After the A-share market opened on Monday, it experienced a strong rally. All three major indices opened higher, with the ChiNext Index surging over 3%, and the overall market showed clear profit-making opportunities.

Let’s look at the data first. Early trading turnover is expected to reach 2 trillion, an increase of nearly 20% compared to previous sessions—this level of volume indicates that capital is entering the market. There are 61 stocks hitting their daily limit-up, with only 7 stocks limit-down, and more than 3,300 stocks rising. On the technical side, the main index has filled the gap at 3927 points, climbed above the 60-day and 5-week moving averages, and multiple technical indicators are starting to resonate.

There are several supporting factors behind this rally:

**Policy and industry catalysts.** Several favorable policies were released over the weekend: securities firms increasing leverage and insurers lowering reserve requirements, which add liquidity to the market; explosive growth in commercial space orders; supply and demand tensions in the AI chip and storage markets, with price hikes and shortages becoming the norm. Storage prices have already risen 30% in Q4, and may continue to rise into early 2026. Stimulated by this news, nearly 20 stocks in the commercial space sector hit their daily limit-up, with Shunhao Co., Ltd. and Western Materials hitting the limit at the open; the AI hardware sector was even stronger, with Tianfu Communication hitting the 20% limit-up and reaching a new high, and Zhongji Xuchuang rising over 8%. Leading stocks are not pulling back—this kind of performance usually signals a confirmed trend.

**Incremental funds are rushing in.** The 20% surge in volume is backed by real money. High-flying stocks are performing impressively: Anji Foods has hit five consecutive limit-ups, and Longzhou Co. hit the limit at the open. Funds aren’t afraid of high prices and are willing to chase gains, which shows market confidence in the coming trend.

**Clear technical breakthroughs.** Filling the gap, holding above the 60-day moving average, and reclaiming the 5-week line—these three signals appearing simultaneously make the bullish pattern clear from a technical perspective. Looking back at history, every bull market has had a core theme: last time it was new energy, this time AI technology—with strong industry fundamentals and capital recognition—has essentially established its core position.

A few reminders for investors:

Frequent stock switching is the biggest risk in a bull market. Today’s performance has already pointed out the direction—don’t worry about where the top is, it’s more important to hold onto the core theme. The approximate sector elasticity ranking is: major technology (AI computing power, commercial space, chip storage) > major cycles (non-ferrous resources) > major finance (brokers, insurance). Among them, AI computing power, commercial space, and chip storage—these hard tech sectors have high certainty in their prosperity. Hold your chips firmly and don’t get off the ride easily.

Watch whether the volume can continue in the afternoon. This rally has only just begun; there is still room to grow.

Remember two points: a pullback on low volume is a buying opportunity, and a breakout on high volume is the signal the rally has started. The train is already moving—don’t get left behind.