Position: Short Duration: 2-3 days Hold Entry: Short at Open Confirmation: SPX drops below 2660 Market: Broad Index and Stocks Exit: SPX 2450
Reason: Trend is down, broad sell-off continues and Covit-19 cases will rise dramatically Macro: Severe shortage of liquidity force Fed to step in with bazooka to keep $6.5 Trillion funding gap temporarily Corporate Junk Bonds sell-off will accelerate results in ETF manager to force sell broad liquid equities to allow for massive outflow and redemption
Comment
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Fed announcement this morning invalidated my trading plan. So I did not short. -Fed meeting is on Wed -Fed twice made emergency call during the US open and market tanked -This morning Fed made the fokin biggest news 12 Hours Before US open -Alarm bells sounded in my head and I canceled my plan
For now market is down and it may go down further but I personally wait till I see the US market reaction to the Fed