Took one trade today, a R1 loss.
Powell’s talk today at noon sent the market into a tizzy when he stated: “Federal Reserve officials will proceed carefully with interest-rate hikes, while noting there’s evidence that policy isn’t “too tight” right now.”
The market first believed the Fed was suggesting the central bank is unlikely to raise interest rates again unless it sees clear evidence that stronger economic activity will have them alter course so the market shot up, but forces in the market quickly realized the doublespeak in Fed’s message and we sold off to ONL before rallying back to ONH and then selling off back to PDL and then a final breach through ONL and much lower.
Even though the price action was hard to get a read on today because of Fed’s mixed message, I am elated to see ES respect price levels as evidenced by orange bubbles on the chart, and the cusp trade appear a few times where opportunities were available. If you trade my system and put on trades you might have had a couple winners today.