The recent pullback in the market actually has new movements - the Fed has started injecting liquidity into the system.

On December 1st, they conducted an overnight repurchase of 13.5 billion dollars. What does this number mean? Aside from the pandemic period in 2020, this is the largest amount in nearly twenty years, even more than during the bursting of the internet bubble in 2000.

Simply put, what is this "repurchase agreement"? Essentially, it is a temporary loan between banks and the Fed: when banks are short on funds, they use government bonds as collateral to borrow money from the Fed for turnover, and then pay it back with interest the next day. That's the mechanism.

What does this mean for the market? In the short term, it is definitely a positive signal.

Once liquidity flows back, banks will have ammunition, whether it's for credit issuance or risk asset allocation, they will have confidence. With more money, it will naturally flow to the stock market, bond market, and of course, the cryptocurrency market—these could all be pushed upwards by this wave of funds.

More importantly, the Fed's intervention at this time indicates that they have been monitoring market conditions and will not sit idly by as systemic risks expand. This expectation itself serves as a stabilizer.

So when the market is in panic, don't follow the emotions. When it's time to position, instead, you should act calmly.