Post FOMC Minutes Musings

I hate FOMC days as most of the sessions are boring as hell ahead of the widely anticipated afternoon FOMC minutes. Since quantitive easing began in earnest in December 2008 it has turned into a monthly ritual I frankly could do without. However that said – over the past few months we’re seeing a rather salient lack of volatility post any FOMC events. Which is great news if you ask me – the less Fed meddling the better.

If you watched this morning’s video (or were a Zero sub yesterday evening) then you know that I managed to grab a few long positions on the E-Mini near the 1990 mark (courtesy of our trusted Zero indicator). So far so good and I just moved my stop to break/even. However that doesn’t mean we’re out of the woods just yet – as a matter of fact it is right here where this first attempt of a counter rally either takes off like a rocket or meets its maker.

See here the SPX hourly panel – we are still pinned below the 25-hour SMA and thus far it’s holding. We need to breach SPX 2030 pronto – the next hurdle after that would be 2050 but let’s see if we even get there.

What irks me a little is that several Forex correlations are not playing ball – just yet at least. Here’s the GBP/JPY and the EUR/JPY was pushing sideways as well. So pay attention here and watch the Zero for early signs of trouble.

Speaking of which – I couldn’t help noticing that the signal has gone completely flatline during the FOMC announcement. I don’t know but we ought to see a lot more participation here. A flat signal like this means pretty much anything could happen here at any time. And if VWAP gives way then down we go and I’ll most likely be stopped out today. But let’s see what happens here in the final hour – alea iacta est – it’s up to the tape now.

I actually found several exciting setups on the Forex side – two of them could turn into weekly campaigns (assuming they pan out). Please grab your secret decoder rings and meet me in the lair:

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Cheers,