Loading ...A bear trap occurs when the price of a financial asset appears to be on a steady decline. This leads investors to expect a further drop, and they short-sell to profit from the continuing downtrend. The trap is now set: instead of continuing to fall, the price suddenly reverses and goes back up.
Comment: We’ve seen that a few times lately. Today it just seems more extreme. Maybe because its Friday and futures traders are afraid to hold during a weekend.
I think the same thing happened with Nat Gas etf BOIL. It started climbing, then started falling, and it reversed. I bought some on the first up day, on 6/3 and I’m up 13%. So far LOL.