Bounce and Fade Trades in a Volatile Market

March 19, 2025 | Read Online

Editor’s Note

The Fed’s decision today at 2 PM ET could be a game-changer for the markets—and your portfolio. Join me and Garrett Baldwin LIVE at 2 PM ET as we break down the Powell Pop & Drop Pattern, a strategy that’s worked in 75% of Fed meetings, and show you the key zone to watch for the market’s next move. This is your chance to take control in uncertain times. Don’t miss it.

👉 Join us live here: https://theotradelive.com/room/vomma

Don Kaufman here

I just finished up my segment on Schwab’s The Big 3 with Nicole Petallides, where we tackled three critical charts in this whipsawing market.

If you’re feeling a bit dizzy from all the volatility lately, you’re not alone.

Right now, the market is giving us what I call the “bounce and fade” pattern – a perfect setup for the tactical trader who knows what to look for.

Here’s what I shared on today’s segment:

WARNING: China’s 28% Rally Is About To IMPLODE– Why this “extraordinary overheated” market has reached its stimulus limit… The shocking reason I’m buying a June 20th put instead of a spread… And why I consider this not just a trade but an actual INVESTMENT to the downside!
The Deceptive Goldman Sachs Recovery That’s About To CRUMBLE – The little-known “bounce and fade” pattern now unfolding in GS that practically GUARANTEES more downside activity… Why I’m using a specific April 11th put spread to “keep myself away from any real volatility exposure”… Plus the hidden reason financial deregulation WON’T save this stock!
The Ultra-Short Duration TLT Play That Could EXPLODE By Friday – The sneaky way Jerome Powell will use “rhetoric to drive rates down” after today’s Fed meeting… Why I feel “more comfortable in the TLT right now than in the S&P 500″… And the single most important reason this March 21st call could pay off BIG before triple witching!

With the Fed meeting approaching and Friday’s triple witching looming, clarity beyond the next few days is practically non-existent.

That’s why we’re keeping duration tight and focusing on these specific “bounce and fade” opportunities.

CLICK HERE TO WATCH MY FULL TAKE

To your success,
Don Kaufman

P.S. Don’t forget, I’m going LIVE with Garrett Baldwin today at 2 PM ET to talk about the latest FOMC announcement. Click here to join the live room.