FOMC Results, Increased Volatility & Economic Reports 10.30.2014
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Hello Traders,
For 2014 I would like to wish all of you discipline and patience in your trading!
Hello Traders,
FOMC lived up to the hype with increased volatility in many markets including stock indices, currencies, metals and mainly the bond market ( I recommend exploring the bond market for day-trading as it offers different personality and behavior look at previous blog post here )
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Fed Ends QE While Keeping ‘Considerable Time’ Low-Rate Pledge
The Federal Reserve confirmed it will end an asset-purchase program that has added $1.66 trillion to its balance sheet and maintained a pledge to keep interest rates low for a “considerable time.” “Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate,” the Federal Open Market Committee said today in a statement in Washington. “A range of labor market indicators suggests that underutiliza tion of labor resources is gradually diminishing,” the panel said, modifying earlier language that “there remains signifi cant underutilization of labor resources.” Policy makers said that while … (full story)
Related to the whole FED/ FOMC, please see my review of the NASDAQ chart along with commentary at:
The FED Wins Again….
A few weeks ago I wrote a post called: ” Alibaba marks stock market highs?”
In that post I mentioned that statistically the odds are against that statement since then Alibaba (NYSE:BABA traded above the $100 mark recently….)…While we did not make new highs, we did bounce SHARPLY from lows made 2 weeks ago and as we head into tomorrow’s ( Oct. 29th ) FOMC statement, it should be an interesting intersection…..Will stocks break new highs? Will they fail at old highs and resume downtrend?
The FED wins again….
A few weeks ago I wrote a post called: ” Alibaba marks stock market highs?”
In that post I mentioned that statistically the odds are against that statement since then Alibaba (NYSE:BABA traded above the $100 mark recently….)…While we did not make new highs, we did bounce SHARPLY from lows made 2 weeks ago and as we head into tomorrow’s ( Oct. 29th ) FOMC statement, it should be an interesting intersection…..Will stocks break new highs? Will they fail at old highs and resume downtrend?
GOOD TRADING !
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not indicative to future results.
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Futures Trading Levels
| Contract Dec. 2014 | SP500 | Nasdaq100 | Dow Jones | Mini Russell | Dollar Index |
| Resistance 3 | 2008.42 | 4136.58 | 17174 | 1171.43 | 87.29 |
| Resistance 2 | 1997.08 | 4116.42 | 17083 | 1162.57 | 86.71 |
| Resistance 1 | 1984.67 | 4095.08 | 17002 | 1152.03 | 86.40 |
| Pivot | 1973.33 | 4074.92 | 16911 | 1143.17 | 85.82 |
| Support 1 | 1960.92 | 4053.58 | 16830 | 1132.63 | 85.52 |
| Support 2 | 1949.58 | 4033.42 | 16739 | 1123.77 | 84.94 |
| Support 3 | 1937.17 | 4012.08 | 16658 | 1113.23 | 84.63 |
| Contract | December Gold | Dec.Silver | Dec. Crude Oil | Dec. Bonds | Dec. Euro |
| Resistance 3 | 1247.7 | 17.56 | 84.23 | 143 | 1.2870 |
| Resistance 2 | 1239.1 | 17.44 | 83.55 | 142 10/32 | 1.2822 |
| Resistance 1 | 1225.5 | 17.26 | 82.79 | 141 27/32 | 1.2731 |
| Pivot | 1216.9 | 17.14 | 82.11 | 141 5/32 | 1.2683 |
| Support 1 | 1203.3 | 16.96 | 81.35 | 140 22/32 | 1.2592 |
| Support 2 | 1194.7 | 16.84 | 80.67 | 140 | 1.2544 |
| Support 3 | 1181.1 | 16.66 | 79.91 | 139 17/32 | 1.2453 |
| Contract | Dec Corn | Dec. Wheat | Nov. Beans | Dec. SoyMeal | Dec. bean Oil |
| Resistance 3 | 390.2 | 542.2 | 1089.50 | 440.07 | 35.29 |
| Resistance 2 | 383.1 | 541.1 | 1070.00 | 422.33 | 34.79 |
| Resistance 1 | 379.2 | 539.7 | 1059.50 | 409.77 | 34.49 |
| Pivot | 372.1 | 538.6 | 1040.00 | 392.03 | 33.99 |
| Support 1 | 368.2 | 537.2 | 1029.5 | 379.5 | 33.7 |
| Support 2 | 361.1 | 536.1 | 1010.00 | 361.73 | 33.19 |
| Support 3 | 357.2 | 534.7 | 999.50 | 349.17 | 32.89 |
source: http://www.forexfactory.com/calendar.php
All times are Eastern time Zone (EST)
| Date | 4:15pm | Currency | Impact | Detail | Actual | Forecast | Previous | Graph | |
|---|---|---|---|---|---|---|---|---|---|
| ThuOct 30 | All Day | EUR | German Prelim CPI m/m | -0.1% | 0.0% | ||||
| 4:00am | EUR | Spanish Flash CPI y/y | 0.0% | -0.2% | |||||
| EUR | Spanish Flash GDP q/q | 0.5% | 0.6% | ||||||
| 4:55am | EUR | German Unemployment Change | 4K | 12K | |||||
| Tentative | EUR | Italian 10-y Bond Auction | 2.45|1.3 | ||||||
| 8:30am | USD | Advance GDP q/q | 3.1% | 4.6% | |||||
| USD | Unemployment Claims | 284K | 283K | ||||||
| USD | Advance GDP Price Index q/q | 2.0% | 2.1% | ||||||
| 9:00am | USD | Fed Chair Yellen Speaks | |||||||
| 10:30am | USD | Natural Gas Storage | 83B | 94B |
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading.
