Friday afternoon’s market was quite encouraging—the insurance and brokerage sectors suddenly surged together, with the insurance sector jumping directly by five points and the securities index rising over 2%. Driven by this financial rally, the Shanghai Composite managed to climb back above 3,900, gaining 27 points; the Shenzhen market was even stronger, with both major indices breaking above 1%, and the daily K-line closing above the 20-day moving average.

Overseas markets that night also performed well: the Dow rose 104 points, the Nasdaq gained 72 points, though European stocks were a bit disappointing. The offshore exchange rate stabilized around 7.06, so the overall external environment gave A-shares an extra boost.

From a technical perspective, the Shanghai Composite has consecutively reclaimed short-term moving averages, turnover exceeded 700 billion, and it’s just 20 points shy of the 20-day moving average. Can the rally continue today? Personally, I think the probability is high, but to truly hold above the 20-day line, it probably needs at least 800 billion in turnover—meaning another 100 billion in incremental funds is required.

As for sectors worth exploring now, I think pharmaceutical stocks are worth serious consideration. This sector has suffered heavy losses recently, but that only means stocks with strong profitability have even more upside potential. I’m personally looking at two categories: one is pharmaceutical blue chips with strong profits, low valuations, but whose share prices have been cut in half—these are more resilient to risk; the other is high-quality stocks with steady earnings growth over several years—these have strong explosive potential. When the sector keeps dropping, it’s actually the best time to research and wait for entry opportunities. The deeper the drop, the greater the potential rebound in the future.

Of course, if turnover still doesn’t pick up, the risk of the market rally fading remains. As long as the Shanghai Composite stays below the 20-day moving average, risk aversion should always be on your mind. At times like this, blue chips with low valuations, high profits, high dividends, and stable prices are the safest choice. Low valuation + significant underperformance = strong stability; high profit + high dividend = ample growth potential. If the market strengthens, they’re expected to catch up; if the market weakens, they’re the best safe haven.