The large volume of short positions in a long time period will affect the price trend of a longer time period and many uncertainties in the macro aspect. I think the next market is a short market, and you should try to open positions mainly on the short side.
But there is no need to lose confidence. We saw that after the plunge on August 5, Japanese stocks also ushered in a wave of upward circuit breakers, which is very interesting.
Although trading should be rational, most retail investors have never been rational. They don’t like to believe that if Japanese stocks fall next Monday, triggering a fall in US stocks, the market may be repaired within two weeks next week. After all, the Federal Reserve will hold an FOMC meeting in 10 days. Whether it is a 25 basis point or 50 basis point interest rate cut at that time, it will be beneficial to the market. Because the interest rate cut is to reduce the asset and balance sheet, then your loan interest rate and loan cost will also be reduced accordingly, which can reduce the cost of corporate loans, increase corporate profits and boost corporate activity.