CL Redux
- Thread starter schizo
- Start date
Thanks Kid , Ammo . All with your ( = community ) help .
Quote from EON Kid:
not bad for a days work
http://www.marketwatch.com/story/how-to-trade-the-fed-meeting-2012-06-19
How to trade the Fed meeting
1/ The Federal Open Market Committee (FOMC) of the Federal Reserve System holds eight scheduled meetings in a year. The results of these meetings provide not only trading opportunities, but also extremely valuable data points for investments. The June 19 to 20 FOMC meeting is upon us.
2/ As always, there is a wide variance among expectations by experts as to what the FOMC will do. The fact is that nobody other than perhaps the FOMC members knows the likely results of the meeting. Experts are simply guessing.
<b>3/ It pays to make an attempt to figure out how a majority of participants are positioned in various markets ahead of the FOMC meeting.
- If results of the meeting are in line with the positioning of a majority of participants, typically there is no trade.
- On the other hand, if the Fed statement is quite different from the positioning, there can be a violent reaction offering opportunities. </b>
<b>4/ Gold And silver</b>Gold and silver markets are positioned for QE3. In the present environment when interest rates are close to zero, QE (quantitative easing) is simply another way to reduce the cost of money
<b>5/Stocks : </b> The stock market isn't positioned for QE, but it is positioned for some light monetary easing such as the extension of Operation Twist. The Fed performs Operation Twist by selling short-term debt and buying long-term government debt. Operation Twist attempts to duplicate QE without expanding Fed's balance sheet. The theory is that Twist doesn't exert inflationary pressures similar to QE.
How to trade the Fed meeting
1/ The Federal Open Market Committee (FOMC) of the Federal Reserve System holds eight scheduled meetings in a year. The results of these meetings provide not only trading opportunities, but also extremely valuable data points for investments. The June 19 to 20 FOMC meeting is upon us.
2/ As always, there is a wide variance among expectations by experts as to what the FOMC will do. The fact is that nobody other than perhaps the FOMC members knows the likely results of the meeting. Experts are simply guessing.
<b>3/ It pays to make an attempt to figure out how a majority of participants are positioned in various markets ahead of the FOMC meeting.
- If results of the meeting are in line with the positioning of a majority of participants, typically there is no trade.
- On the other hand, if the Fed statement is quite different from the positioning, there can be a violent reaction offering opportunities. </b>
<b>4/ Gold And silver</b>Gold and silver markets are positioned for QE3. In the present environment when interest rates are close to zero, QE (quantitative easing) is simply another way to reduce the cost of money
<b>5/Stocks : </b> The stock market isn't positioned for QE, but it is positioned for some light monetary easing such as the extension of Operation Twist. The Fed performs Operation Twist by selling short-term debt and buying long-term government debt. Operation Twist attempts to duplicate QE without expanding Fed's balance sheet. The theory is that Twist doesn't exert inflationary pressures similar to QE.
Are you on the Aug CL contract?
its an average volume day
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html