Dow Jones surged last evening, together with the Nasdaq more than 20% above its June low, after U.S. inflation slowed more than expected in July and raised hopes the Federal Reserve will become less aggressive on interest rates hikes. It was such a powerful run as I bought some stocks the night before and started to sell on the rally last evening. I mean it's ok to sell stocks and although I did not sell at high, the key is to remember to buy back stocks again when you know the market was such a bullish day with such a bullish conviction. I was convinced of this rally but it touched a supply zone which made me ponder if I should continue to hold my positions. The Top 30 Volume stocks were most bullish and I decided to buy some other stocks instead.
As you can see the attached above, after a successful gap up, there was some red bars due to profit taking and soon the market just rocketed off from the day low and never looked back. As usual, the prices wait for no man as one needs to be decisive to click the button or the stocks were flying way up north. My trades these 2 weeks are enormous as I recorded crazy amount of $$$ from August 1st till August 11th and I will continue to make this month by best profits ever. So what really caused the market to rally? The news played a small part but the accumulation and the flushes 1 day before yesterday were keys for the rally!!
