Cannon Trading / E-Futures.com
FOMC tomorrow. Keep in mind that the statement now comes out earlier than before, it comes out around 12:30 pm EST and then there is a press conference during the time FOMC used to come out at, around 2:15 PM EST.
Refer to your notes from last FOMC.
Please read below and look at a 5 minutes chart from the last FOMC day . Pay attention to how volume dries up right before and the big spike in volume and price action right during and after the announcement.
Intraday Mini S&P 500 Chart from June 21st 2011
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.
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.
GOOD TRADING!
TRADING LEVELS!
Economic Reports Wednesday June 22nd, 2011
OFHEO HPI m/m
10:00am USD
Crude Oil Inventories
10:30am USD
FOMC Statement
12:30pm USD
Federal Funds Rate
12:30pm USD
FOMC Press Conference
2:15pm USD
Economics Report Source: http://www.forexfactory.com/calendar.php
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!