FOMC Tomorrow! + Trading levels for 12.14.2022
Posted By:- Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
ROLL to MARCH 2023 equity contracts as we are seeing more volume in the March Contracts than in the December ones聽the symbol for March is H聽so a micro e-mini S&P contract will be MESH23. Thursday we get Jobless claims, Retail sales and Industrial production.
Tomorrow we have FOMC
The following are my PERSONAL suggestions on trading during FOMC days:
路聽聽聽聽Reduce trading size
路聽聽聽聽Be extra picky = no trade is better than a bad trade
路聽聽聽聽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 3925.00 with a stop at 3919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 3919.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).
路聽聽聽聽Expect the higher volatility during and right after the announcement
路聽聽聽聽Expect to see some “vacuum” ( low volume, big zigzags) right before the number.
路聽聽聽聽Consider using automated stops and limits attached to your entry order as the market can move very fast at times.
路聽聽聽聽Keep in mind statement comes out at 1 Pm Central time, the news conference which dissects the language comes out 30 minutes later so the volatility window stretches out.
路聽聽聽聽Know what the market was expecting, learn what came out and observe market reaction for clues
路聽聽聽聽Be patient and be disciplined
路聽聽聽聽If in doubt, stay out!!
A Cannon broker聽will be able to assist, provide feedback and answer any questions.
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