Emini Trading Strategy on FOMC Days
Interest rates have a definite effect on the equities market which is to say the emini and micro emini market. Eight times a year the FOMC minutes are announced, on a Wednesday at 2 PM. When interest rates go up, the usual expectation is that this information will negatively affect the stock market.
Falling interest rates are generally viewed as good for the stock market. But even more than the absolute up and down of the rates, is the expectation beforehand. If rates are expected to go up by a moderate amount, and in fact they do go up by a moderate amount, the information is generally priced into the market and the market is not too highly affected.
However when the Federal Reserve decides to make significant changes to the rate increase or decrease, you can expect volatile activity in the market. On such occasions, and today April 6th is one of them, it’s probably best to stay out of the market. At least, be extra cautious.
Anyone who wants to learn how to day trade S&P emini futures needs to have as much information as possible in order to help determine where to place a trade. Trading is not easy to do because it is impossible to know the future with any degree of certainty. But the market does give off signals and a wise trader needs to know how to interpret the signals. Market prices seem to move erratically, but with enough information, trading S&P emini futures can be done with a greater assurance of success. An S&P emini futures trader who has Information about market signals and knows how to use them makes knowledgeable traders much more successful than others who use “seat of the pants” method.
Some of the information that S&P emini futures traders should have are:
- The Trend
- The Intraday and / or Low
- The Calculated Trading Zone via Taylor’s Book Method
- The daily calculated range
- Support and resistance levels
- Stochastics
- Candlestick patterns
These are some of the bits and pieces of information every trader needs to have in order to assess a trade. Of course, that is not to say that even with all this information a trade will work out, but having this knowledge puts the odds of success more on the trader’s side.
Having as much information as possible gives S&P emini day traders a big advantage over “seat of the pants” traders. It cannot be stressed enough that without learning as much as possible about the market, it is highly unlikely that a trader will succeed at making money by day trading S&P emini futures, much less in a trading career.
Subscribe to my mailing list to receive information about S&P emini day trading. Subscribe using this form.
