In the past 24 hours, a total of over 159,000 people have been liquidated, mainly long positions, with $310 million in long positions and $82.62 billion in short positions being liquidated. The market began a steady upward trend since yesterday morning, but after the U.S. stock market opened in the evening, it started to rise sharply and then fell back. In the latter half of the night, most of the long positions taken were stopped out, and those with heavy leverage were forcefully liquidated.

I mentioned yesterday that there aren't that many longs and shorts. For intraday trading, both sides can have opportunities to profit, depending on whether the entry point is appropriate. For those shorting, the levels of 107,000 and 108,000 are seen as areas with a high probability of retracement, so the bears will definitely enter there. However, for the bulls, those are the points to reduce positions, taking profits.

It's normal for the market to retrace. For those going long, entering at a lower cost is key, and even if it doesn't break new highs, if it returns to the upper high points, won't the profits from long positions come back? A retracement is meant to allow for more significant rebounds and larger short positions! For intraday trading, when it went up above 108,000 yesterday, the bulls should have reduced their positions at high levels and taken profits. This is similar to now pulling back to around 103,500; at this time, the bears should also timely reduce their positions to lock in profits.

During a retracement, one should not chase the decline, just as one should not chase the rise when hitting new highs. Those who chased the rise in the latter half of the night yesterday found it painful and got trapped, leading to liquidation. So, isn’t it also likely to encounter similar situations when chasing a decline? The market fluctuates; anything is possible. This is something I say every day. No one can demand or force the market to move in a certain way. One can only attempt to act under the assumption that it might move that way, while setting a stop-loss. Every attempt carries risk, and it is normal to use small stop-losses to seek larger profits. It is essential to stay clear-headed and rational, not to take it for granted that the market must move in a certain way!