Historically, each major bull market rally needs to meet the following 3 conditions, and none can be missing.

Historically, each major bull market rally needs to meet the following 3 conditions, and none can be missing.

Condition 1:

Previously, Tesla's several intermittent waterfall-like plunges, with the put short selling of some block-level funds, played an important role. Everyone was at the opponent's stage. When Elon Musk was pulled from the world's richest position to third or even fourth on the world's super-rich list, after the profit chip ratio fell below the rebound starting line after several rounds of rebound, the block-level funds had already started buying low and selling low in gradients and batches, based on changes in the market, implementing a discrete random variable positioning layout (major players will definitely not continue continuous buying and lifting, as it will only make the main bull market rally untimely and prematurely abort). They were the first to start short selling, later using the media to hype the surface-level reasons for pessimism about Tesla to mislead the public, including major financial institutions on Wall Street pretending to understand Tesla and persistently making ridiculous valuations of Tesla. Concealing their intentions, they found the right opportunity to close out their short positions, and then they were the first to start going long. However, some top-notch mutual funds did not dance with the wolves; they have been intermittently buying low and selling low. For example, Legal & General, State Street Corporation, Norges Bank, Jane Street Capital, Bank of Montreal, Vanguard, BlackRock, and Invesco.

Condition 2:

Retail investors suffer losses one after another until you can't believe there will be a bull market. The main task this year is to make stock traders lose until they become depressed, with market cap shrinking by 30-50%. The early stage of a bull market is like the dawn breaking, you think it's getting light, but you can't see the sun. If you dare to chase, you must be willing to cut losses; this is the most agonizing moment. Most people don't fall in the dark before dawn, but at dawn, which has been the characteristic of every bull market rally in the past...

Third condition:

Retail investors are afraid to chase after the rise. Why? Because you are afraid that it is a false rise, and it has become a conditioned reflex. Taking the market situation at the beginning of the year as an example, most people dare to open positions at Tesla 265.130, but dare not open positions at the historical high of Tesla after the rebound, which is 205.600. They dare not open positions at the historical low of the downtrend, which is 160.510. The masses hope to build positions at lower levels below 160.510, such as 152.370-146.410, and some hope at 101.810-36.600-23.370. There are even "short-selling gods" who hope that the stock price will drop to 14.000 before reversing and then go all in. How can those financial oligarchs with massive funds shovel the bottom cope with this? Rapid declines will only make you more panic. When the market was falling every few days, you didn't dare to build positions because no matter when you bought in the market, it could continue to fall. Ordinary people like to predict, as if they are gods, like historical great figures, they like to show the way, guide the country and the people, guide the beauty, and they like rises and dislike falls. They cannot overcome the weakness of human nature. The lowest area of the market is mainly held by those massive funds that were previously short-selling, such as Legal & General, State Street Corporation, Norges Bank, Jane Street Capital, Bank of Montreal, Vanguard, BlackRock, and Invesco.