When we say: don’t fight the Fed, we really mean it. Sellers tried, they had many occasions to bring indices down, both fundamental and technical but they kept failing. When I go through twitter, I see many traders who don’t agree with the current bounce. They would love to see a crash and another leg down. They don’t agree with the Fed and point out that the market is broken and a waste of their time, to emphasize that the current upswing makes no sense.
Maybe it does and maybe it doesn’t. We’re not economists so we’re not here to judge. I think many traders forget what trading is all about. In my opinion, trading is about taking advantage of market movements, wherever they move, whether we agree with them or not.
Now let’s look at what’s happening in the market; the tried to form a head and shoulders pattern twice and failed both times. Most recently, the price broke the 50% Fibonacci with a really firm upswing. That’s…
