- The report introduces a "Total Heat Indicator" for monitoring market sentiment, which aggregates the heat indicators of individual stocks within broad-based indices, industries, and concepts[10][11] - The "Total Heat Indicator" is defined as the sum of the browsing, self-selection, and click counts of a stock, normalized by its market share on the same day, and then multiplied by 10,000, with a value range of [0,10000][10] - The report constructs a simple rotation strategy based on the weekly heat change rate (MA2) of broad-based indices, buying the index with the highest heat change rate at the end of each week, and staying out of the market if the "Others" group has the highest change rate[16][18] - The rotation strategy based on the heat change rate (MA2) of broad-based indices has an annualized return of 8.74% since 2017, with a maximum drawdown of 23.5%, and a return of 2.1% in 2026[19] - The report also constructs two simple portfolios based on the heat change rate of concepts, selecting the top 10 and bottom 10 stocks by total heat within the top 5 concepts with the highest heat change rate each week, and holding them equally[35] - The "BOTTOM" portfolio of low-heat stocks within high-heat concepts has historically achieved an annualized return of 15.71% with a maximum drawdown of 28.89%[37]

Market Overview - The three major indices experienced fluctuations, with mixed performance observed across the market [1][3] - The Shanghai Composite Index closed at 3875.26, up by 0.29%, while the Shenzhen Component Index fell by 0.25% to 12875.19 [2] Sector Performance - The top-performing sectors included light industry manufacturing (up 1.09%), basic chemicals (up 1.01%), and petroleum and petrochemicals (up 0.90%) [2] - Conversely, sectors such as media and retail showed declines, with the media sector down by 1.40% and retail down by 1.20% [2] Concept Indices - Notable concept indices included organic silicon (up 3.29%), new technology stocks (up 2.12%), and sodium-ion batteries (up 1.99%) [2][4] - Underperforming concepts included the Hainan Free Trade Zone and cultivated diamonds, which saw declines of 2.65% and 1.67% respectively [2][4] Future Outlook - The market is expected to remain cautious due to ongoing uncertainties in the overseas environment, with a notable shift towards risk aversion among investors [5] - Positive factors supporting market growth include sustained investment interest in AI and new energy sectors, as well as domestic policies aimed at improving the business environment [5] Regulatory Developments - The National Development and Reform Commission is addressing issues related to price competition in various industries, aiming to establish standards to mitigate disorderly pricing practices [4]