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 profit to trade stocks, I don’t know who else besides me has been mentioning this all along. Normally, it’s always like this—never fully in cash, never fully invested. In such market conditions, I also start sounding the alarm to warn of risks at the first opportunity. A decline lasting over a week is almost a continuous downturn.

These two charts are daily and weekly charts. For the daily chart, it still feels like it’s not at the end yet. For the weekly chart, it’s almost there. The main issue here is whether there is 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 end, but next week, stocks will start to differentiate. Based on today’s situation, we’re already approaching the final decline. There might be a recovery on Monday, but whether that recovery has volume is crucial. Without volume, it’s still uncertain; with volume, it would require a significant surge. Currently, it seems neither scenario is very likely. I feel there might be another possibility. [Taogu Bar]

For example, if a large-scale, extremely low-volume doji star appears on Monday, it could be any kind of doji star. It might also be a false bullish line with a volume contraction. Of course, recovery and stabilization are possible—after stabilizing, prices can still fall, and after falling, they can go up. Whether Monday marks a bottom or a recovery depends on volume changes. Usually, we need to see how many distressed positions are being sold off. If there are no bloodied chips continuing to be sold, then the value isn’t significant. If a batch of bloodied chips is 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 completely faded, so I guess no one likes bearish bloggers. Anyway, the warning was issued, 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. It’s no longer necessary now that prices have already fallen. Talking about bloodied chips coming out now is mostly meaningless. Most people are probably already deeply trapped.

As for future market trends, the same words apply: currently very bad, but the future is bright. The current strategy is still to trade stocks for profit—use as much profit as you can, and have the courage to use that profit. Talking too much is pointless; those who won’t listen won’t listen. Those who can listen probably won’t have many issues. Some say there’s no profit, and I’ve already answered that when the market is good, you can’t make money. Do you still expect to make money when the market is bad? Recent words may have hurt many people, but market conditions decide that, not my intention. When a crisis arrives, raising the alarm might help a little. If it doesn’t, then there’s no hope.

No matter whether you want to or not, the original communication direction hasn’t changed—it’s just a matter of rhythm. For example, the leading company in communications, $Xinyi Sheng (sz300502)$, is already hitting new highs. $Zhongji Xuanchuang (sz300308)$ is also approaching new highs. $Changfei Optical Fiber (sh601869)$ still seems effective. If there are no major surprises, these stocks might continue to perform well. Their significance is more symbolic than practical—if there are no suitable targets now, these stocks could be a safe haven. As for how much they can 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 rally and drive the market. If it has ended, there will still be multiple rescue attempts, which is the true meaning of a leader. Last year, Xinyi Sheng and Zhongji Xuanchuang soared tenfold, which was very significant for the entire market. Today, it’s not just them—other high-priced stocks are roughly in the same situation. The low point of $Cambricon (sh688256)$ today at 1000.01 might also be a sign of stabilization.

So, the current situation might still be a decline. If there’s a chance, it’s likely in the communication sector, which has a very large upstream and downstream. But the key sectors still hold hope. If, after the market correction, the key sectors continue upward, then the trend remains intact. But from a careful look now, the leaders probably won’t change much. 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—like last year’s Yarlung Zangbo River hydropower project, which could ferment again. But that’s uncertain.

Today at noon was a watershed moment. There was news that Japanese people are developing large-scale destructive weapons—though it’s probably nonsense, but the big A-shares really can’t handle this kind of shock.

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 adds more crisis. 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 @SkyFlyTheFloor, @YangXing, @DidYouDrinkCoffeeToday, @XiaoHeXiaoXia, and @KongShanBuJianXue for tipping and urging the broadcast. Thank you.

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