---
title: "After extreme panic, there will inevitably be a violent rebound."
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/28724878.md"
description: "The market went completely crazy today. The indiscriminate sell-off in the morning session was purely emotional panic selling—I've been trading for over a decade and have never seen such absurd price action. While everyone was fleeing, I went in with 50% of my position. It's not that I'm reckless, but this irrational sell-off simply doesn't hold water. International capital is voting with real money, and barring any surprises, we'll likely see a gap up tomorrow. The Shanghai Composite Index has a chance to recover half of today's losses and reclaim the annual moving average level. At this point, further downside would be like handing out free money. If the market keeps plunging, I'll increase my position to over 70%. The risk of staying bearish now is quite high—the policy bottom is clearly in place..."
datetime: "2025-04-07T17:18:40.000Z"
locales:
  - [en](https://longbridge.com/en/topics/28724878.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/28724878.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/28724878.md)
author: "[财界老袍儿](https://longbridge.com/en/profiles/17746390.md)"
---

# After extreme panic, there will inevitably be a violent rebound.

The market went completely crazy today. The indiscriminate sell-off in the morning session was purely emotional panic selling—I've been trading for over a decade and have never seen such absurd price action. When everyone was fleeing, I went in with 50% of my position. It's not that I'm reckless, but this irrational sell-off simply doesn't hold water.

International capital is voting with real money. Barring any surprises, we'll likely see a gap up tomorrow. The Shanghai Composite Index has a chance to recover half of today's losses and return to the annual moving average. Any further downside from here is basically free money.

If the market continues to plunge sharply, I'll increase my position to over 70%. The risk of staying bearish is relatively high now—the policy bottom is already in plain sight, and the liquidity easing card hasn't even been played yet. **Extreme panic is inevitably followed by a violent rebound. If you chicken out now, you're a true naive investor. After this technical rebound, any positions below the annual moving average will be blood-stained chips.**$Dow Jones Industrial Average(.DJI.US) $SPDR S&P 500(SPY.US) $NASDAQ Composite Index(.IXIC.US) $500沪市(000802.SH) $NVIDIA(NVDA.US)

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- [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md)
- [.DJI.US](https://longbridge.com/en/quote/.DJI.US.md)
- [SPY.US](https://longbridge.com/en/quote/SPY.US.md)

## Comments (2)

- **韵德 · 2025-04-07T18:42:47.000Z**: Look at the reaction to the first tariff increase, and then we also saw many banks releasing liquidity, finally pushing it up to 2400.
- **日出东方 为我不败 · 2025-04-07T17:25:59.000Z**: I think it's a brake in the downtrend, but who knows. Stay on the sidelines with an empty position.