Home > Market Set Up > $market reacts to the FOMC as expected

$market reacts to the FOMC as expected

During our morning meeting we discussed the most likely trading environment for the day. Expect a very active market for the first 90 minutes of the day and then drink some coffee until the fed announcement at 2:15.

Of course the talk during the meeting was what to expect from the fed. Well you don’t need to be a 25 year trading veteran to figure out that the economy is nowhere near in need of a helping hand to “slow down.” So the Fed was not about to raise rates. And they certainly aren’t going any lower.

Well we got exactly what was expected….nothing.

OK if Keystone traders expected nothing new from the Fed what were they ready to do after the announcement?

Let’s talk it out logically, massive rally on significant volume followed by the “biggest sell off in months.” If you were paying attention as all good traders do, that big sell off was on putrid volume.

So lets see, big volume move to the upside, light volume pause what does that mean? Continued rally and we go it after the dust settled, with some good volume to boot.

Tomorrow is going to be the real test.

IF we rally again tomorrow get out of the way or get long with both fists. If we trade choppy go to cash or lower your exposure.

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