In the A-share market, the main capital operation follows a relatively fixed pattern—never pushing up the stock price without completing the chip consolidation.

Before a new rally begins, it is inevitably accompanied by intense volatility. The core purpose of this volatility is straightforward: through repeated sell-offs to shake out weak-handed retail investors, clearing out their chips. Looking at historical trends, it’s clear that the market has often used sell-offs to retrace to previous highs after June 26, July 11, and July 30, completing the shakeout, before starting the next upward move.

Sector operations follow the same logic. Take the CPO concept as an example: this sector experienced a shakeout within two trading days after breaking through the previous high, with the stock price falling back near or even briefly below the previous high. It may seem like a correction, but in reality, it’s a shakeout to scare out those with weak holdings, paving the way for subsequent accelerated gains.

The current market is also demonstrating this pattern. Above the 4034 points previous high, there is a massive accumulation of profit-taking orders, and the main force could release selling pressure at any time to complete the final shakeout phase. From this perspective, now is not the best time to enter; the key is to wait for when the main force initiates the sell-off.

Based on this judgment, what is the correct strategy? It is to patiently wait for the second retracement to get in. The same applies to individual stocks—true opportunities do not appear during continuous rallies, but when the stock price retraces near the previous high after the first wave of acceleration. Only then can one participate in the second rebound.

Simply put, the real profit-making opportunities often arise at two points: one is at the end of the shakeout, and the other is at the bottom area after a continuous decline. As for those processes of continuous rallying and accelerating upward? Essentially, that’s when the main capital is cashing out profits, and retail investors are entering at this stage, often playing the game of "who takes the last shot."