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  1. #1
    Junior Member giveittomikeyk's Avatar

    FOMC Interest Rate Hike today !!!

    today is the big day.
    i have been keeping tabs on sentiments this past week and what i am hearing is...
    many are saying the anticipated action by the fed has already been priced in.
    some are rather saying a selling of the USD will happen, because investors are already long on the USD pre FOMC
    but i think the key point to look for is if the Fed surprises the market with a hawkish rate increase to 0.5% from 0.25% rate

    this is my anticipated set up when 11am PST comes around

    Dovish – no lift off, remain at 0.25%
    • Gold – CALL end of day
    • Eur/usd – CALL end of day

    Hawkish – yes lift off, 0.25% to 0.50%
    • Gold – PUT end of day
    • Eur/usd – PUT end of day
    • Aud/usd – PUT end of day
    • Usd/jpy – CALL end of day
    • Bank of America – CALL end of day

    i could be very wrong, since ive only been trading since september
    but i want to hear your inputs, since most of you guys are experienced traders

  2. #2
    Legendry Member milos's Avatar
    The Federal Reserve raised the benchmark interest rate in December the first time since 2006 to 0.50% from 0.25%. It was in line with forecasts of economists.The dollar index was sharply higher against a basket of currencies.

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  4. #3
    Moderator Kolyo's Avatar
    You were right giveittomikeyk! The expected reaction was as expected – rate hike happen and dollar strength across the board, but it was very mixed yesterday and only today we saw some more straightforward reaction.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

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  6. #4
    Junior Member giveittomikeyk's Avatar
    Quote Originally Posted by Kolyo View Post
    You were right giveittomikeyk! The expected reaction was as expected – rate hike happen and dollar strength across the board, but it was very mixed yesterday and only today we saw some more straightforward reaction.
    thanks for your reply kolyo. youre right how today there was some more straight forward reaction.
    based on your observation, do you think the rate hike effect will reverberate through out the end of the month?
    because i might as well planning to place same end of day trades to take advantage of this profit train. haha

  7. #5
    Moderator Kolyo's Avatar
    It is really possible to see a slump move next few days, although I don’t think it is good idea to just enter into daily PUT positions every day. We have a kind of resistance at 1.0800 and close above this level it is not recommended to try shorting the market. I will wait for some pullback higher and than will enter with short positions. The other possibility will be if we see some bounce higher up to 1.10 and this will be a good opportunity. Check this chart to see how it looks at the moment http://prntscr.com/9foz3y
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

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  9. #6
    Legendry Member Michael Hodges's Avatar
    Yeah, today is quadruple witching day so there is going to be volatility, this isn't a reversal in the market I'm pretty sure. Monday we could snap back, and earnings start in a couple of weeks...

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