IIFT Daily Note with Peter Brown

All about FOMC.

Posted by:  |  Time: 7:23 am  |  Topic:  |  Comments: 1
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Well by this time tomorrow the mystery will be over. Hopefully we will have a clearer direction as to tapering and interest rate policy from MR Ben Bernanke.Massively hyped out of all proportion I feel but the market has got itself all excited about it. Most expect a 10-15bln taper and commitment that interest rates will remain low into 2015. Probably the interest rate forecast is more important given the nervousness in the bond markets of late.

However we will get the usual 100 point candle as he starts to speak. The only trading opportunity is to scalp it our set a sell 50-80 points above 6.55 pm level. That way you hope to get a high sell in on the excitment. The risk reward is all on the downside because we are up so high. The market is likely to profit take after the announcement,.

In the meantime it is tech trading, today’s levels are 1710 1702  1694 (sept Fut) Euro 1.3380  1.3320

One Comment

Terry Pierce

September 18, 2013


No a bad idea placing a buy order well above the level at 6.22pm level, and taking the chance that you catch the spike at the top.
It is a very dangerous time to trade I find due to the amount of Algo’s that literally follow the movement of his lips during the press conference. which creates such a drastic level of volatility and irrational swings. I take you point that the risk is to the downside and I do expect to see some money being taken off the table into the press conference, but it will be interesting to see how the market will react to a ‘Taper’ recent market momentum would suggest that the market is beginning to accept that ‘Tapering’ is a reality and is in fact a positive thing for the US economy.