Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

5 Things to Watch on the FOMC Announcement


The reaction to news will be more important than the news itself.

Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.

The waiting is the hardest part...

The entire (investment) world is chomping at the bit for Big Ben to chime at 2:15 p.m.; here are some things to keep an eye on following the announcement.

1. Gold: It's been under pressure, -23% since October with a persistent pattern of lower highs. One would think that a fair amount of tapering has been priced in; the yellow metal needs to hold $1,350 to maintain the emerging attempt at 'higher lows.'

2. The Financials: Note the flag pattern in the BKX INDEXDJX:BKX); these patterns tend to resolve in the direction of the prevailing trend (in this case higher), but that's not written in stone. Goldman Sachs Group Inc (NYSE:GS), in particular, should be on your radar; it's been a tremendous single-stock tell.

3. Market Internals: They'll lag, as futures will provide the quickest exposure for active robots traders, but this will help us determine 'migration vs. rotation,' which will help shape the forward prognosis.

4. The Dollar: A higher dollar should be a headwind for stocks, and vice-versa, all else being equal (which it rarely is).

5. S&P 1650: This is 'the' pin into Friday, and it will be a magnet until then. The ability of the tape to meaningfully meander from that strike will offer a stealth clue. The further away it moves, the less attraction it will provide into the back-half of the week.

For my part, my pad is pared with a short bias; long some single stock situations and some SPY December puts, and I'll trade around that as a function of time and price. And remember, the first move is typically the false move after the FOMC!

Gold scold:

Pennant in the piggies!:


Twitter: @todd_harrison

Follow Todd and over 30 professional traders as they share their ideas in real-time with a FREE 14 day trial to Buzz & Banter.
Position in SPY.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos