Recently, the news of the ceasefire in the Middle East feels like playing Werewolf—Trump says it's over, Iran acknowledges it then retracts, and Israel is making threats while quietly raising its hand... The market is jumping up and down with these true and false messages, and trading now feels like unboxing a mystery box.
The market is at a crossroads now, with both bulls and bears staring each other down. If you ask me, at this time it's better to be a bystander:
1. The news is now like the wolf is coming, and the market's reaction will become more and more laid-back.
2. Short-term traders can continue to short high and long low to take advantage, but they need to fasten their seatbelts.
3. When the direction is unclear, it's best to be patient like waiting for takeout—better to miss out than to make a mistake, otherwise you could be shaken to the point of not knowing where you are."