If you're primarily a spoos trader, you would've had a lot of fun trading today. There were so many great trades for both bulls and bears today. But the central theme I'd like to address here is the endless speculation of the FED rates. We've already gotten a NO in September, now the rumor mill has started again for December.
Yellen, perhaps, did a 180 today in her speech. I understood it as quite dovish and amazingly, the markets cheered her on. The dollar spiked and the S&P recovered the initial drop. Whether there's follow through, that remains to be seen. The market wants a hike and it's increasingly obvious that a hike would somehow be good for the stock markets (as stupid as that sounds). In a trading environment where gravity can change on a whim and nothing is ever black and white, you have to be ready to change your trading plans quickly. As for me, sticking with my trading strategies have worked best. Hike or no hike - makes no difference to me. I just watch for the setups I like and jump in there. Everything is theater, and everything is a trading opportunity. How you exploit these events depends on how good of a trader you are. If you spend most of your time trying to understand the stupidity of central bankers, you may find yourself needing a shrink very soon. Trade carefully! -G
2 Comments
kim silva
9/24/2015 05:00:05 pm
Thanks for putting that out there. I am SO sick and tired of the Fed this and the Fed that.Have to get back to tuning out the noise.
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Gman
9/24/2015 07:35:10 pm
Absolutely. I am tired too of analyzing what they're trying to do. They are causing more harm at this point.
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Multiple AuthorsTraders from Equity Sense will be writing on this blog on positions and other market-related things. Archives
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