The latest US CPI data has been released, with both overall and core CPI falling below expectations, which is indeed a positive signal for the market. The weakening inflation data directly increases the probability of interest rate cuts in January next year and also provides the market with new speculative themes.

However, the real test is still ahead. After the data is announced, market volatility will definitely increase — this is a rule. Many people, upon seeing the market fluctuate wildly, can't help but chase gains or cut losses, often contrary to expectations. You will find that the bigger the rally, the easier it is to make wrong decisions, and cases of positions being wiped out are common.

The key point is to recognize one thing: high volatility and high returns are often two sides of the same coin, but high risk is the true cost. In such market conditions, asset allocation becomes especially important. Experienced traders usually allocate part of their funds into stablecoins as an emergency liquidity reserve — avoiding participation in wild swings and not getting trapped. When needed, they can deploy funds at any time, either riding the trend or buying on dips.

In simple terms: a steady mindset leads to a stable direction. Using stability to offset market turbulence allows you to stay clear-headed amid fluctuations, rather than being carried away by the market. Be prepared, fasten your seatbelt, as the next wave of market opportunities might be just around the corner.