Hundreds of stocks hit the daily limit down! The entire A-share market fell 4% in a single day! Tech lured buyers last week and trapped people—massive losses!

Today, I opened the account—[TaoGuba]
I guess no one can close the day with a smile.

A hundred stocks hit the limit-down,
and the CSI All A Index plunged 4% in a single day.
This level of drop is rare even in history,
and the market has directly moved into extreme sentiment.

The rebound hopes that were ignited last Thursday by a big bullish candle
were smashed to pieces within just two days.
Many people who rushed in right away
ended up firmly eating a big “bad meal.”

If you’re wrong, you need to admit it promptly—
there’s no need to be stubborn.

Last Thursday, the ChiNext Board and STAR Market had a single big bullish engulfing/covering candle.
Including me, many people thought the launch point for a new swing-trading cycle was here.

But reality slapped hard in the face:
immediately afterward came two consecutive large bearish breakdown candles that kept selling aggressively.
The short-term trend in the technology sector is already completely broken.

After chopping around in the high range for so long,
it ultimately chose to break down to the downside.
This wave of selling isn’t a normal pullback—
it’s a real, trend-level release of risk.

What makes it even more vicious is this “false breakout”:
Last week, only the ChiNext Board and STAR Market—breakouts that were forced by weight/benchmark pressure—
reclaimed above the 5-day line.
From start to finish, the CSI All A Index never regained the 5-day line.
Thursday was only a dip-and-rebound.
On Friday, the rally again failed and fell back, still staying below the 5-day line.
Anyone who entered just by watching the weight/benchmark indices surge
got lured into the round-trip swing and buried halfway up the mountain.

The CSI All A fell 4% in a day—
an extreme, historical-level market move.
According to past patterns, after a selloff at this magnitude, there are usually only two paths:

1. On the next day, broad-based gains and repair
   After the plunge, if the next day shows an emotional rebound—broad-based gains and repairs—
   that’s essentially a “breath” in the middle of a decline;
2. Sell off again the next day
   If, on the second day, the bears can continue to push and smash,
   it means risk hasn’t been released at all—
   and there will be deeper adjustments afterward.
   Tomorrow’s price action is extremely critical—
   it’s the window to observe market sentiment.

But regardless of which path it takes,
right now is not the time to blindly bottom-fish.
In a downtrend, the cost of catching a falling knife
is always much bigger than you imagine.

The board is also very clear:
besides banks, insurance, oil, and coal—these “four giants” that prop up the market
hard-carrying the index—
almost all other sectors are basically in a short/opposite trend and falling as the main wave,

Especially technology:
it had been chopping in the high range for more than a month,
and the chips had already loosened.
This breakdown-and-selloff isn’t a normal pullback—
it’s a real, hard-release of risk.
Stocks that have been up for half a year and multiplied several times—
once the trend breaks down,
both the downside space and the time it takes will far exceed expectations.
Don’t casually talk about finding the bottom.

So does this mean the tech bull market is over?
Is the market about to completely switch its main storyline?
My view hasn’t changed:

The position of technology as the core main storyline for the whole year
won’t change just because of this adjustment.

A sector that’s surged for half a year and turned multiple times,
with accumulated “heaps” of profit-taking positions,
originally needs a deep risk release.

When markets rise too much they fall too much; when they fall too much they rise too much—
this is the market’s eternal cycle, not the end of the trend.

After this wave of risk release is fully done,
and the chips are washed and reshuffled,
when the next round of行情 starts,
the leading core is highly likely to still be technology.

It’s just that in the short term, you need to face reality:
technology is currently in the main decline phase.
Don’t guess the bottom—
and don’t blindly bottom-fish.

It takes time to squeeze the bubble out.
It also takes signals to reverse the trend.
Entering now is just catching the knife as it falls.

The more a market crashes,
the more people get itchy,
thinking, “It’s dropped so much—surely there will be a rebound now,”
and always wanting to bottom-fish.

But the thing that most easily causes you to lose big money in trading
is catching a falling knife.

You think it’s the bottom,
but it’s only halfway up the mountain.
You think you’re bottom-fishing,
but it’s actually taking the bag.

The only correct move now
is to wait patiently. Wait for what?
For that simplest and most reliable signal:

The CSI All A Index, with volume expanding, closes with a medium-to-large bullish candle,
officially stands above the 5-day line,
and at the same time several major indices sync up and confirm the downtrend is stopping.

Why the CSI All A,
not the ChiNext Board and not the SSE Composite?
Because the CSI All A Index represents the overall picture of the entire market,
and represents the true performance of most individual stocks.

The SSE Composite can be propped up by banks and oil.
The ChiNext Board can be distorted by a few technology heavyweights forcing the numbers.
Only the CSI All A Index
can’t be fooled.

The false breakout last week was the lesson:
when only the weight/benchmark indices broke out,
people thought the uptrend had come,
ignoring that the CSI All A was still in the main decline wave,
and ultimately got buried by the bear trap luring longs.

The next steps are simple:
wait patiently—wait until the indices have sold until exhaustion,
wait for the CSI All A Index to close with a volume-expanding medium-to-large bullish candle,
and firmly stand above the 5-day line.

Until this signal appears,
no matter how the market rebounds intraday or how it lures longs,
you should control yourself—watch more, act less.

Better to miss a rebound
than to make a mistake in a trend.

In A-shares, there has never been a market that rises only and never falls,
and there has never been a sector that falls only and never rises.

This current crash isn’t the end of the world—
it’s squeezing out excess bubble, and making space for the next round of行情.

But opportunities are waited for—
not fished out.

Protect your principal, wait for the signal patiently,
and it won’t be too late to enter once the market truly stops falling.