March 16th, 2021 Filed under Indices | Comment (0)
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It’s that time of the year where June contract is the front month for all stock indices/ currencies/ financials and other markets!
Tomorrow we have FOMC.
Normally the volatility is around the actual rate cut/increase….This time it is 99.99% of no change
. Language in the statement will be the main feature.
However, FOMC days do have unique behavior and this time my guess is, it will be around the language used after the announcement.
The following are my PERSONAL 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 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).
· 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.
· 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.
· 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!!
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Futures Trading Levels
Economic Reports, source:
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September 20th, 2011 Filed under Future Trading News, Future Trading Platform, Trading Guide | Comments Off on Trade With Caution, FOMC Day Tomorrow | Support and Resistance Levels
In this post:
1. Market Commentary
2. Support and Resistance Levels
3. Daily Mini S&P 500 Futures Chart
4. Economic Reports
5. Earnings Releases
1. Market Commentary
Front month for Equities (eminis), currencies, bonds and financials and many other markets is now December. You should not be trading almost any September contract of any market.
Note to our clients who are trading with TransactAT:
The latest version is now TransactAT 5.2.2 (download). The newer version can be installed over the older version. Please contact you broker if you need any help.
FOMC tomorrow and before that more than a few economic numbers.
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- FAST.
My observations suggest choppy, low volume up until announcement, followed by some some sharp volatile moves right during and after the announcement. However, with tomorrow early morning reports, we may see more volatility during first couple of hours as well.
My SWING trading model is currently short the mini Russell from 693 ( target around 672, stop around 716) which may not suite everyone’s stomach ahead of the what maybe volatile overnight and tomorrows FOMC session, but chart for your review below.
If you would like to be included on my SWING trade ideas, send me an email. Read the rest of this entry »