spy and rate cut
After 0.5 rate cut, the market rallied and then fell.
It's often told that, the initial response to a rate cut is real as demonstrated by a rate cut last oct, which initially down and then up that afternoon, but in the following days, marked was sold hard and lead to the bear market.
This time, the response is just opposite to last time, and we will see if the market will be up in the next few days.
1 comment:
after realized market may up and down after FOCM， but still set conditional order for the spy put (137) and call (135). It turned out a very bad stretegy as market shaked out on both directions and all my puts and call sold with loss.
If I set limit/conditional order to take profits, it would win quite a bit, as spy shot up from 136 to 138.8, and then came down to 134.6.
Lesson: don't use conventional wisdom, always think what other ppl would think then take action on that. This is a typical shaking out manupulation as so many ppl are betting the FOCM with either long or short.
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