Many students are surprised I don’t trade interest rate decisions. I also don’t trade options expiration days.
In my experience, my edge is small, so I don’t take risk. How about you? Do you have an edge that justifies a trade at 2pm today?
Day trading an FOMC announcement is a decision to make before the day starts.
If you make that decision, after the announcement because of the volatility, you deserve to be separated from your money.
Serious traders, smart traders, preserve capital with their choices as much as with a stop loss. The real risk in a trade is the quality of the idea.
Before you place a trade at 2:05pm today, be honest if it’s a great idea. Be smart, have patience. Let the dust settle, and then trade the last 90 minutes if you feel the need.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
Day Trading Game Plan: The SPY ETF Outlook
The $SPY is at the perfect storm of indecision: 50% retracement (200-212), 20ema and the 50 sma resistance, and it’s stuck in the middle of the 8 week trading range. No bias, charts are out the window here…FOMC is the catalyst.
(click the chart for a full view)
Pete’s Notes:
- Financials find a bid before the FOMC. A holiday gift appears to be on tap today.
- Basic materials see an oversold bounce. Does it have legs?
- Interesting to note FB and AAPL do not get bullish interest for the day.
Technical Analysis | Charts of Interest
We have stalked JNJ for a few weeks now and finally see two days of buying with good volume. The key trigger is price closing above the $103 level. The first target is $108.51.
(click the chart for a full view)
FOMC Rate Hike Decision 12-16-15 | Stocks to Trade
> 20sma | positive week | closed 2% higher from the open: ILMN, MNK, EXPE, TMUS, XOM, CVX, EA, PYPL, JAH
<20sma, negative last 5 days and closed 2% lower from the open: yelp, mmm, crus, twtr, fl, lng, de, ua, hfc, cvs, bhi
Bullish Ideas ATR/Volume/Price: EXPE, CVX, EA, CTXS, AMGN, TRIP, FSLR, EL, ACE, ADBE, MCD, QUNR, HD
Bearish Ideas ATR/Volume/Price: lg, mmm, ua, hfc, aapl, hon, utx, hca, cmi, twx, thc, gme, dvn, wmb, etp, cf, clr, mpc, apc, lvs, xon
Weak Stock Weak Close: bhi, hbi, hfc, lng, mmm, twtr, ua
Strong Stock Weak Close: BXLT
Weak Stock Strong Close: fti, sm, cma, bx, csx, oke, wwav, mos
Strong Stock Strong Close: EXPE, ETFC, CTXS,
20 day Breakdown: dhr, hfc, lng, m, mmm, yelp
20 Day Breakout: ADBE, BMY, CCL, COH, CSIQ, CVX, DUK, EL, EXPE, JNJ, K, PG, VRX
2x Normal Volume: NWL, JAH, MMM, BHI, FSLR, HAL, YELP
Watch List Longs: CVX, AMGN, BMY, JNJ, KO, MCD, INTC, ADBE, MSFT, KLAC, DAL,
Watch List Short: adm, bby, slb, bhi, hon, axp, akam, lvs, ntap, m, tol
Inside days: etp, mat, dvn, aal, hlt, apc, ntap, twx, brcm, jblu, clr, gps, swks, jwn, wy, stx, bby, ncr, avgo, wdc, urbn, mar, cmi, akam, dhi, skx, anf, nue, bbby, tol, rax, ftnt, thc, car, vmw