Wednesday, February 4, 2026 Review: Think of it as you are digging a hole!

It’s that time again when the main forces are not acting recklessly. Today, AI applications experienced a collective sharp decline. Many people started looking for reasons, but there’s really no need—it’s because everyone’s focus is primarily on AI applications right now. Today, it’s not just AI applications; most high-level stocks are just correcting downward. When you connect these dots and look at the bigger picture, the first thing to consider is the main force’s intent! [Taoguba]
Monday saw a sharp drop in Huahong Company, representing the semiconductor sector. We don’t know the exact reason, and we dare not ask.

Tuesday featured an intraday plunge in Cambrian, dropping as much as 14 points underwater with increased volume, followed by continued decline on lower volume today. This is definitely not a sign of stabilization; it indicates that the decline is not over. There will be clarifying announcements during the day, or it wouldn’t be able to recover. This mainly involves AI chips.

Today, Yizhong Tian experienced a sharp decline, dragging down high-level AI applications and commercial aerospace stocks as well.

1: The known market condition is that trading volume has been shrinking since January 13, barely reaching 2.5 trillion yuan today. During this period, the main force has been reclaiming liquidity! So, the question is: why reclaim liquidity? — Due to uncertainties outside during the Spring Festival, especially related to Nvidia chains. Selling off at high levels means there’s more certainty at lower levels, which correlates with the rise in white wine, photovoltaic, and real estate sectors. The main force isn’t focusing on earnings during this period and is timing it perfectly during the earnings disclosure vacuum period! This sets the timeline for these themes to not reach earnings disclosure until after the end of March. When this period ends depends on daily monitoring. Since the main force’s goal is to realize gains from overseas chains and avoid uncertainties, the opportunity for overseas chains will only come after the holiday. Currently, overseas chains are not ready!

2: Avoiding uncertainties during the Spring Festival is just one aspect. Another is the essence of finance—harvesting. When prices rise high, they must be realized. This time, the main force is different from previous times: they are selling off in stages—first semiconductors, then AI chips, and then CPO-related stocks. Retail investors tend to act in threes; once the sell-off is fierce, they don’t know who will be targeted next. Naturally, they steer clear of high-level stocks because no one knows if funds will suddenly target stocks like Sanhua Intelligent Controls or Top Group. These days, core stocks at high levels are being targeted one after another, with no exceptions.

3: When investing in stocks, we focus on operating in a safe environment. Currently, with the main force selling off one stock per day, there’s great uncertainty. High levels make everyone nervous. This year, the key is that the main force wants you to make money so you can make money; if they don’t want you to make money, you won’t. Today, most stocks that could be sold have been sold, leaving only swing positions, which are likely at lower costs than the main force. Wait until the main force shows sincerity before acting.

4: The question is: when will the main force show sincerity? Based on past understanding, the main force usually drops until volume shrinks, then increases volume again, then shrinks, and finally tests the bottom and rebounds. That’s about the process. It’s a long process. First, look at intraday movements: the last-minute surge was entirely driven by securities and financial stocks, which is not sustainable. Even CATL was pushed to smoke, wasting money not only on useless things but also at the wrong time. Imagine if the surge happened after 2:30—what would happen? For example, if it surged right at the open in the afternoon, the following situations could occur:
First: Retail investors start bottom-fishing, their emotions rise, and the main force might be doing some shakeouts, which is not what they want to see.
Second: The rapid surge costs money, but the absorption of the surge cannot be sustained; absorbing requires spending money, which is not feasible.
This indicates that intraday, the main force has no sincerity. So, today’s late trading is not a good entry point!

5: Currently, the entire market is under the strong control of the main force. Even as sectors like commercial aerospace, AI applications, and precious metals retreat, the main force is still controlling the market. This indicates that their goal has not yet been achieved—referring to institutions! If not achieved, they will continue to sell. Today’s volume was 2.5 trillion yuan, with some volume during the day, then it shrank back. The main force is quite clever: first shrinking volume intraday, then pushing volume, then shrinking again. From the perspective of volume data, it’s hard to tell. We can only analyze individual stocks, especially core stocks like Xinyi Solar, which showed volume shrinking and bottoming out today. It’s not in place yet, so we need to look for the bottom. Remember, the bottom is a process, not a point. Since it’s a process, don’t rush!

6: The main force is using white wine, real estate, and photovoltaics to support the market. The photovoltaic sector released news in the afternoon, which is very interesting. Last week, no news; this week, news started coming out—almost like a harem waiting for approval. Two pieces of news were released: one from Jinko Solar and another from TCL Zhonghuan. This shows who is controlling the internet strategy (star effect)—the big main force. Earlier, some people criticized Chen Xiaoqiun, just a nickname! In the afternoon, the market looked like a selection process for a consort, where just a glance made you feel like you were about to marry, then the dowry preparations began. This is absurd, and behind it, there are signs that the main force is losing credibility. In other words, they have lost trust. Playing with the main force without credibility is doomed to fail! Tomorrow, you can verify this: what happened to high-level stocks like Maiwei, which was pushed by photovoltaics in the afternoon, and stocks like Dongfang Risheng?

