Hey Market Pilot,
Once again the Federal Open Market Committee (FOMC) held a meeting. How will this influence the market this time?
A few years ago the release of their minutes would mean wild volatility immediately and usually into the daily close. But over the course of time, that volatility has morphed into a relatively calm two hours after the release, and then a surprise move the next day.
All of this happens when the FOMC, or Fed, may not even change anything in their statements. They could print the same message, and the powers in charge would still drop the market as if the Fed said they were raising rates by 5%.
In case you haven’t experienced this, or haven’t been able to really identify the scenario, here is a graphic showing exactly what I am discussing.
So beware if you see a bullish reaction right after the FOMC minutes (like we are today) more likely than not, a pullback is lurking. In this “bubblicious” market those big dips should be bought. Just make sure you have your timing right.
Your Profit Pilot, TG