The U.S. stock market is in an extreme bull market, with the S&P 500 exceeding 7,100 points. However, the Shiller P/E ratio is approaching 39.5 times, the Buffett indicator has reached a record high of 223%, and the market breadth is extremely distorted. Only 5% of stocks have reached new highs. It is recommended to adopt a Tai Chi defensive strategy, refuse to chase high, and wait for the opportunity to hit after the VIX surges or the valuation returns to the mid-range.