Huatai Securities pointed out that the market had increased divergence between long and short positions near key points last week, and believed that: 1) In terms of the general trend, "there is a top and a bottom" may still be the benchmark situation, and attention should be paid to the follow-up guidance of the Lujiazui Forum and the FOMC meeting in mid-June to the market; 2) In terms of style, the recent turnover of micro-cap stocks is close to the level in November 2023. Although crowding does not mean a correction, the odds of participating in the small-cap market are currently low; 3) The turnover has not yet increased, and the industry rotation speed may still be relatively fast. The rotation of themes such as innovative drugs and new consumption may be relatively sufficient. In terms of sectors, attention can be paid to the low-level technology direction with a decline in turnover and industry catalysis. On the configuration side, grasp the odds thinking, pay attention to AI computing chips, storage chips, optical fiber cables and intelligent driving with relatively low crowding in technology, and pay attention to core assets represented by A50, consumption, and finance in the medium term.