise too much and experience broad declines, there will be localized rebounds, followed by some stocks making new highs.

For AI applications and other concepts, there are still opportunities for premium gains. Even if trading volume doesn't break new highs, it's still around 3 trillion yuan, which is sufficient to sustain current market theme activity.

4. For retail investors, I recommend focusing on timing and rhythm. The consensus among most investors now is clear: the market does face pressure. Therefore, early-positioned funds will take some profits, and those with heavy positions will use this chance to reduce exposure;

But from a trend perspective, once the pullback occurs, we believe there will still be funds stepping in to absorb the sell-off and accumulate at lower prices. People may differ in their approach, but the core intention remains the same—to stay involved in the market.

Every market correction is a good time to ask yourself: Do you still believe in the trend? Do you still believe in the main theme?

If not, there's no point continuing. If yes, then you should focus on finding repeated opportunities after a pullback or broad decline—that's the rhythm.

Of course, I don’t expect everyone to agree with my view. In the stock market, the most important thing is ultimately convincing yourself. Otherwise, holding stocks won’t bring peace of mind, and staying out won’t either. You must know your own purpose.