Core Viewpoint - The STAR Market has become the most popular area in the market, with the STAR 50 Index increasing by 5%, driven by significant gains in companies like SMIC and Cambricon [1][3]. Market Performance - SMIC's stock price surged nearly 15%, reaching a historical high, contributing over 17 points to the STAR Market's rise [3]. - Cambricon's stock also saw an increase of over 8%, surpassing the stock price of Kweichow Moutai, with a total market capitalization exceeding 610 billion yuan [5]. Investment Trends - Analysts believe that the AI sector is the main theme for future industry development, with key companies concentrated in the STAR Market, attracting significant capital inflow [1]. - Last week, 18 stock ETFs were reported in the mainland market, with 10 being focused on the AI sector, indicating a trend towards passive allocation as stock market values increase [1]. Market Signals - There are two significant signals in the market: a shrinking bullish pattern and the need to be cautious of deteriorating trading structures [1]. - Despite the highs of SMIC and Cambricon, over 3,700 stocks experienced declines, indicating a divergence in market performance [7]. Trading Structure Concerns - Citic Securities noted that while recent adjustments appear technical, there is a need to be wary of deteriorating trading structures, as the market shows signs of overheating [9]. - The TMT sector's trading volume has increased significantly, nearing historical highs, which raises concerns about potential market corrections [9]. Market Sentiment - The investor sentiment index reached 95.2, indicating that the market is still in an accelerated upward phase, but signs of sentiment retreat have begun to emerge [10]. - Following the rapid rise in the STAR Market, the overall market experienced a pullback, suggesting a potential period of stability after the dilution of bullish sentiment [10].