FOMC

FOMC Results, Increased Volatility & Economic Reports 10.30.2014

October 29th, 2014 Filed under Future Trading News | Comment (0)

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Hello Traders,

Voted #1 futures trading blog by TraderPlanet.com!

FOMC lived up to the hype with increased volatility in many markets including stock indices, currencies, metals and mainly the bond market ( I recommend exploring the bond market for day-trading as it offers different personality and behavior look at previous blog post here )

Fed Ends QE While Keeping ‘Considerable Time’ Low-Rate Pledge

From bloomberg.com

The Federal Reserve confirmed it will end an asset-purchase program that has added $1.66 trillion to its balance sheet and maintained a pledge to keep interest rates low for a “considerable time.” “Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate,” the Federal Open Market Committee said today in a statement in Washington. “A range of labor market indicators suggests that underutiliza tion of labor resources is gradually diminishing,” the panel said, modifying earlier language that “there remains signifi cant underutilization of labor resources.” Policy makers said that while … (full story)

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Stock Indices React to FOMC with Largest One Day Drop in 4 Months – Aug 1st Levels

July 31st, 2014 Filed under Commodity Trading, Day Trading, Financial Futures, Future Trading News, Index Futures | Comment (0)

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Voted Number 1 futures trading blog!

I have noticed many times in the past that the “real direction to FOMC announcements, will usually come the following day”. Today was a perfect example of it…..

Last time we had a meaningful correction in the SP500 was April 4th. The correction lasted 10 days and measured 90 SP points from peak to valley 1885 to 1795 as you can see in the chart below ( sounds like I am talking about earthquakes….).If symmetry decides to give us a similar reaction we can see 1896 as the next target. In between we have a support zone at 1913 – 1918 first.

Daily chart of the Sept. mini SP 500 with the different levels for your review below:

EP – E-Mini S&P 500 Equalized Active Daily Continuation

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FOMC, Futures Trading Levels & Economic Reports 1.30.2014

January 29th, 2014 Filed under Future Trading News | Comments Off on FOMC, Futures Trading Levels & Economic Reports 1.30.2014

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday January 30, 2014

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

I think that today’s FOMC market reaction may be a clue for the rest of the year and if I am correct we should see much higher volatility and more downside potential than we have these past 3 years.What we saw today was volatile, fast acting market action right before and following the FOMC rate. In the past couple of years, market reaction to FOMC was MUCH milder. In direct correlation to the QE which is been phased out, I think we will see higher intraday and daily volatility in stock indices and what was once limited downside potential, thanks to the FED artificial QE, will now be a little more “fair game”.Overall in my opinion, this should be good for daytraders and stock index daytraders in specific. Make sure you are aware of this potentially different market environment and hope that 2014 will be a great year!

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FOMC, Futures Levels & Economic Reports 1.29.2014

January 29th, 2014 Filed under Future Trading News | Comments Off on FOMC, Futures Levels & Economic Reports 1.29.2014

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

For 2014 I would like to wish all of you discipline and patience in your trading!

The FOMC interest rate decision is due at 14:00 ET in the US tomorrow ( Wednesday, Jan. 29th).

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 1795.00 with a stop at 1789.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 1789.75 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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FOMC Tomorrow plus Trading Levels and Reports for December 12, 2012

December 11th, 2012 Filed under Future Trading News | Comments Off on 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