Was today manipulated? Fed announcement trading automation

T

tempt187

Okay, we all know the FED announced today, but at 2pm EST I was stopped lossed out instantly as almost every US based stock and ETF dropped like a rock!

Then, less than 1 minute later everything started charging upward. How is this possible on such a broad scale? Is this sort of thing automated?

Look at ANY chart on a minute time frame and you'll see the huge drop and spike at 2pm.

Do most of you just stand on the sidelines when such events are going to occur?

Thanks!

TempT187
 
Yes, I do not take new position 30 minutes before FOMC and get out of 100% of my positions before the announcement. It is recommended not to trade the news unless you are trading the Tape.
 
A sad as this is going to sound.

Yes, that is standard type of behavior just in moments of announcement

Most retail traders stay clear for 5 min till direction is picked.

Having said all this, I have to point out that crapload of people used to make fun of those who said Plunge Protection Tam exists, anyone who spoke of market manipulation by FED used to be laughed at.

They should clearly apologize
 
Yes, stay away from the whipsaw.

Quote from tempt187:

Okay, we all know the FED announced today, but at 2pm EST I was stopped lossed out instantly as almost every US based stock and ETF dropped like a rock!

Then, less than 1 minute later everything started charging upward. How is this possible on such a broad scale? Is this sort of thing automated?

Look at ANY chart on a minute time frame and you'll see the huge drop and spike at 2pm.

Do most of you just stand on the sidelines when such events are going to occur?

Thanks!

TempT187
More...
 
Quote from tempt187:

Okay, we all know the FED announced today, but at 2pm EST I was stopped lossed out instantly as almost every US based stock and ETF dropped like a rock!

Then, less than 1 minute later everything started charging upward. How is this possible on such a broad scale? Is this sort of thing automated?

Look at ANY chart on a minute time frame and you'll see the huge drop and spike at 2pm.

Do most of you just stand on the sidelines when such events are going to occur?

Thanks!

TempT187
More...

News like that create volatility. You should worry if they didn't. If your stops were wide enough you could have gained.
 
Quote from ronblack:

News like that create volatility. You should worry if they didn't. If your stops were wide enough you could have gained.
More...

SPY tanked $1.30 in seconds on that announcement. That is a fairly wide stop loss (depending on your timeframe).
Lot of guys got stopped out by the HFT manipulation. There wasn't even real selling volume, just algo's pulling bids.

HFT "Provides liquidity", LMAO.
 
The Fed and other central banks made the markets very dangerous, what you could do in the past, you can't do anymore.
At some point, there will be catastrophic events that will give you great trading opportunities but right now , it's so easy to get whipsawed .
 
I'd usually stay away just before any fed announcement. I happened to be short SPY and so made a quick buck.

This sort of crap happens even on regular days. How many times have you seen the market fall below the day's low one last time before charging up?
 
Quote from tempt187:

Okay, we all know the FED announced today, but at 2pm EST I was stopped lossed out instantly as almost every US based stock and ETF dropped like a rock!

Then, less than 1 minute later everything started charging upward. How is this possible on such a broad scale? Is this sort of thing automated?

Look at ANY chart on a minute time frame and you'll see the huge drop and spike at 2pm.

Do most of you just stand on the sidelines when such events are going to occur?

Thanks!

TempT187
More...

I highly recommend you do your research before trading another FOMC announcement price action.

What you have described is normal price action for FOMC. The only thing different about this particular FOMC announcement is that it behaved like the old FOMC announcements prior to 2008 because after 2008 the FOMC announcements have lacked the volatility to put in very large directional movements like it use to do in the past.

Simply, it was nice to see the old price reactions like we use to see for 15 years prior to 2008. It was very nice way to end the year with juicy volatility like that as the last FOMC of 2013 because too many markets were dead in their volatility for the past several months since the U.S. Government shutdown fiasco.

Another way to look at it. I share the same view as ronblack implied...I would be more worried about FOMC announcements that lack volatility in comparison to prior FOMC announcements.

I myself, I trade FOMC if I get a trade signal.

P.S. My New Year's wish for 2014 is that FOMC announcements for 2014 continue like the last one of 2013...tons of volatility.
 
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