For a professional trader, isn't this an obvious phenomenon!

But upon careful reflection, it seems difficult to describe this phenomenon with an accurate definition, or to clarify the essence of a bull market.

We thought of many things, such as 'a good macro economy and optimistic market sentiment create a bull market', and also 'a poor macro economy requires policy stimuli to boost confidence for a bull market', 'significantly increased trading volume and ample liquidity create a bull market', 'expanding profit effects create a bull market', 'an upward trend in the market equals a bull market'.

Senior brother said all of the above are correct, but is each reason absolutely right? The reason why everyone has their own views is because 'the Dao generates one, one generates two, two generates three, and three generates all things'. In everyone's eyes, there are only 'all things', making it hard to trace back to the source of 'one', thus one cannot observe the stock market with overly simplistic thinking.

The following is the senior brother's understanding of bull markets, bear markets, and monkey markets:
A bull market is a long-term main trend that includes at least two main lines and multiple leading sectors.
A bear market is when the long-term main trend has completely ended, and leading sectors have completely died.
A monkey market occurs during the transition between bear and bull markets, occasionally featuring one or two short- to medium-term main lines.
Keywords: 'long-term', 'main trend', 'main sector'

Example:
From 2019 to 2021, a three-year bull market saw the emergence of four long-term main lines in semiconductors, new energy, consumer goods, and pharmaceuticals advancing together;
From the end of 2021 to 2022, there was no long-term main sector during the bear market;
From 2023 to September 2024, during the monkey market, there was only one main sector (artificial intelligence) and short- to medium-term sectors (Huawei + consumer electronics, smart driving), Baidu's autonomous driving, flying cars;
The bull market from September 24, 2024, to now is intertwined with the main lines of large finance and large technology.

From September 24 to December, the focus has been primarily on the large finance main line, with the strongest being the financial technology and internet finance sectors, with leading stocks exceeding five times including AiRong Software, YinZhiJie, YingShiSheng, and HuiJin Technology; large technology serves as support, including leading sectors like semiconductors, flying cars, and humanoid robots;

From December to now, it is the large technology main line, with artificial intelligence + computing power and humanoid robots being the two leading sectors. The overall gain of large finance has been too high and is collectively adjusting, and it is now basically in a state of readiness.

So, why should we delve into the root cause of the bull market?

Only a long-term main trend can support a strong momentum for bullish actions, attract increasing liquidity, create a vibrant market with high trading volume, generate 5 to 10 times bull stocks, create a continuous profit effect, and attract the attention and discussion of the entire society...

For true leading players, only in this way can they truly understand the lifecycle of leading sectors and leading stocks, abandon all side distractions, dare to trial and error at critical times, distinguish between real leaders and false ones, and not fear intraday fluctuations and overall gains, holding onto the leaders.

Once a leader is identified, one does not care about various small writings, does not care about bad or good news, does not care about intraday trading or arbitrage tactics, but focuses solely on a powerful, straightforward strike to overcome cleverness.

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