How I Would Play The FOMC news

Just had a good shower. Quite refreshing.

Immediately after the FOMC news (2:15pm ET today), I expect dramatic movements in the market. It provides good opportunity to make money.

Key to playing the FOMC news is to have access to the news fast. In this case, I rely on Briefing.com (Platinum service) and CNBC. The next step is to quickly interpret what the FOMC statement meant and what the market interpret it as. Use of Candlesticks charts is also important to me.

If the market interpret it as a pause in interest rate hike, almost any stocks would probably rally. Housing stocks (e.g BZH, KBH, DHI, etc) and home lenders (e.g. LEN) would probably be among the gainers.

If the market interpret it as - more interest rate hikes in the near future, then most stocks would probably slide. The Housing stocks (e.g BZH, KBH, DHI, etc) and home lenders (e.g. LEN) would probably be among the worst losers.

To maxinise returns, I would play at-the-money or in-the-money options. I might even play the QQQQ.


- PersianCat04 (Millionaire-in-progress)