FOMC announcement - Bernanke raises rates by 0.25% EQUALS $960 for me!
Hi,
Plain and simple, what can I say, I play the FOMC annoucement for years now and it never fails to make me good money every time.
Analysis from Briefing -->
anticipation of, and then digestion of, today’s FOMC event that dictated trade. For the fifteenth consecutive time, the Fed raised the fed funds rate by 25 basis points. As had been expected, it wasn’t today’s tightening that sparked selling. The rate hike, to 4.75%, had been fully expected. The catalyst was instead the accompanying policy statement. Some participants had been hoping that the Fed would signal an imminent end to the current monetary tightening cycle. The directive’s diction was little changed, though, and provided no signal that rate hikes are coming to an end.
Specifically, the statement kept intact the wording that "some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance." Furthermore, the statement also maintained the statement about the concern that "possible increases in resource utilization, in combination with the elevated prices of energy and other commodities, have the potential to add to inflation pressures." This does not mean that several more rate hikes are certain, but the lack of any change in the statement suggests that the FOMC is currently anticipating raising rates at least one more time, and possibly more. As the Fed has asserted, policy decisions will depend on the data.
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I didnt read the news, I didn't even watched CNBC after the annoncement was made, CNBC was sayingt that fundamentals remain strong and expected a rebound later in the trading session. All these does not really matter to the day trader. We capitalize on short term imbalances. I shorted one contract at 1704 and 4 more at 1701. My profit target was at 1692. Within an hour, my position closed with $960.