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gmst
 

Registered: Jul 2011
Posts: 3696

 

07-11-12 03:18 PM

So, I know equity,bond, currency markets can move dramatically - ES can move 15-20 points in 5 minutes on the days of FOMC meetings.

But what kind of movement is to be expected on the publication of minutes of FOMC meetings like today? Can anyone give some general guidelines.

I have couple of swing positions - ES short etc. (2-4 day holding period), is it advisable to take them off and put them again after Fed minutes are released? If I put them off, there is a chance that I might be able to enter at a much worse price. So, if expected/historical volatility is not that much on these days around minutes release, I will rather leave those positions on. Thanks for help..

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Nutinsider
 

Registered: Jul 2012
Posts: 81

 

07-11-12 03:20 PM

http://libertystreeteconomics.newyo...ment-drift.html

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Tsing Tao
 

Registered: Mar 2009
Posts: 7358

 

07-11-12 03:26 PM


Quote from Nutinsider:

http://libertystreeteconomics.newyo...ment-drift.html



Nice! So the Fed itself is admitting that it is responsible for essentially 600 points of ES? LOL!

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nillionaire
 

Registered: Jun 2011
Posts: 149

 

07-11-12 03:33 PM

The last 3 Fed minutes dates were May 16, April 3, Feb 15.

May 16 SPY chart:


Apr 3 SPY chart:


Feb 15 SPY chart:

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gmst
 

Registered: Jul 2011
Posts: 3696

 

07-11-12 03:43 PM


Quote from nillionaire:

The last 3 Fed minutes dates were May 16, April 3, Feb 15.

May 16 SPY chart:


Apr 3 SPY chart:


Feb 15 SPY chart:



Thanks, this is very helpful. I was hoping for something like this.

So, apart from Apr 3, there wasn't much effect at all. On Apr 3 also, it didn't change the trend of the day. Definitely minutes release days is nothing like FOMC days. Thanks again.

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