Everyone is opening longs right now because of the rate-cut day… but this is exactly how the market traps people.
The moment traders hear “bullish news”, they jump into longs way too early.
All their stop-losses sit just below the recent lows…
And that becomes a big pool of downside liquidity.
That’s why even on bullish days, the market loves to dump first - just to grab that liquidity.
So Stay smart, don’t follow the crowd blindly. Markets move opposite of hype more often than you think.