FOMC Tomorrow plus Trading Levels and Reports for December 12, 2012

 

Jump to a section in this post:

1. Market Commentary
2. Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Economic Reports for Wednesday December 12, 2012

 

Hello Traders,

The FOMC interest rate decision is due at 12:30 ET in the US tomorrow ( Wednesday, Dec. 12 ). Also more than a few economic numbers ahead of the announcement.

 

FOMC days have different characteristics than other trading days. If you have traded for a while, check your trading notes from past FOMC days that may help you prepare for tomorrow.

 

if you are a newcomer, take a more conservative approach and make sure you understand that the news can really move the market.

 

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 1425.00 with a stop at 1419.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1419.75 and place a stop a few points below in this hypothetical example.
  • 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

 

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.

 

commodity support numbers for 12.12.12

 

5. Economic Reports

source:http://www.forexfactory.com/calendar.php

All times are Eastern time Zone (EST)

Date 4:17pm Currency Impact Detail Actual Forecast Previous Graph
Wed

Dec 12
 2:00am EUR
German Final CPI m/m
-0.1% -0.1%
2:45am EUR
French CPI m/m
0.0% 0.2%
All Day ALL
OPEC Meetings
All Day EUR
ECOFIN Meetings
5:00am EUR
Industrial Production m/m
0.3% -2.5%
8:30am USD
Import Prices m/m
-0.4% 0.5%
10:30am USD
Crude Oil Inventories
-2.6M -2.4M
11:30am USD
10-y Bond Auction
1.68|2.6
12:30pm USD
FOMC Statement
12:30pm USD
Federal Funds Rate
<0.25% <0.25%
2:00pm USD
FOMC Economic Projections
2:00pm USD
Federal Budget Balance
-160.0B -120.0B
2:15pm USD
FOMC Press Conference

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 herein 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

Tags: > > > > > > > Posted in: Future Trading News  

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