Online Stock Trading | Traders Move into Position for the FOMC

Traders Move into Position for the FOMC


Filed Under Market Commentary |

10:00pm EST Traders and Investors jockey for position ahead of Wednesday’s FOMC Target Rate decision.

It is no surprise that today we saw a significant drop off in volume. Traders are not going to make large bets infront of a much anticipated FOMC meeting.  Many are anticipating the FOMC will save the day, a magical rate cut will cure all that is making this market sick.  However, price and volume action has not shown that this will be the case.  It takes time to clear out the excess in a market.  The sub-prime mortgage fiasco has clearly affected more than just the housing market.  It has crippled major powerhouse banks, including overseas banks.

I would be tempted to add to SDD and TWM position here, especially if we move up higher tomorrow on lower volume.  Today was Day 4 of an attempted rally and I would have liked to have seen some resemblance of accumulation if we were to get a follow-through rally.  Instead, we have Friday’s bearish reversal then today’s gains on extremely low volume.  We should be seeing signs of accumulation if we were going to get a rally, so far we have seen a dismal display of it.

Keep your losses small and do not try and be a hero.

Market Speculator

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Comments

One Response to “Traders Move into Position for the FOMC”

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