ADP Employment

FRONT MONTH for stock index futures and currencies is now SEPTEMBER.

A quick analysis I did for investing.com about crude oil futures at:

http://www.investing.com/analysis/is-crude-oil-breaking-higher-216227

The FOMC interest rate decision is due at 14:00 ET in the US tomorrow ( Wednesday, June 18th ).

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 1925.00 with a stop at 1919.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1919.75 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
• This is another great example why a trading journal would be an asset, as you can go back and check your notes from previous FOMC days.
• Be patient and be disciplined

The FOMC interest rate decision is behind us and so is April. This was one of the LESS volatile FOMC announcements. 

Hope everyone will enjoy a great trading month in May!

We still have monthly unemployment this Friday and just for visual, below is the weekly Dow Jones Cash chart, flirting with all time highs…….

GOOD TRADING

The FOMC interest rate decision is due at 14:00 ET in the US tomorrow ( Wednesday, Sept. 18th).

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 1525.00 with a stop at 1519.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1519.75 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
• This is another great example why a trading journal would be an asset, as you can go back and check your notes from previous FOMC days.
• Be patient and be disciplined

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