Wednesday, October 31, 2007
Fed lowers rate and good trading on market today
As usual on FOMC announcement days, I make sure to assume a flat position about 30 minutes prior to the actual news. This is because I have no interest in getting caught up in the whippiness that usually occurs after such a significant announcement. The problem with that is just because you have a stop set on a trade, doesn't mean you are protected in case of extreme volatility. The market price can easily jump right over your stop triggering it, but you might get filled 20, 30 or 50 tics beyond that once the order is executed. But prior to the announcement, we had some good trades on Russell, Gold and mini-Dow. I went flat before the announcement and after that there were no valid patterns to take. So overall, good trading today.
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