Today is Fed Day…All eyes and ears will be on language regarding the tapering of “QE Forever”. How the markets respond is uncertain which for day traders should provide plenty of opportunity. Intra-day ranges have been wide, so per yesterday’s strategy title “extreme trading”…expect more of the same today.
Trend Day up yesterday provided plenty of valid Discount Setups for the membership which hit the daily target of 1648 handle laid out in strategy post. Pre-Market action is relatively subdued and rangebound between 1640 – 1648. We are anticipating quiet trade leading up to Fed announcement and news conference.
IF price penetrates PDH, THEN projections carry a wide range from 1650 – 59…very wide indeed, but this is because of recent volatility. On the downside, levels to watch are 1640, 1638, 1632-34. IF PDL is violated, THEN 1627 – 1621 is in-play.
Yes these are wide ranges to consider, but Fed Day is not a normal session and with varying opinions could result in big price moves…hence “extreme trading”. Stay Alert!
I think in terms of probabilities. I do not know, all I have are probabilities. Probabilities are at the core of my decisions. Through consistent application of the probabilities, I will win.