Powell did it again!

Well, as I said, Powell did what he does best again: spooking investors!

The market had been in a good mood all the time since the opening today, setting a stage for "Sell the rumor, buy the news". until Powell started to talk in the afternoon. Apparently investors loved what they saw in the meeting announcement but hated Powell's badmouth. Anyway, Powell is famous for that: not good at communications😣

For me, I still see a high chance of a rip-your-face-off rally that is coming. It is more of a technical probability when the market is so oversold at the moment. As the S&P 500 chart below shows, it rarely drops below its lower BB. When it does, it is always followed by a rally sooner or later. Given the scale of this dramatic decline, I even think the rally can be quite powerful.  

This is also supported by the historically extreme pessimistic sentiment we are seeing right now. Sentiment is a contrarian indicator, which means the extreme pessimism is quite bullish for the market . 

As such, I'm a net buyer for now. I bought more of my TQQQ calls when it came down again during Powell's talk this afternoon. I suspect we may soon start to see a weeks-long rally from the current level.