Are shorts trapped? Then listen to Longyin!

Get to the point—hold your short positions tight and wait to get out

First, on Friday, because Trump drew the line, news came in that the Taiwan Strait would open, and bullish sentiment instantly rolled through the whole financial market. But not long after, Trump said that if the next round of talks fails, the U.S. will reconsider launching missiles to strike—ugh, which sentence is true?

Second, we’re still in a bear market cycle. The tricks of squeezing and luring longs won’t be few. If it rises back up from 78,000, it’s at the 80,000 level—but personally, I think it’s very hard to go up. If the weekly chart breaks through 80,000, it would be a full retreat and surrender by the entire short-selling crowd. You can be short and bearish, but don’t be stubborn.

Third, from a technical structure perspective: once it breaks below 77,000, it could go on to a move above 75,000. The slow drift lower continues and is getting weaker, but the key support still hasn’t been broken. As the saying goes, a sudden plunge is for flushing out positions, and a slow grind lower is the trend. Don’t rush—wait for the wind to come, and don’t fantasize about something too big.

That’s all for now. Wishing everyone everything goes smoothly.