Panic Selling Explodes! Who Will Bounce Back After the Head-Cutting Tide?

The Taiwan stock market once fell below 40,000 points, hitting a low of 39,384 points. Continuous long black K lines have left the market in a dire situation, making the start of the head-cutting tide a focal point. This sharp decline was not caused by a single piece of bad news but by a combination of international tech stock corrections, institutional position adjustments, and margin calls leading to selling pressure. As high-leverage positions are forced to stop losses, the market is prone to indiscriminate selling pressure, even affecting stocks with good fundamentals. However, if corporate profits and industry trends have not reversed, the sharp decline could be an opportunity to 'clean up' short-term speculation and excessive leverage, paving the way for a market recovery.