- The report defines a market timing system using the distance between the long-term moving average (120 days) and the short-term moving average (20 days) of the Wind All A Index to distinguish the overall market environment[2][8][13] - The distance between the 20-day moving average and the 120-day moving average has narrowed from -2.80% to -1.33%, indicating the market is in a volatile state[2][8][13] - The industry allocation model recommends sectors such as Hang Seng Medical, Hong Kong automotive, and new consumption industries from a mid-term perspective[2][3][9] - The TWO BETA model continues to recommend the technology sector, focusing on information innovation and communication[2][3][9] - The Wind All A Index's overall PE is around the 60th percentile, indicating a medium level, while the PB is around the 10th percentile, indicating a relatively low level[3][9] - The position management model suggests an absolute return product with Wind All A as the main stock allocation should have a 50% position[3][9] - The market is expected to continue to decline in trading volume, with a potential rebound when the volume shrinks to around 900 billion[2][3][9] Model Backtest Results - The distance between the 20-day and 120-day moving averages is -1.33%[2][8][13] - The Wind All A Index's PE is at the 60th percentile[3][9] - The Wind All A Index's PB is at the 10th percentile[3][9] - The recommended position for absolute return products is 50%[3][9]