Posted by DigiNomad on 25th of Apr 2024 at 04:38 pm
I wouldn't beat yourself up. Today's action was perfectly
designed to trap as many traders as possible, as spectacularly as
possible. An AI couldn't have designed a better day for traps if it
trained on all of history's market data and all the books on trader
psychology ever published.
The one thing I have noticed is that they are taking
advantage of the instinct for most people to think hot inflation
and higher rates = lower markets. That's not the case but it's a
widely held belief so those people have emotional reactions on hot
print days and hit the sell button which the smart money takes
advantage of knowing that inflation inflates.
This was crazy. Absolutely perfect design.
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I wouldn't beat yourself up.
From SPX down 1.6% today to AH being up almost ...
Posted by DigiNomad on 25th of Apr 2024 at 04:38 pm
I wouldn't beat yourself up. Today's action was perfectly designed to trap as many traders as possible, as spectacularly as possible. An AI couldn't have designed a better day for traps if it trained on all of history's market data and all the books on trader psychology ever published.
The one thing I have noticed is that they are taking advantage of the instinct for most people to think hot inflation and higher rates = lower markets. That's not the case but it's a widely held belief so those people have emotional reactions on hot print days and hit the sell button which the smart money takes advantage of knowing that inflation inflates.
This was crazy. Absolutely perfect design.