Posted in Current Events
By: Tom Gentile on March 15th, 2022 • 2 mins read
Expectations of the Fed this Week
There seems to be much more anticipation for this weeks Fed Meeting than in recent ones. Large in part because it is expected the Fed will raise the short-term interest rates by at least a quarter of a point.
They are also expected to give an update on their winding down or reduction of their buying programs that have been largely attributed to the reason the markets have performed so bullishly the last part of last year and prior.
They are also going to talk about reducing their balance sheet.
What to do Ahead of the Fed
I am not that active the day of the Fed announcement.
Are we going to see a bunch of buying prior to the announcement only to sell off after Chairman Powell speaks / makes the announcement.
This would be a classic Buy the rumor, sell the news situation.
There are also times where the price action in the markets is a but muted, meaning there isn’t a clear directional trend going into the announcement. Then the announcement hits, Powell starts speaking and then things ramp up lower or higher.
I feel it is best to keep my powder dry in the sense, I am not going to add to my positions or add any new positions until after the announcement and I can get a gauge on how the markets are digesting that news and reacting.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.