When the PCB returns to the red horizontal line above, it marks the true start of the market trend. The return process is also the process of a second pullback. Will the second pullback bottom out at 3220 points or 3180? It depends on where the PCB lands when it returns to the red horizontal line, which we will track in real-time. There are only three trading days left before the May Day holiday. Before the holiday, funds remain cautious. Last week, the main focus was on stabilizing the index by the national team, and it can be said that most individual investors are losing money. Although the index is in the red, most of the time, over 3000 to 4000 stocks are declining daily, and even when they rise, it is mostly just a slight increase. During declines, the drop can easily exceed several points.
Despite the difficulties in the stock market during this period, a major rally above 4000 points will still come.
However, in the short term, the index’s rise before the second pullback can be seen as a trap for investors. Although many stocks with consecutive gains are fundamentally weak, they have distinct characteristics and can only surge if they are balanced stocks. However, these types of stocks should not be chased before they start, as they are fundamentally weak and can rise quickly but also fall just as fast.
Recently, some fans have asked me why my technical analysis is the most expensive in the country. The reason is simple: the concept of spatial balance is uniquely created in the country and cannot be replaced by any other techniques, which makes it highly valuable. It offers a 100% spatial return. There are many stock market courses available, including many free ones on platforms like Douyin. But why do over 90% of people still lose money? Because those techniques are too similar and highly replaceable. In today’s society, hard work alone does not guarantee wealth; it depends on whether what you work hard on is highly replaceable. If you are in an industry where you possess unique skills that others cannot replicate, your value will certainly be high. Everyone knows why farmers work so hard but still sell their produce cheaply and earn low profits: it is mainly because the industry they are in and the skills they possess are highly replaceable. Thus, they have not been able to achieve wealth through hard work.