FOMC Meeting

Trading around an FOMC meeting can prove to be very challenging for most swing traders.  This morning the Futures are putting on a brave face as if the market has no concern about an interest rate increase.  Perhaps that true but remember the market hates uncertainty, and the FOMC Forecast is one of those big unknows that can give the market indigestion.

It is also important to note that light and choppy price action is typical as the market waits for big news events.  Consider that before rushing into positions and adding risk today.  The last thing we want to do is end up in trade trades that sputter and stall ahead of the announcement which often creates wild price action where anything is possible.  Consequently, I want to use an extra measure of caution.  Plan your risk carefully and watch for whipsaws and head fakes with this mornings gap up near market highs.

Trade Wisely,

Doug

Sorry everyone I had a power blink just after writing the morning note and the entire thing was lost.  I quickly rewrote the first two paragraphs but did not have to recreate the entire note.