Huatai Securities has released a research report indicating that the short-term market is currently experiencing a lull in both policy and earnings, necessitating additional catalysts for the index to surpass critical levels. The market is anticipated to exhibit continued volatility, prompting the recommendation to uphold a 'dumbbell-style' allocation approach. Firstly, the technology sector, previously burdened by overcrowding, has now absorbed this pressure, with its cost-efficiency rebounding following adjustments. Investors are advised to concentrate on undervalued targets, including Hang Seng Tech, domestic computing capacity, AI-powered end-user devices, and applications. Secondly, the red-packet sector, which had previously seen relatively modest gains due to domestic and international uncertainties, is now witnessing a catch-up rally. Notably, there remain allocation opportunities within the banking sector and certain cyclical red-packet sectors. Thirdly, by cross-referencing third-quarter reports with medium-to-high frequency sentiment indicators, investors can identify sectors with undervalued prices and positions, such as new energy and chemicals.