FOMC – Pants! S&P Emini trading
At 19.00 GMT, the FOMC made it’s announcement.. I had no idea what they announced but the market didn’t really do that much. I entered short when the market went below a previous support level at 135000.. unfortunately, it soon bounced back up and I had to nurse a 16 price loss! Ouch!
My trade wasn’t a bad one, I had traded on break of the channel. Luck wasn’t on my side this time…. as I write, the market has broken up above the upper trend channel. If I had bought this, I could have grabbed 25 prices. However, as I had already reached my loss limit for the day, I stopped trading!
On FOMC days and other news days, you have to be aware that the technical indicators don’t necessarily work as well as they should… it’s all about about trading on momentum. The big players know where people’s entries and exits are and will try and get you where they can!
