{"id":17369,"date":"2021-12-14T13:19:54","date_gmt":"2021-12-14T21:19:54","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=17369"},"modified":"2021-12-14T13:20:10","modified_gmt":"2021-12-14T21:20:10","slug":"suggestions-of-to-help-you-trade-fomc-tomorrow-introducing-mini-ether-support-and-resistance-levels-12-15-2021","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/suggestions-of-to-help-you-trade-fomc-tomorrow-introducing-mini-ether-support-and-resistance-levels-12-15-2021\/","title":{"rendered":"Suggestions to Help you Trade FOMC Tomorrow; Introducing Mini Ether & Support and Resistance Levels 12.15.2021"},"content":{"rendered":"
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Get Real Time updates and\u00a0more on our private FB group!<\/div>\n
https:\/\/business.facebook.com\/groups\/1105191589938254\/<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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FOMC Statement tomorrow:<\/h1>\n
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\u00a0The following was written by my colleague, John Thorpe, an ex floor broker and a Senior Broker with Cannon Trading:<\/div>\n
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Since the depths of the pandemic, the Fed has been buying U.S. Treasuries and agency mortgage-backed securities in the open to signal its commitment to easy money policies.\u00a0The Feds balance sheet has more than doubled\u00a0during the Pandemic, from just under 4 trillion to nearly 9 trillion U.S. dollars. At the November Fed meeting , the governors had for the first time admitted that inflation may not be “transitory” and charted a path to “gradually” taper purchases with a target of mid 2022 to wind down the necessary taper .\u201cIf the market perceives that the Fed is behind the curve in controlling inflation, it would lead to higher inflation expectations and long-term interest rate hikes, potentially weakening the dollar and pressuring asset values,\u201d said Madhavi Bokil, senior vice president at Moody\u2019s Investors Service. In lieu of a gaudy CPI number recently at 6.8 and PPI increased by the largest amount in recorded economic history.<\/div>\n
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The market is looking for the Fed to acknowledge the existence of inflation in clearer terms than the November statement and the need to decelerate asset purchases and accelerating the \u201cTaper\u201d in an attempt to prevent a flat yield curve between the 2 yr and 10 yr notes.\u00a0If this portion of the yield curve flattens or turns negative, this typically signals a recession. It has narrowed in recent weeks to a spread of only .75. This meeting is a very important one and so far this week, the equity markets are reacting to a potential need to accelerate the taper, an admission by the FED that they may be nervous about their inability to control inflation and an impending recession.<\/div>\n
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The following are my PERSONAL suggestions on trading during FOMC days:<\/h2>\n
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\u00b7\u00a0\u00a0\u00a0\u00a0Reduce trading size<\/div>\n
\u00b7\u00a0\u00a0\u00a0\u00a0Be extra picky = no trade is better than a bad trade<\/div>\n
\u00b7\u00a0\u00a0\u00a0\u00a0Choose 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 4325.00 with a stop at 4319.00, instead “stretch the price bands” due to volatility and place an entry order to buy at 4319.75 and place a stop a few points below in this hypothetical example ( consider current volatility along with support and resistance levels).<\/div>\n
\u00b7\u00a0\u00a0\u00a0\u00a0Expect the higher volatility during and right after the announcement<\/div>\n
\u00b7\u00a0\u00a0\u00a0\u00a0Expect to see some “vacuum” ( low volume, big zigzags) right before the number.<\/div>\n
\u00b7\u00a0\u00a0\u00a0\u00a0Consider using automated stops and limits attached to your entry order as the market can move very fast at times.<\/div>\n
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\u00b7\u00a0\u00a0\u00a0\u00a0Keep 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.<\/div>\n
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\u00b7\u00a0\u00a0\u00a0\u00a0Know what the market was expecting, learn what came out and observe market reaction for clues<\/div>\n
\u00b7\u00a0\u00a0\u00a0\u00a0Be patient and be disciplined<\/div>\n
\u00b7\u00a0\u00a0\u00a0\u00a0If in doubt, stay out!!<\/div>\n
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If you are looking for other reference material please\u00a0contact your Cannon Broker<\/a>\u00a0for lists of solid, informative and helpful trading tomes<\/div>\n
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Introducing Micro Ether Futures<\/h1>\n
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At 1\/10 the size of one ether, Micro Ether futures (MET) provides a precision, efficient, cost-effective way to manage your exposure to one of the largest cryptocurrencies in the world by market capitalization.<\/div>\n
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