Yesterday it was noted there is a very specific pattern for FOMC Announcement Days over the last 20 years. A picture was painted of three scenarios and Scenario 2 played out.
Scenario 2 is if SPY is lower for the day and if we continue to trade lower post the FOMC, then expect an up Thursday. This was a bit sloppy but that was what we got.
Wednesday saw SPY open at $189.58 and then trade up to a peak of $191.56 before coming back to $190.32 at 2:00 with the FOMC Announcement. From there it traded to a close of $188.12. Today we closed at $189.13 effectively higher by a $1.
That said it was a struggle with eight programs that drove stocks higher or lower through the course of the day. Each one lasted an hour.
The low last week was $181.02 so we are higher by $8.11 or 4.48%. This is sloppy trading but you need to be thinking ahead to capture gains.
4.48% in 6 trading days is pretty amazing the problem is that few if any capitalized on this move.If you enjoy the content at iBankCoin, please follow us on Twitter