Intraday Look and Analysis: Leave the Punditry to the Fed Watchdogs

On trading days when we have announcements from “The Fed,” the price action is almost always choppy right around the time after the statement is released. The rest of the trading session is usually full of whipsaws, with stock traders all of a sudden becoming experts in monetary policy, parsing the statement as though they are all PhD’s in English.

The better approach is to usually let the dust settle and see the reaction to the initial reaction the following session. Thus far today, we saw a spike lower followed by a reversal higher. Instead of riding the Fed Day roller coaster, the most likely scenario is a few days of back and forth action, even if we are set up to go higher from here.

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