Out of curiosity what do some of you guys usually do when you know a Fed day is coming up (like tomorrow for example) and things have the possibility of being a little wacky due to Greenspan's announcements? Don't trade that day, trade cautiously, treat it like any other day, what?
Take profit's quickly, if a stock start's to quote funny get the hell out, and trade half your normal size. Watch the TRIN and ten year note for any shift in market direction. Also if you are up in the morning take the rest of the day off the chances of a good full day of trading are slim.
I rarely enter any new positions and try to get as flat s I can with my overnights. I find that the best opportunities come for me the next day. After the shock event of the announcement has worked itself out. The market tend to tip it's hand in the fed day afternoon, the next day tends to be a strongly trending one. -Bo
If you are day trading, imo be flat when the announcement comes out. It is too much like gambling to hold a position.
I'll trade the morning, step off before the announcement, and enter sometime after the market calms down.