Fed rate cut of 50 basis point (half a point) surprises me. I expected 25.
The two trades I consider most, and back away from, are long EWJ (Japan fund) and long GDX (gold stock fund). Why did I back away when the news is so good? In the past, when I get all excited about getting in, is exactly when I get hammered.
I often write about letting the dust settle and trading the technicals after the news is out. Option spreads went super wide just before the Fed news, and for a half hour after the news. It made it difficult to get in or out during that time period.
Still long GLD
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