Markets giving back post-data gains… News reporters will call it a Buy the rumor, sell the fact reaction…but it is more than Powell did not send a signal and left it up to a meeting by meeting decision (see my post below)… rates are heading lower but pace is determined by data
volatility is what makes traders their money… that is why I would always be making calls on stg/yen… otherwise t-bills/bonds are better for linear gains… no chance of loss unless living in Pakistan or similar economy.
Rafe – Concur, thank you. And if one does not have access, and is limited to spot, then perhaps more stable/less volatile pairs such as AudCad are good for days such as this if one does not have much risk tolerance or tiger attitude.
In that case puts are better as options strategies… or at least for Indian markets but Indian markets are very resilent and very sturdy. If anything happens it affects them for a day or so but then they bounce back to break all time highs.
Technically the strongest way to approach days like this is with option contracts but you really need to know what you are doing and not even think for a second some guru on youtube or tiktok thinks they know what they are doing. That includes the various “signal service” sites on the net. I have met some of them in my travels and they are cast offs, some who worked in a bank for a while, who could not even sniff what it really means to know what you are doing or match the professionals I have dealt with. Use your heads people.
Frankly I don’t care what the FED does because I am not running a billion dollar portfolio at present. I just want them to sneeze and provide actionable participation opportunity without getting scorched. Therefore, I have multiple orders, very light on leverage, at various points way outside of current market. If none are reached then I pounce on the momentum. That is how I approached days like this as a CTA.
Thus week’s ranges so far… stops are generaly placed outside the low/high for the week but not sure why anyone would place a stop after a key event kike the fOMC… look at your charts to see key levels outside of these levels
