Home > Market Set Up > FOMC Yawn

FOMC Yawn

The 2:15pm announcement came as no surprise today as most wall street traders and the like expected the FOMC to keep rates unchanged. The FOMC said interest rates would remain low for an extended period. They also said that inflation is likely to remain subdued for some time and noted that the pace of the economic contraction has slowed.  The vote to hold its target range unchanged at 0.00-0.25% was unanimous.

As day traders our job is to not try to interpret what is being said but rather to adjust are trading decisions based on order flow and momentum. Typically when the FOMC meetings occur we get some wild gyrations within the first 30 minutes after the announcement. In these early minutes, most technicals are out the window. A time when new traders or trainees should be on the sidelines watching and observing. An experienced trader can many times fade these moves until the market settles in and picks a direction.

Today’s announcement was pretty much a yawn. The markets had a hard time moving at all. The $SPX at 2:15 was trading at 903.25 and closed at 900.94. The market saw a bit of selling pressure but was met with some buying as the bulls try hard to keep the Dow above 8300 closing at 8299 and the $SPX above 900, both psychological levels.

Tomorrows trading can prove critical if we break below 889 on the SPX which is its 20MA on the Weekly chart.  Our traders will be watching that level and will continue to trade what they see and not what their opinion is!

http://www.keystonetradinggroup.com

212-594-8900

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  1. Michael Mayfield
    June 25, 2009 at 4:03 pm

    Nice new look for the blog Eric! … and the Tweets are especially a welcome addition.

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