Trading the News…

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Trading on The News


See below how the market traded down during the day as it approached the 2 o’clock hour when the FOMC announcement would occur. Then once it was announced that rates would be hiked in the future (most likely September, but not NOW) the market quickly rallied. To then sell off as bulls took their gains. It’s an expected hysteresis from such an important news report. It doesn’t affect the long investor, but it can be a great opportunity for the short term trader.

Capture

*Chart from Google Finance


Disclaimer: The information presented does not consider your personal investment objectives and should not be taken as a recommendation. Further, it shall not be construed as an offer to sell or a solicitation to buy any security mentioned. The risk of loss in any stock, option, or futures trade can be substantial. Consider all relevant risk factors before trading.

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