The Fed Discount Rate Slash Is Not A Cure
On Monday we see a very nervous session with Dow Jones trading on a very narrow channel early session. Dow even managed to break down that channel as far as 12982ish although closed up 40+ points. The market, through this chart below, told us that the fed discount rate isn’t exactly the cure that they expect. Click to enlarge
As you can see on the chart above Dow yet again failed to pass its old trend resistance. If the market today opened below that line and tried to go green, that line will be proven a good shorting area (considering that at the time of this writing, European market is gloomy). If, however, the market opened above that gap I still believe that the opening price will still be a good shorting area just make sure you put a tight stop on all your position because we’re on a turning point here.
There’s not much of a trading opportunity here, but I will short BSC if it gapped up (only if dow failed to break its resistance). Click to enlarge
That line will be a good area to go short. Safe trading all
