Why is that?
A journalist asked a Fed president a question and his response was “I can see another half a point interest rate hike.”
In my opinion it’s very reckless and dangerous to be talking like that when it’s not a Fed meeting.
And because of this comment the market got spooked… bad.
There was an acceleration to the downside, it was wicked.
The Dow was down over 400 points and naturally that is going to carry into the next day.
Whenever you see a market gaining strength to the downside at the close, it’s going to open even lower.
Now, this comment from the Fed president only causes volatility.
How do you play this unexpected volatility?
Set yourself up for a trade that can work both ways.
Check out this strategy where you are able to trade in two completely opposite directions at the same time! I call it the Trojan Horse.
This two-way trade is perfect for volatility!
