Many traders who were short yesterday turned long, and most of them were in floating losses by this morning. This wave of market movement actually had early signs—an analysis from the night before pointed out that yesterday’s rally was mainly to attract short sellers, followed by a suppression to make them experience being trapped. If the market had surged directly, experienced shorts might have just taken some profit and exited, making it hard to fundamentally change the situation.

But there’s no need for new long positions caught in the trap to worry too much. This adjustment is essentially testing your resolve—allowing new longs to experience the true face of the market. The key point is that the trapping time won’t be too long, and the extent of the pullback won’t be too deep. It all depends on whether you are steadfast in holding your position or capitulating by cutting losses. The morning’s plunge was the first lesson for new longs; those who can hold on will truly transform into mature traders.

From the trading data, there is still support. The total trading volume this morning was 1.84 trillion, about 600 billion more than the previous morning, indicating that most of the trapped new longs chose to continue adding positions to lower their average cost. The A-share market showed strong resilience—although there was a dip during the session, it quickly recovered. Despite fluctuations, the four major indices closed in the green at noon.

In terms of sectors, nuclear power performed the best, with leading stocks hitting the daily limit to drive the entire sector higher. Key industries like photolithography, lithography machines, and rare earths are also gradually gaining momentum. Volatility itself is not scary; firm conviction is the key to crossing cycles.