Technology remains the main theme!

$SSE Index(000001.SH) This week, the market was once again dominated by institutional herd behavior, with the ChiNext Index hitting a recent high and the STAR Market rising for three consecutive days, clearly a structural bull market.

I believe many people shared a common feeling this week: if you can't beat them, join them. Think about it, when a certain sector keeps rising every day, the feeling of missing out—'everyone else is making money, but I'm not'—is worse than losing money yourself. As a result, many people hurriedly adjusted their portfolios, determined to chase those hot stocks that are 'standing in the spotlight.' And the result? They got served a big bowl of losses, scratching their heads in frustration.

Honestly, the market is just too good at 'targeting' people: when you don't believe it will rise, it hits new highs every day; the moment you grit your teeth and decide to jump in, it immediately turns off the lights and traps you. This feeling of perfectly stepping into a trap really leaves us ordinary investors with no choice but to accept the loss.

This week's market action boils down to one cruel reality: in this current structural market, if you pick the right trend, you feel like you're in a bull market every day, making money daily; but if you get the rhythm wrong, it's losses every day, making you question your life choices. It's the same market, yet some are making a fortune while others are losing badly—two completely extreme stories.

Those stocks favored by institutional herds are practically pampered to heaven, with full liquidity and valuations soaring sky-high, rising no matter how you buy them. Meanwhile, other companies, with decent fundamentals and okay performance, are simply ignored, with capital not even giving them a glance, left to lie low at low levels, digesting the market's pessimism. This polarization has become all too common lately, nothing new.

What's even more interesting is how market sentiment changes faster than flipping a page. Yesterday's market star, widely chased, might be abandoned by capital tomorrow, becoming an unwanted outcast. There's no such thing as a permanent core asset in this market, only permanent core liquidity—capital flows like water to where the resistance is smallest, and those low-resistance areas are mostly driven by quantitative funds, fueled by storytelling and sentiment.

The market is like a big room where the light source keeps moving, with no fixed position. Those who can stay in the light are either those who guessed where the light would move next and positioned themselves early, or those who are actually controlling the light source themselves—like the institutions, with their money and chips, deciding where the spotlight shines.

For us ordinary retail investors, trying to chase every light source is a waste of effort. By the time you clearly see where the light is, it's probably already preparing to move; by the time you rush over, you'll likely find only darkness, waiting to trap you.

This week's market action is over, but the institutional herd play will definitely continue. As for which sector the light will shine on next week, no one can say for sure; no one can predict it accurately. The only certainty is: those currently standing in the light must be prepared for the lights to go out and plunge into darkness at any moment; while those still lying in the shadows might be unexpectedly illuminated one day and suddenly take off.

On the news front:

1. Iran's Foreign Minister has already arrived in Pakistan, and a U.S. delegation will also go to Pakistan on Saturday, although Vance did not go, staying in the country on standby.

The Middle East situation has always been the weekend's biggest focus. Honestly, seeing the U.S. and Iran sit down to talk is an achievement in itself; whether they can reach an agreement is another story. But as long as they're at the table, the market will have expectations, as everyone fears an escalation of conflict. Affected by this news, crude oil prices fell slightly last night, while the non-ferrous metals sector saw a brief rally, but ultimately the movement was flat, with no major action—after all, Vance isn't even going, so the probability of a successful negotiation this time is still not high; don't get your hopes up too much.

2. Another major move in the tech sector!

Last night's biggest news was the meeting on technological innovation, with the core focus being to keep an eye on the global technological frontier, address national strategic needs and industrial development requirements, pursue original and leading technological breakthroughs, and achieve technological self-reliance.

Translated, this means: we need to develop technology on our own and not be strangled by others. This is absolutely positive for domestic substitution directions like chips and semiconductors. Additionally, focusing on the tech frontier also means that emerging fields like AI applications, commercial aerospace, and humanoid robots will receive support going forward.

In summary, the tech sector remains the main theme for the later period, no doubt about it. Last night's U.S. stock market, with the $NASDAQ Composite Index(.IXIC.US), also confirmed this, as tech stocks performed exceptionally well, with the Philadelphia Semiconductor Index up 4.32%, Intel soaring over 23%, and NVIDIA up over 4%, with its market cap returning above $5 trillion. Therefore, next week, A-share tech stocks are highly likely to continue strengthening and deserve close attention.