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Trader Ouyang Strongy commented on the Storage Violence rebound: When a trend reaches its extreme, it will reverse. A unanimous bullish view at the trading level will create potential deleveraging pressure in the opposite direction.

Jul 31, 00:46

July 31st, renowned trader Ouyang Zhuai with White Hair wrote a post evaluating today's storage sector violent rebound after a continuous sharp decline: When things develop to an extreme, a reverse force will be generated. For example, Zhang Xiaolong called on college students to speculate on tech stocks, and the Hynix Girl posted a message about Seoul's Golden Age. Just a few weeks ago, with no major changes in the storage sector's fundamentals, the stock prices plummeted by half. This is the potential energy of a reverse deleveraging caused by everyone in the trading community having the same bullish view.

Previously, he stated: "Continue to place orders today." He frequently placed SK Hynix ADR ladder limit buy orders in the range of $122 to $94. A few days ago, he claimed that the biggest trading opportunity of the year had arrived and started bottom-fishing storage concept stocks without setting stop-loss orders, using a spot ladder buying approach.

Ouyang Zhuai with White Hair has long adopted a low-leverage trend trading strategy, which includes "going long on true breakouts," conducting short-term responses when market sentiment is extreme, and strictly controlling positions, with total leverage usually not exceeding 2 times. His trading philosophy emphasizes compounding through holding positions along the trend and bottom-fishing at different stages, remaining in the market continuously as a primary principle, and opposing high leverage and full-position trading.

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