Another confident trade in the market last evening as the Nasdaq shot through the roof. It was such a blazing speed that one needs to buy fast or the market moves even faster with price jumping very fast. As expected, the U.S. Federal Reserve raised rates 75 basis points to 2.25-2.5% but did note some softening in recent data. Fed Chair Jerome Powell sounded suitably hawkish on curbing inflation in his news conference, but also dropped guidance on the size of the next rate rise and noted that "at some point" it would be appropriate to slow down. This was the news which caused the market to go upheaval.
However, I believe the key is not to focus too much on the news as it's the effect of the cause. So what's the cause? The cause was the re-accumulation zone in the 5 minute chart which showed signs that the bog whales is buying secretly for a big move in the night. Inside that accumulation zone, there was a testing phase where the Nasdaq broke out a little and simmered off. That was extremely crucial for the market and it's a important signal that the market would trend higher later in the night. With a small fake breakout test, the big whales wanted to see if sellers would emerge more or buyers would continue to support the market by taking higher prices. The later would prevail and the rest was history. Traded $6,586,000 USD and was rewarded handsomely because I did my homework well before the market opened. Let's see tonight if I can replicate the trades again as everyday is a different situation.
