The performance of the A-share market last Friday surprised many people. The rise of the market seemed to ignite the market's hope, as if the second round of the bull market had already sounded. However, there is a dangerous signal hidden behind it, that is, the possibility of a "head-cutting killing". Smart investors often keep calm when the market is hottest, and the frenzy last Friday was a typical method used by the main force to lure more investors.

Judging from the market, the plunge at the end of last Friday was not accidental. Behind this plunge, some quantitative funds chose to flee at high levels, leading to a sudden drop in the market in the last 20 minutes. The deeper logic is that the market center of gravity has been unstable. Emotion-driven rises are often accompanied by fluctuations. After a surge, a plunge follows. The incremental funds in the market cannot keep up with the upward pace of stock prices, which will inevitably lead to sharp fluctuations in the short term.

So, why is there a possibility of a head-slashing next week? The main reason is that the rise on Friday was just a secondary high driven by sentiment. Similar high-level selling behavior occurred in the opening 20 minutes of October 8 and the closing 20 minutes of last Friday.

The two surges in trading volume and the subsequent plunges show that large funds have gradually fled from high positions. When the second top is formed, the main force's shipments are coming to an end, and the market's sell-off will accelerate. Such market phenomena have to make us alert: the market may fall further next week.

In the short term, the rise supported by speculation and emotions is often a roller coaster market, while medium and long-term funds always remain calm. The market volatility increases, and the trading volume increases in the short term, but it cannot provide lasting momentum for subsequent rises. Once the speculative sentiment subsides, the risks of the market will be quickly exposed.

This is the nature of the stock market. After the frenzy, there is often a cooling down. Smart investors often choose to exit when the emotions are the most excited. As Shenji pointed out as early as October 8, when the market sentiment is high, the risks are also accumulating. For those investors who chase high prices, they may soon face a baptism of "decapitation". Risks and opportunities always coexist. The market will never give you surprises for no reason. Behind every rise, there is a deeper logic.

The essence of investment is rationality and patience, not blindly chasing high prices. $BTC