FOMC & Support & Resistance Levels 11.08.2018


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Dear Traders,

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FOMC decision tomorrow
According to Fed Funds Futures,
No hike this week from FOMC
The probability of another .25 hike this week stands at 5.9%
Market reaction will be language driven
Here is a guide to LIMIT moves in stock indices:
Just in case…..
Few tips when trading stock indices and interest rates on FOMC days:
The following are suggestions on trading during FOMC days:
  • Reduce trading size
  • Be extra picky = no trade is better than a bad trade
  • Choose entry points wisely. Look at longer time frame support and resistance for entry. Take the approach of entering at points where you normally would have placed protective stops. Example, trader x looking to go long the mini SP at 2925.00 with a stop at 2919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 2919.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
  • Expect the higher volatility during and right after the announcement
  • Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
  • Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
  • Know what the market was expecting, learn what came out and observe market reaction for clues
  • Be patient and be disciplined
  • If in doubt, stay out!!


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.

Futures Trading Levels



Economic Reports, source:


Date 4:22pm Currency Impact Detail Actual Forecast Previous Graph
ThuNov 8 2:00am EUR
German Trade Balance
18.2B 18.3B
2:45am EUR
French Trade Balance
-6.1B -5.6B
4:00am EUR
ECB Economic Bulletin
5:00am EUR
EU Economic Forecasts
Tentative EUR
French 10-y Bond Auction
8:30am USD
Unemployment Claims
214K 214K
8th-9th USD
Mortgage Delinquencies
10:30am USD
Natural Gas Storage
56B 48B
2:00pm USD
FOMC Statement
Federal Funds Rate
<2.25% <2.25%

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 judgement in trading.

Posted in: Future Trading News  

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