FOMC. FOMC. FOMC.
The Day Trading Academy blog brings you the Federal open market committee! The Federal open market committee is a massive piece of news that comes out regularly throughout the year. The market can act unusually during an FOMC day as most investors and traders are alert to the decision that the committee makes. If one didn’t know the FOMC is the government entity that creates and regulates the United States national monetary policy.
To put this in English they have a lot of control over what happens to our money.
Since this is such a big item of news many traders and investors value decisions that come out from the committee very highly.
There are two decisions that a trader can make when trading FOMC. Some of our successful traders decide to not trade at all and others decide to just trade the early morning. There are instances such as today with the market can move well in the early morning hours after the official opening bell at 9:30 AM EST.
Nowadays there are not many items of news that affect the Emini S&P 500 but the FOMC statement is a massive item of news. Currently there is a “loose monetary policy” and many people around the world are watching the decision of the Fed closely (FOMC = Fed).
Since the nation hasn’t fully recovered out of the recession everyone wants there to be a continued loose monetary policy. We can see the small amount of movement in the early morning within roughly 15 minutes and then the volume completely died.
See bottom of post for live videos of today’s trading:
As traders we always have to understand when to be aggressive and when to be conservative. This is the whole concept of being Congressive. When we have days such as an FOMC day tied with options expiration week one should be more conservative with targets and look for profits early.
While we always say that we can make an average of two point today sometimes were going to make five or 10 points and other days we might just made one or two points. The concept is to stay consistent throughout any market activity so we can make a living as a trader.
Even our beginner’s have been able to make nearly 2 points a day on average throughout this year.
NT Chart 1 Below
NT Chart 2 below
TS Chart Below
Live Trading Video One:
Live Trading Video Two:
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