November 1, 2005: FOMC

Today was FOMC so everything considered one should stay on the sideline if possible. The only trade that can be taken that's safe and conservative is 1 hour after announcement. Market was mixed: breadth was indicating weakness since it opened lower that previous day range and surely found ceiling at bands and reversed. VOLD action confirmed shorts as well. Other than that the indices were mixed but didn't point to strength or longs so the should at least defined direction. Now it's up one to decide on where is the best short setup or not all together!... Tomorrow, I expect action to the downside...

Nothing on this setup says it's high %. ...but it also shows a good lesson learned in terms of choosing direction and bias... any longs here??? NO WAYYYY!....keh keh....AB/ER shows some consolidation just below ema before FOMC then b/o above that... that's not a good setup since I like cnsld to take place above ema...also it's FOMC anything can happen.... then we have the downward action on VOLD and resistance in ADD... short setup that I pointed out to is the only trade and that should've worked... now most important thing on this chart is the stop... where to you place stop when range of consolidation is that wide??? most logical place is forget the range and place it just on the EMA... one can see that this is exactly where the market reached its measured move objective.... wowza... hehehehe....