RSSFOMC Trading Pattern
By Ray Barros | June 25, 2009 | 10:23 AM | 0 Comments
First off an apology: I wrote my piece late last night - actually early this morning - and with preparing for FOMC and attending to the new Forum/Twitter Service, I overlooked clicking the ‘Publish' icon. As a result, my "Unconscious Motivators III' has been delayed by 24 hours.
Today I want to focus on a pattern that is reasonably reliably for FOMC rate decision announcements. Last night it again proved its worth.
"Wait around 10 minutes after the announcement before putting on a trade - only then does the ‘true direction' reveal itself"
 And so it proved last night. Ten minutes after the announcement a down move started that lasted until 15:20. Note that last night's post FOMC trading was a mute affair. I have seen some wild gyrations in the first 10 minutes that was followed a sustained and strong directional move into the close.
Click image to enlarge:
 
FIGURE 1 10-Minutes after FOMC
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