Now We Wait For Tomorrow’s Big Announcement And Then Get Even More Busy!

Welcome back gang and happy Tuesday to you. As we go ahead and take a look at today, well what can you say? It was a really nice session utilizing a lot of the work that we talk with you guys about each and every night so we walked in the door and we opened up above the speed lines and just stayed above them all day. So my focus in the Live Trading Room throughout the morning and throughout the day was long side trades only. Every trade that I got off in the Live Trading Room, every trade that I attempted to get off was long side focused and rightfully so. A couple things about that, let’s go ahead and actually flip over to the bonds for a moment.

We talked about the bonds here as well, with those I have been telling you since back here with the kill zone that we wanted to stay out of this. You can see for several days we’ve actually even ricocheted back and forth there and that’s why we call it the kill zone, when you have the speed lines coming down like ton of bricks and the rising support underneath or vice versa, it could be the long term resistance coming down and the speed lines underneath that causes that kill zone. We don’t want to be involved with that, which I’ve been talking about and in that time we’ve stayed contained in those areas. What a great learning lesson this is.

The big story here from my perspective is what we’re not hearing about. We all know how important the quantitative easing decision process is, are they going to end it? Are they going to keep it? What’s all going to happen that’s very important yet we’re hearing nothing about the FOMC meeting tomorrow? Here is a snapshot from this morning, because I noticed this with the trading room shortly after the U.S. opened. We went ahead and hadn’t really had anything about it out there. As we go ahead and come into the last 20 minutes in the cash session here today, we also have nothing really in here about the FOMC. We’re talking about when we turn back clocks when nobody is talking about the FOMC meeting. That to me is kind of a big warning sign because historically what happens is we hear a whole bunch of chatter about it and then we get the report has a little bit of a whip and then basically nothing. That’s what’s been happening for about 18 months or so. This time we’re hearing nothing in advance so you have to watch out for much larger extremes moving into tomorrow. At this point I have no opened swing trading options or swing trading positions. I’m now flat going into tomorrow so I will still look for Live Trading Room trades in the morning of course, but after that anything swing trading related is all closed up from my perspective. I just wanted to point out we’re not hearing much about the FOMC at this point and that’s interesting considering how important it is, and can also mean that you get caught off guard with big swings after the announcements. Watch out for it.

In the meantime we’ve been using this methodology while we’re back above the speed lines looking for long side trades below and looking for shorts underneath. We’ve been riding that wave both sides of the fence going into tomorrow all bets are off going into the afternoon. Doesn’t matter speed lines, up, down, sideways, all bets are off going into that FOMC meeting I’d consider backing off. Typically what I do is wait 30-45 minutes to take a look. For swing trading positions I’m probably going to wait until Thursday or Friday to see any swing trades that I may be interested in. Keep all that in mind.

It’s just been as steady as she goes as I mentioned in last night’s videos and today was no different. We opened up above the speed lines and then looked for the longs and that’s what we kept focus on. So you guys have a great night. I’m sure we’ll have plenty to talk about after tomorrow’s FOMC meeting and look forward to seeing you in tomorrow’s Live Trading Room or tomorrow evening in the nightly newsletter.

Leave a comment!
Read previous post:
A Steady Market Ahead Of The FOMC (QE) Announcement And Fireworks

Welcome back gang! We’re going to look at the stock index futures tonight. The key thing from this morning was...

Close