Bottoming out and rebounding, what’s next?

Today’s market opened high this morning, then pulled back after a surge, followed by a bottoming out and rebound. In the afternoon, it staged a strong rally, with gains exactly half of yesterday’s decline. Leading the rally were BC batteries, photovoltaic equipment, and others, while banks, insurance, and securities performed relatively weakly. Precious metals rebounded from the bottom, and the previously strong Baijiu sector took a breather today. By the close, over 4,500 stocks in both markets rose, while more than 500 declined, showing a broad rally across the two markets. [Taogu Ba]

From a technical perspective, the overall trend remains upward. As we mentioned yesterday, despite a long downward candle of hundreds of points, there was no breakdown. After a sharp decline, positive signs appeared: the 120-minute KDJ was oversold, and today, during the pullback, the 60-minute and 90-minute charts also showed oversold conditions. After resonance, the market quickly bottomed out and rebounded. I explained yesterday that if it’s a fast move, the bottoming and rebound could happen today; if slower, it might start tomorrow.

A bull market’s long downward trend should be viewed with a calm mind. Friends who hurriedly cut losses yesterday are now left with only regret and remorse today.

Some friends asked today, “Why didn’t you advise us to sell earlier to avoid yesterday’s decline? After falling, wouldn’t it have been better to buy the dip again?” I want to say, you’re not looking for a teacher; you’re looking for a fairy. If you want to avoid every downward line in the market and seize every opportunity, I suggest you look for a fairy. If you can’t find one, go find a guy on the street wearing sunglasses and sitting at a table—that might be better.

Everyone must be very clear about their own capabilities and limits. Never pursue the idea that you can always buy the hottest stocks or the strongest leaders. Don’t ask why, because you don’t know and can’t understand. Also, don’t expect to get everything just right every time—that’s unrealistic. That’s not my strong suit. I never try to cross a seven-foot fence; I always choose a one-foot step over it.

Knowing oneself is the greatest wisdom. Recognize your strengths and weaknesses, avoid your shortcomings, and do what you love and excel at. Persist, and you will eventually succeed. Clearly understanding your own circle of competence and acknowledging your shortcomings is a great wisdom. Looking down on small gains and always aiming for big wins, mistaking luck for skill—that’s the most dangerous mistake.

Do what you’re good at and can control. Sometimes, it may seem slower, but in life, the steering wheel is in your hands. You won’t crash. Slow is sometimes fast, and in the end, you will reach the destination of success.