FOMC Trade

Today I have an FOMC Trade in mind but before that, the short trade on MU worked out very well.  If you held it through to this morning you should have pocketed better than 40% gain.  Congrats to those who took the trade.

With he FOMC meeting beginning today and the expected rise interest rates I want to pick up some TBT.  Bonds are normally negatively  affected when rates rise. With possibility that the Fed may project more rate hikes next year due to the Tax Reform bill we could get a bigger reaction.  To take advantage of that consider the TBT JAN 33 Calls.   A close below price support would be a good time to stop out.

Recently Closed Trades

CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2^nd CSCO Trade 30%

Today’s Market Prep Note

Waiting for the Fed. After this FOMC meeting, we will likely be bidding farewell to Chairman Yellen. As her final act, she will likely leave us with an interest rate increase. That’s not a surprise the FOMC has been projecting that possibility for months now. However, there is speculation she could leave us with a nasty surprise on Wednesday in response to the Tax Reform bill. Many are thinking the FOMC could project additional interest rate increases next year as a result. Currently, they are projecting just three. Any additions could make for an interesting market reaction at tomorrow. Plan accordingly. Also, keep in mind that as the market waits for the official FOMC statement price action normally becomes light and choppy. As we reach out for new all-time highs, it would be wise to keep that in mind as you plan the path forward.

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Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.