Trading FOMC reaction: Got a strategy?

[KCalhoun]

Tomorrow afternoon the market will react to FOMC statement... do you have a daytrading strategy in mind?

Mine is to buy inverses TZA/TVIX if market sells off, or buy SPXL/TNA if rally.

 

[Overnight]

Tomorrow afternoon the market will react to FOMC statement... do you have a daytrading strategy in mind?

Mine is to buy inverses TZA/TVIX if market sells off, or buy SPXL/TNA if rally.

The Fed will stand pat and the markets will yawn and grind up. There is no virus only ZUUL!

If Powell says we've pumped enough, now we raise the rates soon? The markets plummet and grind down. There is no more QE only ZUUL!

Powell dies from the COVID tomorrow before the meeting? The market goes both ways at the same time and the universe implodes. There is no universe only ZUUL!

 

[tango29]

I do, and have been using it for quite a few years, and other than having to reverse on occasion it has been a very good trade(s).

 

[KCalhoun]

The Fed will stand pat and the markets will yawn and grind up. There is no virus only ZUUL!

If Powell says we've pumped enough, now we raise the rates soon? The markets plummet and grind down. There is no more QE only ZUUL!

Powell dies from the COVID tomorrow before the meeting? The market goes both ways at the same time and the universe implodes. There is no universe only ZUUL!

Lol, last one had almost no reaction, hopefully tomorrow's will move it.

Besides, there is no Dana only ZUUL

Who you gonna call?

 

[Tradex]

Tomorrow afternoon the market will react to FOMC statement... do you have a daytrading strategy in mind?

A few years ago I studied the price action before and after important financial reports: FOMC, NFP, retail sales, CPI, GDP, trade balance, etc...

Overall the results were, at best, mixed.

The "winner" was the Non-Farm Payroll, where you could simply fade the initial move and profit handsomely.

Unfortunately this technique is long dead.

 

[Handle123]

One stares at price patterns long enough, one will formulate trading concept on how to trade news reports. And no hints of how it done, otherwise have more people to compete against

 

[Tradex]

One stares at price patterns long enough, one will formulate trading concept on how to trade news reports. And no hints of how it done, otherwise have more people to compete against

There are a few FOMC strategies on Youtube, here is one of them. I did not test it but it may have some merit:

 

[KCalhoun]

Inverses SDOW SRTY TZA FAZ TVIX great moves up, will add if they keep running up.... go bears! (^_^)

 

[Pekelo]

I vote for fading the initial reaction.

 

[KCalhoun]

I vote for fading the initial reaction.

Could be.... I'm trailing close stops on my FAZ TVIX TZA SRTY

Surprisingly bearish open range, usually FOMC days are choppy boring af til 2pm.

TRIN & VIX up sharply = strong sell pressure this morning. I'll take the other side and vote selloff post fed and gap down tomorrow