What was interesting was that the SP 500 went straight down immediately after the rate cut announcement. There was no whipsaw to take out short stop loss orders. It just plummeted. This was an easy risk free trade. All one had to do is to put a stop loss order slightly above the highs. It just fell like a brick from a roof. Later add to shorts on a classic Dead-Cat-Bounce. Lots of shorts made good money today and are well positioned for tomorrow's possible slide.
Note
There will be more bounces to add shorts on. The cat is not dead, it just bounces, but the risk increases every time.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.