All opportunities in the stock market ultimately come from declines. This logic sounds simple, but few truly understand it thoroughly.

Looking at the medical device sector's recent performance, you can see this clearly—initially declining all the way down, forming a double bottom at the bottom area, then suddenly surging. This is no coincidence. Capital is always smart, and this is most vividly reflected in the capital markets.

Careful observation reveals that the bottoms of any sector or stock are mostly double bottom patterns, with single bottoms being rare. The same applies to the tops—single top formations are extremely rare. Why? Horizontal consolidation at the bottom is to shake out more panic sellers, while at the top, it’s to attract more buyers at high levels. This is a routine tactic of the market makers.

Traders should have deep feelings about this—when they are optimistic about a stock, believing it has bottomed out, but after buying in, it doesn’t rise and instead declines for several days. The decline isn’t large, but this mental torment is endless. Holding for weeks or even months, watching a weak rebound fail, and finally, unable to bear it, selling at a loss. Not long after, the stock begins to surge fiercely, and by then, it’s too late to regret.

There’s no way around it; the stock market reflects human nature this way. When market makers control a stock or a sector, their patience can easily outlast most retail investors.

Regarding the market direction, above 4000 points and near the previous high of 4034, you can take some positions to bet on higher gains, but never chase the rally recklessly. Reviewing past trend patterns, the market generally pulls back after breaking through or approaching previous highs. The pullback may not be large, but once caught in it, your mindset changes completely. This lesson has been repeated too many times.