FOMC, rate unchanged at 5.25%, market shot up!! --> $1020 profits
5 minutes Nasdaq Emini CandleStick
Hi,
How's is it going? Today the Fed announce their policy and its a good chance to make money.. I hope you had chance to make a big fat profit... cos I did...
You can see how quiet the market is for the whole day before the FED announces their policy... at 14:15 pm.. the verdict's out and they decided to keep rate at 5.25%.. is that good or bad?
CNBC's talking about how the lingo had changed and that inflation's still a concern... blah blah blah..
All I know and can confirm is that my charts tell me that the market's interpreting it as good news... and price shot up!
I longed 1 contract at 1792... and another 2 contracts at 1802.5 when there was a slight pause in upward movements... after that, it was just a smooth ride up, until the market started to pull back a little..
and I exited at 1816... with profits of $1020.
Fundamentals:
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 per cent.
Recent indicators have been mixed and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.
Jan. 31 statement: Recent indicators have suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Overall, the economy seems likely to expand at a moderate pace over coming quarters.
Recent readings on core inflation have been somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.
Jan. 31 statement: Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time. However, the high level of resource utilization has the potential to sustain inflation pressures.
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Jan. 31 statement: The Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.