Someone asked me what 'market pullback' or 'market adjustment' means, so let me briefly explain.
For example, if you are selling potatoes at a stall. Suddenly one day, someone says they want to hold a French fries competition, and whoever fries them best can open the hottest French fries shop in the city.
Once this is said, everyone rushes to buy potatoes; as more people buy and fewer are sold, the price of potatoes naturally goes up.
There are also some unscrupulous vendors who hoard a bunch of potatoes, hoping to sell them at a high price. Let's call these guys 'potato tycoons'.
As a result, the price of potatoes rises to 60% of the original price. But when the government checks, they find someone is messing around with the prices, so they announce how many potatoes there are in total. With this, the market adjusts, and the price of potatoes drops by 10%.
This is called price adjustment.
The next day, vendors from other places come to sell potatoes, all wanting to sell at high prices. With so many people competing for business, the price of potatoes drops by more than 20%.
This is called a pullback.
Later on, the government says they want to import more potatoes from China; once this is said, the potato market immediately collapses, and the price drops to half.
This is called market collapse.
As a result, someone checked and found out that the news about the French fries competition was fake, and they quickly informed everyone. Once this is said, the market crashes again, and the price of potatoes is almost free.
This is called a market scam.
So, in the current situation, which one seems like a normal signal? I guess it's a market collapse.
What do you think?
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