One thing worth mentioning and it may be a little off topic. --When backtesting technicals, a person rarely matches up the news or announcements of the day with the chart. Backtesting is normally just done on the chart. This is what I have always felt --that technicals rule more than news. In the situation I described earlier , that was an intraday possibility and if occurred right before the announcement this afternoon, I think it would still be valid. If the first move was away from the tech picture, then that could be faded and an intraday reversal could be realized. --just an observation of technicals overall. If this is too off topic, let me know-- B1S2
News is new information when 1. the current trend is exhausted and the market is predisposed to react to new developments; OR 2. when news contain new elements that can't be explained or couldn't be anticipated.
From the <b>January 31st</b> and <b>March 28th</b> statements: <i>The Committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance. In any event, the Committee will respond to changes in economic prospects as needed to foster these objectives.</i> From the <b>May 10th</b> statement: <i>The Committee judges that some further policy firming may yet be needed to address inflation risks but emphasizes that <b>the extent and timing</b> of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information. In any event, the Committee will respond to changes in economic prospects as needed to support the attainment of its objectives.</i>
They should have said <b><i>the extent of such firming</i></b> instead of <b><i>the extent and timing of such firming</i></b>.