Surprise, surprise! The inflation is here and the Fed has to raise the interest rates....
Everybody knows this but when the Fed sends this message the market seems to go into panic mode.
But the big question is: who is doing the sell off?
When I look at the trade volumes it gives me the impression that it's the retail traders that go into panic mode and feed the big fund managers.
QQQ 30 Minute Chart
It will be interesting to see if we will experience a bounce back tomorrow.
So what's my trade for today?
I would not be brave enough to trade an individual stock so I selected #QQQ ( #NasdaqETF ). I selected a fairly wide strangle with both legs around the 15 delta, which means that on both sides the probability of profit is about 85%.