[Tams]

20100623

FOMC
Meeting Announcement
2:15 PM ET

[AmCan1]

Do you think this is a good day to trade or to stand down? I have often wrestled with this. I know a lot of my trader friends refuse to trade on FOMC day, or any Fed day for that matter. I'm curious to hear what other's think.

[Tams]

FOMC Minutes
2:00 PM ET

[Tams]

Originally Posted by AmCan1 »

Do you think this is a good day to trade or to stand down? I have often wrestled with this. I know a lot of my trader friends refuse to trade on FOMC day, or any Fed day for that matter. I'm curious to hear what other's think.

> I have often wrestled with this.

trading is not wrestling.
if you have to wrestle with this, then my advice is --- don't trade.

[TheDude]

It depends on the climate IMO.

For the past 6 months or more, FOMC and minutes have been non events because of the wide spread understanding of the economic condition. Rates aren't rising any time soon and the market knows and expects this. The minutes are where the detail lies and can have more impact than the actual announcement. The last minutes release however was a bit of a non event from memory however.

Historically however (speaking of ES) is that the FOMC release just gives volatility spikes, but rarely is value or it's perception changed. You just see stop running of the day's high/low before settling where it started. The minutes can however give rise to a change in value and the associated trend.

I think this afternoons minutes will be a non event. Because of this, I'd say thats a sure sign all hell will break lose and the market will sink to 0000.25!!!

[Tams]

Tuesday Aug 10, 2010
Economic Calendar - Bloomberg

FOMC Meeting Announcement
2:15 PM ET

Consensus
Federal Funds Rate - Target Level 0 to 0.25 %

Market Consensus Before Announcement

The FOMC announcement for the August 10 FOMC policy meeting is expected to leave the fed funds target unchanged at a range of zero to 0.25 percent. Traders will be picking apart the statement for any wording hinting of additional quantitative easing and for changes in the Fed's view of the economy.

Definition
The Federal Open Market Committee (FOMC) is the policy-making arm of the Federal Reserve. It determines short-term interest rates in the U.S. when it decides the overnight rate that banks pay each other for borrowing reserves when a bank has a shortfall in required reserves. This rate is the fed funds rate. The FOMC also determines whether the Fed should add or subtract liquidity in credit markets separately from that related to changes in the fed funds rate. The Fed announces its policy decision (typically whether to change the fed funds target rate) at the end of each FOMC meeting. This is the FOMC announcement. The announcement also includes brief comments on the FOMC's views on the economy and how many FOMC members voted for and how many voted against the policy decision.

2010 Release Schedule
Released On:
1/27
3/16
4/28
6/23
8/10
9/21
11/3
12/14

[Tams]

Tuesday Aug 31

FOMC Minutes
2:00 PM ET

[charto911]

market seems to have dropped after the fed minutes today by the look of the tape as of 2:05 compx -.599