Last night, we could see that the willingness of funds to go long was very, very strong. In fact, the core of this willingness is not about other companies, but about Nvidia, as Nvidia is the leader of this wave of AI technology. Therefore, if Nvidia is strongly supported by funds, it indicates that the market may continue to attract more people to invest.
The core reason for this round of decline in the US stock market is not only Trump's fluctuating tariff policies and the expectation of forced economic recession but also that the technology sector of the US stock market has reached a bottleneck. If this bottleneck is not broken, then it will be difficult to further enhance valuations.
This year we saw Nvidia's market value drop below 3 trillion at one point. The essence of this is due to the impact of DeepSeek, leading many to start questioning Silicon Valley's position as the world's leader in technology.
Thus, Nvidia's stock price has been unable to break through 150 for almost a year, constantly fluctuating, even experiencing a panic situation with a single-day drop of over 10%, reflecting the extreme panic of funds.
As the overall leader in technology, if Nvidia's stock price falters, then the system of US stock valuations supported by technology will be undermined, which is the core essence of the east rising and west falling.
Now we can observe the market and find that many people have begun to become timid, questioning the market trend, and are still immersed in the memory of the put shorts reaching a historical high a few days ago. At this time, they will inevitably be swept away by the main institutions at lightning speed.
Retail investors' emotions are often wrong, especially when they start to follow the trend to short. This is because retail investors tend to lose all power in the final panic strike, falling into self-doubt and anxiety. Once you cut losses, your faith will waver. You will doubt the market, feel that it is still unstable, and believe that there are still many negative news items out there. These factors will affect your judgment, and you will subconsciously seek information that is unfavorable to your position since the bottom line determines your mindset.
Thus, when the market surges, countless people will inevitably miss out, regret, and ultimately fall into madness, then begin to chase high prices and get trapped. History is a mirror that reflects all our failures in the stock market!
This period has been extremely crazy, and the root of everything lies with Trump. The campaign to target Trump began with shorting Tesla, and the major short sellers represented by Soros have launched a fierce attack on Musk.
1. Buy off 3,000 media outlets to release news of Tesla's sales being halved, stimulating the nerves of retail investors and encouraging everyone to short-sell the stock.
2. Incite leftist forces to continuously attack Musk maliciously, starting from his DOGE department, triggering worldwide leftist resentment against his political involvement, and fiercely smearing Musk.
3. Incite extreme anti-Musk individuals to attack Tesla's offline stores, creating panic and causing significant damage to Tesla's brand.
However, Musk has used AI technology to identify the major short sellers of Tesla, and the counterattack has begun. More importantly, Tesla's stock price has brought Musk to a moment of life and death.
The decline in Tesla's stock price is not just a simple matter of Musk's wealth shrinking. More importantly, Musk initially borrowed a large amount of bank loans using Tesla's stock price as collateral for the acquisition of Twitter. If Tesla's stock price keeps falling, the bank will immediately reclaim Twitter due to the loss of collateral. This is why Musk feels panic, Trump feels panic, and their shadow supporters also feel panic. Therefore, Trump and Musk will spare no effort to protect Tesla's stock price, which can preserve the discourse battlefield of X.
Therefore, we can see that Trump officially came out to support Tesla, personally bought a Tesla car, and announced that the extremists attacking Tesla stores are committing terrorist activities. The Chuanma Group's counterattack against the major short sellers has officially begun!
Politics is cruel. From the moment Musk established the DOGE department, the war has already begun. Opponents will constantly threaten with life threats and stock price plunges to force Musk to submit. However, Musk actually has no way out because he is tied to the chariot of history. It’s either a crushing victory or becoming dust in history, with no other choice.
Therefore, under the current circumstances, Tesla's stock price must remain stable, and the series of green lights provided by Trump is the rocket fuel for the stock price surge!
Let's take a look at a few other giants. Apple began to plummet a couple of days ago, institutions were dumping shares like crazy. In the final stage of panic in the market, the plummeting of protective stocks often signifies a turning point in the market.
When you look at the seven giants rationally, you will find that each one has adjusted very sufficiently. This is the real key for the bulls to start intervening. A 30 to 40 times expected price-to-earnings ratio for Nasdaq technology is too expensive, but when it drops to the 20s, it becomes very cheap.
So this perfectly fits our Chinese saying: 'After the mountains and rivers are heavy, the road seems to be closed, yet there is light through the willows and flowers ahead; prosperity leads to decline, and adversity leads to fortune.'
Hemingway: 'Life is not about waiting for the storm to pass, but learning to dance in the rain.'
If you regard this round of stock price plummeting as a life lesson, then you will gain endless experiences. When you awaken from despair, that is when the true light boat has passed through ten thousand heavy mountains!
2025 is destined to be a year of volatility, requiring full digestion of the previous two years' stock market gains. Therefore, it demands higher personal discipline, so everyone needs to plan their position management and strictly adhere to discipline, which can be considered in our community.
I have been navigating the market for many years, deeply understanding the opportunities and traps within. If your investments are not going well, and you feel unwilling to accept losses.
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