Remember, the unemployment and non-farm payrolls reports on Friday morning.
POT, MOS, MON and AGU fell sharply for the second straight day. MON even fell below its 30 DMA. Today’s Action Moving Up BIDU, AAPL, GS, PCLN, SOHU, IBM Moving Down MTL, POT, MON, CF, CLF, MOS, AGU, SCHN, CNX, MEE, IPI, ESRX, NUE, FWLT, X, AMZN Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral
Tuesday, April 29, 2008
Fed Announcement on Wednesday
DJIA - 39.81, -0.31%
SP500 - 5.43, -0.39%
NASDAQ Comp. + 1.71, +0.07%
Russell 2000 - 6.44, -0.89%
This market is so dull that we could almost use yesterday’s post except that the S&P is just below resistance instead of at resistance. Traders are still waiting for the fed announcement on Wednesday. Remember it’s not really the news, but the markets’ reaction to the news that’s important.
Announcement time is 2:15 ET. Look for a typical increase in volatility about 15 minutes before the announcement until about 15 minutes after. It is generally a wild ride for about 30 minutes. If you’ve got a half hour to kill its worth watching just for the unusual price swings that occur.
Watch Wednesday’s price action to see if the indices bounce down from resistance into the trading range since January or if there is a resistance breakout and a new uptrend ensues. Trade accordingly.
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1 comment:
Dave:
Thanks for the FED advise.
Question: Will you normally enter trades after the Fed Announcement (ie: 1 hour after) or wait for the dust to clear and trade the following day. Seems like just after the announcement, the market moves one direction then whips back the other. Or the Market bumps up or down on Fed day to do the opposite the next - any advise / insight. What / when is the best time / day to figure the market has decided which way it wants to move short term - or maybe it's (Just depends)? Thanks much
Robert
CANI
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