Today was a great example of the mistakes that we all have made and the manipulation that occurs often with the ridiculous Margin rules within the brokerage houses.
Notice carefully how the market was positioned on the short side ahead of the Fed meeting.
The Fed spoke and somehow it was taken as “good news”. Short positions were in trouble. Pressure put on the shorts to sell.
The brokerage houses started calling all their clients about their margin accounts being underwater. “Please reconcile before xx ET or else”.
If you were one of the few able to rectify “the call”, and held strong through the pressure, you ended up not taking the big loss you were being forced to take earlier in the day.
1-Margin rules suck.
2-always have a backup plan.
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