FOMC

Tomorrow, we have FOMC with rate decision at 1 PM Central and statement at 1:30 pm Central.

Trading stock index futures on FOMC days calls for a measured, highly selective approach. The market tends to drift into a low volume “vacuum” in the hours leading up to the announcement, where exaggerated price moves can occur without conviction. This is not the time to force entries—no trade is better than a bad trade.

It’s critical to anticipate these zigzag patterns and avoid being lured into false signals. Reducing trading size is one of the smartest ways to manage risk on these days—volatility spikes can magnify both gains and losses, and scaling down helps preserve capital and composure.

Once the FOMC statement hits the wire, the real storm begins. Price action can whipsaw violently as traders digest the language and implications for interest rates. This is when patience pays off. Choosing entry points wisely—often by waiting for post-announcement patterns to stabilize—can mean the difference between catching a favorable trend and getting caught in the chop.

Discipline is everything: tight setups, controlled size, and a willingness to sit on your hands if conditions aren’t ideal can make all the difference. The FOMC isn’t a lottery—it’s a test of focus and restraint.