I would be wary of any longs before the fed meeting Any reason for this?? Today looks similar to 062906. Gap up similar action. Just saying anything is possible.
last sentence is always correct ......24/7.....anything is possible.....so trade the signals if you have confidence in them.....fomc can only cost u what every other loss does........we all incur losses......fomc is no bigger loss than any other if the system employs proven stops and u r at least 50% position to be on correct side.......regardless of action......
not really.........could cost you much more.........a fast market can & will trade thru your stop like a hot knife thru soft butter.......has happened to me in the past.
I'd be careful with that thinking. I was short a bunch of e mini's back around 1997 or 1998 (can't remember exact date), the fed cut interest rates during market hours and the next tick was over 50 points higher. THAT'S 50 as in FIFTY, not .50. Of course, this probably won't happen today, but you should NEVER think your maximum loss is your stop. That was a real eye opener. Anyone else remember that day??????
anomaly thinking.......rarely happens......get past that and it won't be as scary.......even as you maintain extremely low risk.....always low risk.........fomc is no big deal unless you allow it to be......yes it is a huge blowup sometimes, so the wise thing to do is wait for it to go up and for a little then it goes back to normal .......or trade right thru it right o r wrong.....my brokerage is very high quality......don't ask.....
I found it, October 15, 1998. Here's a blurb from a news story. "The US central bank, the Federal Reserve, has surprised the financial markets with another interest rate cut. In little more than a fortnight it has cut its rates twice, this time by another 0.25% to 5% Shares shot up afterwards with the Dow Jones jumping by more than 4%, or nearly 330 points."
That depends on the channel. If we have 4 points between my long entry and the nexr resistance then I will wait for a break of the HOD. If we only have a couple I will take my same trade again and be very cautious at the top.
Yes I agree that anything is possible, but it does appear to me today that good news is partially priced in already. Therefore, I would not like to be long as the fed anounces because - to me - upside potential is limited, especially when comepared to downside risk. As always, I could very well be wrong. Thats why I'll probably just stay on the sidelines and maybe take a few equity trades