7: Today, we are discussing a common issue: if the main force doesn’t want chips, there must be lower chips to wait for. According to this logic, there will be more declines. I also posed a question in the comments: if tomorrow the market starts to rebound, how should we respond? The answer from the comments was to cut losses—uncertain, because no one can handle such shakeouts. My answer is to always keep yourself proactive—by reducing positions and objectively responding. Judging market direction based on main control behavior is no different from guessing. For example, in Wangsu Technology, Hongjing Technology, or Hande Information, can you guess today’s 10% drop? Or in Shengguang Group? The stocks that declined on Monday and rebounded on Tuesday are not many. Usually, correction has already started, and it’s a big fight. In Lio Co., or in Gravity Media, the sentiment retreat is not over, and extreme drops still happen. So, the only way is to manage positions—using the simplest T+0 method: look at space, not time!

8: Since this month, I’ve been reducing my positions continuously. Today, I kept reducing. The main force probably wants to see this. I didn’t sell Kunlun Wanwei at 15%, and at 8%, I had no choice but to cut. By the close, only 5% was left. If the main force wants chips, I want to say: your plan has succeeded. I dare not buy more Kunlun Wanwei at the end of the day! I don’t believe AI applications won’t start up, and don’t think about pushing other stocks to kill time. While you’re watching me, I’m watching you!

Even in the current market, even if there’s a collective trend, it’s quite rare. Today, Great Power Cables basically opened with a limit-up. Commercial aerospace, after some ups and downs, has become like the earlier deep-sea economy. Today, high-level commercial aerospace stocks mainly corrected downward—Xinxin Communication, Feiwo Technology, Chaojie Co., Zhenlei Technology, etc. Although there was some capital chasing China Satellite in the late session, they left without looking back. Sentiment can spread—if it’s like this for institutions, how can they be soft on themes?

Currently, funds are flowing into low-priced photovoltaic, white wine, and real estate sectors. Photovoltaics are doing very well and are a current outlet for funds, but the industry logic is hard to justify. Even the logic for real estate might be better than photovoltaics. Real estate has been declining long enough; most companies are losing money, but at least the leading firms are still profitable. In contrast, the top photovoltaic companies are heavily affected. For now, treat white wine and real estate as transitional funds. Either the themes are cheap enough to fall further, or the oldest, cheapest stocks are chosen. Since funds are sticking to old strategies, they will keep going until some sector exceeds expectations—hoping for AI applications or autonomous driving. If these don’t emerge, it’s still the usual set of gold, silver, copper, iron, aluminum, coal, oil, grain, and other commodities! Recently, coal is just like the previous white wine!

Actually, last night I kept thinking about how to avoid the market decline in the future. The key is: when you step into water and feel its coldness, it’s time to get out! As long as your positions are in hand, there are plenty of opportunities for this wave of decline!

Thanks to everyone who liked, tipped, and cheered—your support helps me pursue my goals calmly and confidently, pushing myself further and sharing valuable knowledge. I will continue to share more valuable content. Thank you for your support! Wishing all brothers who do the one-click triple support a smooth journey in 2024!
**
Thanks to the list of those who tipped—your recognition means a lot: (Top supporter: @Yiwei Duchuan) @Chen Daoming11 @dandy3574 @A000 Transportation Hu Pengcheng @Ritian Kaizi Ge @Jin Fang Zhi @Ming Xiyingyang @Don’t Look Up @A Yushan Lunjin @Trying @Wish I Have a Beam of Light @Left Hand Turns into Feathers @Desert Camel @Stocks That Don’t Swim @Helen99 @Midnight Moonlight @Jevons1982 @Uncommanded @Xiaoping007 @Always Pulling @Haha123567 @Wow Takeoff @Xiaobao1105 @JX Wen @Zhuang Ze @Casi @Char0912 @Money Makes You Yourself @Ten Ounces @Cat Rich Cat @Big Wealth @2233 Qiqi Ba Ba @Mobile Rice Cooker @Big Head Pig @Rookie Can Fly @Huacheng Flying Orange Flower @Little Iron Blood @Thirty Thousand @From the Night Little Leek7 @Go Play Match 3 @God’s Realm @ICE5201314 @Zhou Silin @Deep Bay Cola @zzztoo0 @Seeking Heart Hunter @Love Eating Pure Meat @Li Beiyan @Normal Mind Facing Destiny: @A Jiu Has a Little Dish @Donkey Reverse Riding @Deer Life @Yuchuanjuan @Michelangelo @Waiting for the Wind 8611 @Zhu Xun @Third Latitude @zysff @Liu Liu6 @Maowu111 @Gradual Breeze @Little Ai Greedy Jianghu**

If you find this article useful, please support with tips, likes, and shares in the comments. Thank you! The review is just personal opinion and does not constitute any investment advice!