- The report discusses a **cycle analysis model**, which observes the market's monthly upward trend since early 2024, despite recent adjustments and a temporary break below the rising channel. This model suggests that the overall risk remains controllable, even if there is a future pullback, as the high-frequency temperature gauge of major broad-based indices remains below 20, indicating a relatively low level [1][9] - The **industry divergence indicator** is highlighted, showing that the divergence among primary industries has dropped to a historically low level. Historically, this indicator tends to rise again when the market restarts, potentially signaling the emergence of a sustainable market theme. The report notes that the TMT sector, which previously adjusted, is showing signs of renewed capital attention [2][9] - The **Four-Drive Model** provides insights into specific sectors. It identifies potential rebounds in the small-cap growth sector, coal sector, semiconductor materials and equipment sector, and sci-tech materials sector. These sectors are noted for signals such as low-cycle absorption, volume contraction during adjustments, and signs of stabilization or rebound after significant corrections [3][6][11]

- Model Name: Four-Wheel Drive Industry Rotation Model; Model Construction Idea: The model suggests focusing on specific sectors based on their recent performance and potential opportunities; Model Construction Process: The model tracks the trading volume and performance of various sectors, identifying potential opportunities based on significant changes in trading volume and performance metrics. The model specifically suggests focusing on sectors like media, retail, agriculture, communication, non-ferrous metals, machinery, and computers[2][9][15]; Model Evaluation: The model is effective in identifying sectors with potential for rotation and growth[2][9][15] - Model Backtesting Results: - Four-Wheel Drive Industry Rotation Model, Sharpe Ratio for Agriculture sector: 19[15]

- The "All-weather model" issued a technical risk signal, indicating potential market consolidation in the near term[1][7] - The "Cycle analysis model" monitors trends at different levels, suggesting the current adjustment is limited to the post-May 1st rally, with no evidence of the broader uptrend since early April ending[1][7] - The "Four-wheel drive industry rotation model" recommends focusing on sectors such as military, home appliances, agriculture, automotive, electronics, computers, and non-bank financials during the consolidation phase[7][16]