Good evening, brothers!
Warren Buffett commented that in October 1987, one of the culprits for the stock index plummeting was the emergence of a large number of "portfolio insurance" in the market. The core idea of this strategy is to cut losses when prices fall. Once the market experiences a crash, a large number of stop-loss orders flood in, triggering even more stop-loss orders, leading to further market declines. This is what Soros referred to as "reflexivity," or it can be described as a form of "negative feedback."
This strategy of selling stop-loss orders simply because stock prices are falling is undoubtedly very absurd. For example, if you are a farmer, would you think your farm is worthless just because the neighboring farm was recently sold at a low price? If you are a landlord, would you feel the need to rush to sell your house at a low price just because the property next door was sold cheaply? The answer is clearly no. However, in the stock market, such "absurd scenarios" happen every day.
On October 19, 1987, "Black Monday," the Dow Jones Index recorded the largest single-day drop in history. Reading about this part of history today is still very shocking, not to mention the impact it had on the market at that time. However, such an "epic" crash is considered trivial by Buffett. Therefore, we might as well think about how many of the so-called "major events" happening today will be recorded in history? And how many are truly worth paying attention to?
Why do people want to sell when prices drop? It is simply because they did not think through their reasons for buying when they made the purchase.
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"Inflation is not inevitable; it is actually a choice made by central banks." This is the core viewpoint of Kevin Warsh in a recent podcast. He was a Federal Reserve governor during the 2008 financial crisis and is considered a strong contender for the next Federal Reserve chair.
BTC: On the 4-hour chart, the price continues to stay near the upper Bollinger Band, showing a strong price trend. The short-term market is overbought, so it is advisable to reduce positions and take profits, with a focus on shorting contracts.
On the daily chart, the price continues to stay above the moving average support, showing a strong price trend.
In summary, the support level is 110800, and the resistance level is 111300.
ETH: On the 4-hour chart, the price continues to stay near the upper Bollinger Band, showing a strong price trend. The short-term market is overbought, so it is advisable to reduce spot positions, with a focus on shorting contracts. The support level is 2770, and the resistance level is 2790.
LTC: The price continues to stay near the upper Bollinger Band, showing a strong price trend. The short-term market is overbought, so it is advisable to reduce positions and take profits. The support level is 89, and the resistance level is 92.
BCH: The price continues to stay near the upper Bollinger Band, showing a strong price trend. The support level is 500, and the resistance level is 530.
That's all for now, good night!
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