FED Keeps rate UNCHANGED --> Market Drops Today --> $790 profits
5 min Emini Nasdaq 100 Candlesticks
Hi,
How's it going? Today's a classic trade and I am glad I executed it well.... this is sort of a no-brainer trade and I certainly hope you made money on this.Let me list all the technical factors that let me to short the market..
1 Price gapped down by around 5 points. Normally we would expect price to close the gap, but even by 11 am, there were no signs of closing the gap. --> market shows weakness..
2 Price broke moving averages
3 stochastic cut down from overbought region
4 Short-term MACD crossed zero line
5 Trade confirmation by Mid-term MACD
6 If you like, FED rates left at 5.25%. ( but this was not really a factor for me entering the trade) .... So rates unchanged is bad for market
All the ducks are lined up! So what do we do? Short! Shorted 1 contract at 1906 and another 2 contracts at 1898 when there was a pause in price action... after that,,, it's just riding the trend... my exit?
simple, white candles appeared and stochastics seemed to be turning up... exited at 1887.5 with $790 profits..
Simple trade, clear enough, you just have to act on it!
Fundamental news:
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.
Economic growth slowed in the first part of this year and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to expand at a moderate pace over coming quarters.
Core inflation remains somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.
In these circumstances, the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected. Future policy adjustments will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.