It's been two days since I've been out of the market, and I'm sleeping well and eating well! Mom no longer has to worry about me staying up late watching the market; waiting in cash can actually be very comfortable when the market behaves as expected!
The main reason for the violent spike in the market this time is the concentrated selling by major players. Essentially, this little bit of the market won't put too much pressure on it, but the problem lies in: rapid selling in a short period leads to a lack of market absorption, and retail investors often panic when they don't know the truth!
So once the selling stops, the market will experience a violent rebound! At this moment, many retail investors will mistakenly think that it’s going to rise and will re-enter the market. If selling starts again, it will trap those retail investors who rushed in at the peak! This explains the logic behind why there was a violent rebound yesterday followed by another round of aggressive selling.
Likewise, this is why I advised my friends to stay in cash from the moment the market first broke through the key support level. If you don't have enough sensitivity to the market, or if you don't have the ability to foresee news, then when you encounter a market you can't understand, staying in cash is often the best strategy!
As of now, institutions still hold about 10,000 units, and with the ETF inflow weakening tomorrow for the weekend, the absorption capacity on Saturday will be even weaker. I will continue to hold cash until Sunday!
If we can get a violent drop, we will gradually enter the market in batches.
