On February 5, A-shares hit a four-year low, and the Shanghai Composite Index fell 102%, the Shenzhen Component Index fell 113%, GEM rose 079%。This round of *** began in October 2023, with a large decline and a small decline, known as "cold storage"**Compared with the previous two stock market crashes, this round ** lacks a significant low absorption signal, which confuses many investors. In this article, I analyzed the internal logic of this round of **, pointing out that the rise and fall of ** are affected by objective laws, rather than manpower. I have repeatedly confirmed this round of ** in the watchtower market direction timing system, but there are still people who don't believe it. In the future, investors need to look at the ups and downs rationally, follow objective laws, and avoid emotions influencing decision-making. 1. Accurate Fed policy direction: revealing the secret behind the scenesWith the fierce a** market on February 5, 2023, hitting a new four-year low, countless investors are confused and confused. Who is behind this ***? Why is it so unpredictable? 
In fact, this round of monetary policy is not accidental, but closely related to the direction of the Federal Reserve's monetary policy. The Federal Reserve, as the core regulator of the global financial market, has a profound impact on global capital flows, exchange rate changes and performance. Historically, we can see that whenever the Fed adjusts its monetary policy, there has been a corresponding fluctuation around the world. This is because the Fed's monetary policy is directly related to where the dollar flows, how quickly it flows, and how much it flows. When the Fed cuts interest rates, the dollar flows around the world, pushing the world *** And when the Fed raises interest rates, the dollar flows back to the United States, and the world tends to come under pressure. However, it is unfortunate that many investors often lack the ability to accurately predict when faced with the Fed's policy adjustments. They are often confused by short-term market fluctuations and ignore the long-term impact of the Fed's policy adjustments. This short-sighted behavior often causes them to be caught off guard and lose a lot of money when it comes to ***. Why is it so important to accurately predict the direction of Fed policy? The Fed's monetary policy has an important impact on global capital flows. When the Fed adjusts interest rates, global capital is reallocated to markets that offer higher returns. This capital flow will have a direct impact on the rise or fall of **, driving or suppressing the rise and fall of **. 
The Fed's monetary policy also affects the movement of the exchange rate. When the Fed raises interest rates, the dollar**, non-US currencies depreciate, which causes capital outflows from emerging market countries, causing a shock to these countries**. And vice versa, when the Fed cuts interest rates, the dollar depreciates, non-US currencies **, and capital flows into emerging market countries, driving these countries*** Therefore, it is crucial for investors to accurately predict the direction of Fed policy. Only by mastering the context of the Federal Reserve's monetary policy can we better grasp the global trend and avoid suffering heavy losses in the world. Accurately predicting the direction of Fed policy is not an easy task. This requires investors to have deep financial knowledge, keen market insights, and rich investment experience. At the same time, it is also necessary to pay attention to various factors such as the global economic situation, geopolitical risks and market sentiment. 2. Fed decision-making and China***After the Fed's decision in February, China A-shares suffered **. The reason is that the Fed raised interest rates at key points in time, which hit the liquidity of the Chinese market. At the end of January, the Federal Reserve maintained high interest rates and signaled that it would not cut them anytime soon, triggering panic in the market and the withdrawal of funds. The strong non-farm payrolls data further confirmed the Fed's stance, leading to a massive sell-off. This is due to the long-term misjudgment of international finance by the domestic financial community. Institutions pinned their hopes on the Fed to cut interest rates after losses, but the Fed's decision dashed hopes. Some institutions use tools such as barrels to short, which is exacerbated. Some institutions operate in violation of regulations for the sake of profit, which exacerbates market panic. This time** is the result of a combination of factors, rooted in market misjudgment and institutional greed. Investors should study the laws of the market in depth to avoid being confused by short-term fluctuations. Regulators should strengthen market supervision, crack down on illegal operations, and maintain market fairness and stability. 
3. **Long and short power imbalance and low absorption timingIn the a** field, there is an imbalance of long and short power between shareholders and institutions. Institutions have more means to go short, while investors can usually only go long. This imbalance results in institutions gaining an edge in trading, while investors are exposed to greater risk. In addition, mechanisms such as high-frequency quantitative trading exacerbate this imbalance, making it easier for institutions to harvest investors. In order to change this imbalance, it is necessary to control excessive shorting mechanisms, such as high-frequency quantitative trading, and suspend IPOs to stabilize ** liquidity. Only when these conditions are met, it is possible to stop falling and rebound, and investors can consider buying low. However, it is not an easy task to buy low, and it is necessary to take into account factors such as the Fed's policy, the level of inflation, and the geopolitical game. At the moment, the Fed has not cut interest rates and inflation remains high, all of which could have a further impact on **. 
Therefore, it is necessary for investors to be patient and analyze carefully. In the process of investment, we should not only pay attention to market dynamics, but also understand the laws of the economy and make investment decisions with a scientific attitude. Only in this way can we remain rational in the complex financial market and achieve stable investment feedback.