The value of using profits to trade stocks is still increasing.

(Alternative translation: The quality/substance of stock trading with profits continues to improve.)

Using profits to trade stocks, I don’t know who else besides me has been mentioning this all along. Normally, it’s always like this—never holding cash, never fully invested. In such market conditions, the first warning was when the index hit 4141, signaling risk. The decline has lasted over a week, almost continuous downward movement.

These two charts are daily and weekly charts. For the daily chart, it still feels like it’s not at the bottom yet. For the weekly chart, it’s almost there. The main issue here is whether there’s volume or not. Technically, it might be the last dip, but for most individual stocks, it’s still an open question—meaning individual stocks haven’t bottomed out yet. The index seems close to the bottom. Next week, stocks will start to differentiate. Based on today’s situation, we’re already approaching the final decline. There might be some recovery on Monday, but whether that recovery has volume is crucial. Without volume, it’s still uncertain. If there is volume, it needs to be substantial. Currently, it seems neither scenario is very likely. I feel there’s another possibility. [Taogu Bar]

For example, if on Monday a large-scale, extremely low-volume doji appears, it could be a sign of various situations—either a doji star or a fake bullish line with low volume. Of course, recovery and stabilization are possible; after stopping the decline, prices can still fall, and after stabilization, they can go up. Whether Monday marks a bottom or a recovery depends on volume changes. Usually, it’s important to see how many weak hands are still holding out. If no bloodied chips are being sold, then the value isn’t significant. If a large amount of bloodied chips are being sold, then the bottom is likely in. So, stay calm.

Last week, I posted an article called “Only after falling a lot do you realize the pain.” But the popularity of that post has already faded, so I guess no one likes bearish bloggers. Anyway, the warning was given, but if no one pays attention, then so be it. I’ve said everything that needs to be said. Without traffic, there’s no point. The market has already fallen, so there’s little meaning in talking about bloodied chips coming out now. Most are probably deeply trapped.

The future market, as always, is that the current situation is terrible, but the future is bright. The current strategy is to continue trading with profits—use as much profit as you can, and have the courage to use it. Talking too much is pointless; those who won’t listen won’t listen. Those who can listen probably won’t have issues. Some say there’s no profit, but I’ve already answered that—if you can’t make money in a good market, how do you expect to make money in a bad one? Recent words may have hurt many, but it’s market-driven, not my intention. When a crisis hits, raising the alarm can be helpful. If it doesn’t help, then there’s no hope.

Regardless of whether you want to or not, the original communication direction hasn’t changed—it’s just a matter of rhythm. For example, the leading telecom stock $Xinyisheng (sz300502)$ is already hitting new highs, $Zhongji Xuchuang (sz300308)$ is close to new highs, and $Changfei Optical Fiber (sh601869)$ still seems effective. If there are no surprises, these stocks may continue to strengthen. Their significance is more symbolic than practical—if there are no suitable targets, these stocks could be a safe haven. As for how much they’ll rise, it’s similar to $Pingtan Development (sz000592)$ at the end of last year and early this year. The leader is the leader; if it hasn’t ended, it will drive the market higher. If it has ended, there will still be multiple rescue attempts. That’s the meaning of a leader. Last year, Xinyisheng and Zhongji Xuchuang saw tenfold gains, which had a huge impact on the market. Today, it’s not just them—other high-priced stocks are similar. The low point of $Cambricon (sh688256)$ today at 1000.01 might also be a sign of stabilization.

So, the market might still continue to decline for now. If there’s a chance, the main direction could be telecom, as the upstream and downstream sectors are very large. But the key sectors still hold hope. If, after the market correction, the key sectors continue upward, the trend remains intact. Currently, the leading stocks are unlikely to change. Sub-sector focus might still be on power and computing collaboration, including today’s news about solar power from Elon Musk. This direction is still strengthening. Power capacity might continue to expand—whether a new power project will ferment like last year’s Yarlung Zangbo River hydropower station remains to be seen.

Today at noon was a watershed moment. A news report claimed Japan was developing large-scale weapons of mass destruction—though it’s probably nonsense, but the Chinese market really can’t handle such shocks.

Later, I checked and found it was about Japan planning some nuclear power plants, likely in cooperation with the US. But the market itself needs adjustment, and this kind of news makes the crisis worse. The market declined sharply in the afternoon until everyone was asleep. Truly boring.

That’s all for today. Please like, comment, and tip Cui Bo. Thanks to @SkyFly, @HisYang, @DidYouDrinkCoffeeToday, @XiaoHeXiaoXia, and @KongShanBujianXue for tipping and urging the broadcast. Much appreciated.

Keep going.