Burned By A Melt UpTraders have always been taught to buy the rumor, sell the news.
A mantra of no nonsense trading that more than often ..works
When the Fed lowered interest rates in the US by .50 %,
a highly expecting event, traders took the news in stride, and sold stocks.
There was one fly in the ointment however.
Overnight stock futures traders, began buying futures sensing a real upside pattern breakout
on the day after.
And from the opening bell this morning, prices have gapped up sharply
realizing a technical, KST confirmed upside breakout that could send the S+P 500 to 5900.
Sometimes when news is perceived as better than could be expected, price follows in tail.
Big money traders are once again committing to the market,
driving price much higher, as the naysayers rue how could such a thing happen to them.
Bearish traders are now under water,
as those who thought they could outsmart the market
were burned,.. by the unexpected "melt up "
THE_UNWIND
WOODS OF CONNECTICUT
9/19/24
