Bold Ahead. Livermore: 3.20 Trading Review Record

Simply put, today’s market situation. [Taogu Ba]

When the market is in panic, greed is needed. The market has been continuously declining, and many are hoping for a rebound, but they are all being suppressed. Yesterday’s decline was caused by news, while today’s decline is due to the market’s own capital structure. Once the support breaks and there is no rescue, funds will inevitably exit. This is an ironclad rule. So today’s decline is mainly due to internal capital outflows. This situation has occurred before, so today’s panic is understandable. After panic sets in, a rebound often follows. Therefore, it is reasonable to boldly buy the dip today.

Although this bottom-fishing may not be 100% successful, if the market does not rebound by next week’s opening, quickly clearing out positions will be similar to today’s late-day liquidation. Acting now can be considered a small bet for a big gain. Given today’s decline, we shouldn’t expect too much of a rebound immediately. After a breakdown, the market needs to gradually rebuild confidence. So, the rebound may take longer, but it will be weaker, with small positive movements leading to a renewed upward trend. The key sign will be a volume-driven rebound on Monday or Tuesday next week. The day after a volume rebound, if the market doesn’t continue to fall but instead consolidates slightly, then gradually rebounds, only then can a sustained rebound be confirmed.

Recently, most operations have resulted in losses. Since the market has already fallen to this level, there’s no need to worry further. Have a good weekend. Next week’s market won’t be bad. The difficult days are mostly behind us, and we are迎接 a new round of rebounds.