Buy The Rumor, Sell The News
Earlier today I made a post about the Smart Money knowing about the new trade tariffs suspension and what they bought towards the end of the Friday session.
So what do you think the Smart Money did this morning?
I'm more than certain the Smart Money bought the rumor and sold the news.
"Buy the rumor, sell the news" is a phenomenon that happens in the financial markets. The Smart Money buys an asset and once the event passes or the report is released, the news becomes public, but now the Smart Money dumps off, I mean sells the asset to the retail trader.
It doesn't hurt that price came into a daily supply zone and pulled back. So at the Market open, I began to build a position in Caterpillar and The New York Bank Mellon Corporation by buying leap put options with the goal of turning them into calendar spreads.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Published by Rolland Thomas
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I think we are going through the phrase when institutions talk up the markets just to slowly move out of positions and leave retail investors holding the bag...
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This is actually what they are doing...it a pretty interesting game of chess.
It's funny how the Caterpillar graph kinda looks like an actual caterpillar arching while it walks :-D!
Wow, that's crazy..., I'm about to step on it...lol.