Well, the market has proven I'm wrong about today's reaction. While I thought Powell would sound more hawkish than what the market had expected, he actually was talking both sides. And the market picked up the dovish side as the Fed's direction so that it could find more excuses to further advance today. Shorts got squeezed badly. While my short side trades haven't worked out yet, I took a quick double overnight from my long side trade, which I placed as a hedge yesterday.
Moving forward, I think the market has reached its exhausting point that the chance of a major leg down will come soon. My VIX crystal ball is flashing more and more strongly now that it wants to jump up. A higher VIX is often associated with a declining market in general. Taking advantage of today's reckless up moves of the market, we added more shorts today.
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