Chinese trader Ouyang Zhuaibai commented on the sharp rebound in storage-related stocks after days of heavy declines, arguing that markets often generate a reverse force once positioning becomes too one-sided. In his view, storage fundamentals have not changed dramatically over the past few weeks, yet share prices were cut in half, creating the conditions for a violent bounce driven by reverse deleveraging.
He linked that move to overly crowded bullish trading at the position level rather than a major shift in underlying business conditions. Ouyang had previously said, "Today I’m still taking orders," while placing dense laddered limit buy orders for SK Hynix ADRs in the roughly $122 to $94 range. A few days earlier, he had described the setup as the biggest trading opportunity of the year and said he had started bottom-fishing storage names through spot laddered buying without stop losses.
According to the report, Ouyang has long used a low-leverage trend-following approach centered on buying real breakouts, reacting tactically when market sentiment turns extreme, and keeping position sizing under tight control. His total leverage typically stays below 2x, and his framework prioritizes staying in the market over high-leverage, all-in trading.
BlockBeats reported on July 31 that well-known trader Ouyang Zhuaibai commented on the sharp rebound in the storage sector after several days of steep losses, saying that once things reach an extreme, a reverse force tends to appear.
He cited examples including Zhang Xiaolong calling on college students to trade tech stocks and a message from the so-called "Hynix girl" saying Seoul was entering a golden age. In just a few weeks, he said, storage fundamentals had not seen a major change, yet stock prices were down by half. In his view, that reflected a market where trading positioning had become uniformly bullish, building up the pressure for reverse deleveraging.
Earlier, Ouyang had said, "Today I’m still taking orders," and placed dense laddered limit buy orders for SK Hynix ADRs in the roughly $122 to $94 range.
A few days before that, he said the biggest trading opportunity of the year had arrived and began bottom-fishing storage concept stocks through spot laddered buying without setting stop losses.
The report said Ouyang has long used a low-leverage trend-trading strategy. Its core elements include buying on what he calls "real breakouts," making short-term responses when market sentiment becomes extreme, and keeping strict control over position size, with total leverage usually capped at no more than 2x. His trading framework stresses compounding through trend-following holds and phased bottom-fishing, while treating the ability to stay in the market as the top priority and opposing high leverage and all-in trading.
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