The precious metals sector has recently shown signs of vitality, alongside growth in the fields of copper cabling, high-speed connections, and liquid-cooled server technologiesA noteworthy mention is the F5G concept, which involves the next generation of network communication technologies that facilitate faster data transmission over optical fiberThese sectors saw considerable price increases, especially precious metals, which led the markets with a two-point uptick across the three exchangesHowever, the day was not without its challenges, as the A-share market revealed a significant lack of focus, with only three or four sectors witnessing gains exceeding one percentIn stark contrast, over sixty sectors experienced declines of more than two percent, including already struggling areas such as home appliances, real estate, beverage production, food processing, and gamingAs I observe this trend, I am cautiously optimistic about the gaming sector

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The gaming industry, which has previously surged to new heights, has been grappling with a consistent downward trend over the past monthIn markets where no significant upward movements can sustain themselves, it is reasonable to anticipate that sectors with prior breakout trends may eventually experience a rebound following a phase of adjustment after their downturns.

On Wednesday, the A-share market closed lower across the board, with the Beixin 50 index leading the decline, showing a drop of over four percentThe significant decrease in the North Stock Exchange was attributed to a previous dramatic surge; the index had doubled in just one month due to an increase in trading last September and OctoberAs the upward momentum of the A-share market fades, it is likely that this North exchange, which had previously soared, will face the inherent risk of price correctionsBesides the Sci-Tech Innovation Board, I believe that sectors that have seen significant gains—especially those with price-to-earnings ratios exceeding 100—are also at heightened risk for rapid declines in the near future.

With more than 4,000 stocks closing in the red, it is evident that the A-share market is currently facing widespread downward pressure

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The session opened on a negative note and continued to slide throughout the dayDespite a substantial rally in the U.Sstock market, there has been no corresponding rebound in our marketsBy the end of the trading day, the Shanghai, Shenzhen, and Beijing markets were mostly in the red, establishing a bearish trendAnalyzing the daily candlestick chart, the Shanghai Composite Index has formed three consecutive declines after touching the 20-day moving average, once again breaking below the 10-day moving average following a 30-point dropIf the short-term moving averages remain unable to provide support, the 3,200-point mark could prove tough to maintain, suggesting a likelihood of another round of declines this week.

As we approach the three final trading days before the upcoming holiday, it is likely the pattern of gradual decline will persist, with the 20-day moving average acting as significant resistance for the index

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Trading volume on the Shanghai Stock Exchange was beneath 450 billion yuan, down approximately 30 billion from the previous day's figuresGiven the impending Spring Festival, trading sentiment among investors is waning significantly, and I anticipate further shrinkage in trading volume over the next three days, with the likelihood of falling below the 400 billion yuan mark being quite highMy current investment position is not heavy, so I have opted to hold onto my stocks during the holiday season, and should the market witness a notable downward correction before the break, I will consider increasing my stakes.

In terms of market direction, there are two key areas that merit attention going forwardFirst, the precious metals and minor metals sector are likely poised for a mid-term bounceCurrently, gold prices are at a historical high, and the upward trend appears far from overIf gold can maintain its elevated pricing over the coming year, mining companies with gold resources are positioned to enjoy ample profits, potentially even doubling their profits in this highly lucrative environment

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When a sector is underpinned by solid performance, stock price increases become more reliableFor the next year, the precious metals sector remains one to monitor closely, particularly stocks that have experienced overselling and stagnant growthIn addition to gold, sectors associated with minor metals, non-ferrous metals, and rare metals are anticipated to benefit from rising prices, further boosting their stock valuations.

Secondly, it is essential to thoroughly evaluate battered consumer sectorsOver the past three years, a persistent downturn has plagued consumer industries, particularly affecting alcoholic beverages, livestock, food processing, and beverage production, leading to declines that resemble "halving" in their weightWhile the adjustment in consumer sectors has been attributed to downgraded consumer habits, I argue that this perception overlooks an essential detail: consumption itself has not degraded but has merely seen a deceleration in growth