Everyone expected that rates will crash market and it didn't. This is something I actually envisioned would happen is that the market is actually going to go up.
We need getting too much expectation on crash that actually it won't happen! this is the motto and the play the market has been playing all along and.... funny it works!
Long the fear... as long the fear news is strong and the expectation of crash is strong. You can bet your house that we are going up and it's a matter of the market creating an atmosphere that doesn't make people long. In other words Market is trying to lower it's payouts on longs by pushing people away from longing.
Proven psychological play. Since covid started it has been the same play,
market was expecting a .50% increase for several days and so the rate hike was already priced in. RSI showed this as well. I think we get a bounce to 435 first and take it from there
BobbyJoeBA
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I’m heading back through your posts to see how correct you are on your assumptions. Eventually you’ll be right.
johnnybclarkin
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🤣
SmartFlip
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That all makes sense in terms of it being a psychological play, but keep in mind if they had initiated a .75 rate hike , or if Powell just seemed very hawkish today we would have seen a totally different scenario play out. "We are far from neutral" do not forget that, i think the play at hand is extremely psychological in nature but not a bullish play, we have seen many times spy pop hard off of news or the fed and then after a 2-3 day rally we head back down harder then before . Goodluck! Either way i have been trading spreads mostly on SPY to catch both sides , because you honestly never know