Today the stock index hit another four-year low, showing the shape of "four black crows". As we all know, the K-line chart in the stock market that has risen for three consecutive days is called the "Three Red Soldiers", which means that the pattern is good, and the market outlook will continue to be bullish; the K-line chart that has fallen for three consecutive days is called the "Three Black Crows", which means that The situation has turned bad and the market outlook continues to be bearish. The technical school believes that "Three Red Soldiers" and "Three Black Crows" are the most typical forms of expected market outlook. In the history of China's stock market, similar patterns have appeared many times, all of which more accurately reflect the operating rules of the market outlook. In the bull market in 2007, there were at most nine consecutive positives, anticipating the arrival of a big bull market; in the continuous decline in 2010, there were at most nine consecutive negatives, indicating that the market would continue to decline. Today's stock index hit a new low, showing a "four black crows" pattern, once again indicating that it is difficult to have a good market in the short term. In addition to the above technical factors, at the "Annual Financial Conference" held yesterday, Guo Shuqing, chairman of the China Securities Regulatory Commission, gave a keynote speech on "Recent Comprehensive Reform with a Long-term Focus". The content was relatively vague and did not talk much about the immediate issues. It was also a sign that the market continued to One of the reasons for being bearish. Public opinion believes that the stock market continues to plummet and regulators should bear unshirkable responsibility. This is certain. However, it is unfair to hold the current chairman accountable because the stock market has a long history of problems. As the old saying goes, there is something wrong with the positioning of the Chinese stock market. Over the years, there have been so many additional issuances, so many large and small non-profits, so many securities dealers, so many institutions, and so many companies waiting to be listed that need to be taken care of. Perhaps the management just did not think of protecting the interests of ordinary investors first. In short, there are many problems, and the Chinese stock market is suffering from chronic diseases that are difficult to recover from. The stock market is an economic barometer and can best reflect market confidence. The recent stock market pattern is the result of people voting with their feet. Looking at the history of A-shares in the past 20 years, every bottom is the result of large-scale losses by retail investors and then cutting off the flesh. This is true at 998 points and the same is true at 1664 points. Recently, the stock index broke through 2,000 points and entered the 1 era without rebound, which fermented the pessimistic atmosphere to the extreme. As the end of the year approaches, investors hoping for a big rebound or reversal in the market may be trying to find fish in the woodwork. The author believes that even a small rebound is just a glimpse and fleeting. In particular, we must be clear-headed that we must not take some small counter-attacks by the main force as a signal to stop falling and buy the bottom. On the contrary, at this time, it is correct for friends who have stocks in their hands to increase their positions and reduce their positions in time. For ordinary retail investors, it is advisable to watch more and move less, and be wary of being trapped as soon as you enter, which will make you feel bad even during the New Year. Some people may think that it is meaningless to keep short positions. No matter how to make money, the main force cannot make money. This is because most people don’t understand why institutions can make money through short selling. It should be noted that since the advent of stock index futures and margin trading, institutions can make money through arbitrage regardless of the rise or fall of the market. In other words, if the market falls, institutions can still make money as long as they move in the right direction. The difference from the past is that the main force now does not have to work hard to make money in order to make money. Instead, it has a good layout in stock index futures, and then uses the leverage principle of heavyweight stocks to use a small amount of funds to buy chips and then suppress them. From the stock index futures perspective, arbitrage. The main institutions can still make money by relying on stock index futures and margin trading. However, this is not something that retail investors can do. Ordinary retail investors do not have such an amount of funds. Even if they barely have it, they cannot withstand a few twists and turns. In short, as long as ordinary investors understand that super institutions can also make money by short selling, only the vulnerable groups will be hurt. At the end of the year, ordinary retail investors will gain the least, or even suffer serious losses, and will be hurt the most.