May 10, 2006: FOMC

Today was day 4 of cnsld pattern a resolution to the upside or downside was supposed to ensue. It was also FOMC so there the picture was mixed. Dow and ES continue to lead market while NQ & Semis continue to warn that this rally isn't supported. One of the positives I see is BKX breaking out to new highs and holding. As far as setups I didn't see anything enticing other than dbl. humper on NQ but that was about it.

TDs are not unusual after FOMC and they usually take place 1-2 after announcement. So I'm expecting some fireworks especially on ER that keeps holding at the highs. My hunch tells me that the picture might stay mixed till Dow fulfills its promise by hitting all-time new high.


Gold is on steroids and I'm going along for the ride. Silver gave a nice short setup. These two are more suitable for me in terms of trading hours and setups. I had my best trade on notes today after bumping up the tf to 4h. Let's see how that goes but that might be the way to put less focus on notes and more on those big movers such as metals. Currencies remain a mystery although I had nice trades on Swiss Franc & Yen and that was after the FOMC. Something must be moving these things from a technical perspective and my mission is to find out :